Here are five things you need to know this morning
Air Transat, union avert strike: Air Transat and the Air Line Pilots Association have reached a tentative deal averting a strike. The labour deal comes after more than 11 months of negotiations. Air Transat says operations will return to normal after cancelling some flights to wind down operations before the possible walkout. Details of the agreement have not been disclosed, but the union was aiming for a new contract that boosts wages, job security and quality of life. Union members are expected to vote on the agreement in the coming days.
Canada’s ambassador to Washington steps down: Canada’s ambassador to Washington and chief trade negotiator with the U.S., Kirsten Hillman, will leave office in the new year. The exit comes during a critical period in Canada-U.S. relations, and before the Canada-U.S.-Mexico Trade Agreement (CUSMA) is set for a formal review in 2026. Bloomberg is reporting Prime Minister Mark Carney will tap former BlackRock executive Mark Wiseman to fill the role. It is unclear who, if anyone, would be named to succeed Hillman as head negotiator.
Bank of Canada rate decision: The Bank of Canada is set to announce their last decision on interest rates for 2025, and economists believe the central bank will likely hold rates steady. That would keep the policy rate at 2.25 per cent. In October, policymakers signaled reluctance to add further stimulus, saying borrowing costs were at “about the right level” if their forecasts for growth and price pressures materialized. Since then, gross domestic product, inflation and employment have all outperformed expectations, pointing to a more resilient economy. We’ll have extensive coverage starting at 9:45 a.m. ET.
Rate decision day in the U.S.: It’s also rate decision day in the U.S. and there is a strong consensus the U.S. Federal Reserve’s Open Market Committee is likely to cut rates. It would be the third reduction in a row and would bring the Fed’s key rate to roughly 3.6 per cent, the lowest in nearly three years. All eyes will also be on Federal Reserve chair Jerome Powell to see what signals he may send regarding future rate cuts. The Fed is facing a much cloudier path in 2026. The U.S. government shutdown has delayed two months of jobs and inflation data, leaving the Fed with much less information on hiring and inflation than it is used to.
Teck, Anglo shareholders back US$50B deal: Teck Resources and Anglo American shareholders have voted in favour of combining both companies in a US$50 billion transaction that would create one of the world’s biggest copper miners. Teck investors endorsed the deal with 89.7 per cent of votes cast in favour, while Anglo said 99.2 per cent of its shareholders approved the takeover. The vote marks a significant milestone, but the deal still needs approvals from regulators in at least eight countries, including Canada, the U.S., China, and the European Union.
