Here are five things you need to know this morning
Inflation slows: Canada’s headline inflation rate slowed slightly to 2.3 per cent last month. The deceleration in annual price growth between December and January is attributed to base-year effects related to gas prices. Meanwhile, the federal government’s temporary sales tax holiday on a range of products last year, such as restaurant meals and children’s toys, also affected the January inflation data. The report is unlikely to move the Bank of Canada from the sidelines as it continues to evaluate how U.S. tariffs are affecting the economy.
Carney to unveil defence supply plan: Prime Minister Mark Carney is expected to publicly release today his new Buy Canadian plan for supplying the military and growing Canada’s domestic defence industry. The $6.6-billion plan promises to prioritize building military equipment at home, hike the share of defence contracts awarded to Canadian firms and add up to 125,000 new jobs over the next decade. The strategy aims to grow out small and medium-sized businesses and help more enter the defence sector.
Canada signs MOU with Mexico: Meanwhile Canada has signed a preliminary trade agreement with Mexico. Canada’s minister of U.S. trade Dominic Leblanc says under the memorandum of understanding Canada and Mexico will work to expand port-to-port trade and will also hold talks on security. Canada sees investment opportunities in the pharmaceutical and agriculture sectors. The delegation is in Mexico until Friday. Meanwhile Ottawa has announced Janice Charette will serve as Canada’s chief trade negotiator during the upcoming CUSMA review.
Sherritt reducing Cuba operations: Sherritt International is reducing operations at its joint venture in Cuba due to fuel supply constraints. Mining operations are expected to pause by within the next week. This comes after the Toronto-based company received notification that planned fuel deliveries will not be fulfilled, and there is no timeline for resumption. Production is continuing at Sherrit’s Alberta and Sasketchwan refineries with inventory expected to last until mid-April.
Warner Bros mulls new Paramount offer: Shares of Warner Brothers and Paramount traded higher in the pre-market. Warner Bros is considering reopening talks with the rival Hollywood studio after receiving its most recent amended offer. The offer addresses several concerns including covering the termination fee to Netflix and a backstop for Warner’s debt refinancing. Warner’s board has not decided how to respond and still has a binding agreement with Netflix.
