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Business Brief: Five stories to follow this week

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  Published in Business and Finance on Monday, November 10th 2025 at 7:02 GMT by The Globe and Mail
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Business Brief: Five Stories to Follow This Week

In a packed agenda for Canadian and global investors, the Globe and Mail’s business brief highlights five key developments that will shape the economic landscape over the coming days. From macro‑economic data to corporate mergers, the stories cover a broad spectrum of interests—from policymakers and portfolio managers to everyday Canadians.

1. Canada’s Economy Surges Ahead of Forecast

The latest quarterly GDP report shows a 1.6 % year‑over‑year growth, surpassing the 1.2 % forecast that had dominated market expectations. The uptick is driven by a rebound in consumer spending, especially in the housing sector, and a significant surge in exports of oil and natural resources. The report also indicates a robust labor market, with unemployment falling to 5.3 % and job creation outpacing inflation.

Key takeaways for investors:

• Commodity Exposure: Firms in the energy, mining, and forestry sectors could benefit from the stronger GDP backdrop.
• Inflationary Pressure: The rise in consumer spending suggests that inflationary momentum may persist, potentially influencing the Bank of Canada’s policy decisions in the near term.
• Currency Impact: A stronger Canadian dollar could reduce import costs but might erode competitiveness for export‑heavy businesses.

The data was released on Tuesday, and the market’s reaction has already been felt in the equity and bond markets, with the S&P/TSX composite index trading higher on the back of the GDP surprise.

2. Bank of Canada Holds Rates While Watching Inflation

Despite the robust GDP data, the Bank of Canada has decided to keep the overnight policy rate unchanged at 5.00 %. The central bank cited concerns that the inflation rate, which stands at 4.2 %, remains above the 2 % target band. The BoC’s minutes revealed a cautious stance, with policymakers highlighting the need for additional data on labor market slack and supply‑chain dynamics before committing to further tightening.

Implications for the financial markets:

• Bond Yields: Treasury yields have moderated, reflecting the policy‑rate pause, but the long‑term yield curve remains steep.
• Equity Valuation: A steady policy rate supports current equity valuations, particularly for interest‑rate‑sensitive sectors such as utilities and real estate.
• Currency Dynamics: The decision is likely to support a slightly stronger Canadian dollar, as investors view the policy stance as a signal of continued economic resilience.

Analysts predict that the BoC could consider a rate hike later in the year if inflation continues to stay above target, making the next policy meeting a focal point for market watchers.

3. Toronto Stock Exchange (TSX) Volatility Surges on Global Headwinds

The TSX Composite Index experienced heightened volatility during late‑day trading sessions, influenced by global concerns over geopolitical tensions and fluctuating commodity prices. A sharp drop in oil prices earlier in the week prompted a sell‑off in energy‑heavy stocks, while positive data from the United States on manufacturing activity offered a counterbalancing rally for financials and technology firms.

Notable market movers:

• Royal Bank of Canada (+3.1 %) – benefited from rising loan demand amid a stable interest‑rate environment.
• Suncor Energy (-4.7 %) – weighed down by a 6 % decline in oil prices.
• Shopify (+5.4 %) – saw renewed investor interest after a robust earnings report.

Investors should monitor how the TSX reacts to evolving macro‑economic signals, particularly the interplay between commodity prices and domestic monetary policy.

4. Hydro‑Québec Announces Rate Adjustment for Residential Consumers

In a surprise move, Hydro‑Québec announced a modest rate increase of 2.5 % for residential customers, citing higher fuel costs and investments in grid modernization. The new rates will take effect on September 1, 2025, and will apply across all tiered pricing plans.

Impact on the energy sector and consumers:

• Energy Utilities: Hydro‑Québec’s adjustment is expected to generate additional revenue, which will support the company’s capital‑intensive grid‑upgrade projects.
• Consumers: While the increase is relatively modest, it may pressure households already grappling with rising living costs. The provincial government has indicated plans to expand rebates for low‑income families to offset the impact.
• Market Sentiment: Energy stocks, particularly those involved in renewable and transmission infrastructure, may see positive sentiment as investors anticipate higher margins for utilities undergoing upgrades.

The rate change is part of a broader trend in Canada, where several utilities are adjusting prices to balance fiscal sustainability with public service obligations.

5. Bell Canada and Rogers Communications Explore Strategic Merger

Rumors of a potential merger between Bell Canada and Rogers Communications have resurfaced after a meeting of senior executives in mid‑week. While both companies have denied any formal negotiations, market analysts note that a combined entity could achieve significant cost synergies and better leverage the growing demand for high‑speed broadband and 5G services.

Strategic considerations:

• Telecom Consolidation: A merger would reduce competition in the Canadian telecom space, potentially leading to higher industry concentration.
• Regulatory Scrutiny: The Canadian Radio‑television and Telecommunications Commission (CRTC) would conduct a thorough review, and the deal would likely face challenges from consumer advocacy groups concerned about pricing and service quality.
• Investor Reaction: Shares of both Bell and Rogers have been fluctuating in response to merger speculation, with some analysts forecasting a premium if the deal closes.

While no official announcement has been made, the ongoing discussions are expected to continue in the coming weeks, drawing close attention from investors, regulators, and consumers alike.

Bottom Line

This week’s five stories underscore a dynamic economic environment in Canada and beyond. From a stronger-than‑expected GDP and a cautious central‑bank stance to market volatility driven by global oil price swings, the narratives set the stage for a week of significant decision‑making and market adjustments. Whether you’re a portfolio manager looking for sector exposures, a corporate executive weighing strategic options, or an everyday investor seeking to understand the broader context, these developments provide essential insights into the forces shaping Canada’s financial and economic landscape.