An autonomous driving vehicle drives around a parking lot without a human driver behind the steering wheel from the Loblaw office to a Superstore in Brampton, Ont., on Tuesday, October 4, 2022. (Christopher Katsarov/The Globe and Mail)Christopher Katsarov/The Globe and Mail
Getting caught up on a week that got away? Here’s your weekly digest of The Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Loblaw trucks along with no drivers
Canada’s largest grocer announced this week the launch of driverless delivery trucks on the roads across Toronto and surrounding suburbs, delivering products to its stores. In partnership with Palo Alto, Calif.-based startup Gatik, Loblaw has been testing the autonomous driving technology in Ontario since 2020 with a human on board, and has now moved to the next phase – sans human. As Susan Krashinsky Robertson reports, Gatik received approval from Ontario’s Ministry of Transportation to operate fully driverless vehicles; however, the province is not keen to comment on any details about the approval that’s been granted, or whether others are testing similar tech on Ontario roads. Loblaw’s driverless trucks are a first, but certainly won’t be the last.
Paying with a credit card might cost you more
Canadians may see added surcharges to their bills when paying by credit card starting this week. New rules that have come into effect are the result of a settlement in a class-action legal battle between small merchants, Visa, MasterCard and financial institutions, Chris Hannay writes. Credit-card companies had long resisted allowing businesses to pass on these costs as it could lead consumers to switch payment methods to avoid paying the fees. Instead, merchants pay the costs, and many of them feel they have to pay to accommodate customers who want to pay by credit card. That’s no longer the case. Business owners now have the choice of making these fees transparent to their customers. And according to a new survey from the Canadian Federation of Independent Business, an estimated one in five small businesses is planning to pass on credit-card transaction fees to their customers. The fees aren’t set, but would be around 1.4 per cent or more of the bill.
Auto sales continue to slump
The auto industry was one of the hardest hit during the pandemic because of supply chain issues, and it appears that car sales are still languishing. In September, around 130,000 cars and light trucks were sold in Canada, and while that was a slight improvement from August, sales were down 22 per cent from three years ago. Auto dealers still struggling to fill their lots have been hit with yet another issue: rising borrowing rates. The average interest rate for auto loans advanced in July was 6.62 per cent, up from a pandemic low of 4.04 per cent. Matt Lundy takes a look at slumping vehicle sales in this week’s Decoder.
More interest rate hikes are coming
The Bank of Canada has raised interest rates five times since March, and they’re not done yet, Mark Rendell writes. In a speech this week, BoC governor Tiff Macklem said that more interest rate increases are necessary to tame inflation, despite the economy showing signs of slowing and inflation beginning to recede. “Simply put, there is more to be done,” Mr. Macklem said, pointing to domestic inflation and a tight labour market as areas of concern. The policy rate is currently 3.25 per cent, and economists widely expect the central bank to announce another half-point increase at its next meeting on Oct. 26.
Asked to be an executor? Ask this first
It’s hard to say no when a family member or friend asks you to be the executor of their will. After all, it’s the final favour you’ll ever do for them. But as Rob Carrick warns, being an executor can bring a bunch of trouble, and one should know what they’re up against before agreeing to do the deed. So what questions should you be asking? For one: How complex is your estate? Executors should expect to spend around 100 hours over 18 to 24 months to settle an estate, and complexities such as family businesses, trusts and investment properties can add significantly to your commitment, and require that you spend time consulting outside experts.
The unaffordability of adulting these days
Enough about expensive lattes and avocado toast. The magnitude of obstacles facing young Canadians launching into adulthood today is incomparable to generations before. In Erica Alini’s ROB cover story, she crunched the numbers on how much it costs people in their 20s and 30s to live on their own, pay down student debt and save for a home in Canada. The math is grim, and earning a paycheque is hardly the issue. By 2030, buying an average-priced home with a minimum down payment will likely require a household income of around $230,000 in today’s dollars in places such as Vancouver, Toronto and – wait for it – Hamilton. Meanwhile, Gen Z and younger millennials can’t even make the rent. In Vancouver and Toronto, the average one-bedroom now rents for well over $2,000.
Now that you’re all caught up, prepare for the week ahead with the Globe’s investing calendar.