Loblaw Cos. Ltd. and its parent company George Weston Ltd. say they have agreed to pay $500 million to settle a class-action lawsuit regarding their involvement in an alleged bread price-fixing scheme.Sammy Kogan/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.
Bank of Canada cuts key rate to 4.5%
The Bank of Canada has delivered back-to-back rate cuts. On Wednesday, the central bank cut its policy interest rate to 4.5 per cent in a widely anticipated move. In his press conference opening statement, Governor Tiff Macklem said the bank is now putting more emphasis on downside risks to economic growth, rather than focusing mainly on the risk of a rebound in inflation. He said it’s “reasonable” to expect more rate cuts if inflation continues trending lower, as the central bank is forecasting, but the governing council will be taking each decision at a time, Mark Rendell reports. The latest rate decision, and the teeing up of additional interest rate cuts later this year, could also be good news for a lot of Canadians – specifically, homeowners who are looking to buy or renew their variable-rate mortgages.
Loblaw, parent company George Weston settle class action over bread price-fixing
Loblaw Cos. Ltd. and its parent are the first companies to reach a settlement in the lawsuit over a scheme to fix bread prices in Canada from 2001 to 2015, Susan Krashinsky Robertson reports. On Thursday, the companies announced that Loblaw will pay $156.5-million in cash in the settlement, and George Weston will pay $247.5-million in cash. The settlement also includes $96-million already paid out by Loblaw in the form of $25 gift cards to its own stores, which were distributed in 2018. The lawsuit remains active against other defendants, including Canada Bread, Metro, Sobeys. and Walmart. Did you buy bread at a Loblaw store? Here’s what claiming a payout from the lawsuit settlement could look like in the coming months.
Decoder: For the unemployed, finding a new job is getting harder
Many Canadians, including young people and newcomers, are struggling to find jobs in the face of high interest rates, layoffs and fierce competition. Plus, the unemployment rate has risen to 6.4 per cent from 4.8 per cent two years ago. The job market shifting into low gear is cited as a key reason for the Bank of Canada’s interest rate cut on Wednesday. Meanwhile, the job-finding rate, which refers to the percentage of unemployed people from one month who found work the next month, has sunk to the level it was at during the Great Recession in 2009. Jason Kirby takes a closer look at the figures in this week’s Decoder.
New condo investors in Toronto are losing money on their rentals
New condo investors in Toronto – more than 80 per cent – are losing money on their rentals, according to a new report issued on Thursday. The report says they’re bleeding cash because the rental income from their units is not covering the increasing mortgage and other costs of owning the property. The average monthly ownership costs for new condos in the Toronto and Hamilton region have climbed to $3,250 due to the higher cost of new condos, borrowing and other expenses. At the same time, the average monthly rental rates for a new condo in the region hit a record $2,700 – but not enough to cover the new condo investor’s expenses. Those losses are dissuading investors from buying new condo units, leading to the lowest sales in 27 years, Rachelle Younglai reports.
Clio breaks Canadian tech financing record
Legal software startup Clio has broken a new Canadian record. Legally known as Themis Solutions Inc., the company has closed the largest growth capital financing by a Canadian technology company after a US$900-million equity deal valuing Clio at US$3-billion – making it one of the country’s most valuable homegrown tech companies. It surpasses the previous record set by 1Password, which raised US$620-million in 2022. The company sells online software for small to medium-sized law firms, and is among an elite group of Canadian startups that have grown into sizeable companies by selling online software on a subscription basis, Sean Silcoff reports.
Canadians may be in store for unusually cheap flights in August and September
The summer travel season is upon us, but for Canadians who haven’t yet finalized their plans during the tail end of the season may be in store for some good news – unusually cheap flights. Airlines overestimated the demand for summer flights leading to some unseasonably low fares on popular vacation routes as companies scramble to fill seats, Erica Alini reports. Routes connecting Canada to European destinations between the latter part of August and September are where air travel experts are seeing some of the lowest prices. For example, a basic round-trip fare from Toronto to London’s Heathrow Airport with a departure date of Sept. 7 and return on Sept. 25 is available for as low as $777 on Air Canada. That’s the same fare the airline is offering for travel dates in November, considered a low-season period when prices are usually the cheapest.
Take our business quiz for the week of July 26
a. To settle class-action lawsuits related to their role in a scheme to fix bread prices. Loblaw Cos. Ltd. and its parent are the first companies to settle in the lawsuit over the scheme to fix bread prices in Canada from 2001 to 2015. The lawsuit remains active against other defendants, including Canada Bread, Metro, Sobeys. and Walmart.
Get the rest of the questions from the weekly business and investing news quiz here, and prepare for the week ahead with The Globe’s investing calendar.