Financial news is a rapid and constantly changing event! Last week we reported on the danger of the Canadian economy falling into a recession based on a number of factors (falling job growth, wage growth stagnation, tariffs to name a few), but after the latest GDP growth was released last Friday, it may seem, on the surface, that the Canadian economy is much more resilient than at first believed. Real GDP rose 2.2% in the first quarter of 2025, up a tick from the 2.1% reported in the fourth quarter of 2024. The first quarter results significantly outpaced the estimates for annualized growth of 1.5% by Statistics Canada. While the numbers alone are surprising, many economists suggest that the underlying data is not as impressive as it looks on the surface. Most easily said, fears around a possible looming trade war and tariffs being implemented, inspired both Canadian importers and exporters to rush to get ahead of tariffs. According to Statistics Canada, goods exports were up 1.6% in the first quarter, driven by increased shipments of passenger vehicles and industrial machinery and parts. Non-farm businesses also built-up inventories, pushing GDP growth to a higher level. This largely offset the weakness in imports and a slowdown of housing re-sale activity. This creates an interesting challenge for the Bank od Canada as they closely monitor and study the data ahead of this week’s interest rate decision. The BOC tends to keep rates elevated if there is a fear of inflation spiking and lowers it when the economy requires a boost- in this instance both are at risk, especially given the possible trade implications in the US. We still believe the BOC will cut rates an additional 2-3 times by the end of the year, but Friday’s GDP data may delay the rate cuts, at least for June.
For those clients who are local to the Kitchener-Waterloo area, this story could make you smile. Blackberry is back and it looks to dominate the inside of your vehicle. Check out the attached article!
Billionaire investor would like to buy Tik Tok, and how he envisions a “new” internet, makes for an interesting article.
Google’s driverless taxi company Waymo is taking over many of the streets in the US. They just cracked ten million rides and have aggressive plans to expand. Read more about it in the attached article.
As of June 1st 2025, Hudson’s Bay Company is no longer. We have an insightful article that helps to explain how 355 years of retail history came to end and what comes next.
Four British climbers recently made it from London, England to the peak of Mount Everest in under 5 days. They used a controversial method to help them achieve the astounding result. Read more about it in the attached article.
Just a reminder that the possibility of another postal strike remains. Postal workers remain on the job and negotiations are continuing but the threat remains. If a strike does occur, it could delay things like client statements, government cheques etc.… Fortunately, we have an alternative for you! If you have not yet signed up for the client portal and would like to know how, please reach out to Deb ([email protected] or 226-647-4595) and she can help get you set up. The client portal is a great tool, and we have received lots of positive feedback regarding its ease of setup and its efficiency of use. The client portal can assist you in staying connected and managing your portfolio at any time. Please reach out if you need help getting set up for the client portal.
Go to https://iaprivatewealth.ca/access to register.
Have an amazing week everyone!
There is no need for market panic. That is a consistent theme for 2025. We have an article that discusses this in greater length, as well as the ongoing discussion of the US-China trade talks.
