BoC rate hikes, fallout from B.C. port strike and Laurentian Bank for sale: Business and investing news for July 16

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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 raises key interest rate to 5%, highest since 2001

The Bank of Canada chose to continue its summer rate-hiking cycle on Wednesday, raising the benchmark interest rate to 5 per cent. The second consecutive quarter-point hike brings the policy rate to its highest level since April, 2001. Mark Rendell spoke to Bank of Canada Governor Tiff Macklem about his decision to start hiking rates again, and the challenges ahead for taming inflation.

The aftershocks of the B.C. port workers strike

A 13-day strike by 7,400 B.C. port workers has ended after the union and employers agreed to a four-year tentative deal earlier this week. Canada’s westernmost ports will re-open, but Brent Jang reports that trading has taken a hit after billions of dollars worth of cargo shipments were disrupted. The Greater Vancouver Board of Trade calculates that more than $9.6-billion of cargo had been affected as of Thursday, with the number rising each second. Meanwhile, Canada’s largest trade and industry association estimates that supply chain issues could take months to sort out – about one week for every day that B.C. ports were shut down.

Demand for low-wage foreign labour is surging

Canada’s Temporary Foreign Worker (TFW) program is seeing a surge in approvals to fill a variety of low-wage roles, particularly in the service sector. According to figures published by Employment and Social Development Canada, employers were approved to fill about 22,000 positions through the TFW program’s low-wage stream – an increase of roughly 275 per cent from four years earlier. Cooks were the most sought-after roles in the low-wage stream, but cashiers, construction labourers and nurse aides were also in high demand. Matt Lundy takes a closer look in this week’s Decoder.

Laurentian Bank puts itself up for sale

Laurentian Bank, Canada’s ninth-largest lender, is up for sale. The bank – which was founded in 1846, has branches across Quebec and $51-billion in assets – is in the midst of a turnaround plan after its profitability and stock price significantly underperformed those of rival banks for several years. Andrew Willis, Stefanie Marotta and James Bradshaw report that Laurentian has been in talks with several suitors since late June.

Ontario’s Darlington nuclear station is learning from past mistakes

The refurbishment of Darlington nuclear station in Clarington, Ont. is on time and on budget – a feat that rarely happens with nuclear projects. Its success comes at a crucial moment for Ontario Power Generation (OPG) as the province aims to take on other major (and riskier) nuclear projects. Matthew McClearn reports on how OPG has avoided the fate of so many ill-fated nuclear projects, and how it’s learning lessons from its own past.

Monthly payments for a new car around $1,000, thanks to interest rates

Everyone has been talking about the effect of high interest rates on houses and groceries, but its effect on driveways is equally dramatic. The new normal for monthly payments on a new vehicle are around $1,000, writes Rob Carrick. According to figures from data analysis company J.D. Power, the average new vehicle loan payment is about $880 per month and almost 30 per cent of buyers who finance their purchase are paying $1,000 or more. And yes, you can blame it on rising interest rates.

Now that you’re all caught up, prepare for the week ahead with the Globe’s investing calendar.

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