Lowe’s leaves Canada, interest-free pupil loans and extra momentary overseas staff: Should-read enterprise and investing tales

Getting caught up on every week that bought away? Right here’s your weekly digest of the Globe’s most important enterprise and investing tales, with insights and evaluation from the professionals, inventory ideas, portfolio methods and extra.

Lowe’s eliminates Rona and Canadian operations

U.S. {hardware} big Lowe’s is promoting its Canadian retail operations – about 450 shops that function below the Lowe’s, Rona, Reno-Depot and Dick’s Lumber banners – after a irritating six-year run. Nicolas Van Praet studies the customer is New York private-equity agency Sycamore Companions, which is shopping for the shops for US$400-million in money plus unspecified performance-based advantages. Lowe’s entered the Canadian market in 2007 and expanded its footprint in 2016 with the acquisition of Rona for $3.2-billion. The sale is a recognition by the corporate that it couldn’t make the takeover work. The enterprise has struggled and Lowe’s has lower jobs and closed dozens of shops in a number of provinces. For Rona, the sale will possible imply one other interval of turbulence as Sycamore tries to enhance financials and appeal to new possession.

Curiosity-free pupil loans amongst fiscal replace highlights

The federal authorities revealed its fall financial assertion this week, acknowledging what many Canadians are fretting about as they address affordability challenges: the rising odds the nation will go into recession. Matt Lundy writes that Ottawa outlined a number of dangers to the financial outlook, together with a “extra aggressive” response to inflation from the U.S. Federal Reserve, by way of greater rates of interest, and “widespread volatility” in markets for shares and bonds. Among the many highlights is the proposal to make all Canada Scholar Loans and Canada Apprentice Loans interest-free on a everlasting foundation, together with loans at present being repaid. The change, which might begin on April 1, 2023, would value $2.7-billion over 5 years and barely greater than $550-million a yr thereafter.

Sorry retirees, inflation is way from over

One of many best threats to a cushty retirement is inflation, writes Frederick Vetesse. Previous waves of excessive inflation lasted about 4 years, which suggests the present wave of skyrocketing costs doesn’t appear to have an finish in sight.

Employers are hiring extra momentary overseas staff to fill low-wage jobs

Canadian corporations are ramping up their use of the Momentary Overseas Employee program, after its enlargement by the federal authorities, to fill low-wage jobs to alleviate labour shortages. As Matt Lundy studies, employers acquired approval within the second quarter of this yr to rent about 45,200 positions by way of the TFW program – probably the most since a minimum of 2017. The April-to-June quarter tends to be a slower interval for approvals, however this previous spring was booming: TFW approvals have been greater than double these of the identical interval in 2018 and 2019. Firms can now rent as much as 20 per cent of their workers by way of the TFW program’s low-wage stream, up from the earlier 10-per-cent cap. And in seven industries with acute labour shortages – comparable to eating places, building and hospitals – the cap was moved to 30 per cent for a yr.

The affordability lure of Toronto and Vancouver

Are you an adolescent residing in Toronto or Vancouver? You might need to contemplate relocating to a less-expensive metropolis. With out six-figure incomes or well-off mother and father, anybody of their 20s and 30s ought to query whether or not they have a future in two of Canada’s greatest cities – that features house possession, writes Rob Carrick. It’s a problem to flee the gravitational pull of those cities, particularly throughout your career-building years, however inside migration patterns inside Canada present individuals have began rebelling in opposition to the excessive value of residing that comes with a Toronto or Vancouver tackle. Based on Statistics Canada, extra individuals left Ontario than moved there prior to now yr.

Dragons’ Den’s Arlene Dickinson proclaims ‘tremendous agency’

Veteran financier Arlene Dickinson of Dragons’ Den fame, introduced this week that she is merging her advertising and communications agency with 5 different companies to launch a bigger firm with a global attain, backed partly by the Canadian Enterprise Progress Fund. The brand new firm, known as Believeco:Companions, may have practically 300 staff in seven workplaces throughout North America, serving shoppers in a wide range of sectors together with expertise, meals, well being, agriculture, authorities and monetary providers, Temur Durrani studies. It should mix Ms. Dickinson’s company Enterprise Play with main Canadian advertising companies Argyle, Brightworks, Zync, Revolve and Castlemain. “It’s six companies coming collectively proper now, however we undoubtedly have plans to amass different unbiased corporations sooner or later,” Ms. Dickinson informed The Globe and Mail.

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Now that you simply’re all caught up, put together for the week forward with the Globe’s investing calendar.