Canadian bank earnings, Nutrien West Coast port, U.S. courts take on tariffs: Business and investing stories for the week of June 1
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.
Canada’s first quarter GDP expands by 2.2% annualized rate, beating estimates
Newly released GDP data will help the Bank of Canada decide whether to cut or hold interest rates next Wednesday.DARRYL DYCK/The Canadian Press
Canada’s economy grew by a stronger-than-expected 2.2 per cent on an annualized basis in the first quarter, Statistics Canada data showed on Friday. The growth was driven by exports as companies in the United States rushed to stockpile goods ahead of U.S. President Donald Trump’s tariffs. The inventory build-up, lower household spending and weaker domestic demand indicate the economy was battling – a trend economists warn will persist if tariffs continue.
This is the final economic indicator before the Bank of Canada’s interest rate decision next week and will help determine whether the central bank will cut or stay pat on rates. Money markets now see about a 16-per-cent probability of a rate cut on June 4, down from 28 per cent prior to the GDP release. Nevertheless, markets are still pricing in between one and two quarter-point rate cuts by the end of this year.
U.S. court ruling on tariffs brings hope, but also uncertainty, for Canadian economy
President Donald Trump announces new tariffs at the White House on April 2.Carlos Barria/Reuters
On Wednesday, a U.S. court ruled that President Trump does not enjoy “unbounded authority” to impose tariffs as he sees fit. The U.S. Court of International Trade ordered that the U.S. lift the tariffs Mr. Trump placed on Canada and Mexico on fentanyl-related grounds, as well as global tariffs announced on April 2, which he called “Liberation Day.” However, less than 24 hours later, the U.S. Court of Appeals for the Federal Circuit granted the Trump administration’s request to pause the ruling while it considers a challenge from the White House.
Still, some economists suggest that the trade court ruling offers a few reasons for optimism for Canada’s economy – and hope that further relief from punishing duties is possible. “If this ruling sticks and depending upon the course of actions from here, then the risk of recession in the U.S. and Canada has been sharply reduced,” wrote Derek Holt, an economist at the Bank of Nova Scotia, in a research note. Some of the other levies on Canadian imports, including those on steel, aluminum and cars, are not covered by the ruling.
Decoder: Federal public service job cuts fall heavily on young workers
Canada has shed nearly 10,000 federal civil servants over the last year, the first decline since 2015, according to quietly released numbers from Ottawa this month. The federal job cuts fall heavily on young workers. Nearly 80 per cent of the 9,807 positions eliminated between 2024 and 2025 were those of workers in their twenties, according to numbers from the Treasury Board of Canada Secretariat. That demographic breakdown lines up closely with other Treasury Board statistics, which show a large majority of the job cuts hit temporary, contract and student positions. Jason Kirby takes a closer look at the numbers in this week’s Decoder series.
A breakdown of the big banks’ second-quarter earnings
RBC and Scotiabank were the only two big banks to miss analyst expectations.Fred Lum/The Globe and Mail
Canada’s biggest banks reported their second-quarter financial results this week, covering the three months that ended April 30. Analysts expected the banks to continue grappling with higher loan loss reserves and lower borrowing activity as the U.S. trade war threatens a deeper economic downturn. The banks have been setting aside more money for loans that could default as a buffer against deteriorating debt conditions and a slowing economy, Stefanie Marotta reports. Over the past week, Toronto-Dominion Bank, Bank of Montreal, National Bank of Canada and Canadian Imperial Bank of Commerce posted results that beat analyst estimates. Bank of Nova Scotia and Royal Bank of Canada missed expectations. Here’s a breakdown of the big banks’ second-quarter earnings.
In related bank news, RBC is telling its employees to return to the office four days a week. The move from Canada’s biggest bank is the first among the country’s Big Six and a milestone for companies looking to bring staff back to the office on a closer-to-full-time basis. Meanwhile, TD Bank is reducing its work force by 2 per cent as part of a cost-cutting plan while the lender fixes gaps in its anti-money-laundering processes.
Nutrien plans new West Coast port infrastructure, eyes sites in U.S. and Canada
Red potash is stored in a warehouse at Nutrien’s Cory Potash mine near Saskatoon.The Globe and Mail
Saskatchewan-based fertilizer giant Nutrien announced this week that it is planning to build a major terminal at a Pacific Northwest port and is looking at sites in Canada and the United States. The company is searching for a deep-water port with railway links so it can easily ship large volumes of potash to fast-growing markets such as China, Japan and India. Chief executive officer Ken Seitz said regulations, taxes and approval timelines will be major factors in deciding whether to choose the U.S. or Canada. The major investment plan is an early test for Prime Minister Mark Carney’s government, which has promised to streamline regulations and approvals and get Canada back to building big projects, especially when it comes to critical minerals like potash.
Royal Bank raised eyebrows this week when it indicated it would require employees to do what?
a. Report any travel out of the country
b. Return to the office at least four days a weekt
c. Pass physical fitness tests
d. Report all securities transactions, including crypto
b. Return to the office at least four days a week. Sources say RBC’s four-day minimum will take effect this fall. The bank previously required people to be in the office at least three days a week.
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.