Trudeau’s temporary GST relief, Canada’s inflation rises and AIMCo’s new board chair: Must-read business and investing stories

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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.

Trudeau government announces plan for temporary GST relief

Earlier this week, the federal government unveiled a multibillion-dollar plan to give Canadians a tax break over the holidays. Prime Minister Justin Trudeau announced on Thursday that as of Dec. 14, the federal goods and services tax (GST) will be paused for two months on a long list of items – including print books; children’s toys and clothing; diapers; Christmas trees; restaurant meals; beverages such as pop, beer and wine. He also announced his government will send many Canadians $250 cheques in the mail next year. Retailers hope the sales-tax break will help stimulate holiday shopping among inflation-weary consumers, but industry representatives are also worried it may create logistical headaches, Susan Krashinsky Robertson reports.

Inflation rises to 2 per cent, dulling case for big BoC rate cut

Canada’s inflation rate perked up last month, although the move higher was anticipated by financial analysts. The Consumer Price Index rose 2 per cent in October on an annual basis, rising from 1.6 per cent in September, according to Statistics Canada. The results were influenced by less favourable base effects for gasoline and hefty increases in property taxes, Matt Lundy reports. The slight jump weakens the case for the Bank of Canada to make another outsized cut next month. Several Bay Street analysts expect the central bank to cut interest rates by 25 basis points at its next decision on Dec. 11, although some are sticking with their 50-basis-point predictions for now.

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Ontario colleges face biggest financial hit from Ottawa’s international student clampdown

Ontario colleges are starting to feel the financial hit from Ottawa’s international student clampdown. Since the federal government introduced a number of measures to reduce the number of international students, colleges have been feeling the squeeze. Officials have warned of steep drops in enrolment numbers and revenue this year, forcing schools to close some programs and halt capital spending on projects. Foreign students accounted for 42 per cent of all Ontario enrolments last year and 24 per cent of all B.C. enrolments, according to new numbers from Statistics Canada. In this week’s Decoder series, Jason Kirby takes a closer look at the numbers.

Alberta appoints former prime minister Stephen Harper to chair AIMCo board

The restructuring at public-sector pension fund manager Alberta Investment Management Corp. continues with the province appointing former prime minister Stephen Harper to chair the AIMCo board. Mr. Harper is taking the chairman’s role unpaid as part of a revamped board of directors after Alberta’s government dismissed AIMCo’s entire 10-member board and four senior leaders, including its chief executive officer, two weeks ago. The province also added the deputy minister of Treasury Board and Finance as a permanent member of the board, without pay, and three other formerly dismissed AIMCo directors are returning. The decision raises questions about AIMCo’s continued independence, and whether the move opens the door to the government to exert greater political influence or to steer the pension fund manager toward government priorities, James Bradshaw reports.

Why Canada’s emerging critical minerals miners are struggling to survive

Raising capital in Canada’s junior mining sector has been getting progressively harder over the past decade, but with one of the key sources of patient capital virtually eliminated, the job is now significantly more difficult. More than two years ago, Ottawa said it would only allow Canadian critical minerals companies to raise money from Chinese state-owned enterprises under exceptional circumstances – as an attempt to rein in China’s control over critical minerals. Some experts in the industry understand the crackdown on Chinese investment, but say it also hurts domestic companies and their chances of making it. Niall McGee reports on why Canada’s critical minerals miners are struggling to survive – and what can be done about it.

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Signed a mortgage when interest rates were at their highest? Breaking it could save you money

Did you sign a mortgage last year when interest rates were at their highest? Salmaan Farooqui reports that breaking it could save you thousands in interest. Mortgage brokers say homeowners often pay too little attention to their mortgage after they sign onto a term, and say they should be opportunistic when it comes to saving money on what is likely their largest form of debt. They say that anyone who signed a mortgage during peak rates should be looking into whether resigning with a lower interest rate could be advantageous – especially in the current environment of dropping interest rates.

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