Despite previous reports that declared Canada’s emergence from recession in 2015’s third quarter, two new reports from Nov. 2, 2015 indicated more trouble on the horizon in the fourth quarter. The RBC’s purchasing managers’ index (PMI) hit record lows in October, adding to the lessening demand for Canadian oil supplies. This means a much greater strain on the Canadian manufacturing sector. However, with the index reporting numbers below the set equilibrium, as of our manufacturing sector is shrinking, and at a quick rate. Though the sector has been showing a decline over the last few years, RBC chief economist Craig Wright said, “heightened global economic uncertainty and ongoing energy price weakness [will] continue to weigh on the Canadian manufacturing sector.” With capital investments also on a downturn, the stress on the shrinking sector could spell trouble for Canada in the not-too-distant future.
After a weekend that left people “beer-poor,” you may want to hold off on buying your next case. Sipping on a cold one may cost you more in the province of Ontario, and we have the government to thank. Premier Kathleen Wynne’s Liberal government is bumping up the tax on beer. Though the actual price increase is minimal—working out to 25 cents per case of 24—Wynne is pushing for manufacturers to absorb the higher tax fees, which will still no doubt mean a rise in prices at the store. The new tax levels became effective as of Nov. 2, 2015, and are the first of four set price increases in the next three years.
Canadian aerospace giant Bombardier said that a US$1 billion lifeline from the Quebec government will help to complete the development of the CSeries and restore customer faith in the delayed and costly commercial jet program. This need for funds follows a loss of US$4.9 billion by the Montreal-based company—attributed mostly to large writedowns in the CSeries and the abandoned Learjet 85 business jet program. Additonally, the company showed numbers reflecting much lower operating results than the already low expectations. The CSeries program, which is already two years behind schedule, is hoping that the influx of capital will help them reach their goal of 2021 as the breakeven point. Those involved in the formation of the deal urge Canadians to remember that the aerospace sector is as important to Quebec as the automotive sector is to Ontario. Regardless, many of the promises made, are confronting the deal with scrutiny.
As of Nov. 1, 2015, a taxi ride in Toronto will be a little less harsh on the wallet. Starting Sunday, taximeters dropped to $3.25, a dollar less than previous rates, as part of the city council’s attempt to even the playing field. Toronto is looking to keep the market competitive amid complaints from local cab companies that are feeling the pressure of the ever growing presence of the unregulated ridesharing services like Uber and Lyft. With ridesharing rates starting at $2.50, many hailers have drifted to utilizing alternative services, rather than paying the much steeper fees of the regulated companies. Beck Taxi and Co-op Cabs were among the companies calling for reduced fees, while simultaneously criticizing “black market operators” who operate outside the city’s bylaws. Though it will take time for all of the meters to be changed over, officials said that all cabs must charge the reduced rate as of Nov. 1, 2015.