A new BMO report suggests excess household savings in Canada and the U.S. may help both countries avoid a severe economic downturn amid high interest rates. Pedestrians walk through a sliver of sunlight in the financial district in downtown Toronto on Wednesday July 6, 2022. THE CANADIAN PRESS/Cole Burston
In The News is a roundup of stories from The Canadian Press designed to kickstart your day. Here is what’s on the radar of our editors for the morning of Wednesday, March 8, 2023 …
What we are watching in Canada …
Smaller financial institutions tend to be closer to gender parity in their executive ranks than the major Canadian banks, a new analysis by credit rating agency DBRS Morningstar has found.
Banks and credit unions are approaching gender parity at the board level, the report found, but credit unions had 44 per cent female representation in the executive suite compared with 33 per cent at the banks.
The agency looked at 19 financial institutions, including credit unions and co-operatives alongside national and regional banks.
Only 18 per cent of banks had a female CEO – at HSBC Bank Canada and Laurentian Bank of Canada – compared with 38 per cent of credit unions and co-operatives.
“(Credit unions) have a very long tradition of female CEOs,” said Maria-Gabriella Khoury, the report author and senior vice-president of the Global Financial Institutions Group at DBRS Morningstar, in an interview.
The report said few banks have made a concerted effort to ensure the pool of talent from which new CEOs are picked includes enough women.
However, both smaller and larger institutions have issues when it comes to executive roles dealing with profit and loss, it said.
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Also this …
The CEOs of Canada’s largest grocery store chains will be before a parliamentary committee today to answer questions about the rapid rise in food prices.
The CEOs and presidents of Loblaw Cos. Ltd., Metro Inc. and Empire Co. Ltd. – which operates chains including Sobeys, Safeway and FreshCo – are set to testify before the House of Commons agriculture committee this evening as part of its study on food inflation.
Food inflation has been especially crushing for lower-income Canadians, with grocery prices in January up 11.4 per cent compared to a year ago.
That’s nearly double the overall rate of inflation, which was 5.9 per cent that month.
The CEOs of Loblaw and Empire are expected to appear in-person, while the CEO of Metro will appear via teleconference.
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And this …
The Bank of Canada is set to announce its interest rate decision this morning, with economists widely expecting the central bank to hold its key rate.
At its last announcement on Jan. 25, the Bank of Canada announced a quarter percentage point rate hike, bringing its key rate to 4.5 per cent.
At the time, the central bank said it plans to take a pause from raising interest rates to assess the effects of previous hikes on the economy.
Elevated borrowing costs are expected to slow the economy down this year as people and businesses pull back on spending.
Recent economic data shows both the economy and inflation slowing, though the labour market was still running hot in January.
What we are watching in the U.S. …
The FBI finds itself in a challenging moment as it conducts simultaneous investigations involving classified documents held by former U.S. Presidents Donald Trump and Joe Biden.
The dual inquiries are both overseen by U.S. Justice Department special counsels and are unfolding in a hyper-partisan environment as election season nears and as Republicans use their new House majority to investigate the FBI and attack its credibility.
In an interview with The Associated Press this week, FBI Director Christopher Wray acknowledged that it was a tough time for the FBI. But he downplayed the impact that the “noise” had on the FBI’s day-to-day work, on morale or on its relationship with other law enforcement agencies.
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What we are watching in the rest of the world …
The owner of Russia’s Wagner Group military company claimed Wednesday that his troops have extended their gains in the key Ukrainian stronghold of Bakhmut as fierce fighting continues in the war’s longest battle.
Yevgeny Prigozhin said Wagner troops have taken full control of the eastern part of Bakhmut. He claimed that they now control all districts east of the Bakhmutka River that crosses the city in the eastern Donetsk region. The center of Bakhmut is located west of the river.
Ukrainian authorities haven’t commented on Prigozhin’s claim. The Institute for the Study of War, a Washington-based think-tank that closely monitors the fighting in Ukraine, said in its latest analysis that “Russian forces have likely captured the eastern part of Bakhmut, east of the Bakhmutka River, following a controlled Ukrainian withdrawal from eastern Bakhmut as of March 7.”
The Wagner Group has spearheaded the Russian offensive in Bakhmut that has lasted for six months and reduced the city with a prewar population of more than 70,000 to a smouldering wasteland.
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On this day in 1867 …
The British parliament passed the British North America Act.
Many MPs were not in the Chamber for the final reading, but they rushed in immediately after to vote on a bill to place a tax on dogs.
The act received royal assent on March 29 and Queen Victoria set July 1 as the date for Confederation.
On this date 115 years later, in 1982, the British Commons passed the Canada Bill for the patriation of the Constitution.
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In entertainment …
Steve Howey was excited to take on the Arnold Schwarzenegger role for the TV version of “True Lies” ““ until he realized he was stepping into some pretty big shoes.
Howey says he considered whether he should work out more or brush up on his Austrian accent.
Out of respect for Schwarzenegger, Howey has never done that accent and never will.
Ginger Gonzaga, who plays the Jamie Lee Curtis role, didn’t even think about how Curtis played it.
Gonzaga says she approached it like it was a spy show she had never heard of. “True Lies” airs tonight on CBS.
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Did you see this?
If you’re not told you are fired, are you really fired?
At Twitter, probably.
Haraldur Thorleifsson, who until recently was employed at Twitter, logged in to his computer last Sunday to do some work, only to find himself locked out.
He might have figured, as others before him have in the chaotic months of layoffs and firings since Elon Musk took over the company, that he was out of a job.
Instead, after nine days of no answer from Twitter as to whether or not he was still employed, Thorleifsson decided to tweet at Musk to see if he could get an answer.
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This report by The Canadian Press was first published March 8, 2023
