Here are five things you need to know this morning
More sluggish job creation: The Canadian economy continues to create jobs at a sluggish pace. Employment grew by just 7,400 positions in April, and the unemployment rate rose to 6.9 per cent. The jobless rate matches a level last seen in November, which was the highest since January 2017 outside of the pandemic.
While the job creation number was slightly stronger than expected, Bloomberg News notes this is the third month in a row where the Canadian economy either saw very little change in employment or job losses, underscoring a slowdown in hiring or downsizing amid trade uncertainty. It’s also the first month where the tariff impact on export-dependent jobs in auto, steel, aluminum and other sectors become more evident. The manufacturing sector lost 31,000 jobs, the biggest drop since January 2009 outside of the COVID-19 crisis in 2020.
Air Canada trims forecast: Air Canada has trimmed its profit forecast for 2025 as tensions with the U.S. discourages some Canadians from traveling south of the border. The airline lowered the forecasted range for its adjusted earnings by $200 million. CEO Michael Rousseau says market conditions “will remain unsteady with an uncertain economic outlook.” Passenger revenue on Canada-U.S. routes fell 4.6 per cent in the first quarter. Despite the negatives, some analysts are taking a positive view of the first quarter results – Stifel notes adjusted profit beat expectations, thanks to cost-cutting.
Onex selling WestJet stakes: Sticking with the airline sector, Onex is selling minority stakes in WestJet to Delta Air Lines and Korean Air for a total of US$550 million. Delta will acquire a 15 per cent stake in the Calgary-based airline for US$330 million, while Korean Air will buy a 10 per cent stake for US$220 million.
After the deal closes, Delta plans to sell a 2.3 per cent stake in WestJet to its joint venture partner Air France-KLM for US$50 million. Onex acquired WestJet in 2019. WestJet has had partnerships with Delta and Korean Air for more than a decade.
Quiet quarter at the movies: The earnings parade continues today, with several major Canadian companies reporting their latest results, including Telus, Enbridge and Algonquin Power. One stock to watch today will be Cineplex, which reported a quarterly loss and a decline in revenue compared to the same period last year, as attendance fell by 14.5 per cent. CEO Ellis Jacob says the quarter “landed softer than expected,” but the second quarter is off to a good start, helped by the performance of ‘A Minecraft Movie.’ BNN Bloomberg will speak with Jacob today at 1:45 p.m. EDT (10:45 a.m. PT).
Trump sets tone for China trade talks: U.S. President Donald Trump is proposing an 80 per cent tariff on China as he urges Beijing to do more to open its markets to American goods. The messages came in social media posts. U.S. Treasury Secretary Scott Bessent is set to begin talks with Chinese Vice Premier He Lifeng in Switzerland this weekend, the first public discussions between the world’s two largest economies on defusing a trade war that has seen Trump impose 145 per cent levies on China and Beijing retaliate with 125 per cent duties on many American goods.
