Bank of Canada Focused on Perils of Cooling Labor Market in July Rate-Cut Decision: Minutes

Bank of Canada officials worried about the risk of a yearslong slump in consumer spending amid signs of labor-market weakness, according to a summary of their deliberations leading up to a July rate cut, the Wall Street Journal reported. The Bank of Canada delivered a second straight quarter-point cut in July, taking its policy rate to 4.5%, and signaled more reductions were in the offing given that economic slack, or spare capacity, has increased. Gov.
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More Than 300 Canadians Filing for Bankruptcy Each Day as Insolvency Filings Hit Four-Year High

Personal insolvencies are at a four-year high in Canada as consumers struggle with lingering inflation, high interest rates and debt they can no longer handle, the Toronto Star reported. The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) report for the second quarter shows a rise of 12.4 per cent in insolvencies compared to the year prior. And the numbers for business are even worse with insolvencies spiking 41.4 per cent year-over-year.
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Bank of Montreal Said to Sell Thames Water Debt at 30% Discount

Bank of Montreal has sold about £300 million ($383 million) of Thames Water’s senior debt at an almost 30% discount, Bloomberg News reported. The Canadian lender sold a mix of the utility firm’s senior debt, including bilateral loans and privately placed debt, split across Class A instruments with different maturities. The debt was sold for a little over 70% of its face value, following an auction process with a reserve price of 65%, which closed on Friday, according to a memo seen by Bloomberg News.
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Canada’s High Court Rules Bankruptcy Does Not Completely Erase Millions in Penalties Owed by B.C. Stock Manipulators

B.C.’s financial markets regulator on Wednesday called on Ottawa to make changes to federal laws so that fraudsters hit with steep fines still have to pay up even after declaring bankruptcy, the Vancouver Sun reported. Brenda Leong, chairwoman and CEO of the B.C. Securities Commission, said she would work with other provincial regulators to make the plea to Ottawa after Canada’s high court ruled administrative penalties, or fines, don’t survive bankruptcy while orders to pay back ill-gotten gains do.
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Canada's Capital Gains Tax Target Falls Short by C$2 Billion, Says Budget Officer

Canadian federal government's target for a bump in its controversial capital gains tax over the next five years will fall short by a tenth, according to an analysis released on Thursday by the parliamentary budget officer, Reuters reported. Finance Minister Chrystia Freeland revealed a new tax on wealthy individuals in her budget in April which would bring in C$19.4 billion ($13.99 billion) over four years.
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Postmedia Plans to Buy Insolvent SaltWire Newspaper Chain

Postmedia Network Inc. has announced plans to buy “certain businesses” belonging to SaltWire Network Inc. and The Halifax Herald Ltd., the two insolvent media companies behind Atlantic Canada’s largest newspaper chain, the Canadian Press reported. The Toronto-based company, which owns the National Post, Vancouver Sun, Calgary Herald, Ottawa Citizen and dozens of other publications, issued a statement Friday saying the deal is subject to conditions, including approval from the Nova Scotia Supreme Court and “satisfactory outcomes” with unionized workers.
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