Canada's economy does not need more stimulus, but rather more investment from both government and businesses to build up supply capacity to meet strong consumer demand, Bank of Canada Governor Tiff Macklem said on Wednesday, Reuters reported. Macklem, when asked in an audience Q&A session if government should be spending billions to further stimulate the economy, said Canada is already in the midst of a consumer-led recovery, and more capacity investment is needed to sustain that. "To sustain a strong consumer-led recovery, you need investment," he said.

Canada posted a surprise trade deficit in December, as imports hit a new record high and exports fell from November, official data showed on Tuesday, but economists expect an export rebound in January on surging energy prices, Reuters reported. Canada's trade deficit was C$137 million ($108 million) in December, well below analyst forecasts of a surplus of C$2.50 billion. November's surplus was also revised down to C$2.47 billion from C$3.13 billion, still good for a 13-year record.

Bond investors are bracing for a potential default by Mexico’s largest payroll lender, the Wall Street Journal reported. Bonds for Credito Real SA B de CV lost almost half their value in recent days over uncertainty about its ability to repay a 170 million Swiss franc bond, equivalent to $184 million, that falls due on Feb. 9. If the company misses the payment it would mark a victory for hedge-fund managers who questioned its accounting practices last year and bet bonds and share prices would drop.

Jury selection is expected to begin on Monday in the U.S. corruption trial of a former Goldman Sachs banker accused of involvement in the looting of billions of dollars from Malaysia's 1MDB sovereign wealth fund, Reuters reported. Roger Ng, Goldman's former head of investment banking in Malaysia, has pleaded not guilty to conspiring to violate an anti-bribery law and launder money in connection with the alleged looting of billions of dollars from the fund.

Mexican Economy Minister Tatiana Clouthier said on Monday the country's economy was likely to grow about 2.5% this year after being hit by the Omicron wave of the coronavirus pandemic, in a blow to President Andres Manuel Lopez, Reuters reported. Mexico's economy contracted for a second straight quarter in the last three-month period of 2021, putting it in a technical recession and confirming growth had lost momentum. Overall the economy expanded 5.0% for full-year 2021 after shrinking 8.5% in 2020 in Mexico's worst recession since the Great Depression of the 1930s.

The United States and Japan are set to announce a deal to grant Japanese steelmakers relief from Trump-era U.S. tariffs for a limited amount of steel imports, Reuters reported. Anonymous sources said that it will allow about 1.25 million metric tonnes into the United States duty-free, with volumes above that level subject to the 25% "Section 232" national security tariffs.

Bank of Canada Governor Tiff Macklem said on Wednesday there was uncertainty about how quickly inflation would come back down due to the unique nature of the COVID-19 pandemic, which has helped drive up prices, Reuters reported. Macklem, speaking to the Senate banking committee, reiterated that interest rates would have to start going up this year to tackle inflation, which is currently 4.8%, more than double the central bank's 2% target. "There is some uncertainty about how quickly inflation will come down because we've never experienced a pandemic like this before," he said.

Latam Airlines Group SA can send its $5.4 billion bankruptcy-exit plan to creditors for a vote, a judge said Tuesday, handing the airline a partial victory over debtholders who want to pursue alternatives, including a takeover by rival Azul SA, Bloomberg News reported. The decision means the company can seek final court approval for its reorganization plan in April and possibly exit bankruptcy several months after that, should it get support from securities regulators in Chile, where Latam is based.

Jamaica will roll out its digital currency across the country in the first quarter of this year as part of an effort to lower transaction costs and provide financial services to citizens who do not use banks, a central bank official told Reuters. The Bank of Jamaica said in December that it completed a pilot project that issued 230 million Jamaican dollars (US$1.5 million) of the new currency, an effort that comes on the heels of a similar project launched by a group of Eastern Caribbean nations.

Aeromexico on Friday won court approval of its restructuring plan after the airline struck a deal with the remaining holdouts among its creditors, clearing the way for it to emerge from bankruptcy with new controlling shareholders, Reuters reported. "I could not be more pleased to tell you the plan of reorganization is confirmed," U.S. Bankruptcy Judge Shelley Chapman said soon after the agreement to pay a settlement to the creditors was announced during a court hearing.