It’s widely believed that lower prices at the gas pumps would free up some money for Canadian consumers to spend elsewhere.

But a lower Canadian dollar–another effect of lower oil prices– will boost the price of imported goods, and that will largely offset any gains from lower pump prices, according to a report from TD Economics.

“While lower gasoline prices on average this year will leave consumers with more money in their wallets, the benefits of these savings will be muted,” it says.

That’s one reason TD is forecasting a fairly sharp decline in retail sales growth this year. It’s projecting that growth will decline to 2.4% this year from 3.5% in 2014 before perking up to a “more normal” 3.6% next year. Bond rating firm Moody’s said it’s anticipating retail sales growth of 3.0% to 3.5% this year. Read More »

Ottawa-based technology startup Shopify Inc. priced its initial public offering at $17 a share, above the top end of a price range that had already been raised due to strong investor demand. Trading is set to debut at the open in New York and Toronto on Thursday.

Open Text Corp. issued disappointing quarterly guidance as foreign-exchange headwinds and challenging industry conditions weigh on results. It also said it plans to  streamline operations and cut staff to save about $50 million annually as it focuses on the Cloud-based enterprise information management market.

First Quantum Minerals Ltd. said it aims to raise at least C$1.25 billion from a public share offering in Canada. Terms of the offering haven’t yet been set. Read More »

Household debt in Canada is at an all-time high, but maybe that shouldn’t be surprising.

That’s because it has hit record highs in almost every year since 1960, according to a report from the Fraser Institute.

The relentless rise in household debt over the past several years partly reflects the fact that household borrowing is a relatively new phenomenon, it says. Read More »

Sears Canada Inc. said revenue fell 9.7% and same-store sales fell 4.3%, but it posted a smaller loss than a year earlier. The retailer said it started to see signs its business was performing better during the quarter, noting the same-store sales decline was lower than in any quarter last year.

DHX Media Ltd. sad it has licensed exclusive global publishing rights for the preschool series Twirlywoos to HarperCollins Children’s Books. The first titles will be released in the U.K. in October, it said. Read More »

The number of consumer insolvencies in Canada’s oil-rich western provinces has jumped recently  in response to the sharp slump in crude oil prices, according to a report from CIBC World Markets.

Insolvencies in Manitoba and Saskatchewan rose by almost 11% during the six months ending in February 2015, while in Alberta they rose by 6.5%, the worst showing since the recession, the report says. Read More »

A $5.4 billion expansion of the Oyu Tolgoi copper-gold-silver mine in southern Mongolia, owned 66% by Turquoise Hill Resources Ltd., looks set to go ahead after a deal was reached with the Mongolian government that settles disagreements around tax and royalty payments.

ProMetic Life Sciences Inc. said it has entered a long-term strategic manufacturing agreement that provides it with access to additional manufacturing capacity in an FDA-licensed facility in Winnipeg, Manitoba. It said it will use the capacity to develop and make plasma-derived biopharmaceuticals. Read More »

This week started late thanks to the Victoria Day holiday, which shut down Canadian markets on Monday. The shortened week will begin with a speech from Canada’s top central banker and end with some key economic data.

On Tuesday, Bank of Canada Governor Stephen Poloz will deliver a speech in Prince Edward Island entitled “The Way Home: Reading the Economic Signs.” Market watchers will scour his every word for clues to the Bank of Canada’s next move on rates, as the central bank is scheduled to deliver another policy decision on May 27. Based on the title of his speech, Mr. Poloz may discuss whether all the elements are in place for a robust mid-year recovery, or whether recent strengthening in the Canadian dollar and a rise in bond yields pose any worries for the central bank. Read More »

When the Bank of Canada cut its key interest rate in January, it said it was taking out insurance against the potential impact of lower oil prices on Canada’s economy.

It may have to take out some additional coverage in the coming weeks, if recent market trends toward a stronger Canadian dollar and higher bond yields persist. That’s because those trends could choke off the easier money the central bank was trying to encourage when it cut its policy interest rate by 0.25% to 0.75% on Jan. 21.

The Canadian dollar has recovered all the ground it lost after the rate cut. Earlier Friday the loonie was at 83.1 U.S. cents, slightly higher than the day before the cut. Read More »

Webtech Wireless Inc., which provides GPS fleet-management services, said a Brazilian court has ruled in the company’s favor in a case brought in 2008 by a former distributor.

Aimia Inc. said it swung to a first-quarter profit, while earnings excluding items fell to 15 Canadian cents a share from 48 Canadian cents. Analysts expected earnings of 18 Canadian cents. Adjusted EBITDA of C$52.1 million was a “solid beat,” according to Desjardins. The loyalty-program operator also raised its dividend and announced plans for a buyback. Read More »

The slump in oil prices is altering the economic pecking order among Canada’s major cities, pushing cities in oil-rich Alberta from the top to the bottom, the Conference Board of Canada says.

The Ottawa-based think tank says Calgary and Edmonton, which have led Canada’s cities in growth over the last several years, will fall into recession.

Oil is Canada’s biggest export and the big drop in prices for that commodity is expected to be a net negative for Canada’s economy. But oil production is concentrated in the western provinces and in offshore drilling in the Atlantic off the coast of Newfoundland and Labrador. As a result, those areas are much more vulnerable to the economic pressures created by lower oil prices, while the manufacturing-oriented economies of central Canada could benefit from lower oil prices, particularly if they boost consumer spending.

The Conference Board forecasts the economies of Calgary and Edmonton will shrink by 1.2% and 0.8%, respectively, in 2015. Read More »