Here are five things you need to know this morning
OECD warns on Trump impact: A warning today on the outlook for the world’s economy. The Organization for Economic Co-operation and Development (OECD) says U.S. President Donald Trump’s aggressive trade policies have set the world onto a path of slower growth and higher inflation. The Paris-based group of the world’s 38 largest economies cut its outlook for most members. It also predicted the pace of global expansion to slow to 3.1 per cent this year and three per cent in 2026 as barriers restrain commerce and rising uncertainty holds back business investment and consumer spending. The report says nations currently in the eye of the trade storm may see even sharper decelerations, with Canada’s growth rate tumbling to less than half the OECD’s December prediction, Mexico entering a recession, and the annual expansion in the U.S. wilting to 1.6 per cent next year — the weakest since 2011 aside from the initial pandemic hit suffered in 2020.
Carney in Europe: Amid the economic threats, new Canadian Prime Minister Mark Carney has arrived in Europe, as he looks to strengthen overseas relationships in the wake of U.S. government hostility. Carney will meet with French President Emmanuel Macron and British Prime Minister Keir Starmer today. The Prime Minister hopes to deepen and develop trading ties with two of Canada’s historic allies, including exploring alternative supply chain options. Carney is expected to hold a meeting with provincial premiers later this week, before calling a general election over the weekend.
HBC mulls liquidation: Hudson’s Bay is returning to court this morning where it will seek approval to begin liquidating its entire business. Canada’s oldest company says it has been forced toward a full liquidation because “exhaustive” efforts haven’t turned up the financing it needs to keep at least some of its stores open. However, there is still a chance that liquidation can be avoided. The department store operator says it remains optimistic that it can drum up capital and find a solution with key stakeholders, particularly its landlord partners, to avoid a full shutdown.
Forever 21 … not forever? Meanwhile U.S. retailer Forever 21 has filed for bankruptcy for a second time after being hit by intense competition in the fast-fashion sector. The brand has attracted droves of younger customers since the 1980s for its cheap, trendy clothing. However, it has been hurt by the rising cost of inventory and wages in recent years, as well as competition from online retailers such as Temu and Shein. The company plans to hold liquidation sales at its stores. Though if it can pull off a successful sale, it may “pivot away” from a full wind-down of operations. Forever 21 has 17 Canadian locations.
Engine resumes pressure on Parkland: We’ll be watching shares of Parkland Corporation today. The Calgary based fuel company received a notice for a board reconstruction from activist investor Engine Capital. Engine says the current board cannot be trusted to represent shareholders’ interests based on a history of questionable judgement. Engine is calling on the board to work with its largest owners to add qualified representatives and independent directors. Earlier this month Parkland announced plans to consider strategic options, including a potential sale.
