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Ottawa Public Servants Brace for Major Job Cut Announcements in the New Year

  Federal Workers Await January Notices as Ottawa Prepares Job Cuts Federal public servants across Canada are bracing for a wave of job‑cut announcements expected to begin in January, as departments prepare to roll out the government’s latest cost‑cutting measures. Several federal organizations have already warned employees that details about workforce reductions will be shared early in the new year. The cuts stem from a government‑wide plan to reduce spending, streamline operations, and bring the public service back to what officials describe as a more sustainable size. Departments are expected to use a mix of attrition, restructuring, and workforce adjustments to meet their targets. Early notices have already begun circulating in some organizations, with more formal announcements anticipated once employees return from the holiday break. Unions representing federal workers say they are preparing for a period of uncertainty as the scope of the reductions becomes clearer. With ...
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Stock Markets: How High Interest Rates Are Hurting Bay Street

                                                    

Bay Street, the financial heart of Canada, is facing a tough challenge as interest rates rise and stock sales slow down. The Bank of Canada has raised its key interest rate four times since July 2020, reaching 1.75% in October 2023. This has made borrowing more expensive for businesses and consumers, dampening the demand for stocks and other riskier assets.

According to data from Bloomberg, equity offerings in Canada have fallen by 32% in the first nine months of 2023 compared to the same period last year. The total value of stock sales was $23.4 billion, the lowest since 2016. The decline was especially sharp in the energy and mining sectors, which have been hit hard by lower commodity prices and environmental regulations.

Some analysts expect the slowdown to continue for the rest of the year and into 2024, as the Bank of Canada signals more rate hikes to curb inflation and cool down the overheated housing market. This could put more pressure on Bay Street firms, which rely on fees from underwriting and advising on stock sales to generate revenue.

However, not all is gloomy for Bay Street. Some sectors, such as technology and health care, have shown resilience and growth potential amid the pandemic and the economic recovery. Some companies, such as Shopify and Lightspeed, have raised billions of dollars in secondary offerings on U.S. exchanges, boosting their valuations and profiles. And some investors, such as pension funds and private equity firms, are still looking for opportunities to buy undervalued or distressed assets in Canada.

The challenge for Bay Street is to adapt to the changing market conditions and find new ways to serve its clients and attract capital. The future may not be as bright as it was before the pandemic, but it is not as dark as it may seem either.


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