Launch Pad

Wealth gap. According to a Stats Canada report, Canada’s income and wealth inequality widened last year, as stronger financial markets benefited higher-income households while lower-income groups lagged. The income gap between the top and bottom 40% rose to 46.7%, reflecting slower wage growth and declining interest income for poorer households. Wealth disparities remain even more pronounced, with the top 20% holding nearly two-thirds of total net worth, while the bottom 40% account for just 3%. Although some households report higher leftover cash each month, financial stress is common for many Canadians, with many living close to the edge and struggling to cover basic expenses. Recent surveys have also shown the rising costs for essentials are forcing people to cut back and delay major financial decisions. 

The IMF downgraded its global growth outlook, warning the world economy is already drifting toward a weaker scenario as the Middle East conflict disrupts energy markets. The group expects global growth to rise 3.1% in 2026, although a prolonged conflict could push growth down to 2.5% or even near recession levels around 2.0% if oil prices remain elevated above $100 per barrel. Higher energy costs are also expected to fuel inflation and potentially force central banks to tighten policy further, increasing economic strain. While a short-lived conflict could allow central banks to look through the shock, ongoing disruptions risk raising inflation expectations and slowing global activity. 

While markets were focused elsewhere, the tariff playbook is quietly resurfacing. Treasury Secretary Scott Bessent said at a WSJ event in Washington that Trump’s tariffs could be reinstated by July using alternative legal tools, after the SCOTUS struck down a significant portion of the levies tied to emergency powers. While the ruling limits the administration’s ability to deploy tariffs quickly, it does not eliminate them, with existing authorities such as Section 301 and Section 232 still intact. The tariff strategy shift likely means a more procedural and potentially slower path forward but keeps tariffs central to U.S. policy and could reintroduce uncertainty for businesses. The timing is notable as Canada enters CUSMA negotiations, where tariff policy, market access, and trade terms will be central to discussions, highlighting that tariff risk is returning to the forefront. 

Some relief at the pumps. Mark Carney announced a temporary suspension of Canada’s fuel excise tax to help offset rising energy costs. The new measures are expected to push gasoline prices down by about 10 cents per liter and diesel by 4 cents starting April 20. The measure, which will remain in place until Labour Day and cost roughly $2.4 billion, is aimed at easing affordability pressures on households facing higher fuel prices. While the government considered broader tax cuts, it opted for a more targeted approach as it balances fiscal constraints with rising demands for cost-of-living relief. With a newly secured parliamentary majority, the government is also shifting focus toward longer-term priorities like housing, infrastructure, and economic resilience. 

Even with some relief at the pumps coming, interest in EVs is rebounding. A new report found that 49% of non-EV owners in Canada are now considering a purchase, driven by the rise in gas prices and renewed government incentives. Fuel costs have rallied roughly 45% amid the Iran-related energy shock, while the federal EV rebate program, offering up to $5,000 per vehicle, has boosted both demand and sales, with new EV sales rising 38% year-over-year by late March. Online searches for EVs also jumped, particularly after the conflict began, signaling a clear behavioural shift among consumers. Despite improving affordability, cost remains a key barrier, with over half of prospective buyers saying they need incentives to make a purchase. 

The ultimate job interview trick question. For several years, North Korean operatives have been securing remote jobs at Western companies using fake identities. Not wanting to risk hiring employees looking to steal valuable information, recruiters are now adopting some unusual screening tactics. A recent viral video shows one method involved asking suspicious candidates to insult Kim Jong Un, since doing so is illegal and potentially dangerous for North Koreans. In this most recent example, the applicant became visibly uncomfortable and left the interview. While tactics like this have proven to help expose impostors, they are far from foolproof, and firms will need to increase their scrutiny of applicants, especially when it comes to hiring remote workers. In the meantime, while face-to-face interviews aren’t always practical, a bit more verification upfront may save trouble later. Sometimes the old-fashioned way still works. 


Diversion: This or DQ? 
 

Rice prices are at the highest in more than two years on concerns about the supply outlook after the cost of fuel and fertilizer jumped due to the Iran war, prompting some Thai farmers to leave their crop in the ground. The Asian benchmark, Thai white rice 5% broken, jumped 10% to $423 a ton in the week ended April 8, the biggest gain since August 2023. While it’s an early sign that rising input costs are starting to impact the market, prices have been on a prolonged downtrend and were recently near the lowest in over a decade. Some farmers in Thailand have suspended rice cultivation because their profits simply aren’t enough to cover the ballooning costs. The challenging situation has been compounded by a long dry season, which has significantly reduced yields and tightened supplies of the current crop.  

China’s bond market is attracting strong investor inflows as a relative safe haven amid global volatility driven by the Iran war, with foreign investors pouring in capital while other emerging markets see outflows. Unlike the U.S. and other major economies facing rising yields and stagflation concerns, China’s low inflation, soft domestic demand, and energy resilience have kept interest rates stable and even pushed short-term yields lower. This has led to a steepening yield curve and increased appeal for medium-term bonds, while longer-dated debt remains more cautious amid inflation risks. Although China is not immune to higher energy costs, experts are saying that its economic structure and policy stance are helping insulate it from global shocks, making its bond market attractive for diversification and stability.