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8:30 a.m.

Canada adds 25,000 jobs in November, unemployment rate rises to 5.8%

The Canadian economy added 25,000 jobs in November, while the unemployment rate rose to 5.8 per cent, Statistics Canada said Friday.

The unemployment rate was 5.7 per cent in October.

Manufacturing and construction had the largest gains in employment, while the most jobs were shed in wholesale and retail trade as well as finance, insurance, real estate, rental and leasing.

As labour market conditions weaken, unemployed people last month were more likely to have been laid off compared with a year ago, Statistics Canada said.

The softer job market conditions come as high interest rates weigh on economic growth and a ballooning population adds to the number of people looking for work.

Despite those trends, however, average hourly wages continued to grow quickly — rising 4.8 per cent from a year ago — as workers seek compensation for high inflation.

Financial Post, The Canadian Press

7:45 a.m.

BMO, National Bank raise dividend payments

Bank of Montreal and National Bank of Canada both raised their quarterly dividend payments in mixed earnings reports on Friday.

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BMO will pay a quarterly dividend of $1.51 a share, up from $1.47 per share. Profit fell at the bank, with net income amounting to nearly $1.62 billion or $2.06 per diluted share for the quarter ended Oct. 31, down from $4.48 billion or $6.51 per diluted share a year earlier.

National Bank is also raising its dividend, as it reported a rise in profits from a year ago. Its quarterly dividend to shareholders rises to $1.06 per share, up from $1.02. The bank said it earned $768 million or $2.14 per diluted share for the quarter ended Oct. 31, up from $738 million or $2.08 per diluted share a year earlier.

The banks join Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce in raising dividend payments this week.

The Canadian Press

More: BMO misses estimates

7:30 a.m.

First Quantum risks covenant breach, cost cuts if Panama shuts key copper mine

First Quantum Minerals Ltd. could be forced to slow spending next year and face a potential breach of debt covenants if Panama follows through on plans to close a copper mine that generated roughly US$1 billion in profit last year.

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The Cobre Panama mine has been the Canadian company’s top money maker since its 2019 opening and was expected to account for almost half of worldwide sales next year. Now, after the government announced plans to shutter the US$10-billion operation, First Quantum may have to trim spending elsewhere or sell assets in order to remain in compliance with lender agreements.

The company is facing an estimated US$625 million in debt maturities next year and another US$1.8 billion in 2025, according to Citigroup Inc. Without Cobre Panama’s revenue, the company’s debt covenants would be tested in 2024, First Quantum chief financial officer Ryan MacWilliam told a conference hosted by Bank of Nova Scotia on Nov. 29. The bank said in a research note that at current copper prices and without the mine, it expected a covenant breach in the fourth quarter of next year. First Quantum shares dropped 10 per cent to a three-year low.

It’s as-yet unclear how serious the risk is of a permanent closure of Cobre Panama. That said, First Quantum would post negative free cash flow of about US$300 million a quarter without it — at least initially, Citigroup analysts wrote in a note to clients.

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Jacob Lorinc and James Attwood, Bloomberg

Read the full story here.

Stock markets before the opening bell

World shares were mixed on Friday after Wall Street closed out its best month of the year with big gains in November.

Germany’s DAX rose 0.6 per cent to 16,309.89 and the CAC 40 in Paris added 0.5 per cent to $7,348.88. Britain’s FTSE 100 was up 0.8 per cent at 7,512.94.

The future for the S&P 500 edged 0.1 per cent lower while that for the Dow Jones industrial average gained 0.1 per cent.

The S&P/TSX composite index closed up 120.09 points at 20,236.29 on Thursday.

The Associated Press

What to watch today

Statistics Canada will release the employment report for November this morning. The S&P Global Manufacturing PMI is also set for release.

Bank of Montreal and National Bank of Canada will report earnings today.

Trades will be watching for interest rate clues from United States Federal Reserve chair Jerome Powell, who is set to participate in a fireside chat at a college in Atlanta.

Environment and Climate Change Canada will release its forecast for the upcoming winter season.

Need a refresher on yesterday’s top headlines? Get caught up here.

Additional reporting by The Canadian Press, Associated Press and Bloomberg

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