HEADLINES
Retail Sales Rose 0.7% in February
Canadians' retail spending rebounded during the first quarter, highlighting consumer resilience that is likely to be tested by a jump in fuel costs.
Retail sales increased 0.7% in February from the prior month, Statistics Canada said. An advance tally of receipts indicates March sales rose by a similar 0.6%.
The gains mark the first consecutive three-month advance in sales since the spring of 2023, following a 1.2% advance in retail sales in January. It has trade tracking a solid 2.1% quarter-over-quarter increase for the first three months of 2026, after a soft 0.4% rise in sales the quarter before.
The strength in spending supports expectations the economy returned to modest growth after contracting in the final quarter of last year. However, household consumption is expected to be squeezed as the rise in energy costs spurred by the conflict in the Middle East compounds lingering worries about trade with the U.S. and weakness in the job market.
Enbridge's $3 Billion Westcoast Gas-Pipeline Expansion Approved
Canada approved on Friday Enbridge's proposed multibillion-dollar expansion of a west-coast natural gas pipeline system, a decision the government and the company say will bolster the country's efforts to increase exports to markets other than the U.S.
In response to President Trump's protectionist trade policy, Canadian Prime Minister Mark Carney has made it a priority to accelerate the construction of trade corridors and approve resource projects to position the country as an energy superpower. Carney has argued this will help Canada reduce its dependence on trade with the U.S. to drive growth.
Enbridge's Westcoast Energy affiliate operates a transmission system that transports processed natural gas to customers in the Canadian provinces of British Columbia and Alberta, and to customers in the Pacific Northwest.
C$5.66 Billion Budget Surplus Posted in February Ahead of Fiscal Update
Canada posted a budget surplus in February, putting the public finances in a better-than-expected position ahead of the Liberal government's release next week of an economic and fiscal update.
Canada recorded in February a budget surplus of C$5.66 billion, the Department of Finance said in its monthly Fiscal Monitor publication. That surplus is narrower than a year-earlier windfall of C$7.57 billion.
With just one month left in the 2025-26 fiscal year, the public-finance data indicate Canada has a budget deficit of C$25.55 billion, which on paper looks to come in well short of the projected C$78.3 billion deficit that the government forecast last fall in its annual budget plan. However, finance ministry data have historically tended to show sizable deficits in the month of March, or the last month of the fiscal year, due to adjustments to tax receipts.
Air Canada Receives First of 30 Ordered Airbus A321XLR Aircraft
Air Canada has taken delivery of the first of 30 single-aisle Airbus jets designed to fly longer routes as the flagship carrier updates its fleet.
Shares gained 1.6% to settle at C$18.55.
The Canadian airline said Friday it accepted its first Airbus A321XLR in Hamburg, which has been leased from SMBC Aviation Capital.
Air Canada has lined up 30 of the next-generation aircraft, including 15 that will be leased and 15 it will buy directly from Airbus, which it expects will enter its fleet over the coming years.
ECN Capital Names Krimker as CEO Following Sale
ECN Capital appointed Lawrence Krimker as the Canadian financial-services company's next chief executive following its sale to an investor group.
Krimker's appointment takes effect immediately, ECN Capital said Friday. He is the founder and controlling shareholder of Goodview Capital, which was part of the investor group involved in the acquisition of ECN Capital. The group was led by Warburg Pincus.
Krimker succeeds Steven Hudson, who has stepped down from the role, the company said.
ECN Capital also named Sean Milne, managing partner of Goodview Capital, as its next chief financial officer. Milne succeeds Jacqueline Weber, who has resigned.
Wholesale Sales Estimated to Have Risen 1.3% in March
Canadian wholesale sales rose for a second month running in March, with an advance estimate pointing to increased trade in machinery, equipment and supplies.
Statistics Canada's early tally of wholesale receipts points to a 1.3% increase in sales from the month before.
The data agency's wholesale measure excludes petroleum, which saw prices climb higher in March with the jump in oil as the conflict in the Middle East escalated.
TALKING POINT
AI Startups From Canada, Germany Join Forces in Challenge to Silicon Valley
By Sam Schechner
Canadian artificial-intelligence startup Cohere is joining forces with Germany's Aleph Alpha, a combination that the smaller enterprise-AI developers hope will allow them to ramp up alternatives to Silicon Valley offerings.
The combined company, which will keep the name Cohere, aims to tap growing demand in so-called middle powers for technologies that aren't dependent on U.S. tech giants, nor on offerings from China. The deal, the structure and value of which wasn't disclosed, comes amid rising tensions between the U.S. and Europe over topics ranging from trade policy and tech regulation to the war in Iran.
Both the Canadian and German governments said they hope to create a trans-Atlantic "sovereign AI" player that caters to clients in sectors including finance and defense, as well as in the public sector, wanting to retain control over their data.
"The global landscape is consolidating fast and we need to make sure that the power does not remain in the hands of a few dominant players," Evan Solomon, Canada's tech minister, said at a press conference Friday, alongside his German counterpart. "We are all seeking strategic autonomy."
Cohere, which raised $500 million at a $6.8 billion valuation last year, primarily sells its AI models to enterprise customers. The company has been expanding in Europe and the deal with Aleph Alpha will help unlock relationships with companies and governments on the continent.
France's Mistral AI, which competes for enterprise clients with Cohere, has said the drive for tech independence is powering demand for homegrown AI models in Europe.
Aleph Alpha was once one of Europe's biggest hopes as a developer of cutting-edge AI models. But the cost of competing led the startup to pivot in 2024 away from building large-scale AI models and focus instead on tailored solutions for companies. A spokesman said the company has now started development again of a larger model for business-to-business use cases using data from clients.
One of Aleph Alpha's major investors, German retail giant Schwarz, said Friday that it planned to back a new funding round for Cohere with some $600 million. The sum will be structured as both an investment and research-and-development funding.
Schwarz, best known as the owner of grocery chain Lidl, said it would also provide sovereign data-center infrastructure to the combined entity.
Write to Sam Schechner at [Sam.Schechner@wsj.com]
Expected Major Events for Monday
05:00/JPN: Feb Indexes of Business Conditions - Revision
06:00/GER: May GfK consumer climate survey
10:00/UK: Apr CBI Distributive Trades Survey
14:30/US: Apr Texas Manufacturing Outlook Survey
23:01/UK: Apr Shop Price Monitor
23:30/JPN: Mar Labour Force Survey
23:50/JPN: Apr Provisional Trade Statistics for 1st 10 days of Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
ASA Gold & Precious Metals Ltd $(ASA)$ is expected to report for 1Q.
Alexandria Real Estate Equities Inc $(ARE)$ is expected to report $0.16 for 1Q.
Alliance Resource Partners LP (ARLP) is expected to report $0.39 for 1Q.
Bank of Marin Bancorp $(BMRC)$ is expected to report $0.55 for 1Q.
Brixmor Property Group Inc (BRX) is expected to report $0.25 for 1Q.
Brown & Brown Inc $(BRO)$ is expected to report $1.07 for 1Q.
Business First Bancshares Inc (BFST) is expected to report for 1Q.
CASI Pharmaceuticals Inc (CASIF) is expected to report for 4Q.
COPT Defense Properties $(CDP)$ is expected to report $0.33 for 1Q.
Cadence Design Systems Inc $(CDNS)$ is expected to report $1.17 for 1Q.
Celestica Inc (CLS,CLS.T) is expected to report for 1Q.
Cincinnati Financial Corp $(CINF)$ is expected to report $1.86 for 1Q.
Citizens Community Bancorp Inc (CZWI) is expected to report $0.36 for 1Q.
Crane Co $(CR)$ is expected to report $1.40 for 1Q.
Domino's Pizza Inc $(DPZ)$ is expected to report $4.28 for 1Q.
Easterly Government Properties Inc (DEA) is expected to report for 1Q.
F&M Bank Corp (FMBM) is expected to report for 1Q.
First Bank (Williamstown NJ) (FRBA) is expected to report $0.46 for 1Q.
First Community Bankshares Inc $(FCBC)$ is expected to report $0.52 for 1Q.
Fulcrum Therapeutics Inc (FULC) is expected to report $-0.32 for 1Q.
Greenwich LifeSciences Inc $(GLSI)$ is expected to report for 4Q.
HBT Financial Inc $(HBT)$ is expected to report $0.60 for 1Q.
Lakeland Financial Corp $(LKFN)$ is expected to report $1.01 for 1Q.
NOV Inc $(NOV)$ is expected to report $0.14 for 1Q.
Northern Dynasty Minerals Ltd (NAK,NDM.T) is expected to report for 4Q.
Northwest Bancshares Inc (NWBI) is expected to report $0.30 for 1Q.
Norwood Financial Corp (NWFL) is expected to report $0.47 for 1Q.
Nucor Corp $(NUE)$ is expected to report $2.81 for 1Q.
Potomac Bancshares Inc (PTBS) is expected to report for 1Q.
Royale Energy Inc (ROYL) is expected to report for 4Q.
Sierra Bancorp $(BSRR)$ is expected to report $0.82 for 1Q.
Simpson Manufacturing Co (SSD) is expected to report $1.87 for 1Q.
Solaris Energy Infrastructure Inc $(SEI)$ is expected to report $0.33 for 1Q.
TFI International Inc (TFII,TFII.T) is expected to report $0.49 for 1Q.
Timberland Bancorp Inc (TSBK) is expected to report for 2Q.
Universal Health Services Inc - Class B (UHS) is expected to report $5.31 for 1Q.
Utah Medical Products Inc $(UTMD)$ is expected to report for 1Q.
Verizon Communications Inc $(VZ)$ is expected to report $1.19 for 1Q.
Western Energy Services Corp (WRG.T) is expected to report for 1Q.
Winchester Equity Corp (WEC.V) is expected to report for Full year.
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(END) Dow Jones Newswires
April 24, 2026 16:28 ET (20:28 GMT)
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