U.S. stocks soared Friday as a rally fueled by lighter-than-expected inflation data supported equity markets

Business and consumer insolvencies are marching higher, as climbing interest rates and crushing inflation fuel economic uncertainty, according to an insolvency industry group.

In the second quarter of 2022, business insolvencies climbed 30.9 per cent compared to the same time last year, and they’re up 26.3 per cent from the first six months of 2022, The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) said.

Consumers are also under pressure. CAIRP’s data show there were 25,266 insolvencies in Q2, up 10.5 per cent compared to the same time last year, and up 9.2 per cent from the previous quarter, in what is the “highest volume” in two years. They are up 32 per cent compared to 2020.

The rising number of insolvencies are directly related to higher inflation and interest rates, CAIRP said.

“Cost of living increases are having an immediate impact on household budgets. At the same time, rising interest rates and the subsequent increase in debt carrying costs are having gradual but significant effects,” André Bolduc, vice-chair of CAIRP said in a news release.

Things are expected to get worse. During the pandemic, consumer insolvencies fell 40 per cent amid ample government supports that kept Canadians’ finances afloat, CAIRP said. But now that such financial aid has been removed, insolvencies are starting to bounce back, though they still remain below 2019 levels.

Plus, interest rates are rising at a fast clip, a shock for some people’s finances. The Bank of Canada has pledged to keep hiking rates to wrestle soaring inflation back to its two per cent target. Inflation hit 8.1 per cent in June from a year earlier, a level not seen in decades. That’s left Canadian consumers wrestling with growing debt costs from rising interest rates, while trying to manage higher prices of essentials at the same time.

Indeed, Canadians are pulling back on spending where they can, and many are targeting food costs. According to a survey released yesterday from Maru Public Opinion and Yahoo Canada, 60 per cent of Canadians have cut their expenses in the face of rising inflation. Of those, 68 per cent have trimmed spending on restaurants, while 61 per cent have cut back at the grocery store.

But cutting back can only do so much. For those who have trimmed spending as much as they possibly can and are still finding it difficult to get by, taking on more debt may be their only option. And that spells trouble ahead, CAIRP said.

“Many may continue to rack up more debt to make ends meet — whether by taking on loans, increasing home equity lines of credit (HELOCs) or spending on credit cards — but that is simply pouring fuel onto the fire,” Bolduc said.

Inflation and rising rates are also dinging business balance sheets, and are especially painful for those organizations who have not fully recovered from pandemic losses. Business insolvencies are likely to grow in the months ahead, CAIRP said, with some sectors getting impacted more than others. Those include construction, transportation and warehousing.

“Looking ahead, businesses in industries most affected by fluctuations in cost and supply chain pressures and changes in business and consumer confidence are the most vulnerable,” Jean-Daniel Breton, chair of CAIRP said in the release.

Still, the uptick in insolvencies isn’t necessarily a bad thing. CAIRP said insolvency can actually be a sign a company has its eye on the ball, and could help them avoid bankruptcy in the end.

“It means businesses are taking proactive measures to put themselves on a more stable financial footing,” Breton said. “The sooner distressed businesses seek out the assistance of a licensed insolvency trustee, the more restructuring options may be available to them.”

Was this newsletter forwarded to you? Sign up here to get it delivered to your inbox. _____________________________________________________________

FARMERS PUSH BACK A plan by the federal government that would require farmers to reduce the amount of nitrogen fertilizer they use to lower greenhouse gas emissions is not going over well with agribusiness groups. They argue being forced to use less fertilizer will reduce crop yields at a time when food security is a big concern. The Financial Post’s Robert Shelton reports. Photo by Shannon VanRaes/Reuters

Deputy Prime Minister Chrystia Freeland will tour a tech innovation hub, Communitech, to meet with innovators and entrepreneurs. She will be joined by the MP for Waterloo, Bardish Chagger, and the MP for Kitchener South—Hespeler, Valerie Bradford.

Steve Clark, Ontario minister of municipal affairs and housing, will hold a media availability after introducing legislation to provide municipalities with additional tools to build homes faster.

Tanya Fir, associate minister of red tape reduction, will announce a milestone in support of government’s goal to reduce red tape by one-third by 2023.

The Cannacord Genuity growth conference takes place in Boston, Massachusetts, featuring a fireside chat with Ana Roman, Shopify Inc. senior manager of investor relations. Amos Kazzaz, executive vice president and CEO at Air Canada, will also present at the conference.

Today’s data: U.S. consumer price index, U.S. wholesale trade

Earnings: Indigo Books and Music Inc., Aleafia Health Inc., Birchcliff Energy Ltd., Lucara Diamond Corp., Linamar Corp., Peyto Exploration & Development Corp., Centerra Gold Inc., Manulife Financial Corp., Pieridae Energy Ltd., High Liner Foods Inc., Stelco Holdings Inc., Metro Inc., Walt Disney Co., Honda Motor Co. Ltd., Toshiba Corp., Foxconn, Ballard Power Inc., Canadian Apartment Properties Real Estate Investment Trust

‘Soft landing is wishful thinking at this stage:’ former Bank of Canada economist

David Rosenberg: Roof is about to cave in on the Canadian economy

‘Great for landlords, horrible for renters’: How a runaway rental market has become Toronto’s latest housing nightmare

Elon Musk sells $6.9 billion of Tesla stock to avoid fire sale if Twitter deal forced through

Canadian watchdogs join probe of Celsius’ multi-billion-dollar collapse, sources say

RioCan posts second quarter net income of $78.5 million as occupancy rates tick up

Here’s how to see if you have one of the 8.9 million uncashed cheques issued by the CRA

United States oil production remains on track for a record 2023 even as output grows more slowly than anticipated amid surging costs and labour shortages in America’s shale fields.

Output is expected to expand at an average rate of 840,000 barrels a day next year, down from a prior forecast of 860,000, according to the Energy Information Administration. While production is still seen reaching an all-time high in 2023, the government revised its forecast slightly lower to 12.7 million barrels a day. The current annual record is 12.3 million set in 2019.

Exchange-Traded Funds (ETFs) are a favourite way for Canadian investors to gain access to the market. Yet with hundreds of options available, it can be challenging to decide which ETFs to purchase. Especially now, when Canadians continue to trade in a volatile marketplace. Our content partner MoneyWise has compiled a list of the best ETFs Canadians can buy today, based on opinions from finance experts.

Today’s Posthaste was written by Victoria Wells (@vwells80), with additional reporting from The Canadian Press, Thomson Reuters and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com, or hit reply to send us a note.

Listen to Down to Business for in-depth discussions and insights into the latest in Canadian business, available wherever you get your podcasts. Check out the latest episode below:

Canada's main stock index rose on Thursday, closing at a the highest in two months as higher oil prices bolstered energy shares, but an uncertain economic environment threw doubt on whether it would be plain sailing ahead for the commodity-linked market. The Toronto Stock Exchange's S&P/TSX composite index ended up 105.94 points, or 0.5%, at 19,991.88, adding to this week's rally and posting its highest closing level since June 10. "We have had a pretty good week ... we have seen a lot of the commodities hang in," said Michael Sprung, president at Sprung Investment Management.

(Bloomberg) -- US mortgage rates rose back above 5%, ratcheting up pressure on the cooling housing market. Most Read from BloombergStriking Drop in Stress Hormone Predicts Long Covid in StudyChina Has Painted Itself Into a Semiconductor CornerDozens in China Infected With New ‘Langya’ Virus Carried by ShrewsMedia Tallies Show Extremely Tight Presidency Race: Kenya UpdateThe Fed’s Damage to the Housing Market May Last YearsThe average for a 30-year loan increased to 5.22% from 4.99% last week, Fr

"The market is having a rethink of the global growth trajectory," said Adam Button, chief currency analyst at ForexLive. "The positive economic sentiment is well reflected in the oil price right now," Button said.

Over an earnings period that appeared to signal the end of Netflix envy, Walt Disney Co restored hopes that growth in the streaming business will continue. But Disney, which edged past Netflix as streaming leader by global subscribers last quarter, is the outlier among its media peers. The industry-wide scramble of the last few years to copy Netflix Inc has slowed to a more deliberate pace over the last two weeks, as companies change their tune on the streaming business.

Sterling fell 0.5% against the euro ahead of the numbers on Friday, which are expected to show further signs of a weakening British economy.

Recently, GWM HAVAL DARGO was launched in Chile and Peru in South America, bringing a brand-new driving experience to local customers.

Kiwetinohk Energy Corp. (TSX: KEC), an energy transition company, today announced its second quarter 2022 results. The Company achieved record quarterly adjusted funds flow from operations1 of $76.2 million, reflecting both the strong commodity price environment and new record quarterly average production. Kiwetinohk, as a shipper on Alliance Pipeline, is uniquely positioned with approximately 90% of its natural gas anticipated to be sold into the currently strong Chicago market in the second ha

More than half of Canadians believe the metaverse will be part of everyday life within the next decade, study says

Several hospitals in Ontario closed emergency departments last weekend due to a severe staffing shortage. In Premier Doug Ford’s throne speech this week, the government said it is working with stakeholders to identify possible solutions to ease the pressure facing the healthcare system. “Your government is actively engaging with health-system partners to identify urgent, actionable solutions and will implement whatever measures are needed to help ease immediate pressures,” Lt.-Gov. Elizabeth Dowdeswell said in the throne speech delivered on behalf of the Ford government. While the immediate issues facing the healthcare system, such as temporary emergency department closures, need to be addressed, the Public Policy Forum’s Sean Speer said the government must also focus on the long-term, structural problems in the system. “We know because of aging demographics, pressure on our healthcare system is only going to grow,” Speer said. “It’s going to require more than a short-term push if we’re going to ensure not just that these emergency rooms reopen in the short term, but that they are actually capable of serving patients over the long term.” If you have any policy-related questions, or feedback about the show, please email alicja@yahoofinance.com.

Nigeria's President Muhammadu Buhari has withheld his initial approval of Exxon Mobil's sale of local offshore shallow water assets to Seplat, his spokesman said on Thursday, after the oil regulator refused to give its consent. Buhari on Monday consented to the $1.28 billion transaction, only for the Nigerian Upstream Petroleum Regulatory Commission to say it opposed the deal, although it did not give a reason. The transaction is being closely watched by other oil majors like Shell and TotalEnergies, who have announced plans to sell some local assets.

WASHINGTON (Reuters) -South Korea's SK Hynix aims to select a U.S. site for its advanced chip packaging plant and break ground there around the first quarter of next year, two people familiar with the matter said, helping the United States to compete as China pours money into the burgeoning sector. SK Group, South Korea's second-biggest conglomerate, owns memory chipmaker SK Hynix and announced the new plant last month as part of a $22 billion U.S.-based investment package in semiconductors, green energy and bioscience projects. The announcement, heralded by the White House, said $15 billion would be allocated to the semiconductor industry through research and development programs, materials, and the creation of an advanced packaging and testing facility.

These dividend stocks offer up strong dividends, a cheap share price, and safety from growing, safe sectors of the market. The post 4 of the Safest Dividend Stocks on Earth Right Now appeared first on The Motley Fool Canada.

TFSA investors can buy top dividend stocks and harness the power of compounding to build significant portfolios for retirement. The post How to Turn $15,000 Into $270,000 and Pay No Tax appeared first on The Motley Fool Canada.

Companies such as Brookfield Asset Management have the potential to consistently beat the broader markets and deliver stellar returns to investors. The post 4 Stocks That Could Turn $100,000 Into $500,000 by the Time You Retire appeared first on The Motley Fool Canada.

"Electricity and gas prices started to re-accelerate, while price hikes are becoming more prevalent in goods such as processed foods," said Takeshi Minami, chief economist at Norinchukin Research Institute. Economists estimate the nationwide core CPI, which excludes volatile fresh food costs but includes energy, was 2.4% higher last month than a year earlier. Excluding periods when the indicator was skewed by effects of higher sales tax, the expected core CPI rise for July would be the fastest since August 2008.

MEXICO CITY (Reuters) -The Bank of Mexico hiked its benchmark interest rate by three-quarters of a percentage point to a record 8.5% on Thursday, mirroring the U.S. Federal Reserve's most recent policy decision as inflation surged to an over two-decade high. The five board members of Banxico, as the central bank is known, voted unanimously for the second 75 basis point hike in a row, saying the board would "assess the magnitude of the upward adjustments in the reference rate for its next policy decisions based on the prevailing conditions." Analysts said that language gave its forward guidance a slightly dovish bias, moderating the tone of its prior monetary policy statement on June 23 when it said the board intended to continue raising rates and would "evaluate taking the same forceful measures if conditions so require."

Here are some things entrepreneurs should do, and avoid, during a time of inflation

BERLIN (AP) — German Chancellor Olaf Scholz pledged his government won't leave citizens freezing or unable to pay their energy bills but acknowledged Thursday that his country faces considerable challenges in the coming months. Rising fuel costs sparked by Russia's war against Ukraine have put severe financial strain on many in Germany and beyond, raising concerns about a possible winter of discontent. “We will do everything to help citizens get through this difficult time,” Scholz told reporter

TORONTO — Telus Corp. is trying to add a 1.5 per cent processing fee for customers who use a credit card after a class action settlement cleared the way for merchants to add the surcharge starting this fall. In a letter to the Canadian Radio-television and Telecommunications Commission, the telecom giant says the surcharge is intended "to cover the processing costs that credit card payments incur." The document, which is dated Monday, seeks permission from the regulatory body to add the fee to i

Miners will struggle to expand operations in the United States in record time to meet a deadline for sourcing key minerals domestically or from select countries as set out by a bill likely to be passed on Friday, companies and industry watchers said. The requirement is part of a sweeping bill that includes climate and clean energy policies and rules on electric vehicle (EV) battery materials such as cobalt, lithium, nickel and graphite. The U.S. House of Representatives is set to vote nL1N2ZJ02X on the measure Friday.