Good morning. A week packed with key economic reports and events is ahead. More on that below – along with Canada‘s new face in Washington, and the trouble with curbing steel imports.

In the news

Real estate: Canada’s residential market slumped in November, with sales declining and home prices falling as sellers offered discounts to move properties.

Quantum: The federal government is expected to unveil a program today aimed at supporting key homegrown players in the emerging quantum computing space.

Climate: An American start-up pitching a way to cut carbon capture costs in half is targeting Alberta’s oil sands.

Inflation watch

Canada’s November inflation data this morning is largely expected to show prices rising at a mild pace – but the more telling story might be in the grocery aisle.

Food prices are projected to have risen 3 per cent year-over-year, and could jump another 4 to 6 per cent over 2026.

The Bank of Canada’s preferred measures of inflation, which filter out extreme price swings, show stable underlying price growth. But households are feeling the pressure at the checkout: a family of four could be facing an increase of nearly $1,000 in their annual food bill in 2026, according to a recent report.

Help might be on the horizon. The grocery sector code of conduct isn’t designed to address high food prices – the most common public complaint in the industry – but it could help consumers in other ways.

Karen Proud, the president and adjudicator of the office overseeing the code, which takes effect on Jan. 1, told retailing reporter Susan Krashinsky Robertson that setting rules for major retailers and their suppliers could result in smaller companies getting their products on shelves – providing more choice for shoppers.

Carney’s Wiseman in Washington

Globe reports that Canadian financier Mark Wiseman will be the next ambassador to the United States are expected to be confirmed in the coming days.

Wiseman will take over from Kirsten Hillman, who has served in Washington since 2017, and will occupy Canada’s most important diplomatic role as the country prepares for intense USMCA talks.

From the fans:

• Wiseman is a close friend of Prime Minister Mark Carney and brings extensive business connections stateside.
• Officials believe his financial background will be respected by Trump’s top trade advisors.

From the critics:

• Wiseman has no formal diplomatic or government experience. (Neither did Carney! Maybe I’ve still got a shot.)
• Opposition parties seized on a social-media post Wiseman shared in May, 2023, which said that immigration aimed to expand the country’s population to “100-million may not be federal policy, but it should be – even if it makes Quebec howl.”
• Both the Bloc and Conservatives said sharing that comment makes him ill-suited to negotiate on behalf of Quebec.

South of the border

After the record-long government shutdown delayed key economic reports, November inflation and labour data will give investors a welcome gauge of the economy’s footing and help determine the Federal Reserve’s next rate move.

The U.S. jobs report for November is due tomorrow; the monthly consumer price index is published on Thursday.

In announcing its third-consecutive cut last week, the Fed’s guidance didn’t leave a whole lot of room for interpretation. The central bank could be done making moves under the stewardship of Jerome Powell, but some economists still see one more cut in January as a possibility.

At the bell

BlackBerry reports on Thursday after the close. If history is any guide, Amber Kanwar writes in her weekly earnings setup, the enterprise software company could beat expectations once again.

Some analysts are expecting a rosy forecast on the back of double-digit growth for QNX, its in-car infotainment platform. You can read more on that venture in this story by technology reporter Sean Silcoff.

Nike also reports results on Thursday. The retail index has been speeding ahead of the market – rising 8 per cent over the past month, while the S&P 500 flattened. Suddenly, sporty clothing and footwear is looking good.