Telus cuts dividend 55% to preserve billions for debt
Plus: Canada's economy beats growth forecasts, Bank of Canada stands by replacement workers, and a Canadian NATO intern faces espionage charges.
TL;DR
- Telus slashed its dividend from $1.67 to $0.75 per share annually to preserve $2.7 billion for debt through 2028.
- Canada's real GDP grew 0.3 per cent in May, outpacing forecasts and pointing to a solid second-quarter rebound.
- A Canadian NATO intern was arrested in Belgium on suspicion of spying for China after working at alliance military headquarters.
- The Supreme Court cleared the way for judicial review of an ethics ruling related to the Trudeau case.
Politics
Supreme Court clears ethics ruling review as NDP signals election unreadiness
The judiciary removes a hurdle to challenging an ethics investigation while opposition parties stake their ground.
The Supreme Court of Canada said on Thursday that judicial review can proceed in a case challenging an ethics ruling related to Mark Carney's time as finance minister under Justin Trudeau, opening a path to overturn or uphold the Commissioner's findings. The decision removes a procedural barrier that could resolve the dispute (via CBC News).
NDP signals election timing. NDP Leader Avi Lewis told reporters he will not accept cabinet office until the party is ready to fight a general election, a statement that signals the opposition is preparing for a vote but has not yet committed to when one might occur (via CTV News).
Business and economy
Telus resets dividend, economy beats forecasts despite tariff headwinds
The telecom giant cuts shareholder payouts to fuel debt reduction while GDP data signals resilience.
Telus announced a 55 per cent reduction in its quarterly dividend to $0.1875 per share from $0.4184, a reset under new CEO Victor Dodig aimed at preserving approximately $2.7 billion in cash through 2028 for debt repayment. The announcement triggered a sharp market reaction, with Telus shares plummeting 11.9 per cent to $13.28 on trading volume more than double the daily average (via The Deep Dive).
Canada's economy grew 0.3 per cent in May, topping Statistics Canada's expectations as goods and services sectors both expanded. The growth came as 13 of 20 industrial sectors contributed to gains, with mining, oil and gas leading at 1.0 per cent. Statistics Canada's advance estimate now shows second-quarter GDP rising at a 3.4 per cent annualized rate, a sharp rebound from a mild first-quarter contraction (via The Globe and Mail).
Bank of Canada stands by replacement workers. Bank of Canada Governor Tiff Macklem defended the central bank's use of contracted security workers during a strike by its own security officers, in comments on Thursday, even after a labour board ordered the practice stopped. The bank said it used the replacements to maintain core operations and defend critical infrastructure, citing national security concerns (via CBC News).
WestJet grounds aircraft ahead of strike deadline. WestJet began parking Boeing 737 jets as negotiators raced against a midnight strike deadline on Sunday for 4,400 flight attendants. The airline issued a lockout notice matching the union's 72-hour strike notice, warning travellers to expect cancellations from Friday onward. Unpaid work remains the key sticking point (via CTV News).
Entertainment
Canadian NATO intern arrested on espionage charges
A Canadian intelligence breach raises fresh questions about security vetting at NATO's military headquarters.
Belgian authorities arrested a Canadian intern suspected of spying for China after she was flagged by NATO security for asking excessive questions at the alliance's military command centre in Mons. The suspect, Biwei Zhang, 26, also known as Claire Zhang, is a Canadian national of Chinese origin who previously worked at Statistics Canada and the Canadian Space Agency and holds degrees in economics and computer science from York University and the University of Ottawa. A 2023 Public Service Commission inquiry found she had committed fraud by applying for the same job twice at the Canada Border Services Agency using different email addresses without disclosing both applications came from her. Her pretrial detention was extended by one month, and she has appealed (via The Globe and Mail).
Sports
Hlinka Gretzky Cup opens in Edmonton as youth hockey talent converges
Canada competes in the annual summer showcase featuring the world's top under-18 and under-20 hockey prospects.
The Hlinka Gretzky Cup, an annual summer showcase of elite youth hockey talent, kicks off at Rogers Place in Edmonton on August 1, with Canada facing off against another top prospect nation at 5 p.m. mountain time. Germany and Switzerland face off at 1 p.m. in the tournament's opening matches. The event draws the world's finest under-18 and under-20 players as they prepare for the professional and international stages (via Hockey Canada).