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Netflix Canada is cracking down on account sharing, requiring customers on premium plans to reside in the identical family. Emails have been despatched to customers asking them to set their main location by Feb. 21.Richard Drew/The Related Press
Getting caught up on per week that bought away? Right here’s your weekly digest of The Globe’s most important enterprise and investing tales, with insights and evaluation from the professionals, inventory ideas, portfolio methods and extra.
The true motive behind Netflix’s crackdown on account sharing
Netflix Canada’s crackdown on account sharing has begun, and customers have been requested by e-mail to set their main location by Feb. 21. The premium plan, which permits customers to observe on as much as 4 gadgets directly, usually has been utilized by family and friends members who wished to share one account, Mathilde Augustin explains. Underneath the brand new guidelines, Netflix expects all customers to both dwell in the identical family or pay the additional member charge. Whereas the change has brought about many customers to rethink whether or not a subscription is price it in any respect, Kean Birch raises the query of whether or not the enterprise fashions and monetization methods of digital corporations are viable within the long-run.
Canadian home gross sales hit document low
Nationwide house gross sales hit a 14-year low in January, declining for the eleventh consecutive month. Wth borrowing prices at their highest degree in years, most economists predict that house costs will proceed to say no within the first half of the 12 months, as debtors take care of the spike in mortgage charges. As Rachelle Younglai stories, the variety of gross sales in January was 3-per-cent decrease than December after eradicating seasonal influences. And the house value index, which excludes gross sales of extremely priced properties, was $714,700 final month, down 1.9 per cent from December. However the real-estate trade is seeing a distinct image, the place would-be patrons are trickling again into the market.
Excessive oil costs sends Alberta right into a drilling frenzy
Throughout this 12 months’s winter drilling season, Alberta’s oil and fuel producers have deployed extra rigs throughout the province than at any time since 2018, sitting at 187 rigs, about 15-per-cent greater than final 12 months. In response to Jason Kirby on this week’s Decoder, drillers are attempting to capitalize on excessive oil costs, a stark rebound from 2020 when oil costs collapsed amid pandemic lockdowns and the variety of rigs throughout Canada fell to only 13. The most important hurdle dealing with the trade? Discovering sufficient employees to function the rigs.
Money in on credit-card rewards now
When you’ve been stockpiling rewards factors in your bank cards, think about using them now. In response to Rob Carrick, there’s a long-standing sample of excellent rewards being ratcheted down sooner or later. Whereas we’re in a golden age of rewards – so many selections for incomes a pile of money again and journey factors – it’s unclear whether or not that may final by means of powerful financial occasions. Bank cards appear to be dropping a few of their dominance as a most well-liked strategy to pay for issues. They accounted for 59 per cent of funds in 2021, then dropped to 55 per cent final 12 months – the primary decline for bank cards within the 11 years that’s being pushed by rising prices.
A recession is coming – however not as dangerous as you suppose
Canada is on observe for a recession this 12 months, however Financial institution of Canada Governor Tiff Macklem believes it gained’t be as extreme as different downturns prior to now few a long time. As Mark Rendell stories, the central financial institution is forecasting near-zero financial development by means of the primary three quarters of 2023, as larger rates of interest constrain client spending and enterprise funding. Regardless of a wholesome labour market, the financial institution expects the unemployment fee – which stays close to an all-time low – to rise within the coming months. Earlier this week, Macklem reiterated that the BoC doesn’t plan to lift rates of interest additional, after the eighth consecutive fee hike in 11 months introduced the coverage fee to 4.5 per cent in January, however that it’s going to rethink if inflation doesn’t drop as anticipated.
4 RRSP tricks to plan for retirement
With the contribution deadline for RRSPs simply across the nook on March 1, Canadians could also be serious about stowing away some additional money for retirement financial savings. Tax professional Tim Cestnick presents 4 tricks to take into account to enhance the outlook of your RRSP financial savings together with understanding simply how a lot you’ll want, the advantages of borrowing for catch-up contributions and taking note of asset location.
Join MoneySmart Bootcamp: If you wish to enhance your monetary health, The Globe’s MoneySmart Bootcamp e-newsletter course is for you. This new five-part course written by private finance reporter Erica Alini will enhance your private finance abilities, together with budgeting, borrowing and investing. Subscribe to the MoneySmart Bootcamp and also you’ll obtain an e-mail per week to work a distinct monetary muscle. Classes will land in your inbox Wednesday afternoons.
Now that you just’re all caught up, put together for the week forward with The Globe’s investing calendar.