Ottawa’s investment in Cohere, RBC blocks personal AI agents and Cleveland-Cliffs’ plan to recall Stelco workers: Must-read business and investing stories for the week of Oct. 31

Getting caught up on a week that got away? Here’s your weekly digest of The Globe’s most essential business and investing stories, with insights and analysis on the biggest headlines, stock tips, personal finance strategies and more.

Cliffs could recall laid-off Stelco workers by Christmas, CEO says

Cleveland-Cliffs Inc. chief executive Lourenco Goncalves said 175 laid off Stelco workers could be back on the job by Christmas if demand for Canadian steel improves. The company had previously announced plans to cut up to 500 jobs at its Hamilton and Nanticoke plants, but the Cliffs CEO now says layoffs will be limited to 175 workers.

Meanwhile, steel workers at Stelco’s Hamilton plant are set to receive profit-sharing cheques of around $1,100 each for the latest quarter ending Sept. 30, despite Cleveland-Cliffs claiming its Canadian galvanized-steel business is unprofitable.

Last week, Cliffs requested a meeting with Industry Minister Mélanie Joly to discuss ways to potentially bring workers back. But Joly wants the U.S. steelmaker to present a plan to restore Stelco jobs before agreeing to meet, as Ottawa threatens legal action over alleged broken promises.

Ottawa to invest up to $1.6-billion in Cohere

Ottawa is buying a $1.6-billion stake in Toronto-based Cohere as part of a record financing round that would value the AI startup at $35.7-billion, making it Canada’s most valuable privately held technology company.

The Canadian government’s direct equity investment is notable both because of its size and the fact that Cohere competes in the capital-intensive AI industry, where profits have been elusive. The deal is part of Ottawa’s strategy to build out Canada’s AI capabilities and secure the country’s AI economic sovereignty.

“Under this agreement, Cohere will stay Canadian,” Prime Minister Mark Carney said at a news conference announcing the investment on Thursday, calling the new round a “vote of confidence” in both Cohere and Canada.

BoC hikes benchmark interest rate to 2.5%

The Bank of Canada raised its benchmark interest rate to 2.5 per cent, its first hike in three years, warning that persistently high oil prices could fuel inflation and require further increases. The bank also revised its inflation and economic growth forecasts higher, and said it sees the annual rate of inflation remaining above 3 per cent through much of next year.

“With the outlook for inflation substantially higher and the economy showing resilience, an increase in the policy rate is needed to reduce the risk that elevated energy prices could spill over and become generalized inflation,” Governor Tiff Macklem said in a news conference after the rate announcement. “There could be a need to raise the policy rate further, but given the uncertainties, we will proceed carefully,” he added.

The decision will increase borrowing costs across the Canadian economy, particularly for homeowners with variable-rate mortgages, and further slow sales in the housing sector.

RBC, BMO, TD block use of third-party AI agents

Royal Bank of Canada, the country’s biggest bank, said Tuesday it would block third-party personal AI agents from directly accessing its digital properties, including online banking. Bank of Montreal and Toronto-Dominion Bank have also banned third-party AI agents amid concerns over customer data security.

Lenders are investing heavily in AI to boost productivity and generate revenue. But the surging adoption of AI has also prompted concerns over cybersecurity and financial crime, causing banks and regulators to bolster oversight of the technology. U.S. banks JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and Charles Schwab Corp. have previously blocked or limited outside AI agents’ access to their customers’ data.

Spooky statistics: The five scariest charts in economics

For Halloween this year, there’s a lot to be frightened of in the global economy: soaring bond yields, trade wars and an artificial intelligence boom that could very well steal your banking information or your job.

With so much risk on the horizon, Jason Kirby, Dexter McMillan, Scott Barlow and Matt Lundy share the five scariest charts in economics, including data around Canada’s “frightening” housing market and a “chilling” look at AI’s potential job impact.

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