Nojoud Al Mallees, The Canadian Press

Prime Minister Justin Trudeau is headed into the second day of the G7 leaders' summit, which will feature a special appearance by Pope Francis.

The pontiff is slated to deliver an address to leaders about the promises and perils of artificial intelligence. 

He is also expected to renew his appeal for a peaceful end to Russia's full-scale invasion of Ukraine and the Israel-Hamas war in the Gaza Strip. 

Prime Minister Justin Trudeau is headed to Italy on Wednesday to attend the annual G7 leaders' summit, which is taking place as two major geopolitical conflicts weigh on the international community.

The three-day summit kicks off on Thursday in Apulia, Italy, where leaders of the seven wealthy democratic nations are expected to discuss the Russia-Ukraine and Israel-Hamas wars, the energy transition, artificial intelligence, migration and collaboration with Africa.

The Bank of Canada marked a major turning point in its fight against inflation on Wednesday as it lowered its key interest rate for the first time in more than four years, making it the first central bank in the G7 to cut rates.

Governor Tiff Macklem says the central bank has more confidence inflation is moving closer to its two per cent target, citing various indicators that suggest price pressures have retreated.

The Liberal government will bring its proposal to increase the inclusion rate on capital gains to the House of Commons before the parliamentary summer break, Finance Minister Chrystia Freeland said Tuesday.

"In the coming weeks, and certainly before the House rises, we will begin the legislative process to implement our increase in the inclusion rate," Freeland confirmed during a news conference.

The finance minister announced the capital gains tax changes as part of her April budget, but left the new inclusion rate out of the budget legislation she tabled last month.

The upcoming federal budget will include a $6-billion infrastructure fund to support homebuilding as well as a $400 million top-up to the housing accelerator fund, Prime Minister Justin Trudeau said Tuesday.

Trudeau was in Dartmouth, N.S., alongside Housing Minister Sean Fraser as part of the government's pre-budget tour, which aims to drum up attention and win back support on cost-of-living issues.

Finance Minister Chrystia Freeland has pledged that the government will meet its fiscal targets in the upcoming federal budget, but economists say achieving that goal will be challenging as the deficit tracks higher. 

Amid mounting pressure to rein in spending, the Liberals unveiled new fiscal guardrails in the fall that aim to limit deficits. Among the government's promises was that this year's deficit will not exceed $40.1 billion.

The parliamentary budget officer is projecting inflation will return to the Bank of Canada's two per cent target by the end of the year and the federal deficit will grow amid weakening economic conditions.

The budget watchdog's latest economic and fiscal outlook comes as the federal government gears up for its spring budget and Canadians eagerly wait for the central bank to begin lowering interest rates.

The report predicts the first rate cut to come in April, slightly earlier than financial markets expect.

Canadian business investment per worker plummeted by 20 per cent over a 15-year stretch, according to new Statistics Canada research that suggests weaker competition is partly to blame.

The report finds for every worker, businesses invested $628.80 less in their companies in 2021 than they did in 2006.

The decline was more significant in large and medium-sized companies and foreign-controlled businesses, though it's unclear why that was the case.

Canada’s population grew by more than 430,000 during the third quarter, marking the fastest pace of population growth in any quarter since 1957.

Statistics Canada released its Oct. 1 population estimates on Tuesday, putting the number at more than 40.5 million.

The agency says the population growth over the first nine months of 2023 has already surpassed the total growth in any other full year, including the record set in 2022.

The Canada Revenue Agency has denied or adjusted $458 million in funds disbursed to employers through a pandemic-era wage subsidy program as a result of a partially completed auditing process.

The agency is releasing a report Monday that offers detailed findings of its audits of the Canada Emergency Wage Subsidy Program. The bulk of the findings cover the period ending March 31, but the report also offers more up-to-date figures as of Sept. 29.