News of the day: Canada's GDP grows, Ottawa invests in Xanadu, the Warsh effect, the price of wrongful dismissal, saving tax on your portfolio and more

It’s Friday, August 28. Here are the top stories we’re following today.

Canada’s economy posts fastest growth in three years

Statistics Canada released revised data for the first quarter of 2026, showing the economy actually grew by 0.3 per cent. Previously, the agency reported annualized real gross domestic product had contracted by 0.1 per cent in that quarter, which had marked two consecutive quarters of negative GDP growth, meeting the technical definition of a recession.

Ottawa pumps $195 million into quantum manufacturing by Xanadu

The federal government is investing $195 million in Toronto-based Xanadu Quantum Technologies Inc.’s advanced manufacturing facilities to help it build a quantum data centre and boost Canada’s cutting-edge technology supply chain, Ottawa announced on Friday.

The Warsh effect on mortgage rates in Canada

U.S. Federal Reserve Chair Kevin Warsh just called U.S. inflation “concerning,” and his concern has a way of becoming Canada’s concern. Bond markets took it badly, with U.S. five-year yields vaulting to a two-and-a-half-year high.

Howard Levitt: RBC pays high price for wrongful dismissal of financial adviser

Employers too often investigate backwards. They decide that an employee has to go and then assemble a way to justify the decision, writes Howard Levitt.

How can Paul and his wife save tax on their $2-million portfolio?

FP Answers: People often need to weigh the benefits of realizing taxable income today against deferring taxes to the estate later.