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400 people to be laid off at Boeing in Winnipeg in coming weeks – CBC.ca

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Boeing will lay off around 400 employees in Winnipeg over the next few weeks because of the COVID-19 pandemic, a spokesperson for the aerospace company says.

Employees at the company were told about the cuts on Friday, spokesperson Jessica Kowal said in a statement emailed to CBC News.

“Due to the impact of the COVID-19 pandemic, Boeing previously announced we would adjust the size of our company to reflect new market realities through a combination of voluntary layoffs, natural turnover and involuntary layoffs,” the statement said.

Kowal said the brunt of the cuts at Boeing are being made “in areas most exposed to the commercial aviation market as well as our corporate functions.” She said Boeing’s Winnipeg site mainly produces components for the company’s commercial planes.

The cuts make up about one-quarter of the aerospace company’s workforce in Winnipeg. According to Boeing’s website, the company has around 1,600 employees in the city.

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Irving to buy North Atlantic Refining including refinery in Come By Chance, NL – BNNBloomberg.ca

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SAINT JOHN, N.B. — Irving Oil has signed a deal to buy North Atlantic Refining Corp., including a refinery in Come By Chance, N.L., from U.S. investment firm Silverpeak.

Financial terms of the agreement, which includes a network of gas stations and other marketing assets, were not disclosed.

North Atlantic provides fuel products to businesses and consumers across Newfoundland.

The refinery has capacity of 130,000 barrels per day.

Production at the refinery was stopped on March 30 due to the pandemic.

The sale is subject to regulatory review and other conditions.

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Number of Americans on jobless benefits inches down for 1st time since pandemic began – CBC.ca

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The number of Americans continuing to receive government jobless benefits declined in the week ending May 16 for the first time since COVID-19 struck, even as millions of people continue to join the unemployment rolls.

The U.S. Department of Labour said 21.052 million people continued to receive benefits that week. That’s down from the record 24.912 million seen the previous week.

“The number of Americans who remain on UI is still uncomfortably high,” Bank of Montreal economist Jennifer Lee said, “but it is not at a record anymore and that is a start.”

The initial claims figure — which represents the number of people filling out applications for jobless benefits for the first time — held above two million last week for a 10th straight week amid second-wave layoffs in the private sector, such as the 12,000 announced this week by plane manufacturer Boeing.

Initial claims for state unemployment benefits totalled a seasonally adjusted 2.123 million for the week ended May 23, from a revised 2.446 million in the prior week. Economists polled by Reuters had forecast initial claims falling to 2.1 million in the latest week from the previously reported 2.438 million.

Though claims have declined steadily since hitting a record 6.867 million in late March, they have not registered below two million since mid-March. The astonishingly high level of claims has persisted even as non-essential businesses are starting to reopen after shuttering in mid-March to control the spread of COVID-19, an indication it could take a while for the economy to dig out of the coronavirus-induced slump.

“I am concerned that we are seeing a second round of private sector layoffs that, coupled with a rising number of public sector cutbacks, is driving up the number of people unemployed,” said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania.

“If that is the case, given the pace of reopening, we could be in for an extended period of extraordinary high unemployment. And that means the recovery will be slower and will take a lot longer.”

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Profit falls at TD and CIBC as loan loss provisions soar – CBC.ca

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Canadian Imperial Bank of Commerce (CIBC) and TD Bank Group missed quarterly earnings expectations on Thursday, as they set aside billions to cover future loan losses due to the COVID-19 outbreak.

The massive jump in provisions took the total amount set aside by Royal Bank of Canada, Bank of Montreal , Bank of Nova Scotia, National Bank of Canada , CIBC and TD Bank to $10.93 billion.

The money set aside for credit losses on both performing and impaired loans as a result of the COVID-19 pandemic and continued pressure on oil prices has added to pressure on Canada’s biggest lenders from decade-low interest rates.

Canadian banks have grown their oil and gas loan books faster than total lending in recent quarters, and their business loan books overall expanded during the second quarter as borrowers unable to access debt markets drew down credit lines.

CIBC posted an adjusted profit of 94 Canadian cents per share for the quarter ended April, compared with analysts’ expectations of $1.58 per share.

TD Bank, Canada’s second-biggest lender, reported an adjusted profit of 85 Canadian cents per share, missing estimates of 89 Canadian cents.

Net income was $1.5 billion at TD, down 52 per cent from last year. Net income was $392 million at CIBC, down 70 per cent from last year.

CIBC also reported lower net income across divisions and higher expenses. Controlling costs is particularly vital for CIBC, which has already said it expects expenses to grow this year at about double the rate of its rivals.

It flagged layoffs earlier this year to aid its efforts to cut costs and become more efficient.

CIBC set aside $1.41 billion in the quarter for future loan losses, compared with $255 million a year earlier, while total provisions for TD Bank jumped to $3.22 billion, compared with $633 million a year earlier.

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