<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="World markets got slammed on Monday, with investors unnerved by rising coronavirus concerns. An unexpected surge in confirmed infections within Italy and South Korea — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic.” data-reactid=”15″>World markets got slammed on Monday, with investors unnerved by rising coronavirus concerns. An unexpected surge in confirmed infections within Italy and South Korea — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic.
FILE – In this April 15, 2015, file photo, a man walks out of a Shake Shack in front of the New York-New York hotel and casino in Las Vegas. Shake Shack reports financial results Wednesday, Aug. 10, 2016. (AP Photo/John Locher, File)
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shake Shack’s fourth quarter earnings report is leaving investors hungry for more. The burger chain lost 6 cents per share and reported big jumps in quarterly revenue on relatively light sales, but its stock tumbled sharply in post-market trading after it gave guidance below Wall Street estimates.” data-reactid=”38″>Shake Shack’s fourth quarter earnings report is leaving investors hungry for more. The burger chain lost 6 cents per share and reported big jumps in quarterly revenue on relatively light sales, but its stock tumbled sharply in post-market trading after it gave guidance below Wall Street estimates.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shake Shack’s (SHAK) stock plunged by nearly 11% from Monday’s close at $73.57, but have rallied 24% since 2020 began.” data-reactid=”39″>Shake Shack’s (SHAK) stock plunged by nearly 11% from Monday’s close at $73.57, but have rallied 24% since 2020 began.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wall Street suffered its worst losses in 2 years on Monday, as fears of a global coronavirus pandemic forced investors out of stocks and into safe-havens like the dollar, gold and Treasuries. All of the Dow’s (^DJI) gains for 2020 have evaporated amid the volatility, which is unlikely to abate after an eruption of new infections outside of China.” data-reactid=”46″>Wall Street suffered its worst losses in 2 years on Monday, as fears of a global coronavirus pandemic forced investors out of stocks and into safe-havens like the dollar, gold and Treasuries. All of the Dow’s (^DJI) gains for 2020 have evaporated amid the volatility, which is unlikely to abate after an eruption of new infections outside of China.
Here’s where markets settled at the close:
S&P 500 (^GSPC): -3.35%, or -111.86 points to 3,225.89
Dow (^DJI): -3.56%, or -1,031.40 points to 27,961.01
Nasdaq (^IXIC): -3.71%, or -355.31 points to 9,221.28
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="3:23 p.m. ET: Key pharma stocks hit by opioid fears” data-reactid=”54″>3:23 p.m. ET: Key pharma stocks hit by opioid fears
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Monday has been a bad day for pharma giants ensnared in opioid legal action. Mallinckrodt (MNK) crumbled by a whopping 40% at its lows, after a Wall Street Journal report that the company may be preparing for the bankruptcy of its U.S. generics unit, which is in the crosshairs of opioid lawsuits. Separately, Teva (TEVA) — another opioid maker — dropped by over 4%, in part because of a “sell” recommendation by Edward Jones.” data-reactid=”55″>Monday has been a bad day for pharma giants ensnared in opioid legal action. Mallinckrodt (MNK) crumbled by a whopping 40% at its lows, after a Wall Street Journal report that the company may be preparing for the bankruptcy of its U.S. generics unit, which is in the crosshairs of opioid lawsuits. Separately, Teva (TEVA) — another opioid maker — dropped by over 4%, in part because of a “sell” recommendation by Edward Jones.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:15 p.m. ET: Pandemic jitters send Europe to its worst day in 3 years” data-reactid=”57″>1:15 p.m. ET: Pandemic jitters send Europe to its worst day in 3 years
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="European stocks suffered their worst day since 2016 on Monday as coronavirus infections climbed in Italy, the eurozone’s third-largest economy.” data-reactid=”58″>European stocks suffered their worst day since 2016 on Monday as coronavirus infections climbed in Italy, the eurozone’s third-largest economy.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The pan-European STOXX 600 index (^STOXX) closed down by almost 3.8%, with stocks on Italy’s FTSE MIB Index (FTSEMIB.MI) sinking by more than 5.4%. The FTSE 100 (^FTSE) declined by more than 3.3% in London. Germany’s DAX (^GDAXI) was down by 4%, while France’s CAC 40 (^FCHI) was down by more than 3.9%.” data-reactid=”59″>The pan-European STOXX 600 index (^STOXX) closed down by almost 3.8%, with stocks on Italy’s FTSE MIB Index (FTSEMIB.MI) sinking by more than 5.4%. The FTSE 100 (^FTSE) declined by more than 3.3% in London. Germany’s DAX (^GDAXI) was down by 4%, while France’s CAC 40 (^FCHI) was down by more than 3.9%.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Noon ET: Stocks take new leg lower; travel and leisure lead the rout” data-reactid=”61″>Noon ET: Stocks take new leg lower; travel and leisure lead the rout
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United Airlnes and American Airlnes planes are shown on the tarmac from an outdoor terrace and observation deck at San Francisco International Airport in San Francisco, Thursday, Feb. 20, 2020. (AP Photo/Jeff Chiu)
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="All of Wall Street’s major benchmarks are hunkered near session lows on coronavirus selling, with airlines and other leisure stocks bearing the brunt of selling. Some of the sector’s prominent names, like American Air (AAL), Norwegian Cruise (NCLH), Delta (DAL), Carnival (CCL), Royal Caribbean (RCL) and Booking.com, are off by at least 7% on the day. Travel and leisure has long been seen as most vulnerable to the pathogen (the Diamond Princess fiasco a prime illustration of why).” data-reactid=”82″>All of Wall Street’s major benchmarks are hunkered near session lows on coronavirus selling, with airlines and other leisure stocks bearing the brunt of selling. Some of the sector’s prominent names, like American Air (AAL), Norwegian Cruise (NCLH), Delta (DAL), Carnival (CCL), Royal Caribbean (RCL) and Booking.com, are off by at least 7% on the day. Travel and leisure has long been seen as most vulnerable to the pathogen (the Diamond Princess fiasco a prime illustration of why).
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For Apple (AAPL) and several other tech bellwethers, the heavy reliance on China (both from a demand and supply perspective) are an albatross as coronavirus fears crimp the global supply chain.” data-reactid=”84″>For Apple (AAPL) and several other tech bellwethers, the heavy reliance on China (both from a demand and supply perspective) are an albatross as coronavirus fears crimp the global supply chain.
In a note to clients on Monday, D.A. Davidson cited the iPhone maker as the biggest loser in the current environment. Analyst Tom Forte told Yahoo Finance in an interview that Grubhub and Netflix could benefit, as homebound citizens order in and binge on television.
The firm also listed the following as having “significant risk”:
In late morning trading, Apple dived by 4% to trade around $300 per share, while Facebook slumped by nearly 5%.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:00 a.m. ET: Stocks pull off troughs, still sharply lower” data-reactid=”100″>11:00 a.m. ET: Stocks pull off troughs, still sharply lower
Wall Street has clawed off session lows, but indexes remain well underwater as traders aggressively price in a worsening of the coronavirus outbreak. Here’s where major benchmarks are currently:
S&P 500 (^GSPC): -2.69% or -89.92 points to 3,247.83
Dow (^DJI): -2.79%, or -808.98 points to 28,183.43
Nasdaq (^IXIC): -3.31% or -316.59 points to 9,260.00
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:50 a.m. ET: Italy, already reeling, takes new blow from virus outbreak” data-reactid=”109″>10:50 a.m. ET: Italy, already reeling, takes new blow from virus outbreak
Via Reuters, Italy — a G7 economy that’s seen sluggish (if nonexistent) growth for much of the last decade, is all but certain to take another hit from the coronavirus’ appearance there. Over 220 people have been infected since Friday with six dead.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="From the story:” data-reactid=”111″>From the story:
The euro zone’s third-largest economy has been the most sluggish in the 19-nation bloc since the start of monetary union. It shrank by 9% in the wake of the 2008 global financial crisis and has recovered only about half of that since then.
Italian GDP fell by 0.3% in the fourth quarter of last year from the previous three months, yielding full-year growth of just 0.2%. Economists expected it to fare little better this year — and that was before the coronavirus hit.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:15 a.m. ET: WHO on coronavirus pandemic: ‘Not yet’” data-reactid=”119″>10:15 a.m. ET: WHO on coronavirus pandemic: ‘Not yet’
In its daily update, the World Health Organization’s director general made a distinction between the coronavirus being a contagious epidemic and a full-fledged pandemic:
“Our decision about whether to use the word “pandemic” to describe an epidemic is based on an ongoing assessment of the geographical spread of the virus, the severity of disease it causes and the impact it has on the whole of society.
“For the moment, we are not witnessing the uncontained global spread of this #coronavirus, and we are not witnessing large-scale severe disease or death. Does this virus have pandemic potential? Absolutely. Are we there yet? From our assessment not yet.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile, The White House may seek up to $1 billion to prevent the virus from worsening in the United States.” data-reactid=”123″>Meanwhile, The White House may seek up to $1 billion to prevent the virus from worsening in the United States.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:14 a.m. ET: How the coronavirus will affect the global economy” data-reactid=”125″>10:14 a.m. ET: How the coronavirus will affect the global economy
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Suppliers are already seeing delivery times soar because of the epidemic that’s crippled China.
Goldman Sachs took a knife to its U.S. estimates, shaving 0.2 percentage points off estimated Q1 GDP given the widening coronavirus outbreak. The bank warns that “risks are clearly skewed to the downside” in light of supply chain troubles, and will be felt in the following four ways:
The impact of the coronavirus on US growth is likely to come from four main channels, namely 1) reduced US goods exports to China, 2) reduced spending in the US by Chinese tourists and students, 3) a decline in US retailers’ services value added through lower US consumption of imported goods, and 4) a decline in US production due to supply chain production disruptions. The first two channels reduce output through lowering demand, while the latter two channels reduce output through a reduction in supply.
In a separate note, Goldman cited evidence that suggested the virus’s spread “is likely having a somewhat gradual but still sizeable impact on macro data.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:50 a.m. ET: Expect cheaper energy prices until 2025: BofA” data-reactid=”151″>9:50 a.m. ET: Expect cheaper energy prices until 2025: BofA
The upside of the coronavirus crisis will be sharply lower energy prices, with the hit to global demand expected to keep crude depressed, according to Bank of America. In a research note to clients on Monday, analysts said they expect Brent to range-trade between $50 and $70 until 2025:
As prices become more anchored around $60, we believe volatility implied in oil options could trend lower in the medium term. In contrast to last year, we see more support to our price outlook on increased capital discipline across the US shale industry, despite coronavirus risks. Our projections assume OPEC+ is prepared to continue to lose share in the global oil market, particularly if pandemic risks rise again.
More broadly, we expect oil as a share of the global energy pie to will drop as well as the petroleum consumption mix keeps rotating away from gasoline and heavy ends into distillates and NGLs (natural gas liquids).
The bank also expects the oil market to need additional production cuts this year amid “modest” demand that will keep Brent averaging $62 per barrel in 2020.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:30 a.m. ET: Wall Street plunges at the opening bell” data-reactid=”157″>9:30 a.m. ET: Wall Street plunges at the opening bell
The escalating coronavirus crisis is taking a huge toll on financial markets. The bloodletting that started on Sunday with stock futures and continued through Asia and European session has now hit U.S. blue-chip and tech stocks. Some of the day’s biggest losers include bellwether names like Apple, Google and Tesla — all of which fell by around 5% on the day.
Here’s where the markets began Monday’s trading session, which is shaping up to be an ugly one:
Analysts, however, don’t think the current drop will last. Invesco’s Brian Levitt told Yahoo Finance on Monday that the current scare is little more than a blip in a longer secular bull that won’t trigger a recession. “We will be back sometime later in this year talking about stabilizing economic activity.”
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7:30 a.m. ET: Stock futures slump in early trading
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. stock futures appeared poised to extend last week’s losses, with each of the three major indices indicating a lower open as Wall Street grappled with the widening coronavirus crisis.” data-reactid=”174″>U.S. stock futures appeared poised to extend last week’s losses, with each of the three major indices indicating a lower open as Wall Street grappled with the widening coronavirus crisis.
Here’s were the main moves during the pre-market session, as of 7:30 a.m. ET:
S&P 500 futures (ES=F): 3,265.00, down 74.25 points or 2.22%
Dow futures (YM=F): 28,293, down 688.00 points or 2.37%
Nasdaq futures (NQ=F): 9,222.25, down 235.75 points or 2.49%
Crude oil (CL=F): $51.39 per barrel, down $1.99 or 3.73%
Gold (GC=F): $1,682.50 per ounce, up $33.70 or 2.04%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="An unexpected surge in confirmed infections within South Korea and Italy — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic. Last week, the Hubei province at the epicenter of the coronavirus outbreak revised its method of counting cases for the third time this month, further undermining confidence in the country’s official counts.” data-reactid=”182″>An unexpected surge in confirmed infections within South Korea and Italy — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic. Last week, the Hubei province at the epicenter of the coronavirus outbreak revised its method of counting cases for the third time this month, further undermining confidence in the country’s official counts.
It raises the stakes for the entire global economy rather than just China, where the overwhelming majority of the world’s nearly 80,000 cases are located. According to Marc Chandler at Bannockburn Global Forex:
The [coronavirus] has not only crippled the Chinese economy, but its sheer size and magnitude of its integration in the global supply chains have far-reaching knock-on effects. Asia-Pacific economies that were increasingly reliant on Chinese input and demand are the most vulnerable. Estimates suggest that the world’s second-largest economy is operating well less than 50% of capacity.
Indeed, the extension of the stoppages and disruptions increase the likelihood that the Chinese economy contracts in Q1 [and] The supply chain disruptions are adversely impacting Japanese and Korean automakers. German automakers derived a substantial share of their profits from China, and car sales continue to weaken.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The virus is sending ripples across the global supply chain, with names like Volkswagen, Burberry, Starbucks and Apple among the growing list of multinationals whose operations are being adversely impacted by the outbreak.” data-reactid=”186″>The virus is sending ripples across the global supply chain, with names like Volkswagen, Burberry, Starbucks and Apple among the growing list of multinationals whose operations are being adversely impacted by the outbreak.
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Numbers showing the state of the Dow Jones Industrial Average are displayed above the floor after the closing bell at the New York Stock Exchange (NYSE) in New York City, U.S., February 21, 2020. REUTERS/Andrew Kelly
HALIFAX – Chorus Aviation Inc. says its shareholders have voted to approve the sale of the company’s regional aircraft leasing business to HPS Investment Partners.
The Halifax-based company says the $1.9-billion deal was greenlighted by 98.1 per cent of votes cast by shareholders at a special meeting. The transaction needed approval by a two-thirds majority vote.
Chorus also says the waiting period mandated under U.S. legislation has expired and that it has received approval from Ireland’s Competition and Consumer Protection Commission.
Chorus announced the sale of its plane leasing business to New York City-based HPS in July for $814 million in cash and $1.1 billion in aircraft debt to be assumed or prepaid by the buyers at closing.
The deal marked a one-eighty for Chorus, which bet big on aircraft leasing just two years earlier by buying London-based plane-leasing outfit Falko Regional Aircraft Ltd.
Chorus, which also provides regional service for Air Canada via Chorus subsidiary Jazz Aviation, says the sale remains subject to the other regulatory approvals and customary conditions.
This report by The Canadian Press was first published Sept. 25, 2024.
TORONTO – AGF Management Ltd. says its net income attributable to equity owners totalled $20.3 million in its latest quarter, down from $23.0 million in the same quarter last year.
The investment manager says the profit amounted to 30 cents per diluted share for the quarter which ended on Aug. 31, down from 34 cents per diluted share a year earlier.
Total net revenue for the quarter amounted to $102.0 million, up from $84.0 million in the same quarter last year.
On an adjusted basis, AGF says it earned 37 cents per diluted share in its latest quarter, up from an adjusted profit of 34 cents per diluted share a year ago.
The company says its total assets under management and fee-earning assets totalled $49.7 billion at Aug. 31, up from $42.3 billion a year earlier.
Kevin McCreadie, AGF’s chief executive and chief investment officer, says the company was pleased to see early signs of improvement with positive retail net flows complementing its solid investment performance amid an uncertain economic backdrop and significant market volatility.
This report by The Canadian Press was first published Sept. 25, 2024.
As of January 2024, Canada is home to more than 3,600 recreational cannabis retail shops and this number is increasing annually with a single store to every 10,000 Canadians. The retail sector has been facing multiple challenges and one is surely overabundance of stores within smaller communities. Too many retailers compared to users of cannabis. The use of cannabis has remained relatively the same, while multiple retailers and online sales forces are competing for this marketplace.
Failures within the retail field are not a surprise, as Tokyo Smoke closes its multiple stores, and most shops’ profit margins remain small and diminishing over time. Mass closures may happen within certain provinces such as Ontario where situations of multiple retailers are situated right beside a competitor. Massive amounts of revenue have been collected by provincial governments while these stores remain open to every possible financial flux possible.
The black market remains healthy and profitable. An excuse to legalize pot was to challenge illegal pot sales and make it difficult to sell this pot outside of legal means. 22% of Canadian pot smokers get their supply from the black market. They say the pot tastes better and is slightly less costly. Legal pot management is costly and this cost is passed onto the customer. With gummy sales growing, the cost of management by legal means is difficult and costly too.
It seems the government may need to rethink its policy regarding cannabis and the possibility of legalizing further types of illicit drugs in the future. A total ack of imagination exists within the policy network where old-fashioned prejudice towards addiction and the use of narcotics is seen as criminal and threatening to society. All the while the number of traffic stops due to drivers under the influence of narcotics continues to grow, and the use of drugs by the youthful generation continues to be a problem. A solution to our society’s problems will never come from present-day authorities.
