TORONTO —
North American stock indexes plunged, crude oil prices tanked and the loonie fell to a five-year low as COVID-19 fears continued to rattle markets.
Equity, bond and currency markets collapsed from the start of trading after a European Central Bank governor suggested central banks were nearing the end of their support, said Erik Bregar, head of FX strategy at The Exchange Bank of Canada.
“What we saw early this morning was a sort of let’s sell everything trade after one of the ECB governors admitted that central banking has basically reached its limit,” he said.
Bregar said investors were spurred to get out of investments to raise cash.
“Some of these moves start to get a little disorderly because we’re literally going off the charts.”
The S&P/TSX composite index in Toronto closed down 963.79 points or 7.6 per cent at 11,721.42, following a temporary pause that happened earlier after market circuit breakers were tripped. The TSX rebounded slightly from an intraday low that saw it lose 1,300 points and 10.2 per cent.
In New York, the Dow Jones industrial average closed down 1,388.46 points at 19,898.92. It partially recovered from being down 2,320 points to a level that wiped out all gains since Donald Trump was sworn in as president in January 2017.
The S&P 500 index was down 131.09 points at 2,398.10, and the Nasdaq composite fell 344.94 points to 6,989.84 as markets rallied at close.
“It feels like some invisible hand has just come in, in the last maybe hour or two and things have sort of calmed down a bit,” he said. “But I think everybody’s going to be laser focused on the bond markets now. They’ve been the safe haven up until now but now they are starting to crack too.”
The panic selling struck all asset classes except the U.S. dollar.
The Canadian dollar lost 2.2 per cent, trading for 68.98 cents US compared with an average of 70.55 cents US on Tuesday.
Gold, which has rallied on the economic uncertainty, fell sharply with Teck Resources Ltd. down 21.1 per cent.
“It’s another perfect testament to the fact that people just want cash now, they want liquidity and the U.S. dollar is the best form of liquidity out there.”
The April gold contract was down US$47.90 at US$1,477.90 an ounce and the May copper contract was down 16.25 cents at US$2.15 a pound.
The energy sector was down 12.5 per cent with Vermilion Energy Inc. shares losing 24.1 per cent and Baytex Energy Corp. off nearly 18 per cent
The May crude contract dropped to its lowest level since at least 2003 by falling US$6.50, or nearly 24 per cent, to US$20.83 per barrel and the April natural gas contract was down 12.5 cents at US$1.60 per mmBTU.
The heavyweight financial sectors was down nearly eight per cent with WestJet owner Onex Corp. off nearly 20 per cent, while industrials was pushed lower by shares of Bombardier Inc. losing 25 per cent and Air Canada down nearly 20 per cent.
Markets tanked in a cascading effect accentuated by a loss of investor confidence despite efforts by central banks to inject liquidity, said Bregar.
“I honestly think what we’re seeing is the slow and painful death of central banking,” he said, adding that money isn’t the answer for banks if they don’t want to assume more risk.
Fiscal stimulus promised by governments, including more than US$1 trillion from the U.S. and up to $82 billion from Canada was largely expected.
You’ll know it’s working when the public responds by coming out from their lock downs to spend money and stop hoarding, Bregar said.
“That basic human behaviour has to come back to normal,” he said.
Bregar said governments have to reassure people they don’t have to worry about their basic needs, food and jobs.
“You can throw all the money you want at people and they’re not going to change their behaviour if they’re scared.”
This report by The Canadian Press was first published March 18, 2020.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
