North American equity markets sank deeper into the red to end the first day of the second quarter, settling near session lows. Toronto’s benchmark S&P/TSX composite Index fell nearly four per cent, while the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all dropped about four-and-a-half per cent amid concerns over the impact of the COVID-19 outbreak.
In Toronto, 10 of the 11 subgroups finished the session in negative territory, with safe-haven gold names helping the materials subgroup buck the trend. The healthcare, utilities and energy sectors on the TSX posted the biggest declines.
Lightspeed POS Inc., which provides point-of-sale software for retailers, cannabis producer Hexo Corp. and BlackBerry Ltd. – which declined to provide a financial forecast for this fiscal year in the face of the virus outbreak – and were the lead laggards on the TSX.
Gold producers dominated the list of leaders, with Kinross Gold Corp., IAMGold Corp. and Pretium Resources Inc. posting the largest percentage gains.
Crude prices had a volatile day, with U.S. benchmark West Texas Intermediate seesawing between positive and negative territory amid global economic growth concerns, the end of the OPEC+ curtailment agreement, the oil price war between the Saudis and the Russians and the massive 13.8 million barrel inventory build the U.S. reported Wednesday. WTI kept close to US$20 per barrel, rising a little more than one per cent at 4 p.m. ET. Western Canadian Select rose modestly, but is still trading at about $5 per barrel.
The Canadian dollar had another down day against its U.S. counterpart, falling to the low 70-cent U.S. level.
12:40 p.m. ET: North American equities fade, near session lows
North American equity markets fell to near-session lows in the early afternoon after initially paring their losses. The S&P/TSX composite index, S&P 500, Dow Industrials and Nasdaq all fell more than three per cent in early afternoon trading as the COVID-19-induced pain of the first quarter extended into the second.
In Toronto, shares of BlackBerry Ltd. fell back into a double-digit sell-off, making the company one of the worst-performing stocks on Canada’s benchmark index Wednesday. South of the border, Carnival Corp. was the lead laggard on the S&P 500 after the company cancelled some cruises through the end of the year due to the virus outbreak.
U.S. benchmark oil West Texas Intermediate hovered around US$20 per barrel after the massive crude inventory buildup. The Canadian dollar slid against its U.S. counterpart to the low 70-cent U.S. range.
10:50 a.m. ET: North American equity markets pare losses in mid-morning
North American equity markets pared some of their early losses by mid-morning but remained firmly in negative territory amid concerns over the fallout of the COVID-19 virus. The S&P/TSX composite index, S&P 500, Dow Industrials and the Nasdaq were all down more than two per cent after falling more than three per cent at the opening bells.
In Toronto, 10 of the 11 subgroups were trading lower, with the materials group bucking the trend. Real estate, health care and utilities were the lead laggards.
BlackBerry Ltd. clawed back some ground with shares down about nine per cent after an initial 16 per cent plunge. Shares of Teck Resources Ltd. recovered entirely, entering positive territory. Shares of Dollarama Inc. remained modestly negative.
Oil prices dipped in the wake of a massive U.S. inventory buildup that exceeded even the highest estimate, with stockpiles rising 13.83 million barrels last week. Economists surveyed by Bloomberg had a median estimate of a 3.3 million barrel build. Though prices fell, benchmark West Texas Intermediate crude remains in the US$20 per barrel range.
9:33 a.m. ET Markets Open: ‘Grim reality’ as equity markets fall to start second quarter
Global equity markets kicked off the year’s second quarter in negative territory on Wednesday after a disastrous first quarter. The S&P/TSX composite index, S&P 500, Dow Industrials and Nasdaq indices all fell more than three per cent in early trading, following a decline in European markets.
Investors are weighing the ongoing impact of the COVID-19 as virus outbreak as cases in the United States continue to climb. U.S. President Donald Trump said Tuesday that Americans should brace for a “painful two weeks” as officials forecast hundreds of thousands of deaths in total due to the virus.
In Europe, a string of Purchasing Managers’ Indexes were deep in contraction territory. The U.K.’s big banks, including HSBC Holdings Plc and Barclays Plc, axed dividend payments and share buybacks, sending the European banks index lower.
Crude oil prices had a volatile morning amid those economic concerns, the expiration of the OPEC+ production curtailment agreement and the ongoing price war between Saudi Arabia and Russia. Saudi Arabia’s production surged to more than 12 million barrels per day, though Russia said it would not boost output.
In Toronto, it was another day of companies shelving their forecasts in the wake of the uncertainty caused by the virus.
Teck Resources Ltd. suspended its full-year guidance and announced it has put construction activity at its QB2 project in Chile on hold, with no certainty on the timeline to resume construction. Shares fell more than seven per cent at the open of trading on Wednesday.
Dollarama Inc. suspended its fiscal 2021 outlook, telling investors it’s “impossible to forecast the impact of the pandemic on the Canadian economy.” The discount retailer said sales slowed through the end of last month due to social distancing efforts after an initial surge in February and early March, sending the stock modestly lower.
BlackBerry Ltd. warned of a tough first quarter and declined to offer a full-year forecast in the face of the outbreak, with CEO John Chen telling investors it wasn’t prudent to offer a view in light of the uncertainty. BlackBerry was one of the worst performing stocks on the TSX in early trading, trading down 16 per cent.
A&W Revenue Royalties Income Fund announced it is suspending distributions to shareholders, and disclosed 200 of its restaurants are temporarily closed and that traffic is down significantly at those that remain open.
While the damage has been widespread through the first quarter of 2020, markets veteran David Rosenberg is warning the worst is yet to come. In a note to clients, Rosenberg, the chief economist and strategist at Rosenberg Research and Associates, said investors should brace for further downside.
“It is a brutal session today across most risk-assets —rather incredible when you think of the massive amounts of firepower unleashed by global monetary and fiscal policymakers,” he said.
“A grim reality is that we are only now about to enter the eye of the storm and the 22 per cent plunge in global equities —the worst performance since 2008 —was actually just an appetizer despite all the proclamations from Wall Street pundits that the lows had been turned in.”
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.
