TORONTO —
Canada’s main stock index moved higher Thursday as energy stocks surged on a record 25 per cent rise in crude oil prices.
Oil prices jumped after U.S. President Donald Trump tweeted that he expected Saudi Arabia and Russia to cut production by 10 million to 15 million barrels per day.
Such a move would effectively be a ceasefire in the price war between two of the world’s largest oil producers that is partly responsible for a collapse in oil prices. On top of that, China said it was looking to speed up crude oil purchases.
“So that put a huge floor under the oil prices,” said Michael Currie, vice-president and investment adviser at TD Wealth.
The May crude contract was up US$5.01 at US$25.32 per barrel after rising by as much as 35 per cent in intraday trading.
The increase helped the entire energy sector, which gained 9.3 per cent on the day. It was led by MEG Energy Corp., Frontera Energy Corp. and Cenovus Energy Inc., which saw their share prices surge 33.8, 30.7 and 23.2 per cent respectively.
Thursday’s price gain came just days after the commodity price hit an 18-year low. However, it still sits almost 59 per cent below the US$61.18 per barrel level of Dec. 31.
The oil news offset earlier jobless numbers in the United States that were far worse than economists had expected. The U.S. job market has collapsed in two weeks because of the novel coronavirus outbreak, pushing at least 10 million Americans out of work.
That includes 6.6 million claiming unemployment benefits last week, double what economists were expecting and more than twice the record number of claims the prior week.
“That’s huge, huge jobs numbers lost there so that was obviously a negative on the market,” Currie said in an interview.
The S&P/TSX composite index closed up 221.36 points at 13,097.76.
Nine of the 11 major sectors of the TSX were higher with materials gaining 4.3 per cent.
The June gold contract was up US$46.30 at US$1,637.70 an ounce and the May copper contract was up 4.4 cents at US$2.22 a pound.
Kinross Gold Corp. was up 9.5 per cent.
Offsetting the support from commodities were share losses in the technology and consumer discretionary sectors.
Shares of Shopify Inc. plunged 9.7 per cent after the Ottawa-based tech company suspended its 2020 outlook.
Aritizia Inc. was down 5.3 per cent and Restaurant Brands International Inc. was four per cent lower.
In New York, the Dow Jones industrial average was up 469.93 points at 21,413.44. The S&P 500 index was up 56.40 points at 2,526.90, while the Nasdaq composite was up 126.73 points at 7,487.31.
“With the markets holding up positively now I guess people are looking a little bit past the jobless numbers here,” added Currie.
The Canadian dollar traded for 70.53 cents US compared with an average of 70.34 cents US on Wednesday.
This report by The Canadian Press was first published April 2, 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.
