Stock markets moved higher on Wednesday even as investors digested results of a U.S. election that remained too close to call.
U.S. stock indexes including the S&P 500 and the Dow Jones Industrial Average were both up more than two per cent in the afternoon and the technology-focused Nasdaq fared even better.
Shares in large tech companies such as Amazon, Facebook, Adobe, Apple and Google were all up by more than five per cent. That’s largely because those companies have fared well during the pandemic and are likely to continue to see strong demand for their services no matter who is in the White House.
The TSX was a little more muted, with the main index up about 100 points or half a per cent. Energy companies and financial firms gained ground, while most other sectors lost ground.
The election outcome is of particular interest to Canadian energy companies, since the two presidential candidates have wildly different policies for the oil and gas sector. Donald Trump is more open to energy exploration, but favours U.S. firms. Joe Biden, meanwhile, is perceived to be a net negative for Canada’s oilpatch, but the sector will face challenges no matter who wins.
“Although tariffs on energy are less likely, tariffs on other products, such as steel and aluminum, may continue,” TD Bank chief economist Beata Caranci said in a note to clients on Wednesday. “Canadian producers know this all too well.”
One sector of the TSX that was a clear loser on the day was cannabis stocks, which saw something of a mixed bag in the results. On the upside, four more states voted to legalize recreational use of the drug with New Jersey, Arizona, Montana and South Dakota becoming the 12th, 13th, 14th and 15th states to do so.
But a Congress and White House divided across party lines is unlikely to see more drug liberalization laws come to pass anytime soon.
Business professor Michael Armstrong at Brock University studies the cannabis market, and he says more states legalizing cannabis is likely to add pressure to the federal government to do something, but Republican control of the Senate makes full legalization unlikely.
“In the next Congress you’re going to have more representatives representing states where they have local cannabis businesses,” he said in an interview. “They are going to have a strong incentive to support legalization at the federal level.”
That would be good news for cannabis companies, who have been waiting for permission to sell into the U.S. market.
But since it’s unlikely to happen, those same companies now face a bleaker prospect. Shares in Canada’s two biggest cannabis companies, Canopy Growth and Aurora Cannabis, both lost almost 10 per cent of their value.
Other sectors
Manulife’s chief investment strategist Philip Petursson said September and October during election years are typically bad months for the stock market, but November and December tend to be good. So Wednesday’s buying makes a lot of sense.
Dennis Mitchell is CEO of Toronto-based money manager Starlight Capital. (Starlight Capital)
“Markets are already looking past the election to a continued recovery and favourable seasonality,” Petursson said. “Trying to gain an edge in the equity markets based upon potential or real election results is a greatly unrewarding exercise.”
While the winner of the election is still unknown, it’s looking more and more clear that the expected Democratic sweep of all three branches of government is not happening, which means that more gridlock in Washington can be expected.
But that isn’t necessarily a bad thing, at least from the perspective of the stock market. Should Biden emerge victorious while the two branches of Congress remain as they were, that could be an ideal situation for markets, said Dennis Mitchell, CEO of Toronto-based money manager Starlight Capital.
“Markets are rallying because the chaotic status quo is shifting to more predictability and stability,” he said. “Drop Trump, take Biden but keep the House and Senate where they are … This is the perfect scenario for markets and they are showing their support for this outcome.”
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.
