Canada’s main stock index opened lower on Thursday, in line with a decline on Wall Street, while data showed Canada’s economic growth stalled in February due to disruptions caused by the novel coronavirus pandemic.
At 9:31 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 167.22 points, or 1.1%, at 15,060.89.
The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier six-week high, as the rally in global shares lost some momentum and domestic data showed no economic growth in February.
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The Canadian dollar was trading 0.1% lower at 1.3893 to the greenback, or 71.98 U.S. cents. The currency notched its strongest intraday level since March 16 at 1.3850, while it was on track to rise 1.2% for the month.
Global stocks dipped as the European Central Bank (ECB) kept much of its remaining policy powder dry, preparing for a long fight against the coronavirus pandemic’s fallout. Still, stocks were headed for sharp gains this month, supported by encouraging early results from a COVID-19 treatment trial.
Canada runs a current account deficit and is a major exporter of commodities, including oil, so the domestic economy tends to be dependent on the global flow of trade and capital.
The Canadian economy was flat in February as rotating teacher strikes in Ontario and disruptions in transportation and warehousing stalled the economy, Statistics Canada said. Analysts had forecast a 0.1% increase.
U.S. crude oil futures were up 11.3% at $16.76 a barrel, lifted by signs the U.S. crude glut is not growing as quickly as expected and indications of a rise in fuel demand, which has been crushed by the pandemic.
Canadian hospitals had beds to spare as the country hit 50,373 confirmed coronavirus cases on Wednesday, and several provinces were relaxing public health measures, but health experts were already worrying about a future wave of infections.
Wall Street opened lower on Thursday at the end of a strong month for stock markets globally, as millions more applied for jobless claims in the United States, overshadowing upbeat results from Facebook and Tesla.
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The Dow Jones Industrial Average fell 48.29 points, or 0.20%, at the open to 24,585.57. The S&P 500 opened lower by 8.60 points, or 0.29%, at 2,930.91, while the Nasdaq Composite dropped 3.69 points, or 0.04%, to 8,911.02 at the opening bell.
The Labor Department’s report showed initial unemployment claims totaled 3.84 million for the week ended April 25, down from 4.44 million in the previous week and a record 6.87 million in March.
Although the downward trend raised hopes that the coronavirus outbreak’s impact on the labor market had peaked, analysts said investors were still wary of the pace of an economic recovery from a looming recession.
“In large part this data is seen as something we’ve already taken for granted,” said Art Hogan, chief market strategist at National Securities in New York.
“We know that the economic data, especially as it pertains to labor, is bad and is going to get worse.”
Still, the S&P 500 is on course for its best month since 1974, powered by dramatic U.S. monetary and fiscal stimulus and hopes of a revival in business activity as states reopen from lockdowns.
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All three U.S. stock indexes ended Wednesday’s session closer to all-time highs reached in February after positive partial data from a trial of Gilead Science Inc’s antiviral remdesivir showed an improved recovery rate in COVID-19 patients.
The Federal Reserve pledged on Wednesday to expand emergency programs to revive growth but dashed hopes for a fast rebound, saying the economy could feel the weight of consumer fear and social distancing for a year.
Analysts forecast a sharper decline in second-quarter corporate earnings, with profits for S&P 500 companies expected to fall 36% following a 15% anticipated drop in the first quarter, according to Refinitiv data.
Reuters
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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.
