A representative for the Bank of Montreal (BMO) is speaking publicly for the first time since an 12-year-old Indigenous girl and her grandfather were handcuffed while trying to open an account at the institution.
The incident, which touched off allegations of racial profiling, took place on Dec. 20, and saw Bella Bella man Maxwell Johnson, 56, and his granddaughter handcuffed by Vancouver police, after bank staff were “unable to validate” their government-issued ID.
LISTEN: CKNW’s Lynda Steele speaks with BMO executive Erminia Johannson
Erminia Johannson, group head of North American personal banking and U.S. business banking, spoke with Global News and CKNW on Thursday, after the bank announced a new Indigenous Advisory Council.
“We made a mistake here. Let’s be very clear. I want to make sure that is understood,” said Johannson.
“We are sad. We are broken ourselves in the sense of saying this should not have happened on our shift.”
But Johannson rejected the allegation that racism was in any way involved in the call to police reporting an alleged fraud.
“Our validation process identified a serious issue in the actual identification. This is where we should have stopped. I will keep repeating it and say our mistake was picking up the phone and calling the police,” she said.
“We set off a spark — I’ll use that language — that had unintended consequences that were extreme in this case. And we are heartfelt, sad, disappointed, embarrassed and apologetic on this situation.”
Attempt to open bank account ends in handcuffs for B.C. girl and grandfather
Johannson added BMO had conversations with “hundreds of Indigenous leaders, customers, employees” and conducted a review of what took place, and determined the incident “cannot be characterized” as racist.
Johnson told Global News that he provided Indian Status Cards, his own BMO bank card and a birth certificate, but that the teller told him “one or two numbers didn’t add up,” prior to the police being called.
Vancouver police have said they received a 911 call about a fraud in progress, identifying a South Asian man and 16-year-old girl as suspects.
Johannson did not answer directly when asked if there would be any repercussions for the employee or employees who phoned police, setting off the “spark.”
“Right now that employee is not in that branch as we speak,” she said.
“We’re all accountable for this. We’re taking action and we’re going to get this right.”
BMO demonstrators demand justice for B.C. Indigenous man and girl
Johannson said the bank has apologized to Johnson, but added BMO will have to “meet, talk, and do more than an apology.”
She also pointed to the bank’s new Indigenous Advisory Council, which includes eight Indigenous leaders from across Canada, as a commitment to review and improve BMO’s policies and work towards reconciliation.
Johnson, a member of the Heiltsuk Nation, declined an interview with Global News to comment on Johannson’s remarks. Instead he referred to his lawyer, who also declined comment.
In a statement, the Heiltsuk Nation said the appointment of the new council is “marred” by BMO’s continued denial that the incident involved racial profiling.
“Denying racism will not move us forward. This moves us backwards,” the nation said, adding it has yet to hear from BMO or the Indigenous Advisory Council.
“While today’s announcement would normally be a good first step, it’s hard to put weight on this advisory council because it has been assembled so quickly – it feels very much like a reactive gesture or public relations effort.”
The Heiltsuk Nation added Johnson would be commenting after the weekend.
Chief Patrick Michell of the Kanaka Bar Indian Band, the sole B.C. member of the new council, said he believes the body can have a positive effect.
“People are disappointed and angry about this and I don’t blame them. The Bank of Montreal has accepted responsibility for this and they’ve come up with a strategy moving forward,” he said.
“I’m looking at this incident, what happened — that’s yesterday. I’m more focused on making sure it doesn’t happen again tomorrow.”
Investigation ordered into handcuffing of grandfather and granddaughter
Michell said he wasn’t sure when the council would start its work, but that the first priority would be looking at the bank’s policies and practices.
He also said there were no plans as of yet to speak with Johnson or his granddaughter, but that he was open to the idea.
Johnson has previously indicated that he may file a human rights complaint over the incident.
British Columbia’s Office of the Police Complaints Commissioner has also ordered an investigation into the Vancouver police’s handling of the incident.
—With files from Srushti Gangdev
© 2020 Global News, a division of Corus Entertainment Inc.
Oil prices fall as market weighs coronavirus demand impact – CNBC
Oil pumpjacks in silhouette at sunset.
Oil prices fell on Tuesday, tracking losses in financial markets on lingering concerns over the economic impact of the coronavirus outbreak in China and its effect on oil demand.
“Oil prices remain heavy as energy traders may have been overly optimistic as to the crude demand impact of the coronavirus, and in fading optimism that OPEC + will come through with deeper production cuts in March,” said Edward Moya, senior market analyst at OANDA.
“Optimism that China would see a return to normalcy in travel and trade next quarter was probably wrong… The rest of world is exercising caution on virus spreading fears and that will do no favors for crude’s demand outlook.”
U.S. stock futures slipped from record levels on Tuesday after Apple Inc, the most valuable company in the United States, said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China.
The number of new coronavirus infections in mainland China fell below 2,000 on Tuesday for the first time since January, Chinese health officials said, although global experts warn it is too early to say the outbreak is being contained.
The International Energy Agency (IEA) said last week the virus was set to cause oil demand to fall by 435,000 barrels per day (bpd) year-on-year in the first quarter, in what would be the first quarterly drop since the financial crisis in 2009.
Still, with some Chinese independent refineries snapping up crude supplies after being absent from the market for weeks, traders held out hopes that China’s demand could recover in coming months.
Investors are also anticipating that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will approve a proposal to deepen production cuts to tighten global supplies and support prices.
The group, known as OPEC+, has an agreement to cut oil output by 1.7 million bpd until the end of March.
Oil output from Libya has fallen sharply since Jan. 18 because of a blockade of ports and oil fields by groups loyal to eastern-based commander Khalifa Haftar.
Libya’s national oil corporation, NOC, said on Monday that oil production was at 135,745 barrels per day as of Monday, compared with 1.2 million bpd before the stoppage.
Pier 1 Imports closing all Canadian stores as it files for bankruptcy protection – Global News
The Texas-based company has been struggling with increased competition from budget-friendly online retailers such as Wayfair.
Pier 1 says it will pursue a sale, with a March 23 deadline to submit bids.
The company last month announced it would close 450 stores, including all its Canadian locations.
Pier 1’s Canadian website now directs customers to a short statement announcing the closures and thanks them for their loyalty.
The company is also commencing creditor protection proceedings in Canada.
Osler, Hoskin & Harcourt LLP are serving as Canadian legal advisers.
In a statement Monday, the company said it will continue to shutter stores as part of its bankruptcy proceedings. The company, which was founded in 1962, is also closing two distribution centres.
A hearing is scheduled for Tuesday at the U.S. Bankruptcy Court for the Eastern District of Virginia. In the meantime, Pier 1 said lenders have committed approximately $256 million in debtor-in-possession financing so it can continue its operations during the Chapter 11 proceedings.
“Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we now work to unlock additional value for our stakeholders through a sale of the company,” Pier 1 CEO and Chief Financial Officer Robert Riesbeck said in a statement. Riesbeck, an executive with previous corporate turnarounds, joined Pier 1 last summer.
Pier 1’s sales fell 13 per cent to $358 million in its most recent quarter, which ended Nov. 30. It reported a net loss of $59 million for the quarter as it struggled to draw customers to its stores. Pier 1 has been trying to declutter its stores, improve online sales and draw in younger customers.
Pier 1’s shares have fallen 45 per cent since the start of the year. They closed at $3.58 per share on Friday.
— With files from The Associated Press.
© 2020 The Canadian Press
Bombardier to sell train unit to France’s Alstom, shedding biggest division – Toronto Star
MONTREAL— Bombardier, the supplier of Toronto’s signature streetcars and subways, has reached a US$8.2-billion deal to sell its rail business to French train giant Alstom SA. Both the TTC and Metrolinx say the sale won’t immediately impact their operations.
The company is narrowing its focus to commit itself solely to business jets while casting off its largest division, in part to help pay down US$9.3 billion in debt.
“Going forward, we will focus all our capital, energy and resources on accelerating growth and driving margin expansion in our market-leading US$7 billion business aircraft franchise,” CEO Alain Bellemare said in a statement Monday.
The news comes only weeks after the TTC took delivery of the last of 204 new Bombardier streetcars. All the maintenance of those vehicles is done in-house at the TTC, said transit spokesperson Stuart Green.
The $1.25 billion streetcar order was believed to be the biggest in the world when it was announced in 2009. But the 11 intervening years were an especially problematic chapter in the city’s long transit history with Bombardier.
The first two cars arrived in Toronto in 2014. But a series of manufacturing defects and missed delivery targets caused tempers to flare at the TTC and city hall. At one point the first 67 streetcars had to be recalled and repaired. Meantime, the TTC was desperately trying to extend the life of its old CLRV streetcars and run buses to supplement service on routes that desperately needed the new, bigger vehicles.
Toronto’s newest subways, the $1 billion Toronto Rockets, were also made by Bombardier. Ordered in 2006, they proved controversial for former Toronto Mayor David Miller, who defended the sole-source contract because it supported jobs at Bombardier’s Thunder Bay plant. The subways arrived late due to the bankruptcy of Bombardier’s New York door manufacturer but entered service in 2011.
Metrolinx said that “initial indications from Bombardier suggest it is business as usual,” with its order for Bombardier light rail vehicles for the Eglinton Crosstown, GO buses and the operation of GO and Union-Pearson Express trains. Most of GO’s locomotives are built by U.S.-based MotivePower.
The Finch West and Hurontario light rail lines are being furnished by Alstom, said spokesperson Anne Marie Aikins.
“We look forward to continuing with all of our rail delivery partners to bring better transit to the region,” she said.
Toronto transit historian Ed Levy said the sale of Bombardier’s train division is the end of an era that was for decades a happy match between the city and the company.
“They really screwed up on the streetcar thing but not on the very large orders of the subway cars over the years. When they started doing off-shore stuff that’s where their problems began,” he said.
The acquisition also signals an effort by Alstom to scale up amid rising competition from China’s state-owned CRRC, the world’s largest train maker.
The transaction will see the Caisse de depot et placement, which owns a 32.5 per cent stake in Bombardier’s train division, become Alstom’s largest shareholder.
The deal converts the Quebec pension giant’s investment in Bombardier Transportation into Alstom shares, handing the Caisse about 18 per cent of the Paris-based company with an investment of up to $4 billion, depending on closing conditions. The transaction includes an additional Caisse investment of $1 billion.
Bombardier said net proceeds from the deal will be between US$4.2 billion and US$4.5 billion after deducting the Caisse’s equity position of roughly US$2.2 billion, as well as adjustments for debts and other liabilities.
The deal is expected to close in the first half of 2021 if it can move through regulatory hurdles.
Alstom’s purchase is expected to come under intense scrutiny from antitrust regulators in the European Union. Last year, EU authorities blocked a proposed merger between Alstom and the train division of German industrial conglomerate Siemens AG, arguing the proposed tie-up would result in higher price tags on signalling systems and bullet trains.
Montreal-based Bombardier has sold several divisions since Bellemare took the helm in 2015, including its turboprop and aerostructure segments as well as its commercial airline unit, once touted as the company’s crown jewel.
Bombardier announced last month it was working to reduce debt and pursuing strategic options, which analysts and other observers suggested could include the sale of the company’s rail or business jet units.
Get more business in your inbox
Get the business news and analysis that matters most every morning in our Star Business email newsletter.
Bombardier shares have fallen about 70 per cent since July 2018 while Alstom’s have risen by more than 50 per cent over the past two years, including 3.5 per cent Monday.
The announcement was made after the Paris Stock Exchange closed Monday. The Toronto Stock Exchange was closed for Family Day.
The new deal and other recent transactions will leave Bombardier with between US$6.5 and US$7 billion of cash on hand, “putting the company on a brand-new footing” to deal with its sizable debt, Bellemare said.
The company has already ramped up production of high-margin business jets, which it expects will drive double-digit revenue growth with 160 unit sales in 2020 amid a $16.3-billion backlog. But delays and “some volatility” continue to plague several “large, challenging” rail contracts, Bellemare said last Thursday.
While its business jets are now at full production, analysts highlight the cyclical luxury market of private planes in comparison to the relatively stable field of rail car and network construction, which is fuelled by government infrastructure projects.
Nonetheless, hefty production costs and lower margins remain an issue in the rail business, said Jacques Roy, professor of transport management at HEC Montreal business school.
“You can see the fixed costs increasing all the time, because they pretty much have to establish facilities everywhere they sell equipment,” Roy said, pointing to Bombardier’s plant in Plattsburgh, N.Y., which makes trains for U.S. clients.
“If they were a little bit better at this they would be able to compete with the Chinese. They could brag that, ‘Okay, we’re not as cheap as the Chinese, but we produce much better quality, we deliver on time.’ But they don’t. That’s a concern to me,” he said.
The rail and business jet divisions represent Bombardier’s only remaining revenue streams — about 53 per cent and 47 per cent, respectively, of $15.76 billion in revenue last year — after Bombardier sold its waterbomber unit, Q400 turboprop business, CRJ regional jet program and flight-training enterprise over the past four years.
And last week, Bombardier announced the sale of its remaining stake in the A220 commercial jetliner program — formerly known as the C Series — as it reported quarterly results last Thursday, marking the end of its failed bid to take on the commercial aircraft duopoly of Airbus SE and Boeing Co.
Bombardier, founded in Valcourt, Que., in 1942 as a snowmobile manufacturer, now stares down a US$9.32-billion debt load — nearly 60 per cent of it due within five years.
The rail business, Bombardier Transportation, is based in Berlin. In Canada, it employs some 1,000 workers at factories in Quebec’s Bas-St-Laurent region and in St-Bruno-de-Montarville, on Montreal’s South Shore.
Samsung Galaxy Fold 2 could borrow Galaxy S20 Plus camera setup – Android Authority
Here’s why we may have to wait 18 months before we have a Covid-19 vaccine – Scroll.in
SpaceX re-useable rocket misses landing ship – CTV News
- Media16 hours ago
Surprising ways social media can affect your credit card balance – The Province
- Health18 hours ago
Bombshell Chinese Study Fuels Conspiracy of Coronavirus Being a Bioweapon – CCN.com
- News13 hours ago
Protest that blocked Canada-U.S. bridge ends – CBC.ca
- Media18 hours ago
Social media can affect your credit card balance
- Politics19 hours ago
On Politics: Bloomberg Under the Microscope – The New York Times
- Science19 hours ago
How to watch Falcon 9 launch 60 satellites to space Monday
- Politics14 hours ago
Women in Politics: Theresa May Recounts 'Sticky Tape' Moment – The New York Times
- News5 hours ago
Canadians on coronavirus-hit cruise ship await repatriation