A union representative called Bombardier’s sale of its remaining shares in the A220 commercial jet program — formerly known as the C Series — “the best-case scenario,” while an aerospace expert said it’s a “sad” day for Quebec.
The company announced the move late Wednesday night, and politicians and stakeholders weighed in on Thursday.
Quebec Economy Minister Pierre Fitzgibbon says the sale will mean more production and more jobs for the province.
“Our business is to make sure we create good jobs,” Fitzgibbon said, saying that he still sees potential in Bombardier’s contribution to Quebec’s economy.
“I’m convinced the engineering of Bombardier … will contribute to economic growth in Quebec.”
David Chartrand, the representative for Quebec’s division of the International Association of Machinists and Aerospace Workers, says he’s satisfied Airbus and its subsidiary Stelia intend to keep jobs in Quebec.
The deal calls for the jobs of 360 people who construct the plane’s cockpits at the plant in the Montreal borough of Ville St-Laurent to be guaranteed for three years. After that, they will be transferred to Mirabel.
“Priority number one, absolutely, was to keep those jobs here in Quebec and make sure … our members continue to benefit from those jobs,” Chartrand said.
He said he’s confident the jobs are safe as long as Airbus continues to sell airplanes, and that Airbus and Stelia assured him the union’s collective agreement will remain in place.
Deal secures 3,300 Quebec jobs, Airbus says
Bombardier has been reorganizing its business to try and pay off a multibillion-dollar deficit.
The union is in discussions to ensure the same work conditions for the more than 360 workers at the plant in Ville St-Laurent, Chartrand says.
Airbus says the deal secures 3,300 jobs in Quebec.
Under the deal, Airbus will hold a 75 per cent stake in the commercial jet program. The Quebec government will have 25 per cent.
Quebec Premier François Legault said he’s satisfied they were able to reach this agreement.
Bombardier released its latest financial statement Thursday. The company incurred losses of $1.6 billion US, or close to $2.3 billion Cdn, in the last quarter.
‘We’re not putting in any more money’: Quebec premier
Legault criticized the former Liberal government’s $1.3 billion investment in the C Series in 2016. Sales of the planes were initially slow, leading Bombardier to sell a controlling stake of the program to Airbus in 2018 for $1.
While A220 orders have since started rolling in, Bombardier would need to inject more money into the program to ramp up production.
“It’s the old government that made a bad financial transaction to put $1.3 billion of our money not into the Bombardier group, but only in one division of it,” Legault said at the National Assembly Thursday.
“We’re not putting in any more money.”
Pierre Arcand, interim leader of the Quebec Liberal Party, said his government invested in the C Series to protect tens of thousands of jobs in the Montreal area.
“We see the sales of those planes are increasing. We’ll see in the future what is the value of that 25 per cent,” Arcand said, adding that Legault’s challenge will be to ensure the jobs remain in the province.
Isabelle Dostaler, dean of the faculty of business administration at Memorial University of Newfoundland whose research focuses on aerospace and aviation management, said it’s a sad day for Quebec.
“To think that our country developed the most advanced civil aircraft and that we’re not able to sell it ourselves, it’s really really, really sad,” Dostaler told CBC Daybreak‘s Mike Finnerty.
She said if she were the premier, she wouldn’t diminish the province’s participation in the A220 program.
“I think whoever owns that aircraft, and that’s now going to be Airbus, they’re going to make a lot of money.”
TSX halt leaves traders, investors in limbo on one of the busiest trading days of the year – The Globe and Mail
Trading on the Toronto Stock Exchange and other exchanges owned by TMX Group Ltd. came to an abrupt halt on Thursday afternoon, leaving traders and investors in limbo on one of the busiest trading days of the year.
Shortly before 2:00 p.m., TMX ordered a “technical halt” for the TSX, TSX-Venture Exchange and the Alpha Exchange, due to a “problem with order entry.” Derivatives trading on the Montreal Stock Exchange, which is owned by TMX, was also halted.
“Clients are currently unable to enter, modify or cancel open orders,” the exchange said in a statement, shortly after the halt. A TMX spokesperson said the company was investigating the issue, but did not elaborate on what caused the order processing problem that prompted the shutdown.
The spokesperson added that the company did not know whether trading would resume at a regular time on Friday.
Thursday’s stoppage came at a dramatic moment, cutting short a day of intense selling that saw the S&P/TSX Composite Index drop 323 points or 1.9 per cent as concern mounts about the economic impact of coronavirus.
For professional traders, the halt caused disarray as orders remained unfilled and trading positions were left open.
“If you’ve got an order out there on the TMX, and you can’t cancel it, we need to know how the system is going to be brought back to life. Is there a chance of a double fill, by selling too much or by buying too much? These are concerns that people need to be cognizant of,” said Pete Gombocz, managing director of Velocity Trade Capital Ltd.
The TMX Group said in a statement that prior to re-opening the exchange, it will “provide sufficient time in a pre-open state for participants to manage their orders”
As Canada’s largest exchanges shut down, traders began routing their trades through smaller exchanges such as the NEO Exchange, and through alternative trading systems such as Omega and Chi-X. This took some of the pressure off the build-up of un-executed orders. However, far fewer shares trade hands on these smaller exchanges, making access to liquidity a challenge.
“The ability to enter and exit a trade is certainly hampered,” Mr. Gombocz said.
The early shutdown caused additional problems for people trying to manage margin calls, said Anthony George, head trader at INFOR Financial Group Inc. A margin call happens when people have borrowed money to buy stock, and the price of the stock declines, meaning they have to put more money into the trading account to make up for the shortfall.
“There’s capital issues people have. You’re up against margin. And without the access to sell, to liquidity, you’re breaking the rule,” Mr. George said, referring to rules around margin requirements.
“Margin calls come out at 2:15, and the market was halted at 1:54… You can go to those other exchanges and sell 100 shares or 200 shares, but you’re not getting the same liquidity,” he said.
Order processing problems used to be a relatively frequent occurrence on the TSX, said Mr. Gombocz, who worked for the exchange in the 1990s and early 2000s, although things have improved in recent years.
“I think the system and the technology today has been built to withstand a lot more [volume] than they would see on an everyday basis, so those spikes that you would see in trading volumes and order flow, I think those have been factored into how they built their processing,” Mr. Gombocz said.
“It is technology, technology does break, but they’ve had a good track record,” he added.
Husky CEO slams Ottawa for derailing projects with politics – Yahoo Canada Finance
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Speaking on a conference call following the release of the Calgary-based integrated oil producer’s latest financial results, Robert Peabody commented on the increasingly challenging environment for new energy infrastructure in Canada. ” data-reactid=”23″>Speaking on a conference call following the release of the Calgary-based integrated oil producer’s latest financial results, Robert Peabody commented on the increasingly challenging environment for new energy infrastructure in Canada.
“Governments should make every effort to ensure that companies in any industry don’t invest significant dollars in a project, and in project applications, only to be derailed by policy or political uncertainty at the very last moment,” he said on Thursday. “That certainly is a situation that has to be rectified if people want projects to move ahead.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="His remarks come in the wake of Teck Resources’ (TECK-B.TO)(TECK) decision last Sunday to pull the plug on plans for a $20 billion oilsands mine in northern Alberta. The company said the full potential of Canada’s energy sector will not be realized until the government reconciles conflicting natural resource development and carbon reduction priorities.” data-reactid=”25″>His remarks come in the wake of Teck Resources’ (TECK-B.TO)(TECK) decision last Sunday to pull the plug on plans for a $20 billion oilsands mine in northern Alberta. The company said the full potential of Canada’s energy sector will not be realized until the government reconciles conflicting natural resource development and carbon reduction priorities.
Teck began the regulatory process for the planned Frontier mine in March 2008. Last July, the Alberta Energy Regulator and the Canadian Environmental Assessment Agency recommended approval of the project. The federal government was expected to issue its decision by the end of the month.
“All you have to do to frustrate large project investment is make the regulatory process longer than sort of five years,” Peabody said. “What killed Teck, ultimately, was a regulatory process that just went on and on and on.”
While Teck had not deemed the project viable given current commodity prices and the lack of take-away capacity in Canada’s oil patch, the project became a political flashpoint, pitting Ottawa’s commitment to reduce carbon emissions against the need to support Alberta’s long-suffering resource economy.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Teck warned last week that it would face a $1.13 billion impairment charge if the plan did not go ahead.” data-reactid=”29″>Teck warned last week that it would face a $1.13 billion impairment charge if the plan did not go ahead.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The abandoned Frontier mine plan is the latest casualty in a long line of energy projects impacted by regulatory hurdles and environmental opposition, including the Trans Mountain pipeline expansion sold to the government by Kinder Morgan (KMI), and TC Energy Corp’s (TRP.TO)(TRP) Keystone XL pipeline. ” data-reactid=”30″>The abandoned Frontier mine plan is the latest casualty in a long line of energy projects impacted by regulatory hurdles and environmental opposition, including the Trans Mountain pipeline expansion sold to the government by Kinder Morgan (KMI), and TC Energy Corp’s (TRP.TO)(TRP) Keystone XL pipeline.
The latest pressure point has been TC’s Energy Coastal GasLink pipeline in Northern British Columbia. The project aims to transport natural gas 670 kilometres from near Dawson Creek to a facility near Kitimat, where LNG Canada will prepare the gas for export to global markets.
While the project has the approval of all 20 elected Indigenous band councils governing the route, the Wet’suwet’en hereditary chiefs have not consented. They insist their authority trumps governance structures created under Canada’s controversial Indian Act.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Nationwide protests in support of the hereditary chiefs have erupted in recent weeks. Demonstrators have blocked trains on key rail arteries, resulting in a range of setbacks for businesses across the country, including temporary layoffs.” data-reactid=”33″>Nationwide protests in support of the hereditary chiefs have erupted in recent weeks. Demonstrators have blocked trains on key rail arteries, resulting in a range of setbacks for businesses across the country, including temporary layoffs.
A new poll by the Angus Reid Institute found 78 per cent of Canadians feel the country’s reputation as a prime destination for investment has taken a hit as a result.
Goldy Hyder, chief executive officer at the Business Council of Canada, said the disconnect between the Wet’suwet’en hereditary chiefs and their elected counterparts adds another layer of complexity to the already challenging process of building energy projects in Canada.
He said the federal government keeps “moving the goalposts” on project approvals, and his members in the energy sector are getting fed up.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“‘What else do you want from us?’ That’s what I hear,” Hyder told Yahoo Finance Canada. ” data-reactid=”37″>“‘What else do you want from us?’ That’s what I hear,” Hyder told Yahoo Finance Canada.
His advice for the government: “Don’t politicize regulatory processes. Build the regulations strong enough that you are comfortable that you are getting the policy outcomes that you want.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.” data-reactid=”39″>Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Download the Yahoo Finance app, available for Apple and Android.” data-reactid=”40″>Download the Yahoo Finance app, available for Apple and Android.
Husky Energy CEO blames regulatory process 'that just went on and on' for end of Teck Frontier mine – CBC.ca
The shelving of the proposed $20.6-billion Frontier oilsands mine this week stems mostly from the length of time it took for it to win regulatory approval, says the CEO of oilsands producer Husky Energy Inc.
The project application was withdrawn by Teck Resources Ltd. last Sunday, just days before the federal government was to rule on whether it would allow it to proceed.
Teck CEO Don Lindsay said there was “no constructive path forward” in a Canadian environment marked by conflict amid Indigenous rights, climate change issues and resource development.
What killed Teck, you know, ultimately, was a regulatory process that just went on and on and on and on.– Rob Peabody, Husky CEO
“What killed Teck, you know, ultimately, was a regulatory process that just went on and on and on and on,” said Husky CEO Rob Peabody on a conference call Thursday to discuss his company’s fourth-quarter results.
“Had that process concluded in a sensible timeframe, I’m sure we’d have a Teck project under construction today because there were proponents who were set and keen to move forward with that project.
“If you wait long enough, that sort of coalescence on the idea of spending that sort of money ultimately unravels.”
The Frontier project application was first submitted to the Alberta Energy Regulator in late 2011. In 2016, a joint federal-provincial review panel was appointed and it approved the project last July.
Asked if the outcome suggests large oilsands projects can’t be built in Canada, Peabody said it actually means all large projects will have a difficult time, even if they produce renewable hydroelectric energy.
“Building major highways, building pipelines, building major infrastructure projects around cities, things like that, I think this applies to everything,” he said.
Critics of the mine, designed to produce 260,000 barrels of oil a day, said it wouldn’t have been profitable unless North American oil prices were much higher than they are now, although Teck said new technologies would have been employed to bring down costs.
Husky said lower long-term commodity price forecasts were the major reason it decided to take non-cash impairment charges of $2.3 billion after tax in the quarter ended Dec. 31.
The charges are related to its upstream assets in North America, including its Sunrise oilsands project and natural gas assets, as well as the subtraction of redundant assets at its refinery in Lima, Ohio, following a project that allows it to process heavier barrels of crude.
The writedowns echo a $2.8 billion charge taken by oilsands rival Suncor Energy Inc. earlier this month related to lower forecast prices for heavy oil from its Fort Hills oilsands mine in northern Alberta.
Teck took a charge of $910 million for the same reason related to its 21.3 per cent stake in the Fort Hills mine.
Husky cut about 370 jobs in a round of layoffs in October to better align staffing with capital spending plans for 2020 and 2021 that had been reduced by $500 million due to changing market conditions.
Shares of Husky fell by as much as 11.7 per cent to $6.31 on Thursday morning in Toronto after it reported results that matched analyst expectations on production but missed by a wide margin on funds from operations.
The Calgary-based company controlled by Hong Kong billionaire Li Ka-shing blamed lower U.S. refinery margins, an extended shutdown at the refinery in Lima, the temporary shutdown of the Keystone pipeline in November and $74 million related to employee severance for posting funds from operations of $469 million.
That compared with $583 million in the year-earlier period and analyst expectations of $712 million, according to the financial markets data firm Refinitiv.
The company posted a net loss of $2.34 billion, compared with a profit of $216 million in the same quarter a year earlier.
On the call, Peabody said the company’s Asia-Pacific operations are getting back to normal after precautions related to the COVID-19 virus temporarily reduced demand for natural gas from the Liwan offshore project operated by its partner, China’s CNOOC Ltd.
TSX halt leaves traders, investors in limbo on one of the busiest trading days of the year – The Globe and Mail
All-female crew to work NHL game between Vegas Golden Knights and Calgary Flames – The Globe and Mail
Coronavirus Concerns Lead to the Cancellation of One of Tech's Biggest Developer Conferences – Gizmodo
Iran anticipates renewed protests amid social media shutdown
Popular Richmond BBQ spot speaks out about coronavirus rumours after man collapses outside restaurant – Vancouver Is Awesome
Real Estate Board of Greater Vancouver reports January housing sales up 42.4 percent
- Investment19 hours ago
Pennsylvania Real Estate Investment Trust (PEI) Q4 2019 Earnings Call Transcript – Motley Fool
- Media24 hours ago
Barr Criticizes Mainstream Media as ‘Monolithic in Viewpoint’ – The New York Times
- Tech7 hours ago
Samsung had the most successful Android phones, but iPhone dominated 2019’s top 10 – 9to5Google
- Health21 hours ago
Canada must take immediate steps to prepare itself for potential COVID-19 pandemic, experts say – The Globe and Mail
- Health10 hours ago
If coronavirus spreads within the US, here's how daily life might change – CNN
- Tech23 hours ago
Apple, J&J to study if Apple Watch app leads to lower stroke risk
- Health4 hours ago
Has India stumbled upon a chance defence against coronavirus? Nomura economist thinks it has – Economic Times
- Sports21 hours ago
Canadian teen Fernandez surges into first QF in Acapulco 2020 Acapulco 5 hrs ago – WTA Tennis