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Cargill’s Alberta beef plant to reopen next week after COVID-19 outbreak forced closure – The Globe and Mail

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Cargill’s beef plant in High River, Alta., on April 23, 2020. The facility usually churns out about 36 per cent of beef processed in Canada.

Jeff McIntosh/The Canadian Press

Cargill Ltd.’s Alberta slaughterhouse, which accounts for 36 per cent of Canada’s beef production, will resume operations next week after shutting down because of a surge of COVID-19 cases among its workers.

The High River facility will restart on May 4, according to a company statement. About 2,000 people work at the plant, which shut down on April 20 as the novel coronavirus swept through its work force.

So far, 821 Cargill employees have tested positive for the virus, and one has died. Another 276 employees and contractors at rival JBS Canada’s operation in Brooks, Alta., have fallen ill and one died after being infected with the coronavirus.

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Cargill said it has sanitized the plant and introduced new physical distancing measures for the workers, limiting carpooling and providing transportation for others.

The announcement was made one day after U.S. President Donald Trump signed an executive order that compels his country’s meat plants to remain in operation.

Marie-Claude Bibeau, Agriculture and Agri-Food Minister, told the Commons Industry Committee on Wednesday that Ottawa is working on deals with different provinces and territories to help resolve future shortages of meat. Current rules prevent meat inspected by provincial government inspectors from being sold in other provinces, while only meat inspected by federal inspectors can be sold nationwide.​

Ms. Bibeau said that “if we face a food shortage in one province or territory,” the Canada Food Inspection Agency is willing to allow movement of provincially inspected meat even if it has been inspected by a provincial authority rather than federal inspectors.

Canada’s meat production was halved last week after the Cargill plant shut down and JBS axed one of its two shifts because it was short on employees. Pressure on the supply chain led McDonald’s Canada on Tuesday to roll out plans to import beef.

The High River facility usually churns out about 36 per cent of beef processed in Canada, while JBS’s plant in Brooks adds another 32 per cent. COVID-19 infections have disrupted operations in at least eight meat-processing plants from Quebec to British Columbia, including facilities in Yamachiche, Que., Brampton, Ont., Hamilton, Waterloo, Ont., and Vancouver.

Cargill said it is resuming work with “support” from Alberta Health Services and the watchdog Occupational Health and Safety. Alberta’s meat-processing industry is classified as an essential service, making the employer responsible for the safety of its workers.

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Jon Nash, the head of Cargill’s North American protein division, in a statement said the company implemented some safety suggestions from the workers’ union, and welcomed representatives to examine the site.

“We will continue to put people first and do the right thing as we navigate this difficult time together,” he said.

The Alberta government and the province’s chief medical officer, Deena Hinshaw, have said the plants in High River and Brooks are not exclusively responsible for the explosive spread of the virus. They pointed to carpooling, multi-generational households, homes with multiple roommates and workers clocking in even when showing symptoms. These workforces are dominated by temporary foreign workers and immigrants.

Cargill said it will limit access to the plant to no more than two people per vehicle, with one occupant in the front and one in the back, to bolster physical distancing. The company, in partnership with AHS, will also provide buses retrofitted with protective barriers between the seats to alleviate the need for carpooling. Hundreds of Cargill employees live in Calgary, about 60 kilometres north of the plant.

Employees returning to work “should be healthy and not had contact with anyone with the COVID-19 virus for 14 days,” the company said. Cargill said it sanitized the plant, installed more protective barriers in washrooms, reassigned lockers and continued to educate workers about the importance of social distancing. The company had implemented some mitigation measures, including protective barriers in the cafeteria and thermal checks at entrances, before halting operations, but employees told The Globe and Mail the company acted too late.

Cargill also noted in its news release that it had installed protective barriers between workers on the production floor since the beginning of March.

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Dr. Hinshaw said members of her team who visited the plant believe Cargill’s latest efforts “are sufficient to prevent the spread of infection.”

McDonald’s Canada did not respond to an e-mail asking whether it will reverse its import plan now that the High River facility will soon reopen.

Meat processors say Canadians do not need to worry about supply.

“On balance, the system is holding and weathering this,” Chris White, president of the Canadian Meat Council, which represents 55 federally inspected meat packers and processors, said. “There is ample supply product. The product is still being processed. It’s not being as quickly as it was pre-COVID, but it’s still being processed.”

Asked if he would require meat processors to stay open, as Mr. Trump has done, Prime Minister Justin Trudeau said this country would “do whatever needs to be done” to protect workers in the food industry while keeping supply flowing.

“We need to make sure those supply chains can keep functioning but we also need to make sure the people who work in those supply chains – and will continue to need to work in difficult circumstances over the coming weeks and months as we continue to battle COVID-19 – are kept safe,” the Prime Minister said.

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Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin's Fourth Halving Arrives – Investor's Business Daily

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[unable to retrieve full-text content]

  1. Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin’s Fourth Halving Arrives  Investor’s Business Daily
  2. Iran fires at apparent Israeli attack drones: Mideast tensions  The Associated Press
  3. S&P 500 extends losing streak to sixth day, Dow up 210 points  Yahoo Canada Finance
  4. Stock Market Today: Dow, S&P Live Updates for April 19  Bloomberg
  5. Stock market today: Wall Street limps toward its longest weekly losing streak since September  CityNews Kitchener

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Netflix stock sinks on disappointing revenue forecast, move to scrap membership metrics – Yahoo Canada Finance

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Netflix (NFLX) stock slid as much as 9.6% Friday after the company gave a second quarter revenue forecast that missed estimates and announced it would stop reporting quarterly subscriber metrics closely watched by Wall Street.

On Thursday, Netflix guided to second quarter revenue of $9.49 billion, a miss compared to consensus estimates of $9.51 billion.

The company said it will stop reporting quarterly membership numbers starting next year, along with average revenue per member, or ARM.

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“As we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact,” the company said.

Netflix reported first quarter earnings that beat across the board on Thursday, with another 9 million-plus subscribers added in the quarter.

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Subscriber additions of 9.3 million beat expectations of 4.8 million and followed the 13 million net additions the streamer added in the fourth quarter. The company added 1.7 million paying users in Q1 2023.

Revenue beat Bloomberg consensus estimates of $9.27 billion to hit $9.37 billion in the quarter, an increase of 14.8% compared to the same period last year as the streamer leaned on revenue initiatives like its crackdown on password-sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.

Netflix’s stock has been on a tear in recent months, with shares currently trading near the high end of its 52-week range. Wall Street analysts had warned that high expectations heading into the print could serve as an inherent risk to the stock price.

Earnings per share (EPS) beat estimates in the quarter, with the company reporting EPS of $5.28, well above consensus expectations of $4.52 and nearly double the $2.88 EPS figure it reported in the year-ago period. Netflix guided to second quarter EPS of $4.68, ahead of consensus calls for $4.54.

Profitability metrics also came in strong, with operating margins sitting at 28.1% for the first quarter compared to 21% in the same period last year.

The company previously guided to full-year 2024 operating margins of 24% after the metric grew to 21% from 18% in 2023. Netflix expects margins to tick down slightly in Q2 to 26.6%.

Free cash flow came in at $2.14 billion in the quarter, above consensus calls of $1.9 billion.

Meanwhile, ARM ticked up 1% year over year — matching the fourth quarter results. Wall Street analysts expect ARM to pick up later this year as both the ad-tier impact and price hike effects take hold.

On the ads front, ad-tier memberships increased 65% quarter over quarter after rising nearly 70% sequentially in Q3 2023 and Q4 2023. The ads plan now accounts for over 40% of all Netflix sign-ups in the markets it’s offered in.

FILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File PhotoFILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo

Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo (REUTERS / Reuters)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here

Read the latest financial and business news from Yahoo Finance

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack – OilPrice.com

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack | OilPrice.com



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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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  • Oil prices initially spiked on Friday due to unconfirmed reports of an Israeli missile strike on Iran.
  • Prices briefly reached above $90 per barrel before falling back as Iran denied the attack.
  • Iranian media reported activating their air defense systems, not an Israeli strike.

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Oil prices gave up nearly all of early Friday’s gains after an Iranian official told Reuters that there hadn’t been a missile attack against Iran.

Oil surged by as much as $3 per barrel in Asian trade early on Friday after a U.S. official told ABC News today that Israel launched missile strikes against Iran in the early morning hours today. After briefly spiking to above $90 per barrel early on Friday in Asian trade, Brent fell back to $87.10 per barrel in the morning in Europe.

The news was later confirmed by Iranian media, which said the country’s air defense system took down three drones over the city of Isfahan, according to Al Jazeera. Flights to three cities including Tehran and Isfahan were suspended, Iranian media also reported.

Israel’s retaliation for Iran’s missile strikes last week was seen by most as a guarantee of escalation of the Middle East conflict since Iran had warned Tel Aviv that if it retaliates, so will Tehran in its turn and that retaliation would be on a greater scale than the missile strikes from last week. These developments were naturally seen as strongly bullish for oil prices.

However, hours after unconfirmed reports of an Israeli attack first emerged, Reuters quoted an Iranian official as saying that there was no missile strike carried out against Iran. The explosions that were heard in the large Iranian city of Isfahan were the result of the activation of the air defense systems of Iran, the official told Reuters.

Overall, Iran appears to downplay the event, with most official comments and news reports not mentioning Israel, Reuters notes.

The International Atomic Energy Agency (IAEA) said that “there is no damage to Iran’s nuclear sites,” confirming Iranian reports on the matter.

The Isfahan province is home to Iran’s nuclear site for uranium enrichment.

“Brent briefly soared back above $90 before reversing lower after Iranian media downplayed a retaliatory strike by Israel,” Saxo Bank said in a Friday note.

The $5 a barrel trading range in oil prices over the past week has been driven by traders attempting to “quantify the level of risk premium needed to reflect heightened tensions but with no impact on supply,” the bank said, adding “Expect prices to bid ahead of the weekend.”

At the time of writing Brent was trading at $87.34 and WTI at $83.14.

By Tsvetana Paraskova for Oilprice.com

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