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CIBC chief sees Canadian economy on cusp of consumer-led rebound – BNN

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Canadian Imperial Bank of Commerce CEO Victor Dodig says the country’s consumers are poised to start spending again once coronavirus vaccines become more widely available.

Dodig, who leads the country’s fifth-largest lender by assets, says an accelerated vaccine campaign will allow Canada to ease pandemic restrictions as other countries have. That should spur consumers whose finances weren’t hit hard by the pandemic to spend some of the extra cash they have saved over the last year, he said.

“There are parts of the economy that are more scarred than others, but I think that with that inflection point coming, I am reasonably confident that you will see a healthy, consumer-led recovery,” Dodig said in an interview last week.

Canada is set to ramp up its vaccination activity in the coming weeks, with as many as 14.5 million, or 38 per cent, of the country’s 38 million people expected to be fully inoculated by the end of June, the government said in an update last month. All Canadians who want the vaccine will have a chance to receive it by the end of September, the government has said.

Canada had just 1.4 per cent of its population fully vaccinated as of March 1, according to the Bloomberg Vaccine Tracker, which compiles data from government websites, news conferences and other sources. That trails countries including the U.S., which has fully vaccinated 7.7 per cent of its population, and Israel, where about 38 per cent are inoculated.

Dodig said he expects that restrictions like mask-wearing and distancing measures, along with more frequent testing, will remain a part of life even after vaccinations become widespread in Canada. Although Canadians will probably travel once they’re able to, that sector will still need some time before rebounding to 2019 levels, Dodig said.

He said he expects consumer spending to remain concentrated in many of the same categories that flourished through the pandemic, such as home improvement.

“What we’ve seen during the pandemic is much more of a focus on the home and lifestyle at home, and that will be a notable shift at least for the short to medium term,” Dodig said. “People will focus on their life and everything around them, their family, those most important to them, in terms of spending.”

With some restrictions remaining a way of life, CIBC is looking to build on the progress it made with its digital capabilities to give customers more self-serve options and to give workers more convenient ways to serve customers.

Those capabilities include a financial goal planner for customers, electronic signatures to reduce the need to visit branches and “full mobility” for relationship managers so they can work from anywhere and still be connected, he said.

“That focus on how technology can continue to advance banking, continue to strengthen the relationships that we’re building, is important,” Dodig said. “That’s what we’re obsessing about right now.”

So far, Dodig sees that focus paying off in CIBC’s results. The bank last week reported fiscal first-quarter profit that handily topped analysts’ estimates, driven by growth in its domestic mortgage business as well as strong results from its capital markets, commercial banking and wealth management segments.

The bank’s shares are up 16 per cent over the past 12 months, the second-best performance of the country’s six largest banks, behind Bank of Montreal.

For Canada as a whole, Dodig says policy makers need to ensure that businesses can to turn the consumer-led recovery into an investment-led one. Dodig has previously recommended policies such as using Quebec’s subsidized child-care system as a model for the country and allowing Canada’s tax-advantaged education savings plans to help mid-career workers acquire new skills.

“How do we ensure that the private-sector capital that is on the sidelines today — inside and outside our country — is put to good use to drive meaningful quality, sustainable and inclusive growth going forward?” Dodig said. “That’s got to be top of the agenda for policy makers.”

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Business

A timeline of events in the bread price-fixing scandal

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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)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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