Royal Bank of Canada and Canadian Imperial Bank of Commerce said on Friday they are cutting interest rates on credit cards to provide relief to customers as the economic fallout from the COVID-19 pandemic deepens.
Royal Bank will reduce credit card interest charges by 50 per cent for clients receiving minimum payment deferrals, Canada’s biggest lender said in a statement.
CIBC personal credit card users who request to skip a payment will get a temporary lower annual rate of 10.99 per cent, Canada’s fifth-largest lender said in a separate statement.
Most Royal Bank and CIBC credit cards charge 19.99 per cent interest on purchases.
Canada’s six biggest banks unveiled a mortgage-relief plan two weeks ago to allow homeowners to defer or skip mortgage payments for up to six months as businesses come to a grinding halt due to the pandemic.
Since the mortgage-relief plan was announced, the banks have received nearly half a million requests that have been completed or were being processed.
© Thomson Reuters 2020
Bombardier to lay off 2,500 aviation workers amid COVID-19 struggles – CBC.ca
Bombardier will lay off 2,500 aviation workers throughout the year as the company struggles to keep its operations afloat during the COVID-19 pandemic.
In a release Friday morning the Quebec-based transportation company said it is expecting to see a 30 per cent year-over-year loss in business jet sales, forcing it to reduce its workforce.
In a statement to Radio-Canada Friday, the company said 1,500 of the layoffs will be in its Quebec facilities and 400 in Ontario, with the rest of the layoffs in its international facilities.
“These are permanent layoffs,” the company confirmed in a statement.
Bombardier paused all operations in March in an effort to protect employees from the spread of the novel coronavirus.
It gradually resumed operations again last month, but had already reported a loss of $200 million US in its first quarter.
The layoffs are just the latest in a series of struggles for the aerospace giant.
In February, Bombardier exited the commercial plane business, selling its remaining stake in the A220 program to Airbus, in an effort to pay off a multibillion-dollar debt.
That same month, the company also sold its rail-building unit to French train giant Alstom SA, marking its exit from the rail business.
More to come.
History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning – Benzinga
The S&P 500 has gained a record 39.6% since it hit its 2020 low back on March 23. Not only has that rally erased much of the year’s COVID-19-related losses, it’s also the best 50-day stretch in the history of the market.
After such a strong rally, traders are understandably getting uneasy the market is overbought and due for a pullback. However, from a purely historical perspective, the strongest 50-day periods have generally led to even more gains over the year that follows, according to LPL Financial Senior Market Strategist Ryan Detrick.
A Closer Look
On Thursday, Detrick looked at the seven other times since the S&P 500 was constructed in 1957 that the index has gained at least 20% over a 50-day period. In all seven instances, the index gained at least another 5.2% in the year that followed.
“Big 50-day rallies in the past have taken place near the start of new bull markets, and the returns going out a year were quite bullish,” Detrick wrote.
LPL found that the S&P 500 averaged a 1.1% gain over the month following the best 50-day stretches. The S&P 500 has averaged a 6.2% gain over three months, a 9.1% gain over six months and a 19.4% gain over the year following these exceptional 50-day stretches.
Detrick said traders are right to be concerned about the durability of the rally in the near-term given potential red flags in the put-to-call ratios among option traders. However, history suggests the next six months to a year could be very kind to investors overall.
It’s difficult to step in and chase the SPDR S&P 500 ETF Trust (NYSE: SPY) today after the market has had its best 50 days in history. However, LPL’s research suggests long-term investors with dry powder should consider scooping up S&P 500 stocks on any near-term pullbacks.
Do you agree with this take? Email email@example.com with your thoughts.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Bombardier to lay off nearly 200 regional rail workers in GTA – BNNBloomberg.ca
Bombardier Inc. says it will temporarily lay off 196 employees working on regional transit services in the Greater Toronto Area due to a steep decline in ridership numbers amid the COVID-19 pandemic.
The company said in an email the job cuts, effective June 21, amount to about 20 per cent of its workforce at GO Transit and the Union Pearson Express.
Both rail services are owned by the Metrolinx transit agency, which contracts out operations to Bombardier.
Bombardier says ridership has dropped by 90 per cent due to the impact of the pandemic, prompting a reduction in service levels.
Commuting has plummeted as confinement measures shuttered businesses, triggered layoffs and prompted work-from-home policies.
Air passenger numbers have also plunged, with international traveller volumes falling 98 per cent year over year at Canadian airports last week, according to the Canada Border Services Agency.
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