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Energy sector ravaged as TSX plunges 10.3 per cent amid global oil price war – Financial Post

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Canadian stocks took a historic hammering Monday after global crude prices collapsed and the spread of the new coronavirus continued to threaten the global economy.

The S&P/TSX Composite Index lost about 10.3 per cent of its value, or more than 1,660 points, in what was the biggest single-day decline since 1987. Canada’s main stock index finished Monday at 14,514.24, a 14-month low.

The suddenness with which stocks fell to start the trading day even triggered so-called circuit breakers, which briefly halted trading on the TSX. In the end, the only stock in the S&P/TSX index that finished Monday in the green was Dollarama Inc., the Montreal-based discount retailer.

Investors didn’t fare much better with stocks in the United States, where circuit breakers were also tripped soon after the opening bell sounded.

The blue-chip Dow Jones Industrial Average ended up shedding more than 2,000 points, or about 7.8 per cent, finishing the day at 23,851.02. The S&P 500, meanwhile, closed at 2,746.56, 7.6 per cent lower, after losing more than 225 points.

Monday’s equity meltdown appeared to be prompted by anxieties about the ongoing coronavirus outbreak and by a swift swoon in oil prices.

“It’s hard to find a bull case,” said Barry Schwartz, chief investment officer at Toronto-based Baskin Wealth Management. “It’s shocking, because two weeks ago it was impossible to find a bear case. We’ve just totally turned on a dime.”

There have now been more than 109,000 confirmed cases and 3,800 deaths linked to COVID-19, according to the World Health Organization, with the outbreak directly affecting companies in sectors such as airlines and hospitality. The virus has also raised concerns about disrupted supply chains and prompted talk of governments injecting fiscal stimulus into their economies, potentially via tax breaks or infrastructure spending.

Another side-effect of the outbreak has been a drop in expected demand for oil, which has put pressure on crude prices. Those prices dropped even lower recently following a failed attempt by the Organization of the Petroleum Exporting Countries to strike a deal with Russia for new production cuts. The decline then accelerated further after Saudi Arabia then decided to slash the cost of its crude, sparking a price war in global energy markets.

The Brent and WTI benchmarks for oil have now fallen into the range of US$30 to US$35 per barrel, around half the level at which they started 2020. The Western Canada Select benchmark for oil has fallen further as well, finishing Monday at US$17.80, down more than 50 per cent year-to-date.

All of this has added up to trouble for Canadian oil and gas producers, shares of which were walloped on Monday. The S&P/TSX Capped Energy Index, a collection of oil and gas companies, declined by more than 27 per cent for the day.

Raymond James analysts said in a report that they were making a “tactical decision” to lower the ratings for “all but a very small handful” of the Canadian oil and gas producers they cover until the fog clears.

“At this juncture, there remains a considerable amount of uncertainty, not the least of which being the Kingdom’s (Saudi Arabia’s) intended strategy,” said the Raymond James analysts. “While share prices of oil and gas producers were already facing generational lows, the potential for a sustained period of sub-US$40/bbl oil is almost certainly to result in a flight to (relative) safety within the sector.”

Investors searching for safe havens from the storms raging across the equity and commodities markets helped push down bond yields again as well. The yield on the Government of Canada’s 10-year bond skidded to approximately 0.54 per cent, which was almost the same as that of the five-year bond.

“Ultimately, the narrative is changing daily, but there are two commonalities which are becoming more entrenched,” wrote Ian Pollick, the head of North American rates strategy at CIBC World Markets. “The first is that we are now on the cusp of a proper liquidity event. The second is that we are concurrently experiencing a negative inflation shock. Together, these forces represent a damning combination for bond yields.”

Central banks in Canada and the U.S. have already cut their key interest rates in response to the coronavirus, but expectations are rising now for further monetary easing. Eyes are also turning towards governments for action on their end.

“This move is just too fast, too violent and too worrisome for some kind of a policy stimulus not to be put up,” Schwartz said.

Financial Post

• Email: gzochodne@nationalpost.com | Twitter: GeoffZochodne

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Stop Asking Your Interviewer Cliché Questions

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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Canadian Natural Resources reports $2.27-billion third-quarter profit

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CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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