LONDON (Reuters) – World stocks held near record highs on Monday as generally better data and earnings bolstered sentiment, while oil prices hit their highest in over a week after two large crude production bases in Libya began shutting down following a blockade.
FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville
European equities opened a touch lower, while U.S. stock futures were down marginally.
Trading was light with U.S. markets closed for the Martin Luther King Jr. holiday. Still, the week was expected to bring plenty of direction given central bank meetings, earnings, closely-watched business activity data and the annual meeting of the World Economic Forum in Davos.
While investors took some money off the table on Monday, sentiment was supported by signs that the economic outlook has improved, aided by an easing of trade tensions between the United States and China – the world’s two biggest economies.
“The feel-good factor appears to be driven by a number of factors including better than expected economic data, as well as the dialing back of trade tensions between the U.S. and China as the low-hanging fruit of a phase one trade deal was being signed off,” said Michael Hewson, chief market analyst at CMC Markets.
“If you also toss into the mix some better than expected earnings reports from U.S. banks and other multinationals, it makes a heady cocktail of optimism on which to push stock markets higher.”
MSCI’s s all-country index is up almost 2.5% for the first three weeks of the year and was holding near record highs on Monday along with Wall Street and European benchmark equity indices.
Just three weeks into the new year, the S&P 500 has gained just over 3% and the NASDAQ almost 5%.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat having risen to its highest since June 2018. Japan’s Nikkei added 0.2% to be near its highest in 15 months.
Chinese shares stayed strong with the blue-chip CSI300 index rising 0.7%, while China’s yuan hit a new six-month high.
U.S. corporate earnings this week include Netflix, Intel Corp and Texas Instruments, while the European Central Bank, Bank of Canada and Bank of Japan hold policy meetings.
“In 2020 we don’t expect the pace of growth to slow as much as it did last year,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
“Accommodative policy and the reduction of downside risk following the signing of the Phase 1 U.S.-China trade deal will help support the economy and risk assets.”
OIL JUMP
Oil prices rose to their highest in more than a week after two large crude production bases in Libya began shutting down after forces loyal to commander Khalifa Haftar closed a pipeline.[O/R]
Brent crude futures rose almost 1% to $65.49 a barrel, while U.S. crude jumped 0.8% to $59.02.
In currency markets, a string of mostly solid U.S. data helped underpin the dollar.
Figures on Friday showed U.S. homebuilding surged to a 13-year high in December and a gauge of manufacturing activity rebounded to its highest in eight months.
The dollar last traded at around 110.17 yen, not far off an eight-month peak of 110.305 last week.
The euro was stuck at $1.1093, while sterling was roughly a quarter of a percent weaker against the euro and dollar. A string of poor British economic news has fanned speculation about a cut in interest rates soon, weighing on sterling.
Elsewhere, gold was a tad firmer at around $1,560 per ounce, having hit a seven-year high earlier this month at the height of Iran-U.S. tensions.
Reporting by Dhara Ranasinghe; Additional reporting by Wayne Cole in Sydney; Editing by Andrew Cawthorne
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
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)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
