TORONTO —
Trading on Canada’s main stock index was temporarily halted for the third time in the past week over steep losses as investors assess efforts to slow the spread of COVID-19.
The S&P/TSX composite index triggered a circuit-breaker after opening down 11 per cent or more than 1,800 points. It partially recovered in early afternoon trading to be off 8.1 per cent or 1,111.14 points at 12,605.19.
In New York, the Dow Jones industrial average was down 1,906.80 points or 8.2 per cent at 21,278.82. The S&P 500 index was down 211.74 points at 2,459.28, while the Nasdaq composite was down 626.16 points at 7,248.07.
The markets fell after the Federal Reserve over the weekend joined the Bank of Canada in again cutting interest rates.
“This is still a market that is pricing in not just a garden variety recession but the possibility of something worse,” said Frances Donald, global chief economist and head of macro strategy for Manulife Investment Management.
That could include protracted weak economic activity that looks like a credit crisis if defaults start to rise.
“We have so little visibility into what the economy will look like next and let’s remember the stock market is trying to get a sense of what earnings will look like,” she said in an interview.
The shape of earnings won’t be known until novel coronavirus cases start to slow.
In the meantime, the TSX is down about 29 per cent from its Feb. 20 high while the S&P 500 is down 27 per cent and the Dow nearly 29 per cent.
“The relative under performance of the Canadian stock market reflects our out-sized representation of the energy sector. The two weakest sectors in the TSX are the energy and financial sectors,” Sherry Cooper, chief economist of Dominion Lending Centres, wrote in a note.
She said the banks are highly capitalized and much more resilient than during the financial crisis despite a loss of confidence in these extraordinary times.
“Some are calling for a full shutdown of the stock markets — but imagine the panic if no one could sell assets. There would truly be a run on the banks. Now is not a time to panic.”
The Canadian dollar traded for 71.47 cents US compared with an average of 71.94 cents US on Friday.
The weakness in the loonie to a four-year low comes as investors increasingly seek shelter in the U.S. dollar and the Japanese yen on concerns about the economic impact of COVID-19, policy responses in Western Europe and the spread of events, restaurants and stores shutting down in North America, said Tom Nakamura, vice-president and portfolio manager, currency strategy at AGF Investments Inc.
“There’s also market concern about the Canadian economy and whether we have enough policy tools and we have enough fiscal space to be able to combat these kind of dual shocks to our system,” he said.
Nakamura said the loonie’s decrease has little to do with Friday’s rate cut by the Bank of Canada since a reduction was already priced-in, even if it did come sooner than expected.
He added that the Canadian dollar could still shed some more value until there’s signs that the virus cases have peaked.
The April crude contract was down US$2.45 at US$29.28 per barrel and the April natural gas contract was down five cents at US$1.82 per mmBTU.
The April gold contract was down US$29.40 at US$1,487.30 an ounce and the May copper contract was down 7.9 cents at US$2.385 a pound.
This report by The Canadian Press was first published March 16, 2020
Correction:
This is a corrected story. An earlier version incorrectly stated the Bank of Canada’s key interest rate target.
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.
