Wed, April 24, 2024 at 9:35 AM EDT
Business
Ottawa unveils funding for poultry and egg farmers hurt by free-trade deals – CBC.ca
Canadian egg and poultry farmers who’ve lost domestic market share due to two recent free-trade agreements will soon have access to $691 million in federal cash, Canada’s agriculture minister announced Saturday.
Marie-Claude Bibeau shared details of the long-awaited funds in a virtual news conference.
“Today we position our young farmers for growth and success tomorrow,” she said.
The money follows a previously announced $1.75 billion for the dairy sector linked to free-trade deals with Europe and countries on the Pacific Rim, one that came into effect in 2017 and the other in 2018.
The dairy sector funds were to flow over eight years, and the first $345 million payment was sent out last year.
But on Saturday, Bibeau announced a schedule for the remaining payments that will see the money flow over three years — beginning with $468 million in 2020-21, $469 million in 2021-22 and $468 million in 2022-23.
Bibeau said the most recently announced funds for dairy farmers amount to an average farm of 80 cows receiving a direct payment of $38,000 in the first year.
Payments based on formulas
David Wiens, vice-president of the Dairy Farmers of Canada, said the money will help farms make investments for the future.
“I think particularly for the younger farmers who have really struggled since these agreements have been ratified, they can actually now see opportunities, how they can continue to make those investments on the farm so that they can continue on,” he said.
The payments are based on formulas devised by working groups formed after the trade deals were signed, Bibeau said.
What that means is the money doesn’t reflect precisely how much the various industries have lost due to the deals, she said.
“It’s really our best understanding of the future impact and to give them the possibility to adapt.”
Trading partners sought more Canadian access for products
The dairy, poultry and egg industries in Canada are regulated to ensure a steady income for farmers in that sector, but Canada’s foreign trade partners argue the system is protectionist.
That made the trio of industries a sticking point in three separate trade deals Canada has concluded in recent years: the Comprehensive Economic and Trade Agreement with Europe (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Trade Agreement (CUSMA).
Trading partners wanted more Canadian access for their products, which Canadian suppliers said would result in massive hits to their bottom line.
The federal government’s March 2019 budget had in turn allocated up to $3.9 billion in compensation for the trade concessions made on supply management.
The funds announced by Bibeau on Saturday are linked only to CETA and the CPTPP, but she said the latest arrangement does use up the balance of the previously announced funds.
“I think it’s a great day because there’s something on the table,” said Benoit Fontaine, chair of Chicken Farmers of Canada, who said he had yet to see the details of the funding arrangement for his sector.
The money announced on Saturday comes ahead of Monday’s reveal of the fiscal fortunes of the Liberal government in the form of an economic update. It is expected to lay out how much has been spent on emergency COVID-19 related programming but also outline some new spending in other areas.
Bibeau said the funds announced on Saturday will be reflected there but that the amount to be set aside as compensation for the Canada-U.S.-Mexico deal is still being decided.
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Business
Oil Firms Doubtful Trans Mountain Pipeline Will Start Full Service by May 1st
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Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are concerned that the project may not begin full service on May 1 but they would be nevertheless obligated to pay tolls from that date.
In a letter to the Canada Energy Regulator (CER), Suncor Energy and other shippers including BP and Marathon Petroleum have expressed doubts that Trans Mountain will start full service on May 1, as previously communicated, Reuters reports.
Trans Mountain Corporation, the government-owned entity that completed the pipeline construction, told Reuters in an email that line fill on the expanded pipeline would be completed in early May.
After a series of delays, cost overruns, and legal challenges, the expanded Trans Mountain oil pipeline will open for business on May 1, the company said early this month.
“The Commencement Date for commercial operation of the expanded system will be May 1, 2024. Trans Mountain anticipates providing service for all contracted volumes in the month of May,” Trans Mountain Corporation said in early April.
The expanded pipeline will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.
The Federal Government of Canada bought the Trans Mountain Pipeline Expansion (TMX) from Kinder Morgan back in 2018, together with related pipeline and terminal assets. That cost the federal government $3.3 billion (C$4.5 billion) at the time. Since then, the costs for the expansion of the pipeline have quadrupled to nearly $23 billion (C$30.9 billion).
The expansion project has faced continuous delays over the years. In one of the latest roadblocks in December, the Canadian regulator denied a variance request from the project developer to move a small section of the pipeline due to challenging drilling conditions.
The company asked the regulator to reconsider its decision, and received on January 12 a conditional approval, avoiding what could have been another two-year delay to start-up.
Business
Tesla profits cut in half as demand falls
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Tesla profits slump by more than a half
Tesla has announced its profits fell sharply in the first three months of the year to $1.13bn (£910m), compared with $2.51bn in 2023.
It caps a difficult period for the electric vehicle (EV) maker, which – faced with falling sales – has announced thousands of job cuts.
Boss Elon Musk remains bullish about its prospects, telling investors the launch of new models would be brought forward.
Its share price has risen but analysts say it continues to face significant challenges, including from lower-cost rivals.
The company has suffered from falling demand and competition from cheaper Chinese imports which has led its stock price to collapse by 43% over 2024.
Figures for the first quarter of 2024 revealed revenues of $21.3bn, down on analysts’ predictions of just over $22bn.
But the decision by Tesla to bring forward the launch of new models from the second half of 2025 boosted its shares by nearly 12.5% in after-hours trading.
It did not reveal pricing details for the new vehicles.
However Mr Musk made clear he also grander ambitions, touting Tesla’s AI credentials and plans for self-driving vehicles – even going as far as to say considering it to be just a car company was the “wrong framework.”
“If somebody doesn’t believe Tesla is going to solve autonomy I think they should not be an investor,” he said.
Such sentiments have been questioned by analysts though, with Deutsche Bank saying driverless cars face “technological, regulatory and operational challenges.”
Some investors have called for the company to instead focus on releasing a lower price, mass-market EV.
However, Tesla has already been on a charm offensive, trying to win over new customers by dropping its prices in a series of markets in the face of falling sales.
It also said its situation was not unique.
“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” it said.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
However, Mr Musk sought to downplay the move.
“Tesla has now created over 30,000 manufacturing jobs in California!” he said in a post on his social media platform X, formerly Twitter, on Tuesday.
Another 285 jobs will be lost in New York.
Tesla’s total workforce stood at more than 140,000 late last year, up from around 100,000 at the end of 2021, according to the company’s filings with US regulators.
Musk’s salary
The car firm is also facing other issues, with a struggle over Mr Musk’s compensation still raging on.
On Wednesday, Tesla asked shareholders to vote for a proposal to accept Mr Musk’s compensation package – once valued at $56bn – which had been rejected by a Delaware judge.
The judge found Tesla’s directors had breached their fiduciary duty to the firm by awarding Mr Musk the pay-out.
Due to the fall in Tesla’s stock value, the compensation package is now estimated to be around $10bn less – but still greater than the GDP of many countries.
In addition, Tesla wants its shareholders to agree to the firm being moved from Delaware to Texas – which Mr Musk called for after the judge rejected his payday.
Business
Stock market today: Nasdaq futures pop, Tesla surges after earnings with more heavyweights on deck
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Tech stocks rose on Wednesday, outstripping the broader market as investors welcomed Tesla’s (TSLA) cheaper car pledge and waited for the next rush of corporate earnings.
The Nasdaq Composite (^IXIC) rose roughly 0.6%, coming off a sharp closing gain. The S&P 500 (^GSPC) was up 0.2%, continuing a rebound from its longest losing streak of 2024, while the Dow Jones Industrial Average (^DJI) fell 0.1%.
Tesla shares jumped nearly 12% after the EV maker’s vow to speed up the launch of more affordable models eclipsed its quarterly earnings and revenue miss. That cheered up investors worried about growth amid a strategy shift to robotaxis and the planned cancellation of a cheaper model.
The results from the first “Magnificent Seven” to report have intensified the already high hopes for Big Tech earnings, that the megacaps can revive the rally in stocks they powered. The spotlight is now on Meta’s (META) report due after the market close, as the Facebook owner’s shares rose after the Senate voted for a potential ban on rival TikTok. Microsoft (MSFT) and Alphabet (GOOG) next up on Thursday.
Meanwhile, Boeing (BA) reported better than expected first quarter results before the opening bell with a loss per share of $1.13, narrower than the $1.72 estimated by Wall Street. Shares rose about 2% in morning trade.
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