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S&P/TSX composite rises Monday, U.S. stock markets mixed

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TORONTO – Canada’s main stock index posted a gain Monday, helped by strength in financial stocks,while U.S. stock markets were mixed.

The S&P/TSX composite index closed up 67.10 points at 22,126.13.

In New York, the Dow Jones industrial average was down 31.08 points at 39,344.79. The S&P 500 index was up 5.66 points at 5,572.85,while the Nasdaq composite was up 50.98 points at 18,403.74.

Markets were relatively quiet amid consolidation after last week’s jobs report in the U.S., said John Zechner, chairman and lead equity manager at J. Zechner Associates.

U.S. equities rose to new records Friday after the latest employment report came in weaker than expected, sparking hope for interest rate cuts.

“Everybody’s looking forward this week,” said Zechner.

This week will bring comments from U.S. Federal Reserve chair Jerome Powell as he addresses Congress Tuesday and Wednesday. Investors will try to read his comments and tease out any new information on when the central bank could start cutting rates, said Zechner.

“I think September now seems to be more and more on the table both in Canada and the U.S.,” he said.

However, a weak jobs report last week north of the border has made July more likely for Canada, he added, even though the central bank is wary of moving too quickly.

Investors will also be looking to fresh data on U.S. inflation this week. The core measure of inflation is expected to be flat, said Zechner — anything less than that will be seen as a positive sign for market watchers hoping a cut is coming soon. He added he doesn’t think a surprise to the upside is likely for this week’s inflation report.

The Fed is still looking for more concrete proof that inflation is headed toward its two-per-cent target, said Zechner.

“Going from nine down to three-and-a-half is pretty good. But they seem to be stalled out in this range now,” he said.

“It seems no doubt that the next move in interest rates is lower. It’s just when, and I don’t think July.”

At the end of the week, earnings season kicks off with several big banks in the U.S. But markets will be anticipating the big tech companies coming later in earnings season, said Zechner: “That’s where all the marbles are right now.”

The Canadian dollar traded for 73.35 cents US, unchanged from Friday.

The August crude oil contract was down 83 cents at US$82.33 per barreland the August natural gas contract was up five cents at US$2.37 per mmBTU.

The August gold contract was down US$34.20 at US$2,363.50 an ounce and the September copper contract was down three cents at US$4.62 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published July 8, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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RCMP investigating after three found dead in Lloydminster, Sask.

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LLOYDMINSTER, SASK. – RCMP are investigating the deaths of three people in Lloydminster, Sask.

They said in a news release Thursday that there is no risk to the public.

On Wednesday evening, they said there was a heavy police presence around 50th Street and 47th Avenue as officers investigated an “unfolding incident.”

Mounties have not said how the people died, their ages or their genders.

Multiple media reports from the scene show yellow police tape blocking off a home, as well as an adjacent road and alleyway.

The city of Lloydminster straddles the Alberta-Saskatchewan border.

Mounties said the three people were found on the Saskatchewan side of the city, but that the Alberta RCMP are investigating.

This report by The Canadian Press was first published on Sept. 12, 2024.

Note to readers: This is a corrected story; An earlier version said the three deceased were found on the Alberta side of Lloydminster.

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Three injured in Kingston, Ont., assault, police negotiating suspect’s surrender

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KINGSTON, Ont. – Police in Kingston, Ont., say three people have been sent to hospital with life-threatening injuries after a violent daytime assault.

Kingston police say officers have surrounded a suspect and were trying to negotiate his surrender as of 1 p.m.

Spokesperson Const. Anthony Colangeli says police received reports that the suspect may have been wielding an edged or blunt weapon, possibly both.

Colangeli says officers were called to the Integrated Care Hub around 10:40 a.m. after a report of a serious assault.

He says the three victims were all assaulted “in the vicinity,” of the drop-in health centre, not inside.

Police have closed Montreal Street between Railway Street and Hickson Avenue.

This report by The Canadian Press was first published Sept. 12, 2024.

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Government intervention in Air Canada talks a threat to competition: Transat CEO

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Demands for government intervention in Air Canada labour talks could negatively affect airline competition in Canada, the CEO of travel company Transat AT Inc. said.

“The extension of such an extraordinary intervention to Air Canada would be an undeniable competitive advantage to the detriment of other Canadian airlines,” Annick Guérard told analysts on an earnings conference call on Thursday.

“The time and urgency is now. It is time to restore healthy competition in Canada,” she added.

Air Canada has asked the federal government to be ready to intervene and request arbitration as early as this weekend to avoid disruptions.

Comments on the potential Air Canada pilot strike or lock out came as Transat reported third-quarter financial results.

Guérard recalled Transat’s labour negotiations with its flight attendants earlier this year, which the company said it handled without asking for government intervention.

The airline’s 2,100 flight attendants voted 99 per cent in favour of a strike mandate and twice rejected tentative deals before approving a new collective agreement in late February.

As the collective agreement for Air Transat pilots ends in June next year, Guérard anticipates similar pressure to increase overall wages as seen in Air Canada’s negotiations, but reckons it will come out “as a win, win, win deal.”

“The pilots are preparing on their side, we are preparing on our side and we’re confident that we’re going to come up with a reasonable deal,” she told analysts when asked about the upcoming negotiations.

The parent company of Air Transat reported it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31. The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

It attributed reduced revenues to lower airline unit revenues, competition, industry-wide overcapacity and economic uncertainty.

Air Transat is also among the airlines facing challenges related to the recall of Pratt & Whitney turbofan jet engines for inspection and repair.

The recall has so far grounded six aircraft, Guérard said on the call.

“We have agreed to financial compensation for grounded aircraft during the 2023-2024 period,” she said. “Alongside this financial compensation, Pratt & Whitney will provide us with two additional spare engines, which we intend to monetize through a sell and lease back transaction.”

Looking ahead, the CEO said she expects consumer demand to remain somewhat uncertain amid high interest rates.

“We are currently seeing ongoing pricing pressure extending into the winter season,” she added. Air Transat is not planning on adding additional aircraft next year but anticipates stability.

“(2025) for us will be much more stable than 2024 in terms of fleet movements and operation, and this will definitely have a positive effect on cost and customer satisfaction as well,” the CEO told analysts.

“We are more and more moving away from all the disruption that we had to go through early in 2024,” she added.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.



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