Stocks jumped Tuesday, offering some respite from selling after Monday’s declines sent the Dow off by its largest percentage drop since Black Monday of 1987.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stocks took a sharp turn higher after the Trump administration discussed further measures to help the American people and companies most hurt by the fall-out from the coronavirus outbreak. Treasury Secretary Steven Mnuchin said Tuesday during a White House press briefing around noon that “the president wants to give cash now” to the public, and is discussing doing so in the next two weeks.” data-reactid=”18″>Stocks took a sharp turn higher after the Trump administration discussed further measures to help the American people and companies most hurt by the fall-out from the coronavirus outbreak. Treasury Secretary Steven Mnuchin said Tuesday during a White House press briefing around noon that “the president wants to give cash now” to the public, and is discussing doing so in the next two weeks.
Mnuchin also said the administration “believe in keeping the markets open,” but is considering shortening market hours eventually amid the outbreak.
A day earlier, President Donald Trump had offered a grim assessment of the coronavirus outbreak during a press conference Monday afternoon, acknowledging that the U.S. “may be” heading toward a recession, after which he predicted growth would rebound strongly. He also said that the coronavirus outbreak and response measures from the U.S. could last until August.
Based on the stock market’s historically steep declines over the past few weeks, market participants have already priced in a recession, according to Fundstrat Head of Research Tom Lee.
“Over the past month, equity markets and financial assets broadly, have been attempting to price in the dual shock of a pandemic and the sudden collapse in oil prices (which is viewed by markets as negative given effect on high-yield and drilling-related GDP),” Lee wrote in a note late Monday. “Already, equity markets are down 30% from their highs and as we noted last week, this is pricing in >100% probability of a recession (based on price decline).”
“Since 1900, there have been 22 equity drawdowns of 20% or more and the current 30% slide would rank #14 overall,” he added. “Notably, the typical bear market during a recession period is 30%, so the S&P 500 has already discounted a recession.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The U.S. government, however, has also underscored a willingness to provide at least some aid to individuals and corporations most affected by the outbreak to soften the blow to the economy as much as possible. In his remarks Monday, Trump vowed to “back the airlines 100%,” with air carriers having been hit hard by a steep drop-off in travel demand. Earlier in Monday, the industry on had requested more than $58 billion in government aid to survive amid the current circumstances.” data-reactid=”24″>The U.S. government, however, has also underscored a willingness to provide at least some aid to individuals and corporations most affected by the outbreak to soften the blow to the economy as much as possible. In his remarks Monday, Trump vowed to “back the airlines 100%,” with air carriers having been hit hard by a steep drop-off in travel demand. Earlier in Monday, the industry on had requested more than $58 billion in government aid to survive amid the current circumstances.
In Congress, the House of Representatives unanimously passed a revised multi-billion coronavirus emergency bill Monday evening and sent it up to the Senate for a vote. The package would include at least $750 billion to combat disruptions from the coronavirus outbreak, providing funds for hospitals, expanded unemployment insurance, small businesses and food aid.
The situation overseas also continues to evolve, with French President Emmanuel Macron saying Monday that the country would guarantee up to 300 billion euros worth of bank loans to companies and allow them to delay paying taxes and social security contributions amid the outbreak. Macron also ordered citizens to stay at home and only leave for essential duties, mirroring efforts in other countries and municipalities hardest hit by the coronavirus outbreak.
Elsewhere in Europe, Germany on Monday closed its borders to neighboring nations except for commercial travel, and the European Commission proposed a temporary ban on non-essential travel to the European Union as a whole. In North America, Canada closed its borders to most non-residents, offering some exemptions including for U.S. citizens.
As travel grinds to a halt, economists are increasingly bracing for a major hit to global GDP growth in 2020.
“In a realistic scenario where travel and tourism dropped by 50% in four or five months, annual global GDP growth would be reduced by about 0.7 percentage points,” Jennifer McKeown, head of global economics service as Capital Economics, wrote in a note Tuesday. “Indirect effects or disruption to domestic travel could make the hit even harder. What’s more, the strain on insurers and airlines is adding to the risk of a financial crisis.”
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:00 p.m. ET: United Auto Workers seeking 2-week shutdown” data-reactid=”34″>1:00 p.m. ET: United Auto Workers seeking 2-week shutdown
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FILE- This Jan. 16, 2019, file photo shows a GMC Sierra pickup, left, and Denali in Detroit. General Motors’ posted an $8.1 billion net profit last year as it got better prices for vehicles sold in the U.S., its most lucrative market. The performance was far better than the previous year, when the company lost $3.9 billion due to a giant tax accounting charge.(AP Photo/Paul Sancya, File)
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As major swaths of the economy shut down to combat the COVID-19 surge, the UAW is seeking a moratorium on workers reporting for duty to the Big 3 auto makers (Fiat-Chrysler, General Motors and Ford). It comes as an increasing number of cities and states force the closure of cultural gathering places to prevent community spreading of the coronavirus.” data-reactid=”55″>As major swaths of the economy shut down to combat the COVID-19 surge, the UAW is seeking a moratorium on workers reporting for duty to the Big 3 auto makers (Fiat-Chrysler, General Motors and Ford). It comes as an increasing number of cities and states force the closure of cultural gathering places to prevent community spreading of the coronavirus.
According to Reuters:
UAW President Rory Gamble in a letter to members seen by Reuters said General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV were not willing to do so and instead asked “for 48 hours to put together plans to safeguard workers in their facilities.” The UAW said that period expires later today and the union will “evaluating what the companies submit today.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="FCAU, GM and F were all lower in Tuesday afternoon trading.” data-reactid=”59″>FCAU, GM and F were all lower in Tuesday afternoon trading.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Investors are trying to shake off the pandemic blues, taking major Wall Street benchmarks to fresh session highs, as President Donald Trump and Treasury Secretary Steve Mnuchin talk up the federal government’s response to the COVID-19 crisis. Plans include a way to transfer cash to Americans “immediately” as entire swaths of the economy shut down.” data-reactid=”62″>Investors are trying to shake off the pandemic blues, taking major Wall Street benchmarks to fresh session highs, as President Donald Trump and Treasury Secretary Steve Mnuchin talk up the federal government’s response to the COVID-19 crisis. Plans include a way to transfer cash to Americans “immediately” as entire swaths of the economy shut down.
“Americans need cash now and the president wants to give cash now,” Mnuchin said. “And I mean now, in the next two weeks.”
Here’s where the major benchmarks traded as of noon ET:
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:00 a.m. ET: Boeing sinks to 6-year low” data-reactid=”70″>11:00 a.m. ET: Boeing sinks to 6-year low
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The one-two punch of the 737 MAX fiasco and the coronavirus pandemic has pushed Boeing’s stock (BA) to its lowest in over six years. Both the aerospace giant and the airlines that serve as its customers are seeking federal assistance as the COVID-19 crisis pummels supply chains and worldwide demand.” data-reactid=”75″>The one-two punch of the 737 MAX fiasco and the coronavirus pandemic has pushed Boeing’s stock (BA) to its lowest in over six years. Both the aerospace giant and the airlines that serve as its customers are seeking federal assistance as the COVID-19 crisis pummels supply chains and worldwide demand.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Boeing’s stock, traded on the New York Stock Exchange and one of the Dow’s (^DJI) 30 components, tumbled by over 15% on the day to under $110 per share.” data-reactid=”76″>Boeing’s stock, traded on the New York Stock Exchange and one of the Dow’s (^DJI) 30 components, tumbled by over 15% on the day to under $110 per share.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:45 a.m. ET: Federal Reserve relaunches Commercial Paper Funding Facility in move to help businesses get short-term funding” data-reactid=”78″>10:45 a.m. ET: Federal Reserve relaunches Commercial Paper Funding Facility in move to help businesses get short-term funding
The Federal Reserve said Tuesday it will reestablish its financial crisis-era Commerce Paper Funding Facility, a program helping give U.S. companies increased access to financing amid disruptions due to the coronavirus outbreak.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“The commercial paper market has been under considerable strain in recent days as businesses and households face greater uncertainty in light of the coronavirus outbreak,” the Fed said in a statement.” data-reactid=”80″>“The commercial paper market has been under considerable strain in recent days as businesses and households face greater uncertainty in light of the coronavirus outbreak,” the Fed said in a statement.
The program will establish a special purpose vehicle (SPV) that will purchase unsecured and asset-backed commercial paper from eligible companies as long as the paper is rated A1/P1 as of March 17. The facility will be available to companies across various industries and was opened with the approval of the U.S. Treasury, which will provide $10 billion of credit protection from its Exchange Stabilization Fund, the Fed said.
“By eliminating much of the risk that eligible issuers will not be able to repay investors by rolling over their maturing commercial paper obligations, this facility should encourage investors to once again engage in term lending in the commercial paper market,” the central bank said. “An improved commercial paper market will enhance the ability of businesses to maintain employment and investment as the nation deals with the coronavirus outbreak.”
The three major indices’ earlier advances were short-lived, with the S&P 500 and Nasdaq quickly cutting gains and the Dow turning slightly negative about 30 minutes into Tuesday’s session. The Dow was off 0.06%, or 11.28 points, as of 10:11 a.m. ET.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:00 a.m. ET: Homebuilder sentiment dips more than expected in March” data-reactid=”88″>10:00 a.m. ET: Homebuilder sentiment dips more than expected in March
Sentiment for single-family homebuilders in the U.S. declined slightly more than expected March, in a survey that captured just the very early impacts of the COVID-19 outbreak on builders’ confidence.
The National Association of Home Builders housing market index dropped two points to 72 in March from February, representing a still relatively high level. Consensus economists had expected the index to drop just one point to 73, according to Bloomberg data.
Half of the responses for the survey were collected prior to March 4, however, so the most recent impacts from the coronavirus on U.S. stocks and economic data were not entirely taken into account.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“The rising economic impact of the coronavirus will be reflected more in next month's report," NAHB chief economist Robert Dietz said in a statement.” data-reactid=”92″>“The rising economic impact of the coronavirus will be reflected more in next month’s report,” NAHB chief economist Robert Dietz said in a statement.
“Overall, 21% of builders in the survey report some disruption in supply due to virus concerns in other countries such as China,” he added. “However, the incidence is higher among builders who responded to the survey after March 6, indicating that this is an emerging issue.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:36 a.m. ET: Stocks open higher as Wall Street in an at least momentary pause from selling” data-reactid=”95″>9:36 a.m. ET: Stocks open higher as Wall Street in an at least momentary pause from selling
U.S. stocks opened higher Tuesday morning, with each of the three major indices up more than 1.5%. The Dow added 300 points, but was still far from recovering its near 3,000-point loss from Monday’s session alone.
Here were the main moves in markets, as of 9:30 a.m. ET:
Crude (CL=F): $28.59 per barrel, down $0.11 or -0.38%
Gold (GC=F): $1,486.40 per ounce, off -$0.10 or -0.01%
10-year Treasury (^TNX): yielding 0.794%, up 6.6 basis points
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:25 a.m. ET: Wall Street is already declaring a global recession” data-reactid=”106″>9:25 a.m. ET: Wall Street is already declaring a global recession
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stock’s ugly bear market, combined with the resulting shut-downs of major economies, has made Wall Street analysts waste no time in declaring a global recession. Within the last day or so, S&P, Morgan Stanley, Barclays and Goldman Sachs have all predicted the world will see at least 2 quarters of negative GDP print as the COVID-19 crisis morphs from bad to worse in the Western world.” data-reactid=”107″>Stock’s ugly bear market, combined with the resulting shut-downs of major economies, has made Wall Street analysts waste no time in declaring a global recession. Within the last day or so, S&P, Morgan Stanley, Barclays and Goldman Sachs have all predicted the world will see at least 2 quarters of negative GDP print as the COVID-19 crisis morphs from bad to worse in the Western world.
“The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” S&P Global’s Chief Economist Paul Gruenwald said in a statement Tuesday. “Europe and the U.S. are following a similar path, as increasing restrictions on person-to-person contacts presage a demand collapse that will take activity sharply lower in the second quarter before a recovery begins later in the year.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:00 a.m. ET: Saudis to open oil spigots” data-reactid=”110″>9:00 a.m. ET: Saudis to open oil spigots
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A picture taken on March 12, 2020 shows the logo of energy giant Saudi Aramco at the entrance of its main building in Riyadh. – Stock markets in energy-rich Gulf states tumbled with Saudi shares down 3.0 percent following worldwide losses amid fears over the coronavirus pandemic and an oil price war. Saudi Aramco dipped 3.0 percent and ended the week down 12.1 percent as the energy giant prepares to announce its first annual earnings. (Photo by FAYEZ NURELDINE / AFP) (Photo by FAYEZ NURELDINE/AFP via Getty Images)
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Making good on its unspoken promise to use low oil prices to its advantage, Saudi Arabia announced a plan to ramp up daily exports to a record 10 million barrels. This comes barely a week since its agreement with Russia ended in shambles, and sent crude prices through the floor.” data-reactid=”131″>Making good on its unspoken promise to use low oil prices to its advantage, Saudi Arabia announced a plan to ramp up daily exports to a record 10 million barrels. This comes barely a week since its agreement with Russia ended in shambles, and sent crude prices through the floor.
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8:30 a.m. ET: U.S. retail sales unexpectedly drop 0.5% in February, missing expectations
U.S. retail sales unexpectedly declined in February as the coronavirus outbreak began to escalate domestically, underscoring a deeper than expected early economic hit from the pandemic.
Headline retail sales dropped 0.5% month on month in February, nearly fully reversing January’s upwardly revised 0.6% gain, the Census Bureau said Tuesday. Consensus economists had expected retail sales to rise 0.2%.
The drop was led by a 2.8% decline in gas sales amid a broad slump in energy prices in February. Electronics and appliance stores also posted large losses, with sales down 1.4% over last month.
Excluding more volatile auto and gas sales, retail sales dropped 0.2%, versus a rise of 0.3% expected. In January, retail sales excluding autos and gas had risen 0.7%.
L Brands, the parent company of Bath & Body Works and Victoria’s Secret, will temporarily close all of its U.S. and Canada retail locations Tuesday through March 29.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“With the wellbeing of its customers, associates and communities as its top priority, and to help limit the spread of the Coronavirus, L Brands will temporarily close all Bath & Body Works, Victoria’s Secret and PINK stores in the United States and Canada, effective March 17 through March 29, 2020,” the company said in a statement Tuesday.” data-reactid=”141″>“With the wellbeing of its customers, associates and communities as its top priority, and to help limit the spread of the Coronavirus, L Brands will temporarily close all Bath & Body Works, Victoria’s Secret and PINK stores in the United States and Canada, effective March 17 through March 29, 2020,” the company said in a statement Tuesday.
All employees will continue to receive pay and benefits during the closure period, the company said.
7:57 a.m. ET: Stock futures up slightly in early trading
Futures for each of the three major indices were up slightly Tuesday morning, stabilizing after Monday’s steep declines.
Here were the main moves in markets, as of 7:58 a.m. ET Tuesday:
S&P 500 futures (ES=F): 2,428.00, up 11.75 points or +0.49%
Dow futures (YM=F): 20,375, up 114 points or +0.56%
Nasdaq futures (NQ=F): 7,115.25, up 57.75 points or +0.82%
Crude oil (CL=F): $29.12 per barrel, up $0.42 or 1.46%
Ten-year Treasury note: yielding 0.778%, up 5 basis points
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NEW YORK, March 16, 2020 — Traders work on the floor at the New York Stock Exchange in New York, the United States, March 16, 2020. (Photo by Michael Nagle/Xinhua via Getty) (Xinhua/Michael Nagle via Getty Images)
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.
