TORONTO —
A big drop in the technology sector led Canada’s main stock index to fall to its lowest level since July even as energy rose as crude oil prices hit highs not seen since 2014.
Stock markets are taking a breather from what has been a strong 2021 amid a broader rotation away from growth areas toward cyclical and value names as long-term bond yields rise, says Craig Fehr, investment strategist, Edward Jones.
“If you look below the surface of the declines, what’s playing out is higher interest rates are taking their toll on growth investments, particularly technology stocks, which is where the most acute weakness is within the market,” he said in an interview.
The 10-year U.S. treasury was flattish on the day but the 10-year rate in Canada moved slightly above the U.S. rate for the first time an awhile.
“Long-term interest rates are higher, reflecting obviously ongoing inflation pressures and expectations for less stimulus from central banks, but I think it’s also reflecting the fact that the economic recovery is going to regain a bit of momentum as we move through the end of 2021 and into next year.”
He also noted that smaller companies outpaced large-cap names, signalling that the market isn’t as worried about the economic recovery and instead is repricing the longer term outlooks of various sectors.
The S&P/TSX composite index closed down 98.62 points to 20,052.25, the lowest level since July 20, after falling below 20,000 in earlier trading.
In New York, the Dow Jones industrial average was down 323.54 points at 34,002.92. The S&P 500 index was down 56.58 points at 4,300.46, while the Nasdaq composite was down 311.22 points or 2.1 per cent at 14,255.48.
Canada’s health-care and tech sectors were the laggards on the day, losing three and 2.8 per cent, respectively.
Cannabis producers Tilray Inc. and Canopy Growth Corp. each lost 4.1 per cent.
Lightspeed Commerce Inc. plunged 8.5 per cent and Shopify Inc. was down 3.1 per cent.
Industrials and financials were among nine sectors that lost ground. Among the few financial companies bucking the trend Monday was Sun Life Financial Inc., which gained 2.4 per cent after announcing a deal to buy U.S. dental benefits provider DentaQuest for $3.1 billion.
Energy and materials were the winners as commodity prices moved higher.
Energy was up two per cent with Enerplus Corp. gaining 4.2 per cent, followed by MEG Energy Corp. at 3.3 per cent and Crescent Point Energy Corp. at up 3.2 per cent.
The November crude contract was up US$1.74 at US$77.62 per barrel after reaching a high of US$78.38 and the November natural gas contract was up 14.7 cents at US$5.77 per mmBTU.
That propelled the loonie to a one-month high. The Canadian dollar traded for 79.47 cents US compared with 79.03 cents US on Friday.
Materials also climbed as the December gold contract was up US$9.20 at US$1,767.60 an ounce and the December copper contract was up five cents at US$4.24 a pound.
Commodity prices are increasing on a more robust demand outlook, said Fehr.
For oil, continued price increases are a signal about the the global recovery and supply, including from OPEC and its allies, not being able to keep pace.
Fehr expects some market volatility to stay around for a while but there’s some signals that “the economic soft patch” is abating a bit heading into year-end.
He said the sour start to the week should be put into a larger context where markets are only a couple of per cent away from all-time highs despite Monday’s declines and last week’s pullback.
“Even with this renewed volatility that’s raised investor anxiety slightly, it’s a reflection of just how strong equity markets have been so far this year that we’re still up, with healthy gains, even despite the the recent dip.”
This report by The Canadian Press was first published Oct. 4, 2021.
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.
