Business

Today's news: Trending business stories for November 24, 2023 – Financial Post

Published

11 months ago

November 24, 2023

The latest business news as it happens

Receipts for retailers rose 0.8 per cent September, according to an advance estimate from Statistics Canada released Friday. Photo by Justin Tang/The Canadian Press

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4:37 p.m.

Market close: TSX ends slightly down as U.S. markets mixed

Canada’s main stock index closed down slightly Friday while U.S. markets were mixed on a low-volume day following the U.S. Thanksgiving holiday.

The S&P/TSX composite index closed down 13.55 points at 20,103.11.

In New York, the Dow Jones industrial average closed up 117.12 points at 35,390.15. The S&P 500 index was up 2.72 points at 4,559.34, while the Nasdaq composite was down 15 points at 14,250.85.

The Canadian dollar traded for 73.41 cents U.S. compared with 73 cents U.S. on Thursday.

The January crude oil contract was down US$1.56 from Wednesday’s close at US$75.54 per barrel and the January natural gas contract was down three cents at US$3 per mmBTU.

The December gold contract was up US$10.20 at US$2,003 an ounce and the December copper contract was up three cents at US$3.79 a pound.

The Canadian Press

4:14 p.m.

Oil and gas well drilling expected to pick up in 2024

Pumpjacks draw out oil and gas from wells near Calgary. Photo by Jeff McIntosh/The Canadian Press files

Canada’s oil and gas well drilling sector says it expects modest growth in 2024.

The Canadian Association of Energy Contractors (CAOEC) says it expects 6,229 wells to be drilled in Western Canada next year.

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That’s an 8.3 per cent increase from the 5,748 wells drilled in 2023.

The industry group says most of this growth is expected to happen in the second half of 2024 as the market rebounds from what was a softer third quarter in 2023.

CAOEC says the drilling sector will need more than 39,000 workers this year.

It says finding experienced workers has been challenging and the industry is marketing itself to prospective workers across the country, including in Central and Eastern Canada.

The Canadian Press

1:12 p.m.

Rogers Sugar asks for mediation to help end Vancouver refinery strike

Rogers Sugar Inc. is on strike and the impact is higher prices. Photo by Arlen Redekop/Postmedia

Rogers Sugar Inc. says it has asked for mediation to help bring an end to an eight-week long strike at its Vancouver refinery.

The company says it has applied to the British Columbia Labour Relations Board for mediation to help it reach a new collective agreement with the 138 workers who have been off the job since Sept. 28.

The company says the union, the Public and Private Workers of Canada Local 8, has accepted mediation.

The Rogers Sugar refinery in Vancouver is one of only three large sugar refineries in the country that processes imported cane sugar.

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The strike at the Vancouver facility has led to supply disruptions on grocery store shelves across Western Canada and caused difficulties for bakers and other small businesses that rely on sugar.

Rogers Sugar has apologized for the supply shortages and says it is using other facilities to help supply its Western Canadian customers.

The Canadian Press

12:17 p.m.

Midday markets: TSX up slightly; U.S. markets mixed

Gains in the financial and energy sectors helped lift Canada’s main stock index in late-morning trading, while U.S. stock markets were mixed after they had yesterday off for the thanksgiving holiday.

The S&P/TSX composite index was up slightly by 9.52 points at 20,126.18.

In New York, the Dow Jones industrial average was up 109.72 points at 35,382.75. The S&P 500 index was up 0.68 points at 4,557.30, while the Nasdaq composite was down 26.45 points at 14,239.41.

The Canadian dollar traded for 73.49 cents U.S. compared with 73 cents U.S. on Thursday.

The January crude oil contract was down 34 cents from Wednesday’s close at US$76.76 per barrel and the January natural gas contract was down seven cents at US$2.97 per mmBTU.

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The December gold contract was up US$6.30 at US$1,99.10 an ounce and the December copper contract was up a penny at US$3.78 a pound.

The Canadian Press

11:55 a.m.

Iconic Toronto toy store Mastermind files for creditor protection

Mastermind Toys has filed for creditor protection. Photo by Peter J. Thompson/Financial Post

Specialty Canadian independent retailer Mastermind Toys has filed for creditor protection, citing tough competition, a difficult economic climate and lingering effects from the COVID-19 pandemic.

“The difficult but necessary decision to seek creditor protection under the CCAA (Companies’ Creditors Arrangement Act) was made following careful evaluation of available alternatives and in consultation with legal and financial advisors,” the company said in a statement Friday.

Mastermind was started in 1984 by two brothers, Andy and Jon Levy, originally selling educational software for a hot new market in family home computers. It switched to toys in the 1990s, establishing locations in well-heeled neighbourhoods across the city, where young professionals could find unique toys, order loot bags for birthday parties and enjoy free gift wrapping with the store’s signature paper. By 2005, it had 11 stores in Greater Toronto.

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Mastermind expanded rapidly after 2010, opening another 57 stores across Canada with Birch Hill Private Equity Partners.

“Despite implementing a series of operational improvements and cost reductions, and undertaking an extensive strategic review and conducting a robust sale process, the challenges facing the company’s business have become too significant to overcome,” the company said.

Alvarez & Marsal Canada Inc. was appointed as the CCAA Monitor.

Mastermind said all 66 stores across Canada will remain open and holiday promotions will continue online and in store.

Bloomberg

10:30 a.m.

Canada dairy quotas don’t unfairly limit U.S. access, trade panel rules

Cows on a dairy farm in Quebec. Photo by Ryan Remiorz/The Canadian Press

Canada’s dairy import quotas don’t unfairly limit access for United States producers, according to a panel ruling under North America’s trade pact, marking a major victory for a Canadian sector long accused of protectionism.

A majority of the dispute-settlement panel members found that the quotas aren’t inconsistent with the United States-Mexico-Canada Agreement, ruling against all of the American arguments against Canada’s restrictive system.

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“Canada is very pleased with the dispute-settlement panel’s findings, with all outcomes clearly in favour of Canada,” Trade Minister Mary Ng said Nov. 24 in a statement. “This is good news for Canada’s dairy industry and our system of supply management.”

The decision, which cannot be appealed, means Canada won’t have to make any further changes to the system that has been a long-standing trade irritant between the countries. Canada has firmly controlled dairy supplies for decades, limiting domestic production and applying heavy tariffs to restrict imports, in an effort to stabilize incomes for local farmers.

United States trade representative Katherine Tai said she was “very disappointed” by the panel’s findings.

Bloomberg

More: Canada wins major victory as trade panel says dairy quotas don’t limit U.S. access

10:15 a.m.

Stock markets are open: Little change as U.S. markets set to close at 1 p.m.

A trader works on the floor of the New York Stock Exchange. Photo by Seth Wenig/AP Photo files

Stocks are little changed on Wall Street at the open as trading resumes in the United States after the Thanksgiving holiday.

The S&P 500 slipped less than 0.1 per cent Friday. The Dow Jones industrial average rose 50 points and the Nasdaq composite fell 0.2 per cent. Markets will close early at 1 p.m. Eastern today.

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In Canada, the S&P/TSX composite index was up around 0.1 per cent.

Shares were mixed in Europe and Asia. Oil prices fell. Investors will be watching to see how U.S. retailers fare with the unofficial start of the holiday shopping season with Black Friday, given growing concerns that spending may slow under pressure from dwindling savings, rising credit card debt and inflation.

The Associated Press

8:30 a.m.

Retail sales jump 0.8% in sharp spending rebound

Canadian consumers splurged in September and October, a surprise resurgence in spending even as high interest rates restrict household budgets.

Receipts for retailers rose 0.8 per cent last month, according to an advance estimate from Statistics Canada released Nov. 24. That’s the biggest jump since April, and followed an unexpected 0.6 per cent increase a month earlier, which far exceeded the median estimate of a flat reading in a Bloomberg survey of economists.

Sales were up in four of nine subsectors, led by gains at car and parts dealers, which were up 1.5 per cent in September. Excluding autos, retail sales rose 0.2 per cent, versus expectations for a decrease of 0.1 per cent. In volume terms, retail sales grew 0.3 per cent.

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Despite a sharp rebound in headline numbers, details in the report point to consumer weakness. Core retail sales, which exclude gas stations and car dealers, were down 0.3 per cent in September. The decline was led by lower sales at sporting goods, hobby and musical instrument retailers as well as beer, wine and liquor stores, suggesting consumers cut back on some discretionary purchases.

With the economy already showing signs of stagnation, the Bank of Canada will probably look past what’s likely to be a temporary pick-up in demand, and hold borrowing costs at five per cent while waiting for the softening economy to weigh heavier on spending. Accounting for record population growth, core retail sales are declining.

Bloomberg

More: Canadian consumers splurge in September and October, lifting retail sales

7:30 a.m.

EY seeks adviser to help liquidate failed hedge fund Traynor Ridge

National Bank is among trading firms left with failed trades after the failure of Traynor Ridge Capital. Photo by Della Rollins/Bloomberg

The receiver in charge of failed Canadian hedge fund Traynor Ridge Capital Inc. is looking to hire an investment adviser to help sell its assets.

Ernst & Young Inc. posted a notice Nov. 23 calling for investment firms to apply for the job by Nov. 30 with “a high-level strategy and work plan for the disposition” of Traynor’s portfolios.

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Toronto-based Traynor, which had about $95 million in assets under management at the end of September, was shut down by regulators in the province of Ontario last month after the sudden death of its founder, Chris Callahan.

The hedge fund manager left a number of trading firms stuck with “failed trades” — brokers had executed trades on behalf of the firm but couldn’t collect payment. The situation has ensnared companies including Virtu Financial Inc.’s Canadian unit, Echelon Wealth Partners Inc., National Bank of Canada and JonesTrading Canada Inc., according to documents in the case.

Last month, as it froze Traynor from making further trades, the Ontario Securities Commission said that three firms it didn’t name were on the hook for $85 million to $95 million due to trades made on behalf of the firm.

Bloomberg

Before the opening bell

European shares edged toward a weekly gain after European Central Bank President Christine Lagarde said policymakers are in a position to pause after a tightening cycle that risks plunging the euro area into a recession.

The Stoxx Europe 600 index was about 0.2 per cent higher, on track for its best month since January.

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United States futures were little changed as stock markets reopen today after the Thanksgiving Day holiday.

In Canada, the S&P/TSX composite index closed up 2.70 points at 20,116.66 on Thursday.

Bloomberg

What to watch today

Statistics Canada will release retail sales for October this morning.

The Canadian Association of Energy Contractors hosts a State of the Industry event in Calgary. The event includes the release and discussion of the 2023/24 drilling and service rig forecast. Alberta Premier Danielle Smith delivers the keynote address.

Business

Natural gas producers await LNG Canada’s start, but will it be the fix for prices?

Published

2 days ago

October 25, 2024

Anne Joseph

CALGARY – Natural gas producers in Western Canada have white-knuckled it through months of depressed prices, with the expectation that their fortunes will improve when LNG Canada comes online in the middle of next year.

But the supply glut plaguing the industry this fall is so large that not everyone is convinced the massive facility’s impact on pricing will be as dramatic or sustained as once hoped.

As the colder temperatures set in and Canadians turn on their furnaces, natural gas producers in Alberta and B.C. are finally starting to see some improvement after months of low prices that prompted some companies to delay their growth plans or shut in production altogether.

“We’ve pretty much been as low as you can go on natural gas prices. There were days when (the Alberta natural gas benchmark AECO price) was essentially pennies,” said Jason Feit, an advisor at Enverus Intelligence Research, in an interview.

“As a producer, it would not be economic to have produced that gas . . . It’s been pretty worthless.”

In the past week, AECO spot prices have hovered between $1.20 and $1.60 per gigajoule, a significant improvement over last month’s bottom-barrel prices but still well below the 2023 average price of $2.74 per gigajoule, according to Alberta Energy Regulator figures.

The bearish prices have come due to a combination of increased production levels — up about six per cent year-over-year so far in 2024 —as well as last year’s mild winter, which resulted in less natural gas consumption for heating purposes. There is now an oversupply of natural gas in Western Canada, so much so that natural gas storage capacity in Alberta is essentially full.

Mike Belenkie, CEO of Calgary-headquartered natural gas producer Advantage Energy Ltd., said companies have been ramping up production in spite of the poor prices in order to get ahead of the opening of LNG Canada. The massive Shell-led project nearing completion near Kitimat, B.C. will be Canada’s first large-scale liquefied natural gas export facility.

It is expected to start operations in mid-2025, giving Western Canada’s natural gas drillers a new market for their product.

“In practical terms everyone’s aware that demand will increase dramatically in the coming year, thanks to LNG Canada . . . and as a result of that line of sight to increased demand, a lot of producers have been growing,” Belenkie said in an interview.

“And so we have this temporary period of time where there’s more gas than there is places to put it.”

In light of the current depressed prices, Advantage has started strategically curtailing its gas production by up to 130 million cubic feet per day, depending on what the spot market is doing.

Other companies, including giants like Canadian Natural Resources Ltd. and Tourmaline Oil Corp., have indicated they will delay gas production growth plans until conditions improve.

“We cut all our gas growth out of 2024, once we’d had that mild winter. We did that back in Q2, because this is not the right year to bring incremental molecules to AECO,” said Mike Rose, CEO of Tourmaline, which is Canada’s largest natural gas producer, in an interview this week.

“We moved all our gas growth out into ’25 and ’26.”

LNG Canada is expected to process up to 2 billion cubic feet (Bcf) of natural gas per day once it reaches full operations. That represents what will be a significant drawdown of the existing oversupply, Rose said, adding that is why he thinks the future for western Canadian natural gas producers is bright.

“That sink of 2 Bcf a day will logically take three-plus years to fill. And then if LNG Canada Phase 2 happens, then obviously that’s even more positive,” Rose said.

While Belenkie said he agrees LNG Canada will lift prices, he’s not as convinced as Rose that the benefits will be sustained for a long period of time.

“Our thinking is that markets will be healthy for six months, a year, 18 months — whatever it is — and then after that 18 months, because prices will be healthy, supply will grow and probably overshoot demand again,” he said, adding he’s frustrated that more companies haven’t done what Advantage has done and curtailed production in an effort to limit the oversupply in the market.

“Frankly, we’ve been very disappointed to see how few other producers have chosen to shut in with gas prices this low. . . you’re basically dumping gas at a loss,” Belenkie said.

Feit, the analyst for Enverus, said there’s no doubt LNG Canada’s opening will be a major milestone that will help to support natural gas pricing in Western Canada. He added there are other Canadian LNG projects in the works that would also provide a boost in the longer-term, such as LNG Canada’s proposed Phase 2, as well as potential increased demand from the proliferation of AI-related data centres and other power-hungry infrastructure.

But Feit added that producers need to be disciplined and allow the market to balance in the near-term, otherwise supply levels could overshoot LNG Canada’s capacity and periods of depressed pricing could reoccur.

“Obviously selling gas at pennies on the dollar is not a sustainable business model,” Feit said.

“But there’s an old industry saying that the cure for low gas prices is low gas prices. You know, eventually companies will have to curtail production, they will have to make adjustments.”

This report by The Canadian Press was first published Oct. 25, 2024.

Companies in this story: (TSX:TOU; TSX:AAV, TSX:CNQ)

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Business

Corus Entertainment reports Q4 loss, signs amended debt deal with banks

Published

2 days ago

October 25, 2024

Anne Joseph

TORONTO – Corus Entertainment Inc. reported a fourth-quarter loss compared with a profit a year ago as its revenue fell 21 per cent.

The broadcaster says its net loss attributable to shareholders amounted to $25.7 million or 13 cents per diluted share for the quarter ended Aug. 31. The result compared with a profit attributable to shareholders of $50.4 million or 25 cents per diluted share in the same quarter last year.

Revenue for the quarter totalled $269.4 million, down from $338.8 million a year ago.

On an adjusted basis, Corus says it lost two cents per share for its latest quarter compared with an adjusted loss of four cents per share a year earlier.

The company also announced that it has signed an deal to amend and restate its existing syndicated, senior secured credit facilities with its bank group.

The restated credit facility was changed to reduce the total limit on the revolving facility to $150 million from $300 million and increase the maximum total debt to cash flow ratio required under the financial covenants.

This report by The Canadian Press was first published Oct. 25, 2024.

Companies in this story: (TSX:CJR.B)

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Business

Hiring Is a Process of Elimination

Published

3 days ago

October 24, 2024

Nick Kossovan

Job seekers owe it to themselves to understand and accept; fundamentally, hiring is a process of elimination. Regardless of how many applications an employer receives, the ratio revolves around several applicants versus one job opening, necessitating elimination.

Essentially, job gatekeepers—recruiters, HR and hiring managers—are paid to find reasons and faults to reject candidates (read: not move forward) to find the candidate most suitable for the job and the company.

Nowadays, employers are inundated with applications, which forces them to double down on reasons to eliminate. It’s no surprise that many job seekers believe that “isms” contribute to their failure to get interviews, let alone get hired. Employers have a large pool of highly qualified candidates to select from. Job seekers attempt to absolve themselves of the consequences of actions and inactions by blaming employers, the government or the economy rather than trying to increase their chances of getting hired by not giving employers reasons to eliminate them because of:

Typos, grammatical errors, poor writing skills.

“Communication, the human connection, is the key to personal and career success.” ― Paul J. Meyer.

The most vital skill you can offer an employer is above-average communication skills. Your resume, LinkedIn profile, cover letters, and social media posts should be well-written and error-free.

Failure to communicate the results you achieved for your previous employers.

If you can’t quantify (e.g. $2.5 million in sales, $300,000 in savings, lowered average delivery time by 6 hours, answered 45-75 calls daily with an average handle time of 3 and a half minutes), then it’s your opinion. Employers care more about your results than your opinion.

An incomplete LinkedIn profile.

Before scheduling an interview, the employer will review your LinkedIn profile to determine if you’re interview-worthy. I eliminate any candidate who doesn’t have a complete LinkedIn profile, including a profile picture, banner, start and end dates, or just a surname initial; anything that suggests the candidate is hiding something.

Having a digital footprint that’s a turnoff.

If an employer is considering your candidacy, you’ll be Google. If you’re not getting interviews before you assert the unfounded, overused excuse, “The hiring system is broken!” look at your digital footprint. Employers are reading your comments, viewing your pictures, etc. Ask yourself, is your digital behaviour acceptable to employers, or can it be a distraction from their brand image and reputation? On the other hand, not having a robust digital footprint is also a red flag, particularly among Gen Y and Gen Z hiring managers. Not participating on LinkedIn, social media platforms, or having a blog or website can hurt your job search.

Not appearing confident when interviewing.

Confidence = fewer annoying questions and a can-do attitude.

It’s important for employers to feel that their new hire is confident in their abilities. Managing an employee who lacks initiative, is unwilling to try new things, or needs constant reassurance is frustrating.

Job searching is a competition; you’re always up against someone younger, hungrier and more skilled than you.

Besides being a process of elimination, hiring is also about mitigating risk. Therefore, being seen as “a risk” is the most common reason candidates are eliminated, with the list of “too risky” being lengthy, from age (will be hard to manage, won’t be around long) to lengthy employment gaps (raises concerns about your abilities and ambition) to inappropriate social media postings (lack of judgement).

Envision you’re a hiring manager hiring for an inside sales manager role. In the absence of “all things being equal,” who’s the least risky candidate, the one who:

offers empirical evidence of their sales results for previous employers, or the candidate who “talks a good talk”?
is energetic, or the candidate who’s subdued?
asks pointed questions indicating they’re concerned about what they can offer the employer or the candidate who seems only concerned about what the employer can offer them.
posts on social media platforms, political opinions, or the candidate who doesn’t share their political views?
on LinkedIn and other platforms in criticizes how employers hire or the candidate who offers constructive suggestions?
has lengthy employment gaps, short job tenure, or a steadily employed candidate?
lives 10 minutes from the office or 45 minutes away?
has a resume/LinkedIn profile that shows a relevant linear career or the candidate with a non-linear career?
dressed professionally for the interview, or the candidate who dressed “casually”?

An experienced hiring manager (read: has made hiring mistakes) will lean towards candidates they feel pose the least risk. Hence, presenting yourself as a low-risk candidate is crucial to job search success. Worth noting, the employer determines their level of risk tolerance, not the job seeker, who doesn’t own the business—no skin in the game—and has no insight into the challenges they’ve experienced due to bad hires and are trying to avoid similar mistakes.

“Taking a chance” on a candidate isn’t in an employer’s best interest. What’s in an employer’s best interest is to hire candidates who can hit the ground running, fit in culturally, and are easy to manage. You can reduce the odds (no guarantee) of being eliminated by demonstrating you’re such a candidate.

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Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.