Stocks around the world jumped Monday after some of the hardest-hit areas offered sparks of hope that the worst of the coronavirus outbreak may be on the horizon.
U.S. stocks were up more than 5.5 per cent in afternoon trading, accelerating through the day and following up on gains that were nearly as big in Europe and Asia. In another sign that investors are feeling more optimistic about the economy’s path, the yield on the 10-year Treasury rose toward its first gain in four days.
The TSX’s benchmark index was up by 500 points or about four per cent in afternoon trading.
New coronavirus infections and deaths are showing signs of slowing in Italy and Spain. The centre of the U.S. outbreak, New York, also reported a dip in the number of daily deaths, though authorities warned it’s too early to tell whether it’s just a blip or the start of a trend. That was enough to launch stocks higher, even though the U.S. is still bracing for a surge of upcoming deaths due to COVID-19.
“We’re running on raw optimism, maybe that’s the best way to put it,” said Randy Frederick, vice-president of trading and derivatives at Schwab Center for Financial Research.
Investors have been waiting anxiously for a glimmer of hope that the rate of new infections may hit its peak, which would give some clarity about how long the upcoming recession will last and how deep it will be. Until then, markets have been grasping at guesses about how long businesses will remain shut down, layoffs will soar and flights remain cancelled due to measures meant to slow the spread of the virus.
That’s why the number of infections and deaths will likely dominate markets more than anything else, particularly this upcoming week, which is relatively light on economic reports, Frederick said.
“The virus is not everything, it’s the only thing, and nothing else really matters,” he said.
The S&P 500 was up 5.6 per cent as all but 15 companies on the broad U.S. index were higher. The S&P 500 is on pace to more than recover all its losses from the prior week, when the government reported a record number of layoffs sweeping the economy.
The Dow Jones Industrial Average rose 1,190 points, or 5.7 per cent, to 22,243, and the Nasdaq was up 5.5 per cent
“Hundreds of people are passing away each day from the pandemic, but less so than previous days, giving markets hope that the lockdown measures are finally starting to prove effective,” Jeffrey Halley of Oanda said in a commentary.
“Like the rest of the world, financial markets are searching for any slivers of hope,” he said.
The S&P 500 is still down more than 22 per cent since its record set in February, but the losses have been slowing since Washington promised massive amounts of aid to prop up the economy.
“Since this is a public health crisis, the response has been extreme,” Morgan Stanley strategists wrote in a report. “There are literally no governors on the amount of monetary or fiscal stimulus that will be used in this fight.”
Stocks in Asia and Europe higher too
In Japan, the prime minister said Monday that he’s preparing to announce a 108 trillion yen ($1 trillion US) package to bolster the world’s third-largest economy. It would be Japan’s largest-ever package for the economy and nearly twice as much as expected.
Japan’s economy was already shrinking late last year before the outbreak forced the global economy into a protective coma induced by health authorities.
The announcement pushed Japan’s Nikkei 225 index to surge 4.2 per cent. Elsewhere in Asia, South Kora’s Kospi jumped 3.9 per cent, and Hong Kong’s Hang Seng rose 2.2 per cent
In Europe, Germany’s DAX returned 4.9 per cent and France’s CAC 40 jumped 3.8 per cent. The FTSE 100 in London rose 2.4 per cent.
The yield on the 10-year Treasury yield rose to 0.66 per cent from 0.58 per cent late Friday. Yields tend to rise when investors are raising their expectations for economic growth and inflation.
Crude oil fell, giving up some of its huge gains from the prior week when expectations rose that Saudi Arabia and Russia may cut back on some of their production.
Demand for oil has plummeted due to the weakening economy, and any cutback in production would help prop up its price. A meeting between OPEC, Russia and other producers initially planned for Monday, though, was reportedly pushed back to Thursday.
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.
