Connect with us

Business

Warren Buffett calls coronavirus outbreak ‘scary,’ but says he won’t be selling stocks – The Globe and Mail

Published

 on


Octogenarian billionaire Warren Buffett said the U.S. economy was ‘strong, but a little softer’ than it was six months ago.

JOHANNES EISELE/AFP/Getty Images

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc, on Monday called the coronavirus outbreak “scary stuff” but said that it was no time to sell stocks despite the threat of a pandemic.

Speaking on CNBC, Buffett said investors with a 10- to 20-year time horizon and focused on companies’ earnings power will fare well in stocks, and that the outbreak has “not changed” his long-term outlook.

“It is scary stuff,” Buffett said. “I don’t think it should affect what you do in stocks.”

Story continues below advertisement

Markets worldwide fell on Monday on concern about how the Covid-19 coronavirus outbreak, which began in China and has spread to countries including Italy, South Korea and Iran, could disrupt supply chains and slow global economic growth.

Buffett, however, said long-term investors should not get caught up in daily headlines, and that Berkshire would “certainly be more inclined” to buy stocks than on Friday.

“If you look at the present situation,” he said, “you get more for your money in stocks than bonds.”

He said this was true though the U.S. economy, while sill strong, had become “a little softer” than it was six months ago.

The economy grew 2.3% last year but has experienced slower consumer spending and industrial production.

Buffett spoke two days after Berkshire said operating profit fell 3% in 2019 to $23.97 billion, hurt by losses from insurance underwriting, while unrealized gains in Apple Inc and other investments boosted net income to a record $81.42 billion.

Berkshire, based in Omaha, Nebraska, has more than 90 operating businesses including the BNSF railroad, Geico auto insurer and Dairy Queen ice cream, and Buffett said the coronavirus outbreak has affected a significant number.

Story continues below advertisement

Many of the roughly 1,000 Dairy Queens in China are closed, while those that are open “aren’t doing any business to speak of,” Buffett said, while Johns Manville insulation and Shaw carpeting have seen supply chain disruptions.

“There’s always trouble coming,” he said. “The real question is where are those businesses going to be in five or 10 years.”

Berkshire’s stock price has trailed the Standard & Poor’s 500 over the last decade, and Buffett said it will not trounce the broader market as it once did, in part reflecting its size and roughly $558 billion market value.

Buffett said Berkshire over the long term is unlikely to be in the top 15% or bottom 30% of stocks, but will outperform in down markets.

Any long-term outperformance “will be minor, but it will be done in a very very safe manner,” he said.

Let’s block ads! (Why?)



Source link

Business

Toronto continues investigation into cause of massive power outage – CP24

Published

 on


Hydro One says it will take “several days” to repair hydro lines that were damaged after an upright crane in the lake slammed into them and caused a massive power outage downtown on Thursday.

The outage occurred in the city’s financial district at around 12:30 p.m., leaving approximately 10,000 customers without power at its peak.

A portion of the Eaton Centre was left in the dark, forcing hundreds of stores to temporarily close. The outage also knocked out power in parts of the Hospital for Sick Children’s campus.

Traffic lights were down in some intersections causing heavy traffic and significant streetcar delays. However, the outage did not affect subways.

Toronto Fire said crews responded to a number of elevator rescues, but no injuries connected to the outage were reported yesterday.

Hydro One says the outage was caused when a barge moving an upright crane in the Port Lands area hit overhead high voltage transmission lines.

“Now, what happened when that crane hit the line resulted in a downstream effect where a surge of power affected a nearby station on the Esplanade that we were actually using to reroute power to Toronto Hydro,” Hydro One Spokesperson Tiziana Baccega Rosa told CP24 Friday morning.

The City of Toronto says the barge was being operated by a subcontractor to Southland-Astaldi Joint Venture (SAJV), which is a contractor for the Ashbridges Bay Treatment Plant outfall project.

Crews were reportedly preparing to move equipment into the lake for the project when the incident occurred.

“We’re going to use stone that needs to be placed out in the lake and the subcontractors were going to do that work for us but they were moving equipment. The event occurred off-site while they were doing their preparatory work,” Lou Di Gironimo, Toronto Water’s general manager told CP24 Friday.

Outage

Baccega Rosa said Hydro One crews were able to reroute about 50 per cent of the power shortly after the incident, which resulted in power being restored in some areas quicker than others.

Crews then had to stop their efforts and wait for the fire department to clear the site for workers to safely enter and reroute the rest of the power.

Outage

Once crews gained access, they were able to reroute all power to Toronto Hydro and power was fully restored downtown by 8 p.m.

Baccega Rosa said there are established safety protocols to stay a minimum of 10 metres away from power lines, which were not followed yesterday.

“And that’s (for) anyone whether, you know, you’re a barge passing under them (power lines) or if you’re doing work around your house and you need to trim the tree branches around the line connecting your home. You know, everyone was very lucky yesterday that there was not a safety incident and no one was hurt as a result of this,” she said.

The city has launched an investigation into the incident and has requested a full report from SAJV to understand what happened.

“So the big thing that we’re going to look at is what happened? Who was in charge of the subcontractor work? What were the safety procedures in place at the time? And then what exactly happened when the crane hit the wires?,” Di Gironimo said.

Di Gironimo could not confirm if the subcontractors will face any consequences for the incident.

“That will be part of the investigation to find out what happened. What were those precautions that were supposed to be in place. What was followed? What wasn’t?”

He said the city is meeting with SAJV next week and plans to complete the investigation within a matter of weeks.

Adblock test (Why?)



Source link

Continue Reading

Business

B.C. couple still owes $19M despite bankruptcy, appeal court rules – Business in Vancouver

Published

 on


B.C. couple still owes $19M despite bankruptcy, appeal court rules – Economy, Law & Politics | Business in Vancouver


Adblock test (Why?)



Source link

Continue Reading

Business

​Rogers, Shaw formalize planned Freedom sale to Quebecor – BNN Bloomberg

Published

 on


Columnist image

Rogers Communications Inc., Shaw Communications Inc. and Quebecor Inc. announced Friday they reached a definitive agreement for the previously-announced proposed sale of Shaw’s Freedom Mobile wireless business.
 
The three companies said that the terms of the definitive pact are “substantially consistent” with their original announcement on June 17, when they said Montreal-based Quebecor agreed to pay $2.85 billion to purchase Freedom. Originally, July 15 was the target to reach the definitive agreement.  

“We are very pleased with this agreement, and we are determined to continue building on Freedom’s assets,” said Quebecor president and chief executive officer Pierre Karl Péladeau in a release Friday. “Quebecor has shown that it is the best player to create real competition and disrupt the market.”
 
The transaction is conditional on Rogers receiving final regulatory approvals for its planned $20-billion takeover of Shaw, which was announced in March 2021.
 
The road to regulatory approval has become more treacherous for Rogers after Competition Commissioner Matthew Boswell stated his objections to the plan, warning it would diminish competition in the telecom market, notwithstanding Rogers’ long-stated intent to divest Freedom Mobile.
 
Rogers’ legal counsel has argued vociferously against Boswell’s claims, saying in a June 3 filing with the Competition Tribunal that Boswell’s stance “is unreasonable, contrary to both the economic and fact evidence presented to the Bureau, and not supportable at law.”
 
The Competition Tribunal is currently scheduled to begin a hearing on the matter Nov. 7.
 
Rogers also has to clear another regulatory hurdle: its planned acquisition of Shaw requires approval from Innovation, Science and Industry Minister François-Philippe Champagne, who has previously said he won’t allow the wholesale transfer of Shaw’s wireless assets to Rogers.
 
The process became more complicated for Rogers after a national network outage knocked out service to its customers in early July.

Champagne subsequently said the outage would “certainly be in [his] mind” when weighing the merit of the Shaw sale.
 
For its part, the Canadian Radio-television and Telecommunications Communications announced its conditional approval of the transaction in March.
 
Shaw investors have consistently demonstrated skepticism that the deal will go ahead as planned, as evidenced by its shares never once attaining the $40.50-per-share takeover offer from Rogers since the takeover was announced last year.

Adblock test (Why?)



Source link

Continue Reading

Trending