Yahoo Finance Top headlines: Canada’s biggest banks at bottom of low-carbon finance ranking
Top headlines
Sticky business: Quebec’s maple syrup farmers struggle with drop in global demand
‘Not a full-blown crisis’: Top business group downplays CEBA loan repayment concerns
Rogers to launch satellite-to-mobile phone technology in 2024 to connect remote areas
5:40 p.m.
Gildan shareholders seek CEO reinstatement, allege ‘grievous error’ by board
Two of Gildan Activewear Inc.’s shareholders are demanding its former chief executive be reappointed to the company’s top post.
In letters sent to Gildan’s board of directors, Browning West LP and Turtle Creek Asset Management Inc. called for the Montreal-based apparel maker to reinstate Glenn Chamandy to the board and his prior CEO post.
Earlier this month, Gildan co-founder Chamandy said he was terminated without cause after four decades with the company. He is due to be replaced by Vince Tyra.
Browning West LP, an investment partnership with a 3.9 per cent stake in Gildan, said it believes the company’s share price was poised to grow by at least 80 per cent over the next two years under Chamandy’s leadership.
Turtle Creek said the board’s abrupt termination of Chamandy, which it called a “grievous error,” appeared to have been done in haste without meaningful shareholder engagement or consideration of the impact it would have on Gildan.
Gildan did not immediately respond to requests for comment. An autoreply from Chamandy’s email said no further statements would be given at this time.
The Canadian Press
5:15 p.m.
Market close: TSX gains almost 150 points, U.S. stock markets also higher
Base metal and battery metal stocks led a broad-based rally on the TSX as Canada’s main stock index climbed almost 150 points, while U.S. stock markets also moved higher.
The S&P/TSX composite index closed up 149.35 points at 20,778.80.
In New York, the Dow Jones industrial average was up 158.11 points at 37,248.35. The S&P 500 index was up 12.46 points at 4,719.55, while the Nasdaq composite was up 27.59 points at 14,761.56.
The Canadian dollar traded for 74.52 cents U.S. compared with 73.74 cents U.S. on Wednesday.
The January crude oil contract was up US$2.11 at US$71.58 per barrel and the January natural gas contract was up six cents at US$2.39 per mmBTU.
The February gold contract was up US$47.60 at US$2,044.90 an ounce and the March copper contract was up 11 cents at US$3.89 a pound.
The Canadian Press
5:10 p.m.
Canada’s biggest banks at bottom of low-carbon finance ranking
A report by BloombergNEF finds that while Canada’s top five banks are among the biggest energy financiers globally, they rank among the worst of the top 100 when measured on how much of that funding is directed to low-carbon sources.
The report found that in 2022 banks globally directed an estimated 73 cents toward low-carbon energy for every dollar supporting fossil fuel supply, or a 0.73-to-one ratio. That’s well off the four-to-one ratio the report notes they need to hit this decade to limit global warming to 1.5 C.
Canada’s biggest banks ranged in ratios of between 0.45:1 for Bank of Montreal’s $18.9 billion in energy funding, enough to place it 88th in the ranking, down to 0.32:1 for Bank of Nova Scotia’s $35.9 billion in funding, which pushed it below the top 100.
In between, Canadian Imperial Bank of Commerce had a 0.41:1 ratio for its $17.9 billion in funding, Royal Bank of Canada had a 0.37:1 ratio for its $42.7 billion, and Toronto-Dominion Bank had a 0.35:1 ratio for its $30.2 billion in funding, putting it at the bottom of the list of 100 banks.
National Bank of Canada was a notable outlier, coming in at $1.10 in low-carbon funding for every dollar put toward fossil fuels in its $14.9 billion in financing, enough to rank 52nd globally.
The report showed BMO, TD and Scotiabank’s ratios worsened from 2021, RBC’s was unchanged, while CIBC and National Bank improved.
Richard Brooks, a climate finance director at environmental organization Stand.earth, said in a statement that he was disappointed to see the lack of progress by banks on driving climate solutions, as the world is already feeling the effects of extreme weather.
“No bank is doing its fair share of the work required to transition our global energy systems. In fact, they continue to make the problem worse,” he said.
The banks did not immediately provide comment.
The Canadian Press
12:53 p.m.
Tim Hortons, Telus reinstate support for Hockey Canada following scandal
Two sponsors who previously pulled support for Hockey Canada, when it was embroiled in scandal last year, say they are backing the organization once more.
Fast food chain Tim Hortons and telecommunications firm Telus Corp. say they have reinstated their support for Hockey Canada which they withdrew when the organization was accused of mishandling sexual assault complaints.
Tims spokesperson Michael Oliveira says the chain made it clear it would only reinstate funding for Canada’s men’s teams when they regained the confidence of Canadians.
He says Tims reinstated its support because it appears Hockey Canada has made substantial progress toward that goal under new leadership.
Telus spokesperson Saara Rahikka says the telecommunications giant decided to back the organization again because it wanted to support changes that make the sport safe and inclusive for all on and off the ice.
The renewed support from Tims and Telus comes ahead of the men’s world junior hockey championship gets underway in Gothenburg, Sweden later this month.
The Canadian Press
12:07 p.m.
Midday markets: Fed ‘pivot’ to rate cuts unleashes global markets
Wall Street extended its rally after dovish Federal Reserve signals unleashed a bullish pulse across global markets amid optimism the world’s largest economy will be able to avert a recession.
Equities pushed higher — with the S&P 500 approaching its record and the Nasdaq 100 hovering near that mark — as the Fed pivoted toward reversing the steepest hikes in a generation after taming inflation without a major economic slowdown. Jerome Powell’s lack of pushback against the dovish bets also helped renew the surge in Treasuries, with the 10-year yield below four per cent. Both retail sales and jobless claims on Thursday reinforced the soft-landing narrative.
“Coming one day after the dovish Fed meeting, today’s strong retail sales and lower jobless claims might create a best-case scenario,” said David Russell at TradeStation. “We’ve managed to overcome inflation without causing a recession. The economy ‘can walk and chew gum at the same time.’ It’s hard to view this as anything but a soft landing.”
From stocks to Treasuries, credit to commodities, everything was up after the Fed projected more rate cuts in 2024.
“The Fed pivot is officially in,” said Brad Bechtel at Jefferies. “Powell had a chance to push back on market pricing and definitively did not take it.”
Bloomberg
11:20 a.m.
Beer, wine coming to Ontario corner stores by 2026
Ontario Premier Doug Ford is announcing that sales of beer, wine, cider and ready-to-drink cocktails will be allowed in convenience stores and all grocery stores in the province by 2026.
Government officials say these are some of the biggest changes in alcohol sales in the history of the province, making Ontario just the second jurisdiction in Canada — after Quebec — to offer beer in corner stores and the first to offer ready-to-drink cocktails in those locations.
The move would fulfill a promise Ford made during the 2018 election and marks the second attempt the premier has made to put beer and wine in corner stores, previously passing but not enacting legislation to cancel an agreement with the Beer Store.
That agreement saw sales of beer and wine expanded to a maximum of 450 grocery stores across the province, with the Beer Store retaining exclusive rights to sell 12- and 24-packs of beer, and Ontario is announcing today that deal and those terms will end in 2025.
Under Ford’s plan, eligible retail outlets across the province, including an estimated 6,700 convenience stores and another 1,800 grocery stores, will be able to set their own pricing — right now, all retail outlets have to adhere to pricing set by the Liquor Control Board of Ontario.
The Canadian Press
Read the full story here.
10:31 a.m.
Markets open: Stocks keep the rally going on expected interest rate relief
Wall Street is rising again Thursday following its big rally the day before on excitement that several cuts to interest rates may indeed be coming next year, as hoped.
The S&P 500 was 0.32 per cent higher in early trading and nearing its all-time high set early last year. The Dow Jones Industrial Average was up 0.23 per cent, and on track to set a record for a second straight day. The Nasdaq composite was 0.37 per cent higher.
In Toronto, the S&P/TSX composite index was up 0.73 per cent at 20,781.94.
Stocks broadly have been shooting higher since October on hopes that inflation has cooled enough for the United States Federal Reserve to not only stop its market-rattling hikes to interest rates but to even begin considering cutting them. Those hopes strengthened Wednesday after the Fed held its main interest rate steady and said the federal funds rate is likely already at or near its peak.
More importantly, the Fed also released projections showing its median official expects the federal funds rate to fall next year by more than earlier expected.
Wall Street loves lower interest rates because they can goose prices for investments and relax the pressure on the economy and financial system.
The Associated Press
10:03 a.m.
Canadian home sales fall in November, average price up from last year: CREA
The Canadian Real Estate Association says home sales fell in November as the average price of a home sold inched higher compared with a year ago.
The association says November home sales fell 0.9 per cent compared with the same month last year.
On a seasonally adjusted basis, November home sales were also down 0.9 per cent compared with October this year.
The number of newly listed homes fell 1.8 per cent on a month-over-month basis in November.
CREA says with new listings down more than sales in November, the national sales-to-new listings ratio rose for the first time since April to come in at 49.8 per cent compared with 49.4 per cent in October.
The actual national average price of a home sold in November was $646,134, up two per cent from November 2022.
The Canadian Press
9:26 a.m.
Manufacturing sales fall 2.8% in October
Statistics Canada says manufacturing sales fell 2.8 per cent to $71.0 billion, led by a drop in petroleum and coal product sales as well as lower sales in the machinery and computer and electronic product subsectors.
The agency says sales fell in 12 of 21 subsectors it tracks.
The petroleum and coal products subsector fell 10.3 per cent to $8.4 billion in October as it saw lower prices as well as a decline in volumes.
The machinery subsector dropped 6.6 per cent to $4.4 billion, while computer and electronic products fell 15 per cent to $1.4 billion.
Sales of aerospace products and parts rose 6.9 per cent to $2.2 billion.
Statistics Canada says total sales in constant dollars fell 2.2 per cent in October, indicating a lower volume of goods sold.
The Canadian Press
8 a.m.
Sobey’s parent Empire reports lower profit as sales edge higher
Grocery giant Empire Co. Ltd. reported a modest increase in overall revenue for its fiscal second quarter, but posted lower net earnings despite increased profitability in its core food retailing business.
Empire, which oversees a network of around 1,600 stores under the Sobeys, Safeway, IGA, Foodland, Longo’s and Farm Boy brands, reported net earnings of $181.1 million for the 13 weeks ending Nov. 4, 2023, down from $189.9 million for the same period last year. Net income was boosted by insurance recoveries of $15.2 million related to a major cyberattack last year.
Sales came in at a record $7.75 billion, up 1.4 per cent from $7.64 billion at the same time last year.
Marisa Coulton, Financial Post
Read the full story here.
7:30 a.m.
TMX to buy remaining VettaFi stake for $1.15 billion
TMX Group Ltd. has signed a deal to buy the 78 per cent stake in VettaFi Holdings LLC that it does not already own for $1.15 billion.
U.S.-based VettaFi provides indexing, digital distribution and analytic services to the financial services industry.
The operator of the Toronto Stock Exchange acquired a 22 per cent stake in the company earlier this year.
TMX says, combined with its strategic investments in the company in the first half of 2023, the deal announced after financial markets closed Wednesday will bring the total amount to be paid for full ownership of VettaFi to $1.4 billion.
TMX Group chief executive John McKenzie said the acquisition accelerates the company’s long-term global expansion and increases the proportion of revenue from its global solutions, insights and analytics division, and from recurring sources.
The transaction is expected to close in January, subject to customary closing conditions.
The Canadian Press
7:00 a.m.
Rogers to launch satellite-to-mobile phone technology in 2024
Rogers Communications Inc. said it will launch satellite-to-mobile phone technology in 2024 to deliver wireless services to Canada’s remote areas.
The telecommunications company on Dec. 14 unveiled the plan in partnership with Lynk Global Inc. by testing a satellite-to-mobile phone call in Newfoundland and Labrador.
The planned launch will start with SMS texting, mass notifications and machine-to-machine artificial intelligence applications, and then expand to include voice and data services, the telco said.
“We’re bringing coverage to Canada’s most remote areas to improve public safety and to connect communities that aren’t connected today,” chief executive Tony Staffieri said in a press release.
The technology uses Lynk’s low-earth orbit satellites and Rogers’ national wireless spectrum and will work on existing smartphones so customers don’t need to install customized apps or upgrade hardware not yet available.
Denise Paglinawan, Financial Post
Read the full story here.
Stock markets before the opening bell
Stocks and bonds rallied and the dollar weakened after the United States Federal Reserve signalled interest-rate cuts next year, unleashing a bullish pulse across markets amid optimism that inflation pressures are easing.
Nasdaq 100 futures climbed, setting up the underlying tech-heavy index for a run at a record close. S&P 500 contracts edged higher after the benchmark ended within two per cent of its record high on Wednesday. Europe’s Stoxx 600 index surged as much as 1.7 per cent. Shares in Germany and France hit fresh all-time peaks.
In Canada, the S&P/TSX composite index closed up 395.61 points at 20,629.45 on Wednesday.
Bloomberg
What to watch today
Earnings reports from Empire Co. Ltd., Costco Wholesale Corp. and Transat AT Inc. will be released today.
Data releases in Canada include manufacturing and sales orders for October, new motor vehicle sales and existing home sales. In the United States, expect initial jobless claims for the week of Dec. 9, retail sales for November, trade price indices and S&P Global PMIs.
Doug Wylie, Alberta’s auditor general, will release the December 2023 auditor general report online at oag.ab.ca.
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Additional reporting by The Canadian Press, Associated Press and Bloomberg
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