[ad_1]
Today’s headlines
We apologize, but this video has failed to load.
This advertisement has not loaded yet, but your article continues below.
Top economy
CPA Canada cuts 20% of workforce ahead of split with Ontario and Quebec
The organization, which represents chartered professional accountants across Canada, has about 400 employees across the country.
CPA Canada chief executive Pamela Steer says CPA Ontario and CPA Quebec’s pending withdrawal triggered a review, which resulted in the decision to streamline the organization.
CPA Ontario and CPA Quebec announced in June last year they would be exiting their agreement with CPA Canada, triggering an 18-month countdown to a split.
In a memo to staff last week that was obtained by The Canadian Press, Steer said despite many discussions and ongoing efforts, it has become clear that Ontario and Quebec will not change their current path, which means they will leave CPA Canada as of December.
CPA Canada was created in 2013 to unify the various professional accounting organizations and designations.
This advertisement has not loaded yet, but your article continues below.
— The Canadian Press
1:20 p.m.
WestJet confronts indefinite delays on dozens of aircraft deliveries
The Calgary-based carrier bought 42 Boeing 737 Max 10 jetliners in 2022, with options for 22 more — on top of nearly two dozen earlier Max orders still in the pipeline.
The multibillion-dollar deals were slated to bolster WestJet’s fleet by at least 65 planes — 50 of them Max 10s — by 2029 in a move the airline called a “game-changer” that would reduce fuel costs and “underpin” its growth.
However, the Max 10 has yet to receive final certification, and after the panel incident, regulators said they would halt any production expansion at Boeing until a full investigation was complete — a process that could take over a year.
This advertisement has not loaded yet, but your article continues below.
WestJet says it continues to work closely with Boeing on delivery timelines and believes the growth plan for its fleet has some flexibility.
The Canadian Press
12:15 p.m.
Midday markets: TSX rises more than 100 points
Canada’s main stock index was up more than 100 points in early-afternoon trading, helped by strength in the base metal and energy stocks, while U.S. stock markets also climbed higher.
The S&P/TSX composite index was up 127.90 points, 0.60 per cent, at 21,137.50.
In New York, the Dow Jones industrial average was up 202.81 points, 0.51 per cent, at 38,869.42. The S&P 500 index was up 20.58 points, 0.41 per cent, at 5,047.16, while the Nasdaq composite was up 59.88 points at 16,047.32.
The Canadian dollar traded for 74.43 cents US, 0.20 per cent, compared with 74.31 cents US on Friday.
The March crude contract was down 12 US cents, 0.29 per cent, at US$76.62 per barrel and the March natural gas contract was down two cents at US$1.82 per mmBTU.
The April gold contract was down US$12.80, 0.44 per cent, at US$2,029.80 an ounce, and the March copper contract was up two cents at US$3.70 a pound.
This advertisement has not loaded yet, but your article continues below.
— The Canadian Press
12:05 p.m.
Canadian drivers likely to pay higher insurance premiums for EVs, report shows
Costly EVs and higher costs of repairs are likely going to lead the insurance industry to adjust their premiums, similar to a trend in the United Kingdom, the report by Morningstar DBRS says.
In some instances, insurers prefer totalling EVs over repairs or replacing expensive battery packs, something that is likely going to be more common and drive up insurance rates in Canada, the debt rating agency says.
However, the pace of potential rate increases may be slower in Canada amid moderate uptake for EVs and a lack of better claims data, it adds.
The report also suggests Canada’s regulated automobile insurance could mitigate drastic rate increases, especially when an EV is registered for the first time.
Morningstar DBRS says changes to claims on EVs are not going to affect insurers’ profitability or credit ratings in the near to medium term as the industry remains well funded.
This advertisement has not loaded yet, but your article continues below.
— The Canadian Press
10:10 a.m.
Markets open: Wall Street cautious after big finish last week, TSX rises
Wall Street is holding relatively steady Monday following its latest record-setting week.
Conditions are calm across markets, with yields also moving relatively little in the bond market. The next big event in the United States for the market could be Tuesday’s update on inflation, which economists expect to show a drop back below the three per cent level.
In Toronto, the S&P/TSX composite index was up 0.34 per cent 21,072.59.
— The Associated Press
9:31 a.m.
Fairfax Financial calls short seller report false and misleading
is calling the allegations in a short sellers report on the company false and misleading.
This advertisement has not loaded yet, but your article continues below.
In a report last week, Muddy Waters, which said it was short Fairfax, alleged the company manipulated asset values. It said it believed a conservative adjustment-to-book value for the company should be 18 per cent lower than reported.
Short sellers make money when the price of a stock they have sold short falls.
Fairfax shares fell more than 10 per cent the day the Muddy Waters report was released, however, they recovered some of the decline the next day.
Chairman and chief executive Prem Watsa said Fairfax is a strong and enduring company built over 38 years, committed to integrity, customer service, employee welfare and the communities it operates in.
— The Canadian Press
7:30 a.m.
Diamondback to buy Endeavor for $26 billion in oil megadeal
Diamondback will fund the deal through 117.3 million shares and US$8 billion in cash, the two Midland, Texas-based companies said in a statement Feb. 12. Diamondback shareholders will own 60.5 per cent of the company after the deal closes, and Endeavor shareholders will own 39.5 per cent.
This advertisement has not loaded yet, but your article continues below.
The agreement is the latest in a string of massive deals transforming the U.S. energy landscape as companies push to line up future drilling sites and cut costs. Over the past four months, Exxon Mobil Corp. struck a deal to buy Pioneer Resources for about US$60 billion, Chevron Corp. agreed to buy Hess Corp. for about US$53 billion and Occidental Petroleum Corp. agreed to buy CrownRock LP for about US$10.8 billion.
“This is a combination of two strong, established companies merging to create a ‘must own’ North American independent oil company,” Diamondback chief executive Travis Stice said in the statement. “With this combination, Diamondback not only gets bigger, it gets better.”
Diamondback shares were unchanged before the start of regular trading in New York.
This advertisement has not loaded yet, but your article continues below.
Acquiring Endeavor is a resounding coup for Diamondback. The company, founded by shale pioneer Autry Stephens, is one of the last remaining closely held producers in the Permian. It has attracted the interest of Exxon, Chevron and ConocoPhillips.
— Joe Ryan and Mitchell Ferman, Bloomberg
7:30 a.m.
Stock markets before the opening bell
Traders paused for breath after optimism about eventual United States Federal Reserve interest-rate cuts and easing inflation pushed the S&P 500 to a new record.
The rally in Big Tech that lifted the S&P 500 above 5,000 for the first time on Friday looked set to extend, as Amazon.com Inc. Nvidia Corp. and Tesla Inc. ticked higher in premarket trading. Moves beyond those standouts were muted, in S&P 500 and Nasdaq 100 futures trading as well as for U.S. Treasuries and the dollar.
The next pressure point for markets is Tuesday’s key consumer price index report, which has the potential to shape timing of a first Fed rate cut. The annual U.S. inflation rate is forecast to have dropped to 2.9 per cent in January from 3.4 per cent the prior month, according to consensus estimates of economists surveyed by Bloomberg. That would be the first reading below three per cent since March 2021.
This advertisement has not loaded yet, but your article continues below.
“The January CPI numbers are expected to be softening compared to December, but with Fed officials sticking to a cautious script lately, it is hard to think this week’s CPI will change the recent messaging,” said Paul Mackel, the head of global FX research at HSBC Bank PLC. “One would think that many within the Fed would be in favour of a strong dollar to help the disinflation process.”
The S&P/TSX composite index closed
— Bloomberg
What to watch today
PrairieSky Royalty Ltd. and Avis Budget Group Inc. are among companies reporting earnings today.
Recommended from Editorial
Additional reporting by The Canadian Press, Associated Press and Bloomberg
[ad_2]
Source link
