Today’s news: Trending business stories for January 18, 2024

Article content

Today’s headlines

Article content

Top story

CEBA repayment deadline arrives as businesses warn of closures without extension

Article content

The deadline for Canadian businesses to repay pandemic loans and receive partial forgiveness has arrived, as business groups say it could mean closure for many firms.

Hundreds of thousands of businesses and non-profits received a Canada Emergency Business Account (CEBA) loan of up to $60,000 during the COVID-19 pandemic.

Up to one-third of the loans could be forgiven if the outstanding amount is repaid by today, otherwise the debt will convert into a three-year loan with five per cent annual interest.

Businesses also have the option to refinance the loan with a financial institution, giving them until March 28 to set up the arrangement and still be eligible for partial forgiveness.

The Canadian Federation of Independent Business and Restaurants Canada have been calling for another extension to the deadline.

But on Wednesday, Prime Minister Justin Trudeau said it’s time to wrap up pandemic financial aid programs.

The Canadian Press

More coverage from the Financial Post:

Article content

Article content

10:05 a.m.

Markets open: Wall Street and TSX hold steadier

Wall Street is holding steadier Thursday as yields stabilize in the bond market following a jump earlier in the week.
The S&P 500 was 0.4% higher in early trading, coming off a back-to-back loss. The Dow Jones Industrial Average was down or 0.14 per cent, and the Nasdaq composite was 0.79 per cent higher.

Big Tech stocks were strong including a 2.3 per cent rise for Apple.

Stocks were broadly steadier as Treasury yields in the bond market slowed their jump from earlier in the week. Yields had been climbing as traders pushed back their forecasts for how soon the Federal Reserve will begin cutting interest rates. Higher yields in turn undercut prices for stocks and raise the pressure on the economy.

The Fed has indicated it will likely cut rates several times in 2024 because inflation has been cooling since its peak two summers ago, meaning it may not need as tight a leash on the economy and financial system. But critics said Wall Street’s expectations went overboard in how many cuts the Fed would deliver this year and how soon it would begin. That in turn may have sent stock prices too high and Treasury yields too low since their big moves began last autumn.

Article content

In Canada, the S&P/TSX composite index was up 0.06 per cent.

The Associated Press

7:30 a.m.

Stock markets before the opening bell

Stocks and United States futures gained on Thursday as traders turned their attention to corporate news after coming to terms with the realization that rate cuts may be delayed beyond the first quarter.

Futures on the Nasdaq 100 and S&P 500 rose 0.6 per cent and 0.3 per cent respectively. The Stoxx Europe 600 index edged higher, having slumped almost two per cent in the first three days of the week. China’s benchmark CSI 300 index gained 1.4 per cent as a surge in ETF trading pointed toward state funds’ involvement.

Chipmakers gained in U.S. premarket trading after Taiwan Semiconductor Manufacturing Co., the main supplier to Apple Inc. and Nvidia Inc., said it expects a return to solid growth this quarter. Microchip Technology Inc., Advanced Micro Devices Inc. and ON Semiconductor Corp. added more than two per cent each. The Boeing Co. rose after winning an order for 150 of its troubled 737 Max jets from India’s newest airline.

Signs that European policymakers are converging around a June rate reduction helped calm markets, along with indications that Chinese state funds are coming to the rescue of equities battered by a flagging economy.

Article content

“The medium-term outlook should still be positive for markets as rates will be cut this year,” said Max Wolman, an investment director at abrdn in London. “Timing of the cuts is less relevant because when they start investors will reduce their cash holdings back into risky assets.”

In Canada, the S&P/TSX composite index closed down 1.21 per cent on Wednesday.

Bloomberg

What to watch today

Natural Resources Minister Jonathan Wilkinson will provide a keynote address followed by a fireside chat at the B.C. Natural Resources Forum in Prince George, B.C.

Canadian construction investment data for November will be released this morning. In the United States, expect initial jobless claims and housing starts and building permits for December.

First Horizon National Corp. and Richelieu Hardware Ltd. report earnings today.

Need a refresher on yesterday’s top headlines? Get caught up here.

Additional reporting by The Canadian Press, Associated Press and Bloomberg

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

Article content