Business Marketing & News From Canada

Business and marketing news.

Category: Business News Headlines Page 3 of 4

Air Canada adjusts schedule and routes due to 737 Max-related jet shortage

Air Canada adjusts schedule and routes due to 737 Max-related jet shortage


Canada’s biggest airline is making adjustments to its flight schedule and temporarily cancelling or delaying some routes as a result of having to ground two dozen of its Boeing planes.

Air Canada said Tuesday is has delayed the launch of a number of planned seasonal routes because it doesn’t currently have the jets to service them after 24 of the airline’s Boeing 737 Max jets were banned from operating in Canadian airspace. The move by Canadian officials came last month in the wake of two deadly crashes of the jet in six months. 

The airline says it has managed to move things around enough to make sure that 98 per cent of those flights through to the end of May will be covered in some way, but it had to adjust in a few cases beyond that because of the lack of jets.

“Air Canada assures its customers that we are doing everything possible to mitigate the effects of the 737 Max grounding, and we appreciate our customers’ patience and flexibility as we continue to work on transporting them safely to their destinations,” Air Canada’s chief commercial officer, Lucie Guillemette, said. 

The airline says it has extended leases for aircraft that had been scheduled to be removed from its fleet, and was in the process of adding four Airbus jets acquired from WOW Air even before the Icelandic carrier abruptly closed up shop last month.

It’s not yet known when the jets will be cleared for takeoff, so Air Canada is among the many airlines adjusting flight plans well into the summer.

Here are the changes that Air Canada has made to its schedule up until the end of June:

  • Two daily flights between Toronto and Calgary have been consolidated onto one larger Airbus A330.
  • A new Toronto to Portland, Oregon, service will now start July 1 instead of May 24.
  • A new Vancouver to Boston service will now start June 16 instead of June 1.
  • A new Calgary to Halifax service will now start July 1 instead of May 18.
  • The seasonal Toronto to Shannon, Ireland, route will be delayed until early July.
  • The seasonal Montreal to Bordeaux, France, service will be delayed until early July.
  • Some Toronto to Edmonton flights will now be served by Rouge.
  • Flights from Halifax and St. John’s to London Heathrow are suspended at least until the end of May, but the airline still plans to offer them after that.

“By adjusting our schedule for the month of May, we are providing certainty for our customers so they can continue to book and travel with confidence on Air Canada,” Guillemette said.



Source link

Crude-by-rail rises in March as storage remains high despite Alberta curtailments

Crude-by-rail rises in March as storage remains high despite Alberta curtailments


Genscape says crude-by-rail shipments from Western Canada staged a minor recovery in March after falling in February to their lowest level in nine months, but oil storage levels remain stubbornly high.

The U.S. company, which monitors western Canadian rail terminals handling about 80 per cent of typical volumes, reports average rail loadings in March were 150,000 barrels per day.

That’s up about 6,000 bpd from an average of 144,000 bpd in February, but still down from the 281,000 bpd it recorded in January.

Genscape senior oil analyst Mike Walls says the recovery came as Imperial Oil Ltd. restarted rail shipments from its Edmonton-area terminal after largely shutting them down in February, blaming market reaction to Alberta’s oil production curtailment program.

Walls says Genscape estimates the amount of oil in storage as of March 29 was 35 million barrels, about the same as in early December when the Alberta government announced its curtailment program designed to free up export pipeline space and reduce stored barrels.

The March number is about two million barrels lower than peak levels just before the cutbacks officially began in January, he said, and higher than the 33.4 million barrels stored at the end of March 2017.



Source link

Freeland says lifting U.S. tariffs must be part of ratification of new NAFTA

Freeland says lifting U.S. tariffs must be part of ratification of new NAFTA


Foreign Affairs Minister Chrystia Freeland is linking the lifting of “absurd” U.S. tariffs on Canadian and Mexican steel to the ratification of the new North American free-trade deal.

Dealing with the tariffs — imposed by President Donald Trump under a controversial national-security provision of U.S. law — is a key part of the ratification process, Freeland said Wednesday.

Freeland says she’s heartened by the recent comments of American lawmakers who say the new trilateral trade agreement can’t be ratified with the “Section 232” tariffs in place.

“I am very glad to be hearing both in private meetings and in public statements from a number of U.S. senators, members of Congress, that they share Canada’s view that the 232 tariffs should be lifted,” the minister said in Ottawa before departing for a NATO summit in Washington, where she was expected to press the issue further.

“And that very much needs to be a part of the NAFTA ratification process.”

In a Twitter posting early this week, an influential Republican senator from Iowa called for an end to the sanctions.

“I’m calling on the Administration — specifically, President Trump — to promptly remove Section 232 tariffs on steel and aluminum imports from Canada and Mexico. This will help clear the path for the U.S.M.C.A. agreement,” wrote Sen. Chuck Grassley, the chair of the Senate Finance Committee, using the American acronym for the new agreement.

Section 232 of the United States’s Trade Expansion Act lets the president impose duties on imported goods if the imports threaten U.S. national security. Trump asserted that the U.S. needs a domestic metals industry for national-security reasons, so imports of steel and aluminum are a danger.

Freeland’s remarks indicate an evolution in Canada’s position on the sanctions and the acrimonious three-country renegotiation of NAFTA. She has said previously that two were separate issues that could not be linked, even though Trump’s Commerce Secretary Wilbur Ross said the tariffs were actually imposed because of what the Americans viewed as the slow pace of the talks last spring.

Plans for retaliation

Canada has imposed more than $16 billion in retaliatory tariffs on U.S. products, a list that Freeland said is constantly being examined so that they will have “the greatest impact” on American consumers. She said Canada has been consulting on retaliation strategies with Mexico and the European Union, which was also hit by the 232 tariffs.

“Our government feels very strongly — and indeed I think all Canadians feel very strongly — that the 232 steel and aluminum tariffs were illegal, unjustified and frankly absurd in the first place,” said Freeland.

“Now that we have actually concluded our negotiations on a modernized NAFTA there is all the more reason for those tariffs to be lifted.”

Freeland travelled to Washington later Wednesday for a meeting of NATO foreign ministers to mark the 70th anniversary of the transatlantic military alliance. Her first meeting was with U.S. Secretary of State Mike Pompeo, and senior officials said she intended to press for the lifting of the tariffs in that meeting.

Time is running short

With the clock ticking in Canada’s Parliament towards a June ratification deadline — before a summer break that probably won’t end until after the election due in October — Freeland remained non-committal Wednesday about moving forward on the necessary legislation with the tariffs still in place.

Some leading U.S. Democrats in Congress say they won’t approve the new trade agreement unless it is strengthened to force Mexico to adhere to tougher labour standards that elevate the rights of workers and their unions.

Mexico says it will introduce labour reform legislation in its Congress before it rises on April 30.

Freeland wouldn’t say whether that would be enough for the Canadian government to move ahead with ratification in Parliament.

Canada is watching the ratification process in both countries and Canada wants to “move forward in a co-ordinated way when it comes to the NAFTA ratification,” she said.



Source link

White House says Trump will meet with Chinese vice-premier

White House says Trump will meet with Chinese vice-premier


Trade talks between the United States and China made “good headway” last week in Beijing and the two sides aim to bridge differences during talks that could extend beyond three days this week, White House economic adviser Larry Kudlow said.

Kudlow, speaking to reporters on Wednesday at an event organized by the Christian Science Monitor, said China had recognized problems for the first time during the talks that the United States has raised for years.

Negotiations continued in Washington on Wednesday after meetings last week in Beijing, spearheaded by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

President Donald Trump will meet with Vice-Premier Liu He, who is leading the Chinese side in the talks, in the Oval Office at 4:30 p.m. ET on Thursday, the White House said.

The United States and China have levied tariffs on hundreds of billions of dollars’ worth of two-way trade since July 2018. Trump has said he wants a “great deal” with China and has hinted that tariffs could remain in place for some time.

Chinese commitments to increase purchases of American agricultural, energy and manufactured products are expected to be part of a final deal, and a person familiar with the talks said China would get about six years to meet those commitments, or until 2025.

The deadline was reported earlier by Bloomberg, but Trump administration officials previously said that a six-year timeline for purchases exceeding $1 trillion had been under discussion.

A final number for the amount of purchases has not been settled, the person said.

‘We’re not there yet’

Kudlow said Liu and his team would remain in Washington for three days and possibly longer.

“We’re covering issues that have never really been covered before, including enforcement,” Kudlow said, listing U.S. accusations that Beijing engages in intellectual property theft, forced transfer of technology from U.S. companies doing business in China, cyber hacking, tariffs and non-tariff barriers for commodity trading.

“All making good progress, all making good headway, but we’re not there yet,” he said about those areas. “We hope this week to get closer.”

Kudlow said it was significant that China had “acknowledged these problems for the first time. They were in denial.”

Those structural issues along with the way a potential deal would be enforced have been sticking points during months of talks between the world’s two largest economies.

Kudlow said on Wednesday that U.S. charges against Chinese telecommunications giant Huawei Technologies Co Ltd had generally not come up during trade talks.

Kudlow also said no decisions had been made on tariffs on auto imports coming from top U.S. allies.



Source link

Former Nissan chairman Carlos Ghosn arrested again in Tokyo

Former Nissan chairman Carlos Ghosn arrested again in Tokyo


Tokyo prosecutors say the latest arrest of former Nissan chairman Carlos Ghosn was based on suspicion he diverted $5 million US from funds that were being relayed from a Nissan subsidiary to an overseas dealership.

TV footage Thursday morning showed officials entering Ghosn’s apartment, and a car later going to the prosecutors’ office, barely a month after Ghosn was released on bail from the earlier arrests related to alleged financial misconduct while he led the Japanese automaker.

In a statement Ghosn strongly declared his innocence.

“My arrest this morning is outrageous and arbitrary. It is part of another attempt by some individuals at Nissan to silence me by misleading the prosecutors. Why arrest me except to try to break me? I will not be broken. I am innocent of the groundless charges and accusations against me.”

He was first arrested in November on charges of under-reporting his compensation.

The prosecutors said the diverted money is suspected of going to a company Ghosn virtually ran. The statement issued Thursday did not mention Oman. But an investigation by Nissan Motor Co.’s French alliance partner Renault has centered on payments to a dealership in Oman in which some of the money is suspected of having been channeled for Ghosn’s personal use.



Source link

LNG Canada could approve expansion before natural gas export facility is complete

LNG Canada could approve expansion before natural gas export facility is complete


One of the most expensive energy projects in Canada could soon get larger.

Construction ramped up this month on LNG Canada’s massive natural gas export facility in northern B.C., but the consortium is now talking about possible expansion.

LNG Canada is a consortium of companies led by Shell Canada and includes Petronas, PetroChina, KOGAS and Mitsubishi Corporation. The project includes a pipeline across B.C., a port and terminal that liquifies the gas so it can be transported on tankers. The potential price tag of the entire project has been estimated to be upwards of $40 billion.

Chief executive Andy Calitz spoke confidently of how it’s likely just a matter of time before the ownership group commits to an expansion of the Kitimat site. A decision on making the investment could happen before the initial five-year construction project is finished.

A 34,000-tonne heavy lift vessel carrying barges for LNG Canada is completing pre-construction work in Kitimat harbour, to prepare the existing port for larger vessels once the new $40-billion natural gas export facility is constructed. (Youtube/LNG Canada)

“The five joint venturers now have probably two main considerations in their head as to when they go ahead with [the final investment decision] on the expansion trains,” said Calitz, referring to the system of compressors that turn the natural gas into a liquid. “The first one is, what is the market doing? What is the market doing globally in terms of Korea, Japan and China, South Asia and India?”

The other consideration is whether construction of the initial facility and pipeline are on schedule and on budget. 

Positive for beleaguered sector

The pipeline, which had faced a blockade from a group of Indigenous hereditary chiefs, is being built by a subsidiary of TransCanada. Calitz said construction is underway on the pipeline in the area where the blockade occurred.

Calitz said he has no doubts the pipeline and export facility will be completed. 

“Right now, the focus of the team is to make sure that we give them that confidence [to move ahead],” said Calitz, commenting on efforts to keep the construction on schedule.

LNG Canada is a joint venture of Shell, Petronas, PetroChina, KOGAS and Mitsubishi Corporation. (Submitted by LNG Canada)

Any talk of an expansion is positive for the beleaguered natural gas sector. It has suffered from poor commodity prices for much of the last decade. The additional spending by LNG Canada would also be noteworthy, considering the decline of investment in Western Canada’s energy sector since the oil price crash in 2014.

“I’m surprised they’re talking about [the expansion], but I’m not surprised that they see the potential for it,” said Kevin Birn, an analyst with IHS Markit.

‘They win in terms of scale’

Birn pointed to the growing demand in Asia, the plethora of natural gas in Western Canada, and the relatively close geography of Canada and Asia as reasons the project likely makes financial sense.

“They win in terms of scale,” he said about the possible expansion. “And you have that resource potential that is so large there. It’s not a question about whether they can supply that expansion.”

The joint venture partners will look at construction progress of the initial facility and pipeline. 1:02

Calitz didn’t want to speculate about the cost of the expansion. But he said there would be many cost savings compared to the initial facility, including the fact there would be no need to repeat the costly expense of site preparation.

“The joint venturers see a very competitive export project for the second phase,” said Calitz, who made the remarks to journalists in Houston at CERAWeek, an annual global energy forum.

Outstanding dispute over import tariffs

One outstanding issue for LNG Canada is the continued dispute over import tariffs for fabricated industrial steel within the Chinese modules used for the project.

LNG Canada has argued it cannot afford to wait years to see whether Canadian manufacturers can construct the large LNG modules it needs. However, industry stakeholders such as the Canadian Institute of Steel Construction want Ottawa to maintain the border duties.

LNG Canada has launched a judicial review of the import tariffs. The partner companies decided to go ahead with the project despite the outstanding issue and the potential costs associated with it. 

When asked if the dispute with Canada Border Services Agency has been resolved, Calitz took a long pause before answering, “Not fully.”

From 2 trains to 4

LNG facilities are comprised of a system of compressors known as trains. The LNG Canada facility under construction will have two trains, and Calitz said the expansion would be for an additional two trains.

LNG Canada already has all the environmental permits for four trains, in addition to an export licence to operate all four trains for the next 40 years.

 “So, many things [are] very positively in place,” he said.



Source link

Labour code issues flagged in fatal CP Rail accident in Calgary

Labour code issues flagged in fatal CP Rail accident in Calgary


Documents show a federal investigator flagged labour code contraventions after a Canadian Pacific Railway train conductor died in a workplace accident in a Calgary rail yard last November.

A Transport Canada rail safety inspector, delegated by Alberta’s labour minister, raised the issues in a letter Friday to the railway’s assistant vice-president of safety.

A written directive attached to the letter, obtained by The Canadian Press, raises concerns over the company failing to identify and assess hazards to employees resulting from increased switching in the rail yard.

Another directive says the railway failed to secure and maintain the accident scene, and removed, interfered with and disturbed wreckage and other things without authorization.

Fix issues, company told

A spokeswoman for Employment and Social Development Canada declined to comment on the specifics of the investigation because it is ongoing.

Canadian Pacific did not immediately provide comment.

The documents say the railway has until March 8 to inform the inspector of measures taken to make sure the failure of maintaining the accident scene doesn’t happen again.

It has until March 22 to fix issues related to the safety of the rail yard. The company was also told it can request a review by the Occupational Health and Safety Tribunal Canada.

Federal officials are investigating a separate Canadian Pacific accident that killed a conductor, engineer and trainee earlier this month near Field, B.C., just west of the Alberta-British Columbia boundary.

A Transportation Safety Board investigator has said the westbound train was parked on a grade for two hours, with its air brakes applied, when it started rolling on its own.

The train sped up to well above the limit and derailed at a curve ahead of a bridge over the Kicking Horse River, sending 99 cars and two locomotives hurtling off the tracks.



Source link

Barrick makes $18B bid for Newmont to become world's biggest gold miner

Barrick makes $18B bid for Newmont to become world’s biggest gold miner


Barrick Gold Corp. has made a formal merger offer for rival Newmont Mining Corp. in an all-stock deal that would combine two of the world’s largest gold producers.

Barrick chief executive Mark Bristow said the proposed merger would unlock more than $7 billion of synergies due in large part to combining the companies’ assets in Nevada.

“Most important, it will enable us to consider our Nevada assets as one complex, which will result in better mine planning and fully realize the state’s enormous geological potential for all stakeholders,” he said in a statement.

Under the zero-premium proposal, Newmont shareholders would receive 2.5694 Barrick shares for each Newmont share they hold.

Based on the closing price at the Toronto Stock Exchange on Friday, the offer would be worth about $44 per Newmont share.

The Toronto-based Barrick said its shareholders would own 55.9 per cent of the combined company and the rest would be owned by shareholders of the Colorado-based Newmont.

Bristow said a Barrick-Newmont deal was “long overdue” and would be “far superior” to Newmont’s proposed acquisition of Goldcorp Inc.

“Considered globally, the merger represents a radical and long-overdue restructuring of the gold industry, and a transformative shift from short-term survival tactics to the long-term creation of sustainable value,” Bristow said.

The possibility of a deal with Newmont comes less than two months after Barrick completed its merger with Randgold Resources that saw Bristow, Randgold’s founder, become chief executive of the combined company.

Barrick said the combined company would match Newmont’s annual dividend of 56 cents per share which, based on the proposed exchange ratio, will represent a pro forma annual dividend of 22 cents per Barrick share compared with Barrick’s current annual dividend of 16 cents per share.



Source link

Consumer spending on track for worst year in decade, says National Bank

Consumer spending on track for worst year in decade, says National Bank


A slowing Canadian economy will result in consumer spending falling to its lowest level in a decade this year, according to a new report from the National Bank of Canada. 

Economists at the bank expect real consumption growth — which is calculated once the impact of inflation is stripped out — to hit 1.3 per cent in 2019, which would be the lowest since 2009 when it fell to 0.2 per cent amid the global financial crisis.

A combination of a softening housing market resulting in Canadians feeling less wealthy, pressure from higher interest rates and a low household savings rate will result in consumers spending less, according to National Bank.

“Part of the loss of momentum can be attributed to a softening housing market, which is not only restraining resales and home prices, but also hurting consumption spending via fading housing wealth effects,” Krishen Rangasamy, senior economist at National Bank, says in the report. 

Real retail spending in the fourth quarter “is on track for its worst quarterly performance since 2009,” Rangasamy says.

As a sign of things to come, retail sales data for November from Statistics Canada last month fell more than expected, by 0.9 per cent. 

Added to that, housing data from the country’s most expensive market, Vancouver, on Monday showed home sales in January fell to the lowest in a decade — plunging nearly 40 per cent.

Higher interest rates are also hurting the ability of households to spend, according to Rangasamy. The Bank of Canada has raised rates five times since mid-2017.

“Note that personal bankruptcies shot up last quarter in all of the country’s four largest provinces,” Rangasamy said. “Considering elevated household debt and a low savings rate, it’s difficult to imagine a scenario other than smaller and smaller contributions to GDP [gross domestic product] growth from consumption spending going forward.” 

Overall, National Bank predicts real consumption grew by 2.2 per cent last year, but it will slow to 1.3 per cent this year, and slow further to 1.2 per cent in 2020.

‘Not all bleak’

One of the actions that could interrupt the “concerning trend” in consumer spending, according to Rangasamy, is fiscal stimulus from the federal government to spur activity in the economy.

“Fiscal relief from the federal government, a distinct possibility given that we’re in an election year, could temporarily give a boost to households.”

A strong jobs market could also boost spending even though jobs will be created at a slower pace than last year, according to the bank.

Rangasamy said it’s not all “bleak” for consumers. “The Bank of Canada’s latest Business Outlook Survey, indeed, suggested firms were still willing to expand head count to address shortages in some areas.”

Jobs data on Friday is expected to show the economy added 5,000 jobs in January, according to a Bloomberg poll of economists. About 9,300 jobs were created in December, but that was later revised to 7,800 jobs, according to Statistics Canada.

However, the jobs data is known to be volatile. Economists at Toronto-Dominion Bank are expecting the economy last month will have added 15,000 jobs, while economists at the Bank of Montreal and National Bank forecast a loss of 5,000 jobs.



Source link

Google parent Alphabet boosts revenue 21%

Google parent Alphabet boosts revenue 21%


Google parent company Alphabet beat Wall Street expectations for its fourth quarter earnings Monday, but its stock slid in after-hours trading.

The company reported profit of $8.9 billion US on revenue of $39.3 billion.

Its revenue grew more than 21 per cent from $32.3 billion a year ago.

Analysts polled by FactSet were expecting earnings per share of $10.86, or a profit of $7.6 billion, on revenue of $38.9 billion. Earnings per share were actually $12.77.

Alphabet’s advertising commissions, or the money it pays other companies to direct people to its search, grew 14 per cent to $7.4 billion from $6.5 billion a year ago.

Alphabet’s stock price dropped roughly three per cent despite the beat in after-market trading Monday.

Investors may fear internet advertising is saturated. Google is facing new pressure in digital advertising from Amazon and other players and has dropped its price per click — the amount it charges advertisers — to stay competitive.

Google continues to grow its cloud business and hardware sales, which brought in $6.49 billion during the quarter.

Other businesses, such as health venture Verily and self-driving start-up Waymo, were more disappointing at $154 million in revenue.

Alphabet shares have climbed nine per cent since the beginning of the year, while the Standard & Poor’s 500 index has risen roughly nine per cent. In the final minutes of trading on Monday, shares hit $1,141.42, a rise of two per cent in the last 12 months.



Source link

Page 3 of 4

Powered by WordPress & Theme by Anders Norén