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Top headlines: Jays' owner Rogers better off for missing out on Ohtani, economist says Back to video

• ‘A decade of free money’ is why the price of gold has continued to rise, says Mark Bristow
• Indigenous advisory council for CN resigns, saying railway ‘missed the mark’ on reconciliation
• Windsor lands another big battery supply chain investment
• Vince Tyra to become Gildan CEO after Glenn Chamandy says he was terminated

5:20 p.m.

Rogers selling all its Cogeco shares to Caisse for $829 million

Rogers Communications Inc. says it is selling all of its shares in Cogeco Inc. to Caisse de depot et placement du Quebec for $829 million in a move to reduce its debt leverage ratio.

The Toronto-based telecommunications company says it is now six months ahead of its deleveraging plans and expects to achieve a debt leverage ratio of 4.7x by year end, down from 4.9x at the end of the third quarter.

Cogeco says the Caisse will become an anchor investor in its cable and internet subsidiary Cogeco Communications Inc.

Chief executive Philippe Jette says the transaction is “a unique opportunity … to realize multiple benefits while ensuring we have the ability to deliver our strategic plan.”

Caisse executive vice-president Kim Thomassin calls the share purchase “key for the company and its plan to develop the North American market,” adding the fund “is supporting the growth projects of this leading telecommunications company as connectivity needs continue to grow.”

The Caisse, a global investment group managing funds for public pension and insurance plans, had net assets totalling $424 billion as of June 30.

The Canadian Press

4:46 p.m.

Creditors approve Metroland restructuring proposal following job cuts

Creditors of Metroland Media Group have voted to approve the company’s restructuring proposal after the newspaper chain announced cuts to 60 per cent of its workforce earlier this year.

Spokesman Bob Hepburn says the proposal, which was approved Monday, reflects input from stakeholders, including better protections for former employees.

In September, Metroland announced the move to a digital-only model and an end to its flyer business as it revealed it would seek protection and attempt a restructuring under the Bankruptcy and Insolvency Act.

It said at the time the cuts and restructuring would mean the loss of 605 jobs, following “unsustainable financial losses stemming from the changing preferences of consumers and advertisers.”

Hepburn says there are still remaining steps that must take place before implementing the approved plan, but “we are hopeful that Metroland will soon emerge from these proceedings into the next chapter of the business, allowing it to continue providing crucial journalism to communities across Ontario.”

Staff at Metroland’s six daily newspapers — the Hamilton Spectator, Peterborough Examiner, St. Catharines Standard, Niagara Falls Review, Welland Tribune, and the Waterloo Region Record — will not be affected, nor will those at the Toronto Star, one of Metroland parent company’s NordStar Capital Inc.’s papers.

The Canadian Press

4:38 p.m.

Market close: TSX down slightly as U.S. stock markets rise

Canada’s main stock index closed slightly lower as losses in resource stocks offset gains in financials, while U.S. stock markets rose.

The S&P/TSX composite index closed down 13.18 points at 20,318.36.

In New York, the Dow Jones industrial average ended up 157.06 points at 36,404.93. The S&P 500 index was up 18.07 points at 4,622.44, while the Nasdaq composite was up 28.51 points at 14,432.49.

The Canadian dollar traded for 73.69 cents U.S. compared with 73.59 cents U.S. on Friday.

The January crude contract was up nine cents at US$71.32 per barrel and the January natural gas contract was down 15 cents at US$2.43 per mmBTU.

The February gold contract was down US$20.80 at US$1,993.70 an ounce and the March copper contract was down five cents at US$3.78 a pound.

The Canadian Press

4:26 p.m.

Coastal GasLink seeking $1.2 billion in cost recoveries from contractor

The company behind the Coastal GasLink pipeline is pursuing $1.2 billion in cost recoveries from one of its contractors.

TC Energy Corp. terminated a contract with Pacific Atlantic Pipeline Construction last year, alleging poor performance. The company was one of the main contractors involved in the building of Coastal GasLink.

The 670-kilometre pipeline was completed in October, but its construction was plagued with difficulties including challenging terrain, bad weather, the COVID-19 pandemic and protests by environmental and Indigenous groups.

By the time the pipeline was finished, its estimated construction cost had ballooned from $6.6 billion to $14.5 billion.

TC Energy says Coastal GasLink is committed to enforcing its contractual rights and is actively pursuing cost recoveries.

The dispute between Coastal GasLink and its contractor is currently before an Alberta court.

The Canadian Press

2:02 p.m.

Corporate watchdog opens probe against Guess over possible Uyghur forced labour

Canada’s corporate watchdog is launching a probe against the company Guess Inc. over possible ties to Uyghur forced labour in China.

The ombudsperson for responsible enterprise, Sheri Meyerhoffer, says the company has not done enough to prove that it has no supply relationships with Chinese companies that source materials from factories that employ people being forced to work.

Guess disputes this claim, arguing Meyerhoffer lacks credible evidence and that the three Chinese companies she names are not part of its supplier list.

Meyerhoffer says Guess has also argued she doesn’t have jurisdiction to look into the matter, as the Canadian subsidiary is not involved in the work that occurs abroad.

“While Guess has provided information on their due diligence policies, they have not responded to the complaint, which is why we will proceed to an investigation,” Meyerhoffer wrote in a news release. “Guess Canada’s response does not fully address the complex nature of the garment supply chain.”

Her report notes that Guess Canada has asked that part of the information it provided to her office be kept confidential and not given to the people who launched the complaint, which are mostly Uyghur advocacy groups.

Yet Meyerhoffer says the company did not specify when asked what parts of some documents it provided should be kept private, and so her report leaves out the specifics of Guess Canada’s response.

Related: Canada watchdog to probe complaints against Nike, Dynasty Gold on use of Uyghur forced labour

The Canadian Press

12:57 p.m.

Jays’ owner Rogers better off for missing out on Ohtani, economist says

While baseball star Shohei Ohtani’s decision not to sign with the Toronto Blue Jays over the weekend has left fans wondering what might have been, one sports economist says team owner Rogers Communications Inc. is better off for having struck out.

Ohtani said Saturday he’d be signing with the Los Angeles Dodgers, with reports indicating his deal is worth a record US$700 million over 10 years, after a courtship process in which the Blue Jays were among the final suitors.

Off the field, some who study the business of sport were bullish on the potential payoff of such a deal for Rogers, saying the increased sales of tickets and merchandise could justify his salary.

But Concordia University’s Moshe Lander says that despite all the hype, Rogers dodged a bullet and that some of the potential boons for the company were overplayed.

While the company could have raked in added revenue through advertising, especially given Ohtani’s significant following in his native Japan, he says that wouldn’t have been enough to offset the massive financial commitment for one player.

Others say Ohtani’s presence in Canada would have opened new doors for Rogers due to the level of global attention he receives as a unique two-way pitching and hitting threat when healthy.

The Canadian Press

Noon

Midday markets: U.S. traders hold back ahead of key data, TSX down

Traders are refraining from big bets ahead of key economic data and meetings from major central banks that will test the market’s optimism on rate cuts in 2024.

In less than 24 hours, Wall Street will get a sense on whether the disinflation trend is continuing, with the consumer price index for November. The report will be released a day before the last scheduled United States Federal Reserve decision of 2023, with officials widely expected to hold rates and announce their Summary of Economic Projections. The question is whether the Fed will try to temper policy easing expectations after investors aggressive dovish repricing.

“A lacklustre start to the week, but there’s so much to come over the next few days — which could determine how markets end the year and start 2024,” said Craig Erlam at Oanda. “The Fed decision on Wednesday is unlikely to be controversial, but the forecasts, dot plot and press conference that accompany it may well be.”

Growing speculation that the Fed is done hiking rates and will start easing policy by mid-2024 recently fuelled a sharp drop in Treasury yields while rekindling investors’ risk appetite. The S&P 500 has added roughly US$4 trillion in market value since late October.

On Wall Street, the S&P 500 was up 0.09 per cent at 4,608.59. The Dow Jones Industrial Average was up 0.17 per cent at 36,309.45 while the Nasdaq composite was down 0.15 per cent 14,383.46.

In Toronto, the S&P/TSX composite index was down 0.17 per cent at 20,297.92 as losses in base metal, utility and energy stocks helped lead the way lower.

Read more.

Bloomberg, The Canadian Press

10:43 a.m.

Indigenous advisory council for CN resigns, says railway won’t take responsibility

A council of prominent Indigenous leaders tasked with advising Canadian National Railway Co. says all of its 12 members have submitted resignations, effective at the end of the year.

The group says the mass resignations are due to the company’s failure to acknowledge past wrongs and follow its recommendations for reconciliation.

The council’s co-chairs are Murray Sinclair, a former senator and head of the Truth and Reconciliation Commission, and Roberta Jamieson, the first female First Nations lawyer in Canada.

Sinclair and Jamieson say the 104-year-old railway company “missed the mark” on reconciliation and must accept its past, take action and commit to change by Indigenous-led business leaders.

The co-chairs say in a statement that CN is in a distinct category from other corporations when it comes to reconciliation because of the role railways played in the oppression of Indigenous peoples in early Canadian history.

CN is expected to put out a response today, but did not comment immediately on the resignations.

Read the full story Indigenous advisory council for CN resigns, saying railway ‘missed the mark’ on reconciliation.

The Canadian Press

10:33 a.m.

TD names new head of Canadian personal banking

TD Bank Group has named Ray Chun as its new group head for Canadian personal banking.

The move came after the bank announced that Michael Rhodes, who had held the job, was leaving TD to pursue an opportunity at another organization.

TD chief executive Bharat Masrani says Chun is a proven leader with a strong track record.

Chun, who joined TD in 1992, was most recently the bank’s group head for wealth management and insurance.

Tim Wiggan was appointed group head for wealth management and insurance.

He was vice-chair and co-head of global investment banking at TD Securities.

The Canadian Press

10:21 a.m.

Markets open: Stocks start week on cautious note in big week for global rate decisions

Stocks kicked off the week on a cautious note, with traders refraining from big bets ahead of key economic data and meetings from major central banks that will test the market’s optimism on rate cuts in 2024.

In less than 24 hours, Wall Street will get a sense on whether the disinflation trend is continuing, with the consumer price index for November. The report will be released a day before the last scheduled United States Federal Reserve decision of 2023, with officials widely expected to hold rates and announce their Summary of Economic Projections. The question is whether the Fed will try to temper policy easing expectations after investors aggressive dovish repricing.

To Greg Marcus at UBS Private Wealth Management, the stock market’s recent strength is largely based on expectations of a soft landing and rates coming down in 2024. While this soft landing scenario is entirely possible, it is not certain. The Fed is likely to start cutting interest rates sometime next year, but that may be because the economy is slowing and potentially contracting, in which case markets would look different than they do now, he noted.

“We expect to see another interest rate pause from the Federal Reserve on Wednesday, which would be an acknowledgement that inflation is coming down,” Marcus added. “We expect the Fed to downplay the possibility of rate cuts in 2024.”

On Wall Street, the S&P 500 was up 0.03 per cent to 4,605.47. The Dow Jones Industrial Average was up 0.12 per cent at 36,286.06 while the Nasdaq composite was down 0.30 per cent at 14,359.22.

In Toronto, the S&P/TSX composite index was down 0.39 per cent at 20,253.10 led by declines in the energy, materials and utilities sectors.

Bloomberg

9:54 a.m.

Gildan names new CEO, former head and co-founder out

Gildan Activewear Inc. says it has named Vince Tyra as its next chief executive, replacing Glenn Chamandy in the top job.

In a separate statement, Chamandy, a co-founder of the company, says he was terminated without cause after four decades with Gildan including nearly 20 as president and chief executive.

Tyra will start with Gildan effective Feb. 12.

Craig Leavitt, a Gildan director since 2018, will serve as interim chief executive until Tyra is in place.

Tyra is a former chief executive of clothing company Alphabroder and was president of Fruit of the Loom before it was sold to Berkshire Hathaway.

He was also director of intercollegiate athletics at the University of Louisville.

Read the full story Vince Tyra to become Gildan CEO after Glenn Chamandy says he was terminated.

The Canadian Press

8:45 a.m.

BlackBerry names new CEO, calls off Internet of Things IPO

BlackBerry Ltd. has promoted John Giamatteo to the job of chief executive and called off plans for an initial public offering of its Internet of Things business, but still plans to split its operations.

Giamatteo, who was president of BlackBerry’s cybersecurity business unit, takes over the job after the retirement of John Chen as chief executive and executive chairman earlier this year.

Richard Lynch, who has served as interim chief executive since Nov. 4, will continue as board chair.

The company also said it will no longer pursue a subsidiary initial public offering of its Internet of Things business unit. Instead, BlackBerry said the board has decided to establish its Internet of Things and cybersecurity businesses as stand-alone divisions.

It said the plan includes the separation and streamlining of its centralized corporate functions into business-unit specific teams, with a view to each division operating independently.

“The board, with input from its advisers, believes that a full separation of BlackBerry’s IoT and cybersecurity businesses will open up a number of strategic alternatives that can unlock shareholder value,” Lynch said in a statement.

“Management is focused on moving quickly to complete this reorganization that will further enhance the focus of both businesses on their respective markets as well as their capacity for fast, flexible decision-making.”

Read the full story here.

The Canadian Press

8 a.m.

Manulife plans to buy back $1.2 billion in shares after reinsurance deal

Manulife Financial Corp. has signed a reinsurance deal with Global Atlantic that it says will free up $1.2 billion in capital that it plans to use to buy back shares.

The Toronto-based insurer said it is reinsuring $13 billion of reserves to Global Atlantic and its partners, including $6 billion in long-term care reserves. It is Manulife’s third deal with Global Atlantic.

Manulife said the deal is expected to release $1.2 billion of capital that it plans return to shareholders via share buybacks.

Manulife chief executive Roy Gori called the agreement a major milestone for the company as it reshapes its portfolio, reduces risk and delivers value to shareholders.

Manulife said it has received approval from the Office of the Superintendent of Financial Institutions to buy back up to about 2.8 per cent of its outstanding common shares starting in February.

The share repurchase plan remains subject to the approval of the Toronto Stock Exchange.

The Canadian Press

7:30 a.m.

Canada announces credit plan to tackle methane emissions from cow burps

Canada announced a plan to encourage farmers to reduce emissions from cattle through a credit trading system, the latest climate-change initiative introduced by Prime Minister Justin Trudeau’s government.

The Reducing Enteric Methane Emissions from Beef Cattle proposal would grant farmers who reduce methane emissions generated by cow burps to earn credits that can be sold to other businesses to meet their own emission targets.

Each credit would represent a metric tonne of emissions and would be met by improving diets, management and using other strategies to support “more efficient animal growth,” Environment and Climate Change Canada said in a release.

The initiative, announced during COP28 currently happening in Dubai, is the latest introduced by Canada during the climate conference, including last week’s proposed emissions cap on the country’s important oil and gas sector. About 10 per cent of Canada’s greenhouse gas emissions are from crop and livestock production, excluding emissions from the use of fossil fuels or from fertilizer production.

Robert Tuttle, Bloomberg

Stock markets before the opening bell

Global equities posted modest moves at the start of a busy week of economic data and central bank meetings that will test optimism among investors that interest rates will soon head lower.

United States futures contracts fell less than 0.2 per cent. Europe’s Stoxx 600 index edged lower.

The S&P/TSX composite index closed 130.49 points at 36,247.87 on Friday.

Bloomberg

What to watch today

Representatives from Amnesty International and the Wet’suwet’en Nation will outline the findings of a new research report on intimidation, harassment and criminalization of Wet’suwet’en land defenders opposed to the construction of the Coastal GasLink pipeline in Vancouver.

Oracle Corp. will report earnings today.

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

Additional reporting by The Canadian Press, Associated Press and Bloomberg

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