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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.
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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 here.
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.
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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.
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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
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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.
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.
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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
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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.
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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.
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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.
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Additional reporting by The Canadian Press, Associated Press and Bloomberg
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2023-12-11 15:56:15Z
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