U.S. stock markets started the month higher as the price of gold briefly surpassed US$2,000 an ounce.
In New York, the Dow Jones industrial average was up 118.61 points at 26,546.93. The S&P 500 index was up 18.14 points at 3,289.26, while the Nasdaq composite was up 113.36 points at 10,856.90.
The S&P/TSX composite index was closed due to the Civic Holiday in many provinces.
The Canadian dollar traded for 74.44 US compared with 74.60 on Friday.
The September crude contract was up 17 cents at US$40.44 per barrel and the September natural gas contract was 15.3 cents at US$1.95 per mmBTU.
The December gold contract, which had the highest trading volume, was down US$3.20 at US$1,982.70 an ounce after peaking at US$2,009.50. The September copper contract was up 4.15 cents at nearly US$2.91 a pound.
It’s a holiday Monday today but as a civic instead of a statutory holiday, it will be business as usual for some.
While government offices and banks will be closed, large retail stores like Walmart, Giant Tiger, and grocery stores will be open, but could be on reduced hours. Drug stores will be open.
The Quinte Mall will be open from 10 until 6 today.
LCBO outlets will be closed today, while the Beer Store on Station Street in Belleville will be open as will the Beer Store in Trenton.
A private survey of manufacturing activity rose to 52.8 in July, up from June's 51.2 as factories in the country picked up new orders. That's the quickest rate since January 2011. The Caixin/Markit manufacturing Purchasing Managers' Index beat market estimates and marked a third straight month the index remained above 50, the level that separates expansion from contraction.
The survey was the latest sign of improvement in China. The economy returned to growth last quarter after recording its worst three-month period in decades. And the country's official PMI survey released Friday — which mainly covers larger business and state-owned firms — indicated a fifth consecutive month of expansion for the sector. (The Caixin poll is more focused on small and medium-sized companies.)
Stimulus measures in China have "paved the way for a period of above-trend growth in construction and industry," wrote Julian Evans-Pritchard, senior China economist for Capital Economics, in a Monday research note. China promised in May it would throw 3.6 trillion yuan (roughly $500 billion) at its economy in extra stimulus measures, including allowing local governments to issue morebonds to build 5G networks, railways, and other infrastructure projects.
Evans-Pritchard added that the strength in manufacturing could offset struggles in other areas, including the services industry.
Despite the growth, Caixin's survey revealed some weak spots. New export orders contracted for a seventh straight month as the coronavirus weighs on overseas demand.The labor market is also under strain, as firmsmaintaina cautious approach to hiring.
"We caution that manufacturing PMIs could moderate in coming months as recovery momentum softens across the world due to the protracted Covid-19 pandemic," Nomura analystswrote in a Monday research note.
TheNomura analysts cautioned that the Chineseeconomy still faces many challenges. It has still proven tough for Beijing to convince people to spend money again. And rising US-China tensions could hit both exports and manufacturing investment.
"We believe it is still too early for Beijing to unwind or roll back the easing and stimulus measures it introduced" in the first half, they said, adding, though, that Beijing might be reluctant to roll out more stimulus in the second half of the year.
Beijing has recently indicated that it may continue to focus on boosting demand at home. "Domestic circulation" as the maindriver of future growth was the emphasis at a policy meeting last week held by the Politburo, the Communist Party's top decision-making body.
(Bloomberg) -- Seven & i Holdings Co., the world’s largest convenience-store franchiser, agreed to buy Marathon Petroleum Corp.’s Speedway gas stations for $21 billion, betting that an expanded U.S. footprint will deliver growth amid the uncertainty of the pandemic.
The transaction, to be paid in cash and partly financed using debt, will add about 3,900 stores to 9,800 locations operated by the retailer’s U.S.-based 7-Eleven unit, the Tokyo-based company said in a statement Monday.
Seven & i shares fell as much as 8.4% by midday, the biggest intraday decline since March. Marathon rose 20% before regular U.S. trading hours.
The deal is the second-largest purchase of a U.S. target this year and the biggest yet for Seven & i, a retail giant with 69,000 stores worldwide including 7-Eleven outlets and Ito-Yokado supermarkets in Japan. Seven & i spent $3.3 billion three years ago to buy Sunoco LP gas stations and convenience stores in a push to expand its U.S. footprint.
“This is a historic first step as we seek to become a global retailer,” Chief Executive Officer Ryuichi Isaka said on a conference call Monday.
Marathon follows a long line of energy companies that are shedding retail networks to focus on making fuel. The deal, the biggest in the oil sector since the coronavirus outbreak, comes as retailers look to shift their focus amid the coronavirus pandemic, which has further upended a sector already being impacted by the onset of e-commerce. Marathon said it will use $16.5 billion in after-tax proceeds to reduce debt and bolster dividend payments.
The Japanese retailer was seeking a deal earlier this year to buy Speedway, the second-largest chain of its kind in the U.S., but hit pause after offering $22 billion, Bloomberg News has reported.
Isaka has overseen a broad restructuring of the Japanese firm since taking the helm in 2016, with a focus on expanding in the U.S. Seven & i has been pressured by a saturated convenience store market in Japan and a tight labor market that makes its 24-7 operating model challenging.
“Japan’s convenience store market is at its limit as the population ages,” said Hiroaki Watanabe, a logistics analyst and author of a book on Japan’s convenience store industry. “There will be a short-term impact from the coronavirus in the U.S., but long-term the population there will keep growing.”
North America accounted for about 40% of Seven & i’s sales in the latest fiscal year, up from about a third five years ago. Speedway’s store count has tripled since 2011 across 36 states.
Investor Pressure
Late last year, Marathon faced months of pressure from investors including Elliott Management Corp. and D.E. Shaw & Co. for sweeping changes to improve its performance. Elliott had been pushing for Marathon to break itself up into three separate businesses: refining, retail and pipelines.
The company wrapped up a strategic review of MPLX LP, its publicly traded oil pipeline affiliate, ultimately deciding to retain its stake in the midstream business. Investor pressure also led to Gary Heminger stepping down as CEO in March after 45 years at the company.
American fuel makers like Marathon have been struggling to recover amid fears that a second viral wave will force more drivers off the road, particularly in some of the nation’s most populous states.
Seven & i will raise about $1 billion by selling off overlapping U.S. stores after the transaction, Isaka said on the call.
Marathon took a $12.4 billion charge in the first three months of this year while also suspending share buybacks and slashing spending by 30%.
In terms of scale, the proposed deal is less than the $31.4 billion that Aon Plc is paying for Willis Towers Watson Plc, according to data compiled by Bloomberg.
(Updates with shares in third paragraph)
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A winter travel escape may not be top-of-mind during a world-wide pandemic, but the island state of Hawaii says Canadians will be welcomed without quarantine measures starting Sept. 1, 2020.
Hawaii imposed a mandatory 14-day quarantine for all out-of-state travellers at the onset of the pandemic, but the state's Department of Transportation says it will soon be open to "all trans-Pacific travelers."
"Travelers arriving in Hawaii from out-of-state will have the option to get a valid COVID-19 test prior to their arrival, and show proof of a negative test result, to avoid the 14-day quarantine," read a statement from the Department of Transportation.
The test must be taken within 72 hours of boarding a flight to Hawaii.
"That's going to make a lot of Canadians happy," said Len Saunders, an immigration lawyer in Blaine, Washington.
Canadian airline carriers will resume non-stop flights from Vancouver to Hawaii beginning in September. (Westjet.com)
Without evidence of a negative test result, passengers will be subject to the quarantine, according to Hawaii's Department of Transportation.
Air travel not restricted
Land borders between the U.S. and Canada have been closed to non-essential travel since March 21, but air travel has not been restricted for Canadians going into the U.S.
"A lot of Canadians don't know they are allowed to travel by air to the United States," said Montreal-based travel expert Ricky Zhang.
"That loophole has remained," said Saunders. "I don't think you're going to see that change."
Airlines resume flights
Meanwhile, Canadian airlines have been preparing to reopen routes to Hawaii. Westjet is set to resume its non-stop flights from Vancouver to Hawaiian destinations on Sept. 5, and Air Canada will follow suit on Sept. 8.
According to the state's Department of Health, Hawaii, with a total population of 1.4 million people, has so far recorded 2111 confirmed cases of COVID-19 up to July 31, with 26 deaths.
It's the only state in the U.S. that implemented a mandatory quarantine at the beginning of the pandemic. Saunders says quarantines were voluntary in all other states.
The lifting of Hawaii's 14-day quarantine requirement was planned for August, but Gov. David Ige delayed due to a rise in confirmed cases on the mainland.
The process of finalizing the requirements of entry will be determined "in the coming weeks," according to the Department of Transportation.
"The September 1 date is still tentative and subject to evaluation," said Zhang.
"It is a risk that they are taking and that Canadians are taking should they choose to travel to Hawaii," he added.
Travel insurance returns
At least one Canadian insurer, however, has reinstated medical coverage for COVID-19.
"We understand that our clients have concerns about medical insurance coverage for COVID-19," states Medipac's Travel Insurance website, which sells travel medical insurance to the Canadian Snowbird Association and the Royal Canadian Legion.
The company website says that "Early Bird Travel Insurance is now available and includes coverage for COVID-19," while adding that pre-existing condition clauses and other policy terms and conditions will continue to apply.
Zhang said Canadians can also consider purchasing travel insurance from U.S. providers.
Pre-testing in Canada
"This whole pre-testing thing is something the Canadian government may want to consider," said Saunders. "Because if it works well in Hawaii — with its huge tourist base — why can't it work for Canada?"
The BC Centre for Disease Control suggests people with cold, influenza or even mild COVID-19-like symptoms should be tested, but its website also says "anyone can get tested."
Canadians returning from Hawaii will still be subject to mandatory self-isolation upon their return.
Microsoft said on Sunday that it would continue discussions to acquire popular short-video app TikTok from Chinese internet giant ByteDance, and that it was aiming to conclude the negotiations by Sept. 15.
The company made the statement following a conversation between its CEO Satya Nadella and U.S. President Donald Trump. It said it would ensure that all private data of TikTok's American users is transferred to and remains in the United States.
"Microsoft fully appreciates the importance of addressing the President's concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury," Microsoft said in a statement.
The company said there was no certainty a deal — which would also see Microsoft own and operate the app in Canada, Australia, and New Zealand — would be reached.
TikTok's catchy videos and ease of use has made it popular, and it says it has tens of millions of users in the U.S. and hundreds of millions globally. (AFP via Getty Images)
Secretary of State Mike Pompeo said Sunday the Trump administration sees as a broad array of national security risks presented by software connected to the Chinese Communist Party.
"These Chinese software companies doing business in the United States, whether it's TikTok or WeChat — there are countless more ... are feeding data directly to the Chinese Communist Party, their national security apparatus," Pompeo said on Fox News Channel's Sunday Morning Futures.
"[It] could be their facial recognition patterns. It could be information about their residence, their phone numbers, their friends, who they're connected to. Those — those are the issues that President Trump has made clear we're going to take care of," he said.
TikTok's U.S. user data is stored in the U.S., with strict controls on employee access, and its biggest investors come from the U.S., the company said Sunday.
"We are committed to protecting our users' privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform," a TikTok spokesperson said.
A message to the TikTok community. <a href="https://t.co/UD3TR2HfEf">pic.twitter.com/UD3TR2HfEf</a>
A federal committee is reviewing whether that's possible, and its members agree that TikTok cannot remain in the U.S. in its current form because it "risks sending back information on 100 million Americans," said Treasury Secretary Steven Mnuchin.
"We all agree there has to be a change ... everybody agrees it can't exist as it does," Mnuchin said Sunday on ABC's This Week.
Row mirrors Huawei, ZTE spat
As speculation grew over a ban or sale of the social media's U.S. business, TikTok posted a video on Saturday saying: "We're not planning on going anywhere."
TikTok's catchy videos and ease of use has made it popular, and it says it has tens of millions of users in the U.S. and hundreds of millions globally. Its parent company, Bytedance Ltd., launched TikTok in 2017. It bought Musical.ly, a video service popular with teens in the U.S. and Europe, and combined the two. It has a similar service, Douyin, for users in China.
But TikTok's Chinese ownership has raised concern about the potential for sharing user data with Chinese officials as well as censorship of videos critical of the Chinese government. TikTok says it does not censor videos and it would not give the Chinese government access to U.S. user data.
LISTEN | Understanding TikTok:
This week, TikTok was in the news for pulling a video critical of China's mass detention of Uighurs. Most of the popular Chinese-owned social media app's users are children and teens who share lip-syncing videos, dance crazes and comedy skits. But in today's episode, Alex Hern, technology editor at the Guardian, explains why — behind the memes and music — there are some real concerns about censorship, privacy and foreign influence. 23:48
"The President, when he makes his decision, will make sure that everything we have done drives us as close to zero risk for the American people," Pompeo said. "That's the mission set that he laid out for all of us when we get — we began to evaluate this now several months back. We're closing in on a solution. And I think you will see the president's announcement shortly."
The debate over TikTok parallels a broader U.S. security crackdown on Chinese companies, including telecom providers Huawei and ZTE. The Trump administration has ordered that the U.S. stop buying equipment from those providers to be used in U.S. networks. Trump has also tried to steer allies away from Huawei over concerns that the Chinese government has access to its data, which Huawei denies.
A part-time server at a Smitty's location in Steinbach, Man., has tested positive for COVID-19, according to the president of the company.
The server's last shift at the location on Park Road was on Monday, but her test results came back positive on Saturday night, said Jim Weidinger, the president of Smitty's Canada.
"Our team have all been directed to be tested immediately and we have arranged for a professional deep clean and disinfection this coming Tuesday," he said in an emailed statement to CBC News.
"We will not open our doors until we have completely cleared the restaurant and our team have all been cleared."
Weidinger said the staff member who tested positive had been in self-isolation prior to receiving her test results because a family member had tested positive for COVID-19. The server is currently asymptomatic, he said.
On Sunday, 18 new cases were announced in Manitoba, marking the highest single-day jump in cases since early April.
Weidinger said Smitty's Canada has strict policies in all restaurants that "meet or exceed government expectations," including monitoring staff members' temperatures, hand washing, disinfecting buildings every night and cleaning high-touch areas every half hour.
He says one of the ways it's exceeding government protocols is its newest rule, which is in place at Smitty's restaurants across Canada.
"Effective immediately we have also implemented mandatory masks on all team members even though [Manitoba] provincial guidelines do not require it currently," he said.
"We take the safety of our team and guests very seriously and will continue to manage in accordance with the strictest of guidelines."
CBC News reached out to Smitty's in Steinbach, which is about 50 kilometres southeast of Winnipeg and is overseen by the Southern Heath region, but the manager deferred comment to Smitty's Canada.
They said in a Facebook post to customers that they wish the server a continued asymptomatic recovery and pledged support.
"To our loyal guests — we hope to welcome you back again when it is safe to do so. We appreciate your patience and understanding," the Facebook post said.
A spokesperson from Manitoba Health said in an email to CBC News that if there's a concern about a possible risk to the public, more information will be shared.
Manitoba's chief public health officer Dr. Brent Roussin is scheduled to brief the public on the latest updates on COVID-19 in the province on Tuesday at 1 p.m.
