Hudson's Bay Co's take-private deal falls short in shareholder support, sources say
- Saks Fifth Avenue owner Hudson’s Bay Co has fallen short of securing enough shareholder support for a $1.9 billion deal to take the department store operator private, people familiar with the matter said on Friday.
- A buyout consortium of Hudson’s Bay investors led by its Executive Chairman Richard Baker did not win enough votes from other company shareholders by a Friday morning deadline for the deal to go through, the sources said.
- The buyout consortium has 57 per cent voting control over the company, but a majority of the shareholders not involved with Baker’s consortium had to approve the offer.
- Catalyst, which owns roughly 17.5 per cent of the retailer made an offer of $11.00 per share for Hudson’s Bay that the special committee rejected because Baker’s consortium said it was not willing to allow the sale of the company to another party.
Volkswagen plea deal delayed as group demands victims be heard in 'largest environmental crime in Canada's history'
- Volkswagen AG will plead guilty to breaking Canada’s emissions laws in the global diesel emissions scandal that has already cost the German automaker more than US$30 billion, but disclosure of its proposed plea deal with Ottawa was delayed Friday as an environmental lawyer argued the court should hear victim impact statements.
- Volkswagen, which says it “co-operated fully” with the ECCC’s investigation, and the federal government has already negotiated a proposed plea resolution that’s expected to include fines.
- Ecojustice laywer Amir Attaran argued for victim impact statements to be heard before Volkswagen is sentenced.
- It is unusual for victim impact statements to be submitted in public policy cases, but the Crown said it would be open to hearing them if they are legally admissible.
- If it’s not granted standing, the case is expected to proceed with the reveal of the plea deal.
Alberta asks Ottawa to 'expedite' approval of Teck's Frontier oilsands mega mine
- CALGARY – Alberta’s environment minister Jason Nixon is asking his federal counterpart to “expedite” approvals for Teck Resources Ltd.’s Frontier oilsands mega mine, to show Ottawa understands Alberta’s needs.
- In a letter sent to federal Environment and Climate Change Minister Jonathan Wilkinson on Dec. 6, seen by the Financial Post, Nixon references economic hardships in Alberta and noted that the project will create 7,000 jobs during construction and contribute $70 billion in federal, provincial and municipal taxes over 41 years of production.
- Nixon’s letter lays out eight steps the Alberta government has taken to address recommendations from the arms-length Joint Review Panel, which recommended the federal government approve the oilsands mega-mine on July 26, 2019.
- At the time the recommendation was issued, then-environment and climate change minister Catherine McKenna’s office said that if the minister determined there were significant adverse environmental impacts, the decision would be referred to the wider Liberal cabinet.
This Ontario couple has a net worth of $1.5 million, but needs to simplify its financial picture
- They have $230,000 in RRSPs, $185,000 in deferred profit-sharing plans, $96,000 in TFSAs, $20,000 in cash and employee savings plans, and $70,000 in non-registered investments.
- Adding up income components up to their ages 65, they would have Boris’ $39,600 annual company pension income, $24,177 RRSP income, $7,360 TFSA cash flow, $10,240 in taxable income for a total of $81,377 per year before tax.
- After splits of eligible income and 12 per cent average tax but and no tax on TFSA payouts, the couple would have $6,040 per month to spend, a little below their $75,000 after tax retirement income target.
- When both partners are 65, they would have Boris’s reduced job pension, $24,000 per year, $24,177 RRSP income, $10,240 taxable investment income, $7,360 TFSA cash flow, $11,300 income from house downsizing, two Old Age Security payments totalling $14,580, and two CPP benefits totalling $22,584.
Canadians' mountain of household debt is rising again
- Canadian household debt burdens in the third quarter rose for the first time in a year as borrowing picked up, but historical revisions show overall levels were lower than previously estimated.
- Household credit market debt to disposable income ticked up to 175.9 per cent in the three months ended September, according to data released Friday by Statistics Canada.
- But revisions suggest the burden wasn’t as large as initially thought and debt levels as a share of income are still below the record 178.5 per cent hit in the first quarter of 2017.
- Bank of Canada Governor Stephen Poloz has warned that elevated household debt levels are the economy’s biggest vulnerability, and one of the reasons he was reluctant to cut interest rates earlier this year.
- The agency said upward revisions to income growth pushed the debt-to-income metric down from record highs earlier this year.
Pipeline-starved Canadian energy firms are actually outperforming their U.S. rivals
- Canadian energy firms have quietly outperformed their U.S. counterparts this year and, even after the run, a chorus of positive outlooks on the sector to the north continues.
- Bank of America said earlier this year that shorter cycle projects have attracted investment in recent years, making U.S. shale a “victim of its own success” as production growth has continued while in Canada it’s moderated.
- U.S. political risks and shale production concerns are additional reasons for a potential shift of funds back into Canadian energy stocks, according to Toronto-based investment bank Eight Capital.
- Additional catalysts may come from the continued construction of the Trans Mountain pipeline and a decision on Enbridge’s Line 3 project.
- Enbridge recently said it needs to see “further clarity” on the regulatory and permitting process before making an assessment of when the U.S. segment can come online.
Finance minister Bill Morneau to ‘review and consider’ changes to mortgage stress test
- Prime Minister Justin Trudeau has ordered Finance Minister Bill Morneau to take another look at the mortgage stress test, which Canada’s real-estate industry has criticized for dragging down the housing market.
- Morneau’s mandate letter also requires him to follow through on one of the Liberals’ key campaign commitments, which was to help usher in a one per cent annual vacancy and speculation tax on applicable properties owned by non-resident non-Canadians.
- Morneau will cut tax rates by 50 per cent for these companies, according to the letter.
- As promised in the Liberal platform released for October’s federal election, the finance minister is being ordered to bring in a new 10 per cent tax on luxury boats, cars and personal planes worth more than $100,000.
Trump's trade war was a global tax-fest in disguise and tentative deal with China won't change things
- Other presidents before him, it should be noted, had slapped tariffs on washing machines, but the 2018 levies are important because they marked the beginning of the Trump era of protectionism, which has metastasized into a global tax-fest, hitting Canadian steel, European cheese and, of course, just about everything from China.
- Forcing the Chinese to buy goods from American farmers might also go some way towards rectifying the still-substantial U.S. trade-in-goods deficit with China, which was the putative point of Trump starting the war in the first place.
- (Democrats, too, support things like the Farm Bill, which creates a guaranteed market for agriculture through the food stamps program.) It’s more likely that America’s subsidized farmers will ramp up production to meet the terms of the agreement; then, when it ends, either officially or effectively, as it surely will, they will be stuck once again in the familiar trap of overproduction; prices will plummet; the government will subsidize them even more than it does now.
Stephen Poloz's parting gift to Canada: A shot of confidence to thrive in the new economy
- Poloz imagines where Canada could end up years from now as digital technology, protectionist politics, and unprecedented levels of debt converge to generate forces that will be unfamiliar to executives, investors and policy makers.
- He also observes that policy makers have been getting better at managing the economy; the third industrial revolution (computer chips) ended with the Great Recession, a terrible outcome, and yet an improvement on the depression of the 1930s.
- In Poloz’s previous paper, he said the productivity gains from AI should allow central banks to leave interest rates relatively low for longer because inflation will remain contained.
- In other words, if Canada’s economy crashes in the near future, it probably won’t be because the central bank raised interest rates too high, too fast.
- Canadian policy makers surprised many on Bay Street by leaving interest rates unchanged this year as almost every other central bank cut.
Airlines to pay up to $1,000 for delays as part two of passenger protection rules take effect
- Travellers will be entitled to compensation of up to $1,000 for late or cancelled flights when Canada’s second wave of air passenger protection rules comes into force on Dec. 15, just in time for the busy holiday travel season.
- But passengers shouldn’t expect to receive cash if, say, a snowstorm snarls airports on Christmas Eve. Airlines must only compensate passengers for delays within their control and that are not related to safety.
- Airlines criticized the CTA’s rules — the International Air Transport Association (IATA), alongside Air Canada and Porter Airlines and 14 other carriers, even tried to overturn the rules in federal court — arguing the regulations were implemented too quickly, contradicted international rules and set compensation rates too high.
- Streiner countered that the rules were necessary to meet the high expectations of the flying public, adding the CTA pushed the deadline until December for rules that were more complicated to implement so airlines had more time to update their systems.