Jet deal in the works - Business News - Castanet.net

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Mitsubishi Heavy Industries Ltd. confirmed Wednesday it's in talks involving Bombardier Inc.'s regional jet business but without revealing details of the discussions.

The Japanese company comments came after a media report said Mitsubishi was in advanced negotiations to acquire Bombardier's CRJ regional jet program.

Mitsubishi cautioned that no decision has been made on any possible transaction.

"If ever any such decision is made, we will disclose as necessary in accordance with the applicable stock exchange regulations," Mitsubishi said in a brief statement.

Bombardier, which also confirmed the talks Wednesday, recently said it would explore strategic options for the CRJ program.

"Before any agreement can be reached further review and analysis by Bombardier management and approval by Bombardier's board of directors are required," the Montreal-based company said.

It added that Mitsubishi must also complete its due diligence review and its own analysis and approval process, which are outside of Bombardier's control.

Earlier this year, Bombardier chief executive Alain Bellemare said the continuation of its regional jet program hinged on whether the company could fill up the CRJ's partly blank order book.

Once a cash cow for the Montreal-based company, the CRJ now loses money.

Bombardier sold a majority stake in its C Series commercial aircraft program last year to Europe's Airbus SE, which rebranded it the Airbus A220.

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June 05, 2019 at 08:23PM

Loonie will surge if Poloz doesn't follow Fed on cuts: Rosenberg - BNNBloomberg.ca

If the U.S. Federal Reserve cuts interest rates, the Bank of Canada will follow suit, says David Rosenberg, who also warns that the loonie will surge if it doesn’t.

“My sense is that Poloz seems to be very confident and wants to keep interest rates stable here,” the chief economist and strategist at Gluskin Sheff + Associates told BNN Bloomberg in an interview Wednesday. “But think about what the risks are if the Fed eases, and the Bank of Canada operates policy here in a vacuum and doesn’t follow suit. What ends up happening is the Canadian dollar is going to ratchet higher.”

Rosenberg warned that a higher loonie is “the last thing” Canada’s manufacturers and resource producers need right now, and that the fundamentals don’t support the Canadian dollar heading toward 80 cents US.  

Rosenberg said he expects the Fed will decrease rates at least twice this year and that the Bank of Canada would follow with cuts within the next couple of months. That’s despite an optimistic economic tone from Canada’s central bank in its latest interest rate decision, when it left rates steady at 1.75 per cent and pointed to “accumulating evidence” of an economic recovery.

“Canada, I think, may lag the U.S. on cutting rates,” Rosenberg said. “But if the U.S. is cutting rates because of a darker global economic outlook and downward revisions to growth, it’s hard to believe we’re going to escape that.”

“I don’t think the bank’s going to sit on its hands for six-to-12 months and see what happens.”   

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June 05, 2019 at 11:59PM

Toronto Real Estate Jump Higher, Board Notes Still Below 10 Year Average - Better Dwelling

Greater Toronto real estate prices increased, but sales are the headline story. Toronto Real Estate Board (TREB) numbers show prices increased in May. Sales of Toronto real estate posted a huge double digit gain, soaring above last year’s numbers. Unfortunately, as noted by the board itself, these sales numbers still fall short of a typical May.

Toronto Real Estate Prices Rise Over 3%… Due To Condos

The price of a typical (a.k.a. benchmark) home increased, due largely to condos. TREB reported a composite benchmark price of $794,800 in May, up 3.11% from last year. The City of Toronto composite benchmark reached $879,300, up 4.71% from last year. Condos saw prices grow at almost double this rate, while detached homes failed to even meet CPI. Considering detached housing represents nearly 50% of sales, they dragged the composite down.

Greater Toronto Benchmark Price

The price of a “typical” composite home across Greater Toronto.

Source: TREB. Better Dwelling.

The annual rate of growth continued to slow across the region. Both TREB and The City of Toronto benchmarks reported smaller annual growth. A couple of points also worth remembering are seasonal adjustments and annual revisions. Seasonal adjustments add a positive bias to May numbers, with that bias typically disappearing in June. Also, CREA boards conduct an annual review and revision in May. It’s unclear if these benchmark numbers released are pre or post revision.

Greater Toronto Benchmark Price Change

The annual percent change of TREB’s benchmark price for all home types.

Source: TREB. Better Dwelling.

The median sale price of homes across Greater Toronto made a substantial jump. The median sale price across TREB reached $725,000 in May, up 5.83% from last year. The City of Toronto median sale price hit $753,000, up 9.13% from last year. Both numbers are making a similar move as the benchmark. Condos are once again, largely responsible for this push higher.

The average sale price also made a pretty big jump across Greater Toronto. TREB’s average sale price reached $838,540 in May, up 3.61% from last year. The City of Toronto hit $937,804, up 7.84% from last year. The average increase was, once again, due to a jump in condo prices, and the rising price floor that comes with. Are you sensing a trend here?

Greater Toronto Average Sale Price Change

The annual percent change of the average sale price of all homes.

Source: TREB. Better Dwelling.

Toronto Real Estate Sales Rip Higher, But Still Below Normal

Greater Toronto real estate sales jumped higher than last year’s unusually low number, but still fell short. TREB reported 9,989 sales in May, up a massive 18.88% from last year. The City of Toronto represented 3,715 of the sales, up 13.12% from last year. The board itself noted this is 3.61% below the 10 year average for the month of May. That would make it the second fewest May sales since 2010. Big jump, not enough to change the volume issue, which typically means less sticky prices.

Greater Toronto April Home Sales

The total home sales across TREB by year, for the month of April.

Source: TREB. Better Dwelling.

Inventory Falls In The Suburbs, Rises In The City

The number of new listings experienced mild growth across the board. TREB reported 19,386 new listings in May, up 0.77% from last year. The City of Toronto represented 6,648 of those new listings, up 4.00% from last year. The City is seeing more new listings than the 905, which helped push total inventory higher.

Greater Toronto Sales To New Listings

The number newly listed units per month, in contrast to sales.

Source: TREB. Better Dwelling.

The number of total homes listed for sale fell across Greater Toronto, but increased in the City. TREB reported 20,017 active listings in May, down 4.31% from last year. The City of Toronto represented 6,039 of those listings, up 4.17% from last year. Once again, the City is seeing inventory rise faster than the 905. Total active listings for May were the second highest since 2014, but still increased slower than sales.

Greater Toronto April Active Listings

The total of active home listings across TREB by year, for the month of April.

Source: TREB. Better Dwelling.

Toronto real estate saw higher prices, sales, and a mixed movement in inventory last month. Prices made modest gains, but were driven by condos – and growth is still decelerating. Sales made a huge jump, but still fell short of the historic normal. As for inventory, it was mixed – with the City of Toronto posting higher numbers. The last point is more interesting if you consider weak absorption for pre-sale homes in Toronto.

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June 05, 2019 at 09:35PM

Indigenous group from Alberta adds rival bid for Trans Mountain pipeline - Global News

An Indigenous bidder for the Trans Mountain pipeline system is sending formal invitations to all Metis and First Nations groups in Alberta to assemble a province-wide coalition.The initiative announced Wednesday by the Iron Coalition puts it on a potential collision course with Project Reconciliation, a consortium inviting Indigenous participation from B.C., Alberta and Saskatchewan in a $6.8-billion bid for a 51 per cent stake in the energy pipeline linking Edmonton and the West Coast.Story continues belowREAD MORE: Burnaby mayor presses Trudeau on safety measures if Trans Mountain expansion approved“Iron Coalition’s principles are based on Indigenous groups coming together as a single Alberta-based entity to secure the best possible deal with direct benefits to our Indigenous communities,” said Chief Tony Alexis of the Alexis Nakota Sioux Nation, located 85 kilometres northeast of Edmonton, in a statement.“Our group recognizes the viability of the pipeline and that ownership will be beneficial to not only our communities, but to Canada as a whole.”Iron Coalition said it will distribute 100 per cent of the proceeds to each member community based on ownership share and population if it succeeds in buying a stake.READ MORE: Alberta UCP launches Trans Mountain campaign in Ottawa: ‘Yes to TMX’That differs from Project Reconciliation’s plan, announced last week, to direct 20 per cent of Trans Mountain’s estimated $180 million in future annual cash flow to shareholder communities while the rest would be used to create a sovereign wealth fund.The fund would be reinvested in projects like renewable energy, energy-efficient on-reserve housing and other greenhouse gas-reducing, climate friendly initiatives.Iron Coalition didn’t give any financial details of its plan.READ MORE: B.C. to appeal top court ruling it can’t regulate flow of bitumen through Trans Mountain pipelineDelbert Wapass, executive chair and founder of Project Reconciliation, applauded the Iron Coalition decision to bid and expects more groups might yet emerge, adding that if Project Reconciliation’s proposal is chosen, it would invite supporters of rival Indigenous bids to come aboard.“I think it clearly demonstrates the excitement among First Nations that they are actually going to be included as players in the bid for the Trans Mountain pipeline,” the former chief of Saskatchewan’s Thunderchild First Nation said in an interview.“When I started this whole campaign for our 51 per cent majority bid on Trans Mountain, it was about including everybody — I still believe that’s the right decision because many of our communities are affected by poverty … we have been economically starved.”He said his group has been signing up supporters but wouldn’t say how many or if any are in Alberta.READ MORE: B.C.-Alberta trade worth $30B annually, with economies most intertwined in Canada: reportFederal Finance Minister Bill Morneau has said Ottawa won’t negotiate the sale of the pipeline it bought for $4.5 billion last summer until after construction of its proposed expansion is “de-risked,” without specifying what that means.The government is to make a final decision on whether the expansion can proceed by June 18.It was forced to reconsider its previous approval in August 2018 when the Federal Court of Appeal found there was inadequate consultation with affected Indigenous peoples.Iron Coalition met with Morneau earlier this year, but Wapass said he doesn’t think that gives it any advantage over Project Reconciliation.In May, the Union of B.C. Indian Chiefs warned First Nations in an open letter that they should reconsider investing in the pipeline because it faces many hurdles, including Indigenous land claims, and it is unlikely to be as profitable as the government says.But Wapass said his group stands by its projections.He said ownership will allow Indigenous groups to better protect the environment in which the pipeline operates.Iron Coalition is co-chaired by Chief Calvin Bruneau of the Edmonton-area Papaschase First Nation and president Ron Quintal of the Fort McKay Metis in northern Alberta.Get daily local headlines and alerts

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June 05, 2019 at 11:38PM

Sephora closes US stores for diversity training after incident with musician SZA - BNNBloomberg.ca

Sephora to give staff diversity training - can it help? - BBC News

Beauty chain Sephora has closed its US stores for Diversity training, a month after a singer said she had been racially profiled.

RnB star SZA said she had been targeted while shopping at a branch in California.

The firm told Reuters it was aware of the incident but said the training was not "a response to any one event".

The BBC spoke to Asad Dhunna from the Unmistakables, who advises companies on how to be more racially inclusive.

Video journalist: Sophie Van Brugen

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https://www.bbc.com/news/av/business-48513629/sephora-to-give-staff-diversity-training-can-it-help

2019-06-05 14:15:56Z
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These charts show how Fed Chair Jerome Powell is the most important thing to the market now - CNBC

The Dow Jones Industrial Average rallied more than 500 points on Tuesday (and was continuing that rally Wednesday) after Federal Reserve Chairman Jerome Powell opened the door to a rate cut that traders have been crying for because of fears the economy is slowing.

Their love of Powell's pivot is evident in this Dow chart here:

"We will act as appropriate to sustain the expansion," was all Powell said, but that was enough to cause the market to leap.

Now contrast that with what happened on May 1, when Powell disappointed investors by appearing to downplay the odds of a rate cut by saying that he believed a slowdown in inflation was likely "transitory."

The Dow shed 150 points during that session.

What a difference a month makes when there's a vicious sell-off in risk assets.

"Powell's assurance the Fed will 'act as appropriate to sustain the expansion' was confirmation that not only is a rate cut on the table, but it is nearing on the horizon," Ian Lyngen, head of U.S. rate strategy at BMO, wrote in an email. "Risk assets improved in the wake of the dovish undertones; at least that aspect of Tuesday's price action fit with our broader understanding of the world."

"A preemptive cut was priced-in, which suggests if the Fed doesn't follow-through it will be risk off," he added.

— CNBC's Jeff Cox contributed reporting.

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https://www.cnbc.com/2019/06/05/investors-warm-up-to-fed-policy-outlook-after-powell-hints-at-rate-cut.html

2019-06-05 14:13:09Z
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