Grain shippers worried about strike as feds urge CN and union to continue talks - CTV News

MONTREAL -- Grain shippers are concerned about the impact of a strike by about 3,200 Canadian National Railway Co. workers in an already tough harvest year.

The Teamsters Canada Rail Conference announced the work stoppage Monday night after the two parties failed to reach a deal by the midnight deadline.

Conductors, trainpersons and yard workers were on the picket lines, halting freight trains across the country and triggering worries about lost sales and contract penalties among grain elevator operators and farmers.

"When you lose a day of shipping you never recover it," said Wade Sobkowich, head of the Western Grain Elevator Association.

"There's really nothing that can be done. Once they're not moving trains, you're basically shut down without any alternatives until the issue is resolved."

CN services about half the elevators in Western Canada, Sobkowich said, on top of exclusive access to the grain terminal on Vancouver's North Shore and the port in Prince Rupert, B.C.

The federal government urged CN Rail and the Teamsters Canada Rail Conference to continue negotiating.

Labour Minister Patty Hajdu said Tuesday the government is concerned about the impact of a work stoppage on Canadians, but remains hopeful the two sides will reach an agreement.

Union spokesman Christopher Monette said they are still in talks with CN in hopes of reaching ending the labour dispute as soon as possible.

The union has said passenger rail services in the country's three biggest cities would not be affected by the strike.

A delayed grain crop has already caused headaches for the industry following a dry spring and wet summer. Though the yield was big, some of it remains in the field, increasing pressure on the rail system.

Meanwhile wet Prairie weather produced a crop with more mildew, sprout damage and frost. A worse product means lower prices, affecting all players along the supply chain, Sobkowich said.

Canola exports have also slumped following China's ban on Canadian canola.

The threat of a strike has already had an impact, as grain companies and foreign importers cut back on orders to avoid paying contract extension fees, demurrage charges "or, God forbid, defaulting on a contract," Sobkowich said.

The railway workers, who have been without a contract since July 23, have said they're concerned about long hours, fatigue and what they consider dangerous working conditions.

The dispute comes as CN confirmed last week that it was cutting jobs across the railway as it deals with a weakening North American economy that has eroded demand.

Janet Drysdale, CN's vice-president of financial planning, said Tuesday the layoffs were aimed at "aligning the overall labour expense to the reality of what we're seeing on the demand side."

This report by The Canadian Press was first published Nov. 19, 2019.

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November 19, 2019 at 11:04PM

Oil Falls Most in Five Weeks as Supplies Rise, Trade Deal Stalls - Bloomberg

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1. Oil Falls Most in Five Weeks as Supplies Rise, Trade Deal Stalls  Bloomberg
2. Oil extends losses as trade talks drag on  CNBC
3. Oil Price Fundamental Daily Forecast – Rising Supply, Lower Demand Worries Outweighing Trade Talk Optimism  FX Empire
4. Oil Price Vulnerable to Wait-and-See OPEC Amid Record US Crude Output  DailyFX
5. U.S. Shale Producers Slash Spending Once Again  OilPrice.com
6. View full coverage on Google News

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November 19, 2019 at 07:47AM

Woman frustrated at being shut out of police review into her rape case - CBC.ca

A woman who is challenging the way police complaints are handled in Nova Scotia says she's frustrated she was unable to give her version of events during an internal police review of her sexual assault case.

Halifax Regional Police Chief Dan Kinsella ordered the review in September, days after Carrie Low went public in a CBC story about the confusion and delays that plagued a police investigation after she reported she'd been raped in May 2018.

Her lawyer, Jessica Rose, said Monday she asked Kinsella whether Low would be invited to be part of the review, and his "response was no, which was disappointing."

"Part of the main problem that we see with this whole process is how little Carrie's voice has been included," said Rose. "So the fact that an internal review is taking place but without there being an opportunity for Carrie to voice her perspective about where everything went wrong, is troubling."

Low said she was hoping to bring up her concerns with the chief. 

"I also wanted the opportunity just to sit down with Dan Kinsella and just talk to him one on one, and he hasn't been open to that discussion either. So it has been very frustrating," she said.

Low said she was kidnapped and violently raped by two men after she suspects her drink was spiked at a Darmouth, N.S., bar. She reported it to police almost immediately, but said officers took 10 days to pick up her clothes, did not visit the scene of the crime and failed to process her toxicology paperwork for months.

Police chief offers few details

On Monday, Kinsella told reporters outside a board of police commissioners meeting that he has received the results of the review, but he would not say specifically what they were.

"I have looked at them, but I have to have some further consultation in regards to where do we go and how do we move forward," he said.

"There have been some learnings from that particular review, but those consultations have to happen with the investigators and with the supervision within the [sexual assault investigation team] unit."

Low is also challenging a decision by the Office of the Police Complaints Commissioner to reject her complaint against Halifax Regional Police because she filed it outside of the six-month statute of limitations.

In September, Low and a team at the Elizabeth Fry Society of Mainland Nova Scotia went to court to try to force the commissioner to investigate her complaint.

Jessica Rose is a lawyer for the Elizabeth Fry Society. (Robert Short/CBC)

On Monday, Low's case was in court before Justice Kevin Coady to set dates. There will be two separate court processes next year to address Low's concerns.

"One has to do specifically with Carrie's case and how it was dealt with," said Rose. "The other has to do with the constitutionality of the regulation more generally."

If Low is successful at the first date in March her complaint against the police will be reheard. Regardless of what happens in March, Low's team will appear in court again in June.

"If we are successful at the June dates, then the regulation that contains the six-month limitation period will be struck down entirely," Rose said. "It'll be a broader systemic change." 

Lawyer Sheldon Choo appeared on behalf of the Attorney General of Nova Scotia and the police complaints commissioner, but declined to comment.

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November 19, 2019 at 03:02AM

Trans Mountain received $320M in subsidies in first half 2019 - Business News - Castanet.net

Photo: The Canadian Press

The Trans Mountain pipeline received $320 million in subsidies from the Canadian and Alberta governments in the first half of 2019, says a new report by an economic institute that analyzes environmental issues.

The money included $135.8 million in direct subsidies and $183.8 million in indirect subsidies that were not clearly disclosed to taxpayers, says the report by the Institute for Energy Economics and Financial Analysis.

"This is a very large subsidy. It really does require more public discussion and public disclosure," says Tom Sanzillo, the group's director of finance.

Sanzillo and the report's co-author, institute financial analyst Kathy Hipple, analyzed the second-quarter report of the Canada Development Investment Corp., a Crown corporation meant to further the country's economic development that counts Trans Mountain Corp. among its subsidiaries.

The document is public but presents a consolidated picture of the development corporation's finances, including revenues from the Canada Hibernia Holding Corp., which operates the Crown's interest in oil reserves off Newfoundland and Labrador.

This accounting treatment obscures the real financial state of Trans Mountain, Sanzillo says.

"It's a good form of accounting. I'm not criticizing it. It just shouldn't be the only mechanism for showing the public how much money is being spent on this," he says.

The Canadian government gave the development corporation just over $5 billion to finance the acquisition of Trans Mountain, the report says. Trans Mountain Corp. must make regular interest payments to the Canadian government at a rate of 4.7 per cent.

The cash was provided to Trans Mountain in two sections: a $2.8 billion loan and a $2.3 billion equity investment. The interest on the loan must be paid from the pipeline's business activity, while the interest on the equity investment can be paid from a third-party subsidy, the report says.

The Canada Hibernia Holding Corp. covered the interest on the equity investment for the first half of 2019, representing a direct subsidy of $46.3 million, the report says.

Trans Mountain posted a $10.9 million loss in this reporting period prior to taxes, the report says.

However, the loss is subsidized in the consolidated financial report by the Hibernia corporation's earnings, amounting to another $10.9-million direct subsidy, the report says.

Sanzillo also says the development corporation uses an "accounting gimmick" to obscure Trans Mountain's pension liability of $24.4 million. This is one more direct subsidy, he says.

Finally, the Alberta government reduced corporate taxes through a tax credit starting in January 2019. This policy action allowed Trans Mountain to save $54.1 million in taxes, yet another direct subsidy that the development corporation uses to turn the corporation's pre-tax loss into a post-tax gain, according to the report.

Sanzillo also identifies what he calls an indirect subsidy; the difference between the interest a private company would have charged Trans Mountain versus the rate charged by the Canadian government.

Canada's 4.7 per cent interest rate stands in contrast with the 12 to 15 per cent rate of return used by its former owner, Kinder Morgan, the report says.

Sanzillo used the lower figure, 12 per cent, to calculate that a private company would have charged Trans Mountain $302.1 million in interest in the first half of 2019. The Canadian government, meanwhile, charged it $118.3 million.

That amounts to an indirect subsidy of $183.8 million for the first six months of the year, according to the report.

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November 19, 2019 at 09:29PM

Stocks making the biggest moves premarket: Home Depot, Kohl's, Disney, Broadcom & more - CNBC

Check out the companies making headlines in the premarket Tuesday:

Home Depot — Home Depot shares dropped more than 5% in the premarket after the home improvement retailer reported disappointing same-store sales. The company said global same-store sales rose 3.6% in the previous quarter. Analysts polled by Refinitiv expected growth of 4.7%.

Kohl's — Shares of the retailer tanked more than 10% on the back of disappointing quarterly results. Kohl's reported earnings per share of 74 cents on revenue of $4.358 billion. Analysts polled by Refinitiv expected a profit of 86 cents per share on revenue of $4.399 billion. Same-store sales, a key metric for retailers, also missed expectations.

Boeing — The aerospace giant wrangled up 50 bids for its embattled 737 Max jet at the Dubai Air show. Air Astana, a carrier based in Kazakhstan, announced a letter of intent for 30 of the planes while an undisclosed buyer ordered 20 more.

MSG Networks — An analyst at Guggenheim downgraded MSG Networks to "sell" from "neutral," citing a "challenged negotiating position as it approaches contract renewals covering ~40% of its subscriber base." The stock fell more than 3% in light trading before the bell.

Broadcom — The chipmaker was upgraded to "overweight" from "equal weight" by an analyst at Morgan Stanley. The analyst also raised his price target on Broadcom to $367 per share from $298 a share, and noted he sees "possible value creation as it extends into software and builds on a current strong position in semis."

Disney — Multiple reports said hackers have stolen thousands of Disney+ accounts and put them up for sale on the dark web. News site ZDNet said prices for those accounts ranged from $3 to $11.

PG&E — The embattled California electric company is nearing a settlement of more than $1.7 billion with state regulators for maintenance failure of equipment involved in the 2017 wildfires, Bloomberg News reported, citing people familiar with the matter.

Alibaba — Alibaba will stop taking orders for its Hong Kong initial public offering earlier than expected amid strong demand, sources with direct knowledge of the matter told CNBC.

Medtronic — Medtronic shares gained 2% in the premarket on the back of better-than-expected quarterly numbers. The company posted earnings per share of $1.31 on revenue of $7.706 billion. Wall Street expected a profit of $1.28 per share on sales of $7.657 billion. The company also raised its fiscal 2020 earnings outlook.

—CNBC's Michael Bloom contributed to this report.

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2019-11-19 12:50:00Z
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US housing starts rebound; building permits at highest level in over 12 years - CNBC

A worker measures wood for a house under construction at the KB Home Vineyard Crossing Community in Livermore, California.

David Paul Morris | Bloomberg | Getty Images

U.S. homebuilding rebounded in October and permits for future home construction jumped to a more than 12-year high, pointing to strength in the housing market amid lower mortgage rates.

Housing starts increased 3.8% to a seasonally adjusted annual rate of 1.314 million units last month, with single-family construction rising for a fifth straight month and activity in the volatile multi-family sector rebounding solidly, the Commerce Department said on Tuesday.

Data for September was revised to show homebuilding declining to a pace of 1.266 million units, instead of decreasing to a rate of 1.256 million units as previously reported.

Economists polled by Reuters had forecast housing starts increasing to a pace of 1.320 million units in October.

Housing starts advanced 8.5% on a year-on-year basis in October. Building permits surged 5.0% to a rate of 1.461 million units in October, the highest level since May 2007. Permits were driven by the single-family housing segment, which increased 3.2% to the highest level since August 2007.

The housing market, the most sensitive sector to interest rates, has perked up in recent months, catching up to the Federal Reserve's monetary policy easing, which has pushed down mortgage rates from last year's multi-year highs.

The sector, which accounts for about 3.1% of the economy, however, continues to be hobbled by land and labor shortages. A survey on Monday showed confidence among homebuilders hovering near a more than 1-1/2-year high in November.

Builders, however, complained about "a lack of labor and regulatory constraints," adding that "lot shortages remain a serious problem, particularly among custom builders."

Housing starts shot up to a more than 12-year high in August. But momentum could slow, with mortgage rates backing up in the last two months.

The Fed last month cut rates for the third time this year and signaled a pause in the easing cycle that started in July when it reduced borrowing costs for the first time since 2008.

While fears of a recession have ebbed in recent months amid a de-escalation in trade tensions between the United States and China, the economy is still slowing amid a deceleration in consumer spending and persistent weakness in business investment and manufacturing.

The 30-year fixed mortgage rate is currently at 3.75%, still below its peak of 4.94% in November 2018, according to data from mortgage finance agency Freddie Mac.

Residential investment rebounded in the third quarter after contracting for six straight quarters, the longest such stretch since the 2007-2009 recession.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 2.0% to a rate of 936,000 units in October, the highest in 9 months. Single-family housing starts rose in the West, Midwest and the populous South last month. They fell in the Northeast.

Starts for the volatile multi-family housing segment soared 8.6% to a rate of 378,000 units in October. Permits for the construction of multi-family homes increased 8.2% to a rate of 552,000 units last month.

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2019-11-19 13:30:00Z
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Kohl's shares tank on earnings miss, retailer cuts fiscal 2019 earnings outlook - CNBC

Kohl's earnings and sales for the latest quarter fell short of analysts' estimates, the company reported on Tuesday. It also cut its profit outlook for the full year.

Its shares tumbled more than 12% in premarket trading on the news.

Here's how Kohl's did for its fiscal third quarter compared with what analysts were expecting, based on Refinitiv data:

• Earnings per share: 74 cents, adjusted, vs. 86 cents expected
• Revenue: $4.36 billion vs. $4.40 billion expected
• Same-store sales: up 0.4% vs. growth of 0.8% expected

Kohl's said it now expects to earn an adjusted $4.75 to $4.95 per share for fiscal 2019, compared with a prior range of $5.15 to $5.45. Analysts had been calling for $5.19 a share.

Net income during the period ended Nov. 2 fell to $123 million, or 78 cents per share, compared with $161 million, or 98 cents a share, a year ago. Excluding one-time items, Kohl's earned 74 cents per share, short of expectations for 86 cents, based on Refinitiv data.

Net sales fell to $4.36 billion from $4.37 billion a year ago, missing expectations for $4.4 billion.

Sales at Kohl's store open for at least 12 months and from its website were up 0.4%, short of expected growth of 0.8%.

"The quarter started off positive in August with another successful back-to-school season and ended strong in October," CEO Michelle Gass said in a statement. "We enter the holiday period with momentum and are strategically increasing our investments."

Gass said "investing in the short-term" should help the company "drive profitable growth over the long-term."

The entire department store sector has been hit with heightened pressure this year and especially heading into the holiday season. Brands like Nike are investing more in their own stores and website to sell merchandise, moving away from middlemen. Companies like Kohl's, Macy's and J.C. Penney are having to look for new ways to win shoppers. Sears and Barneys New York fell victim to bankruptcy.

Kohl's has been launching some of its own brands and relying on celebrity partners to generate buzz. Last month, it rolled out a home goods line designed by HGTV's 'Property Brothers' stars Drew and Jonathan Scott, called Scott Living. It has also started selling a new pet brand, in a partnership with celebrity comedian and TV host Ellen DeGeneres, called ED Ellen DeGeneres Pets collection, for pet costumes and play toys.

In 50 stores, it is testing pop-up marketplaces, where younger brands will rotate in and out. In 200 stores, it has been adding "beauty impulse" areas, showcasing 20 top beauty brands.

In 2017, Kohl's started working with Amazon to accept Amazon returns at some of its stores, and that option has now grown to be available at all of Kohl's more than 1,000 locations in the U.S. It remains to be seen if this can prove to be a profitable sales driver for the retailer, however.

Kohl's shares, as of Monday's market close, have fallen roughly 12% this year. The department store chain has a market cap of about $9.3 billion.

Read the full press release here.

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2019-11-19 12:07:00Z
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