Prof. Fournier Press Review: Aug 9 – Aug 13
By: Pierre Fournier
Agenda: Penn National & Score Media, Quebec Ottawa & foreign workers, President Biden’s infrastructure plan, BC Ferries, Power Corporation, Moderna, Metro, Cineplex, Market Review.
Photo: John Locher/AP Photo
Penn National Gaming acquires Score Media & Gaming. According to The Globe and Mail, Penn National Gaming has acquired Toronto-based Score Media and Gaming. This acquisition is valued at US$2 billion. The agreement will bring together Score Media's popular sports news mobile app, theScore, along with its betting services in four US states. TheScore was the third most popular sports app in North America and the first in Canada.
Agreement between Quebec and Ottawa concerning hiring foreign workers. According to Radio-Canada, the Government of Quebec and the Government of Canada have announced an agreement that aims to meet Quebec’s manpower needs. Quebec businesses will now be able to hire up to 20% of temporary foreign workers. In addition, these foreign workers will find it easier if they wish to immigrate to Canada.
Important step for the approval of the American President's infrastructure plan. Proposed by US President Joe Biden, the $1.2 trillion infrastructure investment plan has overcome a milestone in the Senate thanks to the support of Democrats and Republicans. According to CNN, the adoption of this investment plan seems to be guaranteed before the next stage of approval, which will take place in the House of Representatives.
Photo: BC Ferries Inc. All rights reserved.
Labour shortages are causing problems for BC Ferries. According to CTV, BC Ferries in British Columbia is looking to hire around 100 people to work on its ferries. However, like many other countries, the sector is facing a labour shortage. BC Ferries is looking to hire 60 officers and 50 other staff for key positions, but qualified seafarers appear to be difficult to find, given the global shortage. As a result of this understaffing, the company has suspended two trips between Victoria and Vancouver.
Profits up for Power Corporation. According to The Globe and Mail, Montreal-based holding company Power Corporation of Canada disclosed its second-quarter profits to be $ 994 million, compared to $666 million for the same quarter last year. All divisions of Power Corporation contributed to the profit increase. Power Corporation of Canada controls Power Financial, through which it holds majority interests in Great-West Lifeco, IGM Financial and Wealthsimple Financial Corp., and a minority interest in GBL Investment Holding.
Moderna plans on opening a factory in Canada. According to CTV News, US pharmaceutical company Moderna will move to Canada to build a Messenger RNA vaccine factory. There is a good chance that the city of Montreal will be chosen to host the research center and the production plant. Moderna has developed a vaccine against COVID-19, which has been authorized by Health Canada and the United States Government. In addition, the company is in the process of developing additional products to fight cancer, influenza, heart disease and autoimmune diseases.
Photo: Ottawa Business Journal
Metro's quarterly results. According to BNNBloomberg, the Metro group has announced a decline in its profits during the third quarter of 2021. Revenue from its grocery stores fell compared to 2020 while that of pharmacies increased. With the gradual decrease in restrictions related to COVID−19, Metro predicts that in the short term, food sales will continue to decline from the exceptionally high levels generated in 2020, but they nonetheless compare favourably to the pre-pandemic level of sales. On the pharmacy side, the ease of restrictions is expected to positively impact certain categories in the commercial sector that have previously been negatively affected by the pandemic, namely the beauty and cosmetics industry.
Cineplex theatres since its opening on July 17th. According to Global News, Cineplex announced a second-quarter loss of $103 million despite the company being able to open more theatres as provinces began to ease restrictions concerning theatre capacity. Revenue was $64.9 million, compared to $22 million in the same quarter last year. This revenue increase was to be expected given that several Cineplex theatres in Canada remained closed on this very date last year.
Excellent week for the New York Stock Exchange. On Friday, the New York Stock Exchange foresaw a weak rise, as the Dow Jones and S&P 500 recorded their 4th record of the week, CNBC reports. The strong performance of the metals sector helped the Toronto Stock Exchange end the week slightly higher.