Prof. Fournier's Press Review: July 5 to July 9
By: Pierre Fournier
Agenda: Johnson and Johnson, TC Energy, Ransomware attack, Saputo, Parkland & Crevier Group, Goodfood, Airbus, Volkswagen, MTY, Canada's job market for June, Market review.
J&J and single-dose vaccine. According to Reuters, US pharmaceutical company Johnson and Johnson assures that its Janssen single-dose COVID-19 vaccine is effective against the Delta variant. The Delta variant was initially spotted in India. It is particularly contagious, with an immune response that can last for at least eight months. Read more here.
TC Energy is claiming 15 billion USD. Calgary-based company TC Energy has said it will claim more than US$15 billion from the US government. The request follows President Joe Biden's revocation of a permit to build the Keystone XL pipeline. TC Energy cancelled the project, recording a depreciation of 2.2 billion, reports BNN. Read more here.
The United States and Sweden fall victim to a ransomware attack. Kaseya, an American IT company that manages the cash registers of thousands of stores across the country, has been attacked by ransomware, software that blocks access and demands a ransom. The purpose of the attack is clearly to extort funds. Consequently, a large supermarket chain, Coop, had to close more than 800 stores, its checkouts paralyzed by the attack, reports Reuters. Read more here.
Acquisition for Saputo. Following a $39 million agreement with Wensleydale Dairy Products, the Quebec company Saputo is expanding its presence in the United Kingdom, reports Global news. Wensleydale Dairy Products produces, markets and distributes regional and specialty cheeses, complementing Saputo's products. Read more here.
Transaction between Parkland and Crevier Group. According to BNN Bloomberg, Parkland acquired the fuel division of Pétroles Crevier. The agreement covers 174 gas stations, including 138 retail stations and 36 corporate stations, as well as wholesale activities. Following this transaction, the Crevier Group will focus on Catalys Lubricants and Crevier Lubricants' activities. Parkland, headquartered in Calgary, has sales of C$14 billion. Parkland is a convenience store operator and a supplier and distributor of petroleum products. Parkland is active in Canada, the United States and the Caribbean region. Read more here.
Excellent quarterly results for Goodfood. Goodfood, specializing in ready-to-cook meals, posted record third-quarter revenues. La Presse reports that for the period ending May 31, the Quebec company announced revenues up 24% compared to the same quarter a year earlier. A notable reason for these excellent results is the increase in subscribers and the growing presence in the online grocery store. Read more here.
Increase in orders for Airbus. LaPresse reports that the commercial aircraft maker Airbus announced that it had booked 73 orders for commercial aircraft in June. These aircraft deliveries indicate a sharp increase for the European aircraft manufacturer since it delivered 50 aircraft in May in an industry still heavily affected by the COVID-19 crisis. Read more here.
Significant fines for Volkswagen. New York Times reports that the European Commission has announced that German-born automaker Volkswagen will have to shell out more than 500 million euros. This fine is for blocking emissions treatment. BMW automaker will also have to pay a fine for the same reason. Read more here.
MTY Group resumes paying dividends. La Presse reports that the MTY Food Group is rewarding its investors by announcing that it will resume paying a dividend. When the pandemic forced restaurants to close, MTY had no choice but to suspend its dividend. The latest quarterly results showed that MTY reported a profit of $23 million compared to a loss of $99 million for the same quarter a year earlier. MTY says that many of its locations are still closed in Canada, the United States, and internationally due to the pandemic. MTY is behind more than 80 restaurant brands, including Allo mon coco, Baton Rouge, La Crémière, Pizza Delight, Thai Express and Tiki−Ming. Read more here.
Decrease in the unemployment rate for Canada. In comparison with the previous month, it is important to note a decrease in the unemployment rate in Canada. Statistics Canada reveals that the unemployment rate declined 0.4 percentage points and stands at 7.8%. Retailing, as well as food, were the main sectors of employment creation. One factor contributing to the resumption of employment was that some restriction measures associated with COVID−19 were lifted during June. Read more here.
Wall Street sets a record. Following the disappointing performance on Thursday, the New York Stock Exchange reached record levels on Friday, CNBC reports. The Toronto Stock Exchange climbed nearly 200 points, helped by the rebound in oil prices. As for the Canadian dollar, it was positively influenced by the excellent data concerning the job market. Read more here.