Mexico, Canada miss trick in NAFTA e-commerce fight 14 Aug 2017 Both countries are battling against Trump administration demands to let their citizens import more online goods duty-free. It would hurt their retailers and help U.S. firms like Amazon. But consumers would benefit. Conceding may also help their case in broader NAFTA negotiations.
Trump fuzziness gives NAFTA mediators wiggle room 17 Jul 2017 The president wants to cut deficits with Mexico and Canada and strengthen rules for products made in North America. But his trade rep is offering few details, while cribbing other ideas from the ditched TPP. Such a vague approach may increase the chance of striking a decent deal.
Canada treads a fine line in following the Fed 12 Jul 2017 The central bank raised its key interest rate for the first time in nearly seven years, saying growth looked healthy. Inflation remains below target, though, and a housing bubble threatens to deflate. It's hard for Canada not to match tighter U.S. policy, but it carries risks.
Buffett reaffirms value of his seal of approval 22 Jun 2017 Berkshire Hathaway is buying up to 38 pct of Canada's Home Capital and extending it C$2 bln in credit. It’s a rescue out of Buffett's 2008 playbook that promises to steady the troubled mortgage lender. The favorable terms illustrate how his imprimatur is as coveted as his cash.
Cenovus fiasco a leverage warning for oil sector 20 Jun 2017 The Canadian firm’s ill-timed $13 bln deal with ConocoPhillips in March has burned nearly half its value and cost the CEO his job. Crude’s fresh drop threatens the company’s plan to steady itself with more asset sales. For oil outfits, a lean balance sheet is a critical resource.
Bombardier clears Canadian funds for takeoff 11 May 2017 In a rare revolt, pension funds ejected the train and plane maker's executive chairman. But it took a long downward spiral and outrage over pay to prompt action. A successful siege at a family-controlled national champion should inspire action elsewhere earlier and more often.
Canada’s subprime trouble is drama, not crisis 8 May 2017 A run on the Home Capital mortgage lender has eerie echoes of 2008. But structural strengths and regulatory awareness mean the Canadian financial system is far sounder than its neighbor's before the crisis. Still, high housing prices and consumer-debt levels are economic risks.
U.S. air-traffic revamp is overdue for boarding 2 May 2017 The White House wants to privatize flight control and overhaul ancient systems at an estimated cost of $35 bln. Canada pioneered a self-funding, stakeholder-governed model. A similar approach could work for America if carriers, politicians and others can dump their baggage.
Canada pipeline bid takes M&A momentum too far 1 May 2017 Pembina’s C$5.7 bln bid for Veresen comes after rising oil prices and hopes of favorable U.S. policies lifted valuations. But the 4 pct drop in the buyer’s stock suggests investors still require the basics: cost cuts that cover the deal premium and down-to-earth expansion plans.
Trump finds a trade battle worth fighting 25 Apr 2017 The president is slapping a 20 pct duty on Canadian softwood after decades of officials complaining of subsidies. The administration has a good case in going after one of the nation’s closest allies. That should also give Trump some leverage – if he doesn’t overplay his hand.
SNC-Atkins implies more risk for buyer than seller 21 Apr 2017 Canadian engineering firm SNC-Lavalin is forking out 2.1 bln pounds for UK peer WS Atkins. Given that the synergy benefits cover the premium, it looks mutually beneficial. But while Atkins gets a 42 pct cash premium, SNC’s rich cost-saving targets are less set in concrete.
Trump finds one ex-Goldman banker he doesn’t love 20 Apr 2017 The White House wants to rein in the Financial Stability Board and its chairman, Bank of England Governor Mark Carney. U.S. officials question the international body’s authority to identify systemically important firms. It’s another step towards global regulatory fragmentation.
Nationalism may derail Bombardier deal logic 11 Apr 2017 Combining the Canadian firm’s rail unit with Siemens’ - and perhaps Alstom’s - would help them compete with a Chinese rival. Past merger talks have failed, though, and growing government involvement in Bombardier signals the difficulty in keeping these discussions on track.
PrivateBank owners do board’s job with CIBC bid 30 Mar 2017 The Chicago lender has agreed to a new $4.9 bln sale price. That's 20 pct more than it originally accepted. A bank-stock rally after the U.S. election prompted shareholders to mutiny. Their activism has forced the Canadians to pay up – and made PrivateBank directors look feeble.
Viewsroom: David Einhorn pokes under GM hood 30 Mar 2017 The activist’s proposal that the automaker split its stock to give some shareholders a perpetual dividend is a risky maneuver. President Trump’s plan for skilled-worker visas may make Canada great again. Plus, Republicans face high hurdles to overhaul the U.S. tax code.
Investors too blasé about grim reaper’s scythe 23 Mar 2017 An activist bet the farm on 72-year-old Hunter Harrison turning around $43 bln railroad CSX in four years. Actuarial tables suggest a real danger he might not. CEOs are becoming grayer, meaning shareholders have become more willing to bear the risk of impromptu corporate changes.
Trump’s immigration policies may put Canada first 22 Mar 2017 The U.S. president praised his neighbor’s merit-based entry system for foreigners. But administration restrictions on H-1B visas may deter high-skilled workers and their employers. That could send tech and engineering talent north to friendlier hosts, hurting American firms.
Neiman Marcus is tarnished goods for any buyer 14 Mar 2017 The struggling luxury retailer is mulling an auction after abandoning an IPO attempt. A bid from Saks Fifth Avenue’s owner would make strategic sense, but Neiman is worth less than its debt after years in private-equity hands. A sale could mean a big haircut for bondholders.
Big Oil drills through White House policy crust 7 Mar 2017 Energy industry bosses, including Exxon's, kicked off their annual Houston hootenanny with reassuring words about the environment and free trade. They notably clashed with the new administration's climate-change and border-tax positions. Global market forces will be hard to move.
Canada Goose IPO may lead investors on wild chase 27 Feb 2017 The fast-growing maker of downy winter coats will be controlled by backer Bain Capital using super-voting shares. High-end Italian rival Moncler offers an aspirational comparison and suggests a possible $1 bln valuation. Trendy fashion companies, however, can be fretful pursuits.