Top headlines: Rio Tinto staff die in plane crash on way to diamond mine
Today’s headlines
Netflix unwraps its best holiday season results with 13 million new subscribers
CN Rail revenues slide on lower grain and container shipments
Calgary housing market to remain tight despite migration slowdown: CREB
‘A long time coming’: Trans Mountain pipeline expansion aims to be finished in the coming weeks
Top story
Rio Tinto staff die in plane crash in Northwest Territories
Rio Tinto Group said a number of its staff heading to the company’s Diavik diamond mine died in a fatal plane crash near Fort Smith, N.W.T.
Four passengers and two crew members were killed in the plane crash. The coroner’s office in the territory said a lone survivor was airlifted to hospital.
The plane was headed to the Diavik Diamond Mine when it went down shortly after take off.
The miner is working closely with authorities to find out exactly what happened, it said in a statement today.
The Transportation Safety Board said the British Aerospace Jetstream passenger plane went down about 740 kilometres south of Yellowknife near the Alberta boundary.
The plane had taken off from Fort Smith’s airport when it lost contact and crashed near the banks of the frigid Slave River.
There was no immediate word on how many people were on board the flight, but the airline’s website said that type of plane can carry 19 passengers.
Rio has been operating Diavik, the biggest diamond mine in Canada, since it started production in 2003, before taking full control of the asset in 2021.
— Bloomberg, The Canadian Press
4:44 p.m.
Market close: TSX flat after interest rate hold, U.S. markets mixed
Canada’s main stock index was essentially flat despite strength in energy stocks after the Bank of Canada held its overnight rate steady, while U.S. markets ended on a mixed note after softening throughout the afternoon.
The S&P/TSX composite index closed down 8.81 points at 21,025.78.
In New York, the Dow Jones industrial average was down 99.06 points at 37,806.39. The S&P 500 index was up 3.95 points at 4,868.55, while the Nasdaq composite was up 55.97 points at 15,481.92.
The Canadian dollar traded for 74.16 cents U.S. compared with 74.19 cents U.S. on Tuesday.
The March crude oil contract was up 72 cents at US$75.09 per barrel and the March natural gas contract was up 10 cents at US$2.26 per mmBTU.
The February gold contract was down US$9.80 at US$2,016.00 an ounce and the March copper contract was up nine cents at US$3.89 a pound.
The Canadian Press
3:23 p.m.
Delivery companies explore alternatives to gas-powered vehicles
Experts say businesses in Canada are slowly entering a fleet transition journey to meet zero-emissions goals but it will not be an easy road.
Ikea Canada is adopting electric delivery trucks, while Enbridge Inc. has partnered with the City of Hamilton in Ontario on zero-emission buses run by renewable natural gas.
Ikea’s Crystal Rasa says the company is targeting 100 per cent zero-emission vehicle deliveries by next year and so far is up to 15 per cent of its fleet.
While hopeful the furniture company will reach its target, Rasa says there are challenges when working with electric delivery trucks such as charging stations and cold weather conditions that drain batteries faster.
Other upfront costs such as obtaining permits for electrification, installing the right chargers and finding optimal routes to deliver without recharging are part of transitioning to an electric fleet.
Experts say other energy sources besides electricity such as hydrogen and renewable natural gas can also work as alternatives but the industry wants more government funding.
The Canadian Press
1:26 p.m.
Ford recalls 93,000 Explorer SUVs in Canada due to potential hazard
Ford says a recall of its Explorer SUVs will affect 93,000 Canadians.
The automobile company is recalling Explorer SUV models from 2011 through 2019 because of an issue with a trim piece, which can fly off and create a hazard for other drivers.
Globally, the auto manufacturer is recalling 2.24 million vehicles after a report from the U.S. National Highway Traffic Administration showed that the trim on the columns next to the window can come loose and fly off.
Ford says a customer can visually detect gaps around a loose A-pillar trim or detect an audible rattle and wind noise from the A-pillar area, which is near the sides of the front windshield.
While the flaw is expected to affect five per cent of the recalled cars in the U.S., Ford Canada says it is not sure yet how many recalled vehicles north of the border could have the problem.
The company has said in documents that it’s aware of 568 consumer complaints and more than 14,000 warranty reports alleging that the parts were missing or detached, but it is not aware of any crashes or injuries stemming from the problem.
— With additional reporting from The Associated Press
The Canadian Press
12:12 p.m.
Midday markets: Upbeat sentiment continues on Wall Street, TSX
Strength in energy stocks and base metals helped lead Canada’s main stock index higher, while U.S. stock markets kept up their record pace of gains.
The S&P/TSX composite index was up 0.32 per cent at 21,103.42.
In New York, the Dow Jones industrial average was up 0.26 per cent at 38,002.67. The S&P 500 index was up 0.63 per cent at 4,896.13, while the Nasdaq composite was up 1.5 per cent at 15,596.43.
The S&P 500 was boosted by advances in Nvidia Corp. and Microsoft Corp.
The Nasdaq jumped as Netflix Inc.’s shares soared on subscriber numbers that surpassed expectations.
— The Canadian Press, Bloomberg
11:25 a.m.
Rona cutting 300 jobs across the country
Rona Inc. says it’s cutting about 300 jobs and closing two distribution centres as part of a plan to adjust its operating model and eliminate inefficiencies.
The home improvement retailer says it’s consolidating operations into its core buildings, and will close a distribution centre in Terrebonne, Que. in March and one in Calgary in October.
It says the closure of the centres, along with a streamlining of its corporate structure, will together lead to the roughly 300 cuts nationally.
The move comes after U.S. retailer Lowe’s sold Rona, and its Lowe’s stores in Canada, to private equity firm Sycamore Partners in late 2022.
Under Sycamore’s ownership, the company already announced about 500 job cuts last June as part of its simplification efforts and has been converting Lowe’s stores in Canada to its Rona+ brand.
The company has said it has around 22,000 employees and some 425 stores across its Rona, Rona+, Reno-Depot, and Dick’s Lumber banners.
— The Canadian Press
11:00 a.m.
Markets open: Wall Street gains on tech earnings, TSX up on interest rate outlook
U.S. stocks continued to gain in Wednesday trading, with traders positive about the economy after a fresh batch of data topped estimates and technology companies reported robust earnings.
The S&P 500 pushed higher and the Nasdaq 100 rose more than one per cent. Netflix Inc.’s shares soared after subscriber numbers surpassed expectations. Meta Platforms Inc. touched a fresh record high, propelling its market value to US$1 trillion for the first time since 2021. The U.S. 10-year yield hovered around 4.12 per cent. The Bloomberg Dollar Spot Index fell.
U.S. data showing business activity expanded in January by the most in seven months is positive for stocks, according to Renaissance Macro’s Neil Dutta.
“Growth is up and inflation is down. The former puts a ceiling on how many cuts the Federal Reserve will do while the latter means the Fed still ends up cutting,” he said. “Very good scenario for equity markets.”
In Canada, the S&P/TSX composite index rose 0.39 per cent to 21,115.03 after the Bank of Canada signalled a shift in policy direction.
— Bloomberg, Financial Post
9:13 a.m.
Firehouse Subs offers first responders and veterans $100,000 cash to open restaurant
Firehouse Subs is pushing to open more restaurants in Canada and it’s hoping to get first responders and veterans in on the mission.
The sandwich chain owned by Restaurant Brands International Inc. says it will offer $100,000 to current or former first responders or veterans who agree to open a Firehouse Subs restaurant.
The offer will also stand for second and third restaurants that responders or veterans open.
Firehouse says it costs between $400,000 and $500,000 to build and open one of its restaurants.
It’s zeroing in on first responders and veterans because Firehouse Subs was started by former firefighter brothers in Jacksonville, Fla., nearly 30 years ago.
The pitch comes as Firehouse is spending tens of millions on rapidly growing its brand across North America and as sandwich chain rivals Jimmy John’s and Jersey Mike’s carry out lofty expansion plans in the Canadian market.
— The Canadian Press
7:30 a.m.
Stock markets before the opening bell
Stocks are gaining this morning as investors take heart in a slew of positive earnings.
Netflix Inc was up 10 per cent in premarket trading, the latest company to report forecast-beating earnings. Tesla Inc. and International Business Machines Corp. are due to report later today.
China’s plan to stimulate its economy by cutting the reserve requirement ratio for banks gave sentiment another boost. European commodities shares rallied and the Hang Seng Index added 3.6 per cent.
“We’re in somewhat of a sweet spot at the moment for equities,” Francois Rimeu, a strategist at La Francaise Asset Management in Paris told Bloomberg. “U.S. economic newsflow is good, growth is flat in Europe, but it’s no drama and nobody believes in the resurgence of inflationary pressures.”
— Bloomberg
What to watch today
The Bank of Canada announces its first rate decision of the year and releases the monetary policy report at 9:45 a.m. ET today, 15 minutes earlier than usual. Policy makers are expected to hold the rate steady at 5 per cent, but analysts will be watching for clues on when the central bank might start cutting. Learn more here
Earnings season continues in the United States with heavy hitters like Tesla Inc, AT&T Inc and IBM. Corp. releasing results today.
Need a refresher on yesterday’s top headlines? Get caught up here.
Additional reporting by The Canadian Press, Associated Press and Bloomberg
