Tausi Insider

Indigenous investors are lining up to bid on Canadian pipelines TC Energy Corp. put up for auction this week as part of a $5-billion asset sale program. On Wednesday, TC Energy chief executive François Poirier outlined plans to sell several projects by the end of 2023 to help fund the Calgary-based company’s expansion, which is projected to cost $34-billion. Along with raising cash, he said streamlining one of North America’s largest pipeline operators would drive “simplicity of corporate structure and the impact on our ability to achieve our sustainability goals.” While Mr. Poirier steered clear of naming specific pipelines, analysts said two Alberta oil sands projects are candidates for sale. In a report, analyst Robert Hope at Scotiabank predicted TC Energy will sell its 50-per-cent stake in the 460-kilometre Grand Rapids pipeline, which connects refineries near Edmonton to oil sands properties north of Fort McMurray, and the 72-kilometre White Spruce pipeline, which feeds into Gr...

A Walmart store in Washington, on Nov. 2. BRENDAN SMIALOWSKI/AFP/Getty Images Walmart Inc WMT-N on Tuesday lifted its annual sales and profit forecast as demand for groceries holds up despite higher prices, while discounts on clothing and electronics helped it cut back excess inventories ahead of the busy holiday season. The company also announced a new $20-billion share buyback plan, sending its shares as much as up 7 per cent in morning trading to a six-month high of $148.40. Its results boosted stocks of other major retailers, including Target Corp, Costco and Macy’s Inc. Target reports results on Wednesday. Amid persistent inflation, investors have been nervously eyeing how consumer spending pans out during the crucial holiday season, when retailers make more than a third of their annual profits. “In this period of macroeconomic uncertainty … we are well equipped to continue gaining market share in an environment where consumers need to stretch their dollars further,” Chief Finan...

Statistics Canada says manufacturing sales were unchanged in September at $70.4-billion. The agency says the result came as sales of durable goods rose 1.0 per cent to $34.1-billion, helped higher by an 11.1 per cent gain in aerospace product and parts. Meanwhile, sales of non-durable goods fell 0.9 per cent to $36.3-billion in September, as sales of petroleum and coal products fell 2.4 per cent and food industry sales dropped 1.8 per cent. Sales in constant dollars edged down 0.2 per cent in September. In a separate report, Statistics Canada says wholesale sales rose 0.1 per cent to $81.8-billion, as sales rose in five of seven subsectors. Wholesale sales of personal and household goods rose 4.3 per cent to $11.2-billion, the largest monthly increase since June 2020, while the food, beverage and tobacco subsector climbed 1.9 per cent to $14.9-billion. Overall wholesale sales fell 0.2 per cent in constant dollars in September. https://www.tausiinsider.com/canadian-manufacturing-...

U.S. retail sales increased more than expected in October as households stepped up purchases of motor vehicles and a range of other goods, suggesting consumer spending picked up early in the fourth quarter, which could help to support the economy. The solid retail sales reported by the Commerce Department on Wednesday and signs of a slowdown in inflation raised cautious optimism the economy could avoid an anticipated recession next year or just experience a mild downturn. “We might be in for a soft landing after all,” said Paul Ashworth, chief North America economist at Capital Economics in Toronto. Retail sales rose 1.3 per cent last month after being unchanged in September. Economists polled by Reuters had forecast sales rising 1.0 per cent. Retail sales are mostly goods and are not adjusted for inflation. They increased 8.3 per cent year-on-year in October. One-time tax refunds in California, which saw some households receiving as much as $1,050 in stimulus checks, likely helped t...

Ottawa Senators left wing Brady Tkachuk watches as his shot on Buffalo Sabres goaltender Eric Comrie crosses the goal line and into the net. The Canadian Press Sal Galatioto took the stage at an investor conference in Manhattan this summer, on a day when stocks were in free fall. The host of the panel opened the session by asking Mr. Galatioto, the founder of boutique investment bank Galatioto Sports Partners (GSP), for his take on the state of the investing world, considering the bleak backdrop of soaring interest rates and recession fears. “I’ve never seen the markets hotter than this,” Mr. Galatioto said. “I have never been busier.” The host, a Baker McKenzie lawyer named Karl Paulson-Egbert, stopped Mr. Galatioto mid-sentence and asked him to explain what he does, and how he could be so upbeat. The banker explained that he has spent the past four decades advising some of the world’s richest people on buying and selling professional sports franchises. In those lofty economic circl...

Cryptocurrency exchange FTX, which has filed for U.S. bankruptcy court protection, said it owes its 50 biggest creditors nearly $3.1 billion. The exchange owes about $1.45 billion to its top ten creditors, it said in a court filing on Saturday, without naming them. FTX and its affiliates filed for bankruptcy in Delaware on Nov. 11 in one of the highest-profile crypto blowups, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars. The crypto exchange said on Saturday it has launched a strategic review of its global assets and is preparing for the sale or reorganization of some businesses. A hearing on FTX’s so-called first-day motions is set for Tuesday morning before a U.S. bankruptcy judge, according to a separate court filing. What’s happening at bankrupt crypto exchange FTX? https://www.tausiinsider.com/collapsed-ftx-owes-nearly-3-1-billion-to-top-50-creditors/?feed_id=333568&_unique_id=6480f5d9a2bbd

Book-publishing powerhouse Simon & Schuster will let its $2.2 billion sale to Penguin Random House collapse on Monday, opening the door for a new suitor to try to clinch a deal, according to people familiar with the matter. The acquisition was blocked on Nov. 1 by a federal judge on antitrust grounds. Penguin was unable to convince Simon & Schuster to launch an appeal and extend their deal contract before it expires on Monday, the sources said. Penguin will owe Simon & Schuster a $200 million breakup fee as a result of the transaction falling apart. The sources requested anonymity ahead of official announcements this week. Bertelsmann and Paramount did not respond to requests for comment. The U.S. Justice Department had sued to stop the tie-up of the two publishers, which combined would have accounted for more than 25% of all print books sold in the United States this year. In its complaint it argued the deal would lead to lower earnings for authors because of the reduced...

Insurance regulators are reviewing the industry’s practice of paying upfront commissions to advisers who sell segregated funds, as investor advocates argue the payments should be banned outright due to a conflict of interest that can harm financial outcomes of clients. The Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organization (CISRO) are conducting a joint consultation on the use of upfront commissions – also known as chargebacks – in the sale of segregated funds. The review is looking at the impact of banning upfront commissions or whether other measures can be taken to improve investor outcomes. A chargeback is an upfront commission a life insurer or other fund provider pays directly to a financial adviser on the sale of a segregated fund, which locks the client’s money into a contract for an allotted period of time, typically for longer than 4 years. The upfront commission can range from 3 to 7 per cent of a client’s total depo...

Shoppers at the Toronto Eaton Centre, on July 18. Fred Lum/the Globe and Mail Retail sales fell 0.5 per cent to $61.1-billion in September led by a drop in sales at gas stations along with food and beverage stores, Statistics Canada said Tuesday. However, the agency said its initial estimate for October pointed to a gain of 1.5 per cent for the month, though it cautioned the figure would be revised. “Retail sales fell in September; though the drop was smaller in volume terms, real spending took a notable step back in the third quarter,” BMO economist Shelly Kaushik wrote in a report. “However, solid advance estimates for retail and manufacturing sales, as well as wholesale trade, point to a recovery in October.” For September, Statistics Canada said sales at gas stations fell 2.4 per cent as sales in volume terms at gas stations rose 4.2 per cent, but gas prices fell 7.4 per cent. Meanwhile, sales at motor vehicle and parts dealers were relatively unchanged as sales at used car deale...

Michael Emory, CEO of Allied Properties REIT, stands in the lobby of offices on Adelaide in Toronto. Ashley Hutcheson/Tausi Insider Office property owner Allied Properties REIT AP-UN-T is considering the sale of its data-centre portfolio, a deal that would help the commercial landlord pay down debt as it retools for a new era of higher interest rates and hybrid working. Allied, best known for its low-rise office buildings in downtown cores, currently owns three data-centre properties in downtown Toronto. In a statement Thursday, the REIT said it is “exploring the sale” of these properties, the largest of which is 151 Front St. West, a major telecom hub. The company values the portfolio at $1.3-billion. Data centres, which house servers and telecommunications equipment, are not core to Allied’s property portfolio – they comprise 16 per cent of net operating income. But chief executive officer Michael Emory has long been bullish on them, in part because their industry is a relatively s...

Financial services giant Desjardins Group has agreed to buy Guardian Capital Group Ltd.’s GCG-T insurance and wealth management operations, tripling its adviser network to more than 7,000 professionals across Canada. Desjardins – the second largest property and causality insurer in the country – announced on Wednesday it will pay $750-million to acquire three separate operations from Guardian Capital: IDC Worldsource Insurance Network Inc., a life-insurance advisory business; mutual-fund dealer Worldsource Financial Management Inc.; and Worldsource Securities Inc., a securities licensed investment company. Following the deal, which is expected to close in the first quarter of 2023, Montreal-based Desjardins will have more than $2-billion in life insurance premiums and $43-billion in assets in retail investment funds. Those assets include segregated funds – a type of insurance contract that allows investors to participate in markets. All three of the Guardian companies will continue ...

As TC Energy Corp TRP-T prepares to unload C$5-billion (US$3.7-billion) in assets next year, investors and analysts say the North American pipeline operator has plenty of options without touching its core gas business. Chief executive Francois Poirier cleared up any ambiguities this week when asked how much of TC’s portfolio is in the shop window. “I remember reading a book once called Sacred Cows Make the Best Burgers ,” Mr. Poirier said at the company’s investor day. “There are no sacred cows.” Calgary, Alta.-based TC is widely known for its Keystone oil pipeline, a critical artery for moving Canadian oil to U.S. refiners that dominated headlines over the past decade for an expansion that ultimately failed. But moving natural gas around the United States, Canada and Mexico is the bigger part of TC’s business. TC should consider selling Keystone along with its stake in Ontario’s Bruce Power nuclear facility, since they are not part of its core business, said Rob Thummel, senior port...

A report by DesRosiers Automotive Consultants says light vehicle sales in November rose 4.1 per cent compared with last year. The firm estimates 114,966 light vehicle were sold last month. The result was up from 110,448 in November 2021. However, DAC noted that sales totalled 143,315 in November 2019 before the pandemic struck. DAC managing partner Andrew King says sales for the year to date stand at 1.38 million units, making it likely that sales for 2022 will finish the year below 1.5 million. King says if that happens it will be first year the market has fallen below that threshold since 2009. https://www.tausiinsider.com/november-auto-sales-in-canada-up-from-year-ago-report-says/?feed_id=331194&_unique_id=645257c64c014

British consumer goods giant Unilever is considering the sale of a portfolio of U.S. ice cream brands such as Klondike and Breyers, that could be valued at as much as $3-billion, Bloomberg News reported on Thursday. International labels Magnum and Ben & Jerry’s are not part of the review, the Bloomberg News report said, citing people familiar with the matter. Unilever chief executive Alan Jope said he would not comment on the rumours in an interview with CNBC. The company was taking decisive action on slow growth parts of company’s portfolio, Jope added. Deliberations are ongoing and the company may still decide not to sell the brands, the report added. The maker of Dove soap has had a rocky year, including its three unsuccessful bids for the consumer health arm of GSK, the arrival of activist investor Nelson Peltz and plans for Jope to retire at the end of 2023. In June, Unilever sold its Ben & Jerry’s ice cream business in Israel to its local licensee for an undisclosed sum...

Coils of rolled steel at the ArcelorMittal Dofasco facility, in Hamilton, Ont., on Oct. 13. Nathan Denette/The Canadian Press Statistics Canada says manufacturing sales rose 2.8 per cent to $72.6-billion in October as higher prices helped boost petroleum and coal industry sales. The agency says sales were up in 12 of the 21 industries it tracks, led by a 12.7 per cent gain for petroleum and coal industry sales, which totalled $10.6-billion in October. Sales in the food manufacturing industry hit a record high in October as they climbed 2.9 per cent to $12.3-billion as grain and oilseed milling sales gained 18.4 per cent to $2.0-billion, with prices and volumes for canola oil both higher. Chemical product sales rose 4.9 per cent to $6.1-billion. Meanwhile, sales of motor vehicles fell 3.2 per cent to $3.4-billion as Statistics Canada said a lack of materials and microchip shortages continue to plague several auto manufacturers. Overall sales in constant dollars were unchanged in Octob...

Tesla CEO Elon Musk visits the construction site of the car maker's Gigafactory, in Gruenheide, Germany, on Aug. 13, 2021. POOL New/Reuters Tesla boss Elon Musk disclosed another $3.6-billion in stock sales on Wednesday, taking his total near $40-billion this year and frustrating investors as the company’s shares wallow at two-year lows. A U.S securities filing showed he unloaded 22 million shares in the world’s most valuable car maker over three days from Monday to Wednesday. The sale is the second big chunk of stock he has cashed out since his $44-billion purchase of Twitter in October. It isn’t clear if the sales are related to the Twitter acquisition, but they are annoying investors who are upset by a perception he is diverting his focus and resources to Twitter ahead of Tesla. “It doesn’t put a lot of confidence in the business, or speak volumes for where his attention is at,” said Tony Sycamore, an analyst at brokerage IG Markets, where Tesla is a popular stock among small-...

People shop at a mall in Arcadia, Calif., on Nov. 25. FREDERIC J. BROWN/AFP/Getty Images U.S. retail sales fell more than expected in November, but consumer spending remains supported by a tight labour market, with the number of Americans filing for unemployment benefits decreasing by the most in five months last week. The biggest decrease in retail sales in 11 months reported by the Commerce Department on Thursday was likely payback after sales surged in October as Americans started their holiday shopping early to take advantage of discounts by businesses desperate to clear excess inventory. Economists also noted that goods prices tumbled in November, which could have weighed on retail sales last month. The discounts by retailers were also probably a drag on the dollar value of sales. Retail sales are mostly goods and are not adjusted for inflation. “It is hard to know at this point if the November weakness represented a fundamental change in the trend or reflected some inevitable c...

Statistics Canada says wholesale sales rose 2.1 per cent to $83.4-billion in October, boosted by gains in the miscellaneous goods, building material and supplies, and personal and household goods subsectors. The agency says sales were up in six of the seven subsectors it tracks. Sales for the miscellaneous goods subsector gained 5.5 per cent at $13.0-billion in October, with the bulk of the increase in the agricultural supplies industry. The building material and supplies subsector rose 3.3 per cent to $12.6-billion in October on higher sales for lumber, millwork, hardware and other building supplies. Meanwhile, the personal and household goods subsector rose 2.8 per cent to $11.6-billion. Statistics Canada says overall sales in constant dollars rose 0.9 per cent in October. https://www.tausiinsider.com/canadian-wholesale-sales-up-2-1-in-october-statscan-says/?feed_id=327842&_unique_id=641894a8dec12

U.S. retail sales rose 7.6% between Nov. 1 and Dec. 24, which encompasses a majority of the holiday season, as steep discounts lured deal-hungry consumers, a Mastercard report showed on Monday. The increase is higher than the 7.1% growth Mastercard had forecast in September, when it anticipated consumers would pull purchases to October in the hunt for early deals. However, this year’s holiday retail sales growth is less than the 8.5% increase last year as decades-high inflation, rising interest rates and the threat of a recession turned consumers cautious. Retailers including Amazon.com Inc and Walmart Inc in the United States offered large discounts during the holiday season to get rid of excess stock and bring back inventories to normal levels. That led to strong demand for everything from toys to electronics during the five-day-long period between Thanksgiving and Cyber Monday. However, sales of electronics dropped 5.3% over the broader roughly two-month period, according to the ...

Bed Bath & Beyond Inc BBBY-Q is in talks with private equity firm Sycamore Partners for the sale of its assets, including its buybuy Baby stores, as part of a possible bankruptcy process, the New York Times reported on Friday citing people familiar with the matter. The company is also in talks with other suitors about possible deals, the report added. Bed Bath & Beyond said it does not “comment on speculation of this nature” and reiterated a previous statement that it was exploring multiple paths. Sycamore Partners declined to comment. Shares of Bed Bath & Beyond were down about 4 per cent at $5.02 in morning trading amid weakness in the broader market. The stock rallied for four consecutive sessions this week and closed 50 per cent higher on Thursday. The troubled home goods retailer posted a bigger-than-expected quarterly loss and a plunge in sales on Tuesday, after saying last week it was exploring options, including bankruptcy, as it struggled with a dwindling cash pi...