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Brookfield CEO Bruce Flatt attends the company's AGM in Toronto in this file photo. Chris Young/The Canadian Press Brookfield Asset Management Inc.’s BAM-A-T third-quarter profit fell 74 per cent as interest costs surged and deal activity slowed, but the company continued to raise funds at a record pace and is flush with cash to pursue new investments. Chief executive officer Bruce Flatt said in a letter to shareholders that the “dislocation” in financial markets in an environment of rapidly rising interest rates has made it harder for many companies seeking financing to access capital, which has slowed the flow of deals. Interest rates could peak in the next six months and should “slowly come down” as inflation abates, he said, but many of the world’s major economies look like they “will experience a recession.” As capital grows increasingly scarce, however, Brookfield looks to be in an advantageous position to make deals after booking capital inflows of US$33-billion in the th...

Amazon.com Inc AMZN-Q is reviewing unprofitable business units, including the devices unit, to cut costs, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Shares of the company rose 11 per cent in morning trade. Amazon did not immediately respond to a Reuters request for comment. As part of the months-long review, Amazon has told employees in some unprofitable divisions to look for jobs elsewhere in the company because the teams they were working on were being suspended or closed, the report said. Alexa, Amazon’s voice assistant business, is also under review, the Journal reported, adding that the unit had an operating loss of more than $5-billion a year. https://www.tausiinsider.com/amazon-reportedly-reviewing-unprofitable-business-units-in-bid-to-cut-costs/?feed_id=443268&_unique_id=649f39059fcb3

Romspen, one of Canada’s biggest private mortgage lenders, with $3.2-billion in assets under management, is freezing investor redemptions, citing some trouble with loan repayments. The act of freezing redemptions, known as “gating” in the investment industry, prevents investors from taking their money out of the fund. Because Romspen is a private lender, a preset mechanism for redemptions normally permits a certain amount to be paid back to investors each month. The company has not said how long the freeze will last. Instead, it told investors this week that it will “temporarily defer payment of unit redemptions requests until there is more clarity with respect to the fund’s timetable for borrower loan repayments and the receipt of proceeds of collateral and asset monetizations.” Romspen’s portfolio largely comprises construction and predevelopment loans, and it lends to borrowers across the United States and Canada. In its letter to investors, the company warned that “if redemption...

CAE Inc.’s CAE-T share price surged after the company reported strong civil and defence performance in its second quarter results. The Montreal-based builder of flight and health simulators saw its share price increase 18.17 per cent to $28.42 on the TSX at midday trading. CAE says net income attributable to equity holders was $44.5-million, or 14 cents per share for the quarter ended Sept. 30, up from $14.0-million or 4 cents per share in the same quarter last year. CAE attributes a strong consolidated-level performance in the second quarter to double-digit growth in the civil segment, better results in defence and renewed profitability in healthcare. The company reaffirmed its outlook for the fiscal year after reducing the compound growth rate to mid-20 per cent last quarter. On an adjusted basis, it earned 19 cents per share and $993.2-million in revenue, compared to an average analyst expectation of 17 cents per share and $949-million, according to estimates compiled by financial...

“Post-IPO, our Canadian business will trade exclusively on the Toronto Stock Exchange, and our U.S. business will trade exclusively on a U.S. exchange,” said CEO Kurt MacAlpine, seen here on Dec. 20, 2019. Tijana Martin/Tausi Insider CI Financial Corp. says it plans to file for a stock offering for its U.S. wealth-management business later this month, the next step in a plan to divide the company into two businesses, one on each side of the border. The plan includes delisting the current company’s shares from the New York Stock Exchange, chief executive officer Kurt MacAlpine told CI investors Thursday as part of the company’s earnings call. “Post-IPO, our Canadian business will trade exclusively on the Toronto Stock Exchange, and our U.S. business will trade exclusively on a U.S. exchange,” Mr. MacAlpine said. “The listings will be reflective of the primary market that each business operates in.” CI said the plan also may include selling a larger proportion of the U.S. business th...

A Tim Hortons branded chicken noodle soup base was recalled in Alberta and southwestern Ontario because it contained insects. In an emailed statement, Tim Hortons said Thursday the recall does not impact canned soups sold in grocery stores, only the soup base that was made and sold to a few isolated restaurants. It said there were no reported illnesses. The Canadian Food Inspection Agency (CFIA) said the recalled product was available to purchase in those provinces up to and including Oct. 20. The agency said the soup base, which weighs 3.54 kilograms per unit, was sold to hotels, restaurants and institutions. Tim Hortons said the incident only impacted a few isolated Tim Hortons restaurants, but the company proactively asked all restaurant owners that received product from the supplier in question to dispose of their product. The company said the impacted batches were removed from restaurants, destroyed and replaced with new product from another supplier. Chicken noodle soup base in...

Crypto exchange FTX filed for U.S. bankruptcy proceedings on Friday and Sam Bankman-Fried stepped down as CEO after a rapid liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world. The distressed crypto trading platform had been struggling to raise billions in funds to stave off collapse after traders rushed to withdraw US$6-billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal. The company said in a statement shared on Twitter on Friday that FTX, its affiliated crypto trading fund Alameda Research and approximately 130 other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware. FTX had raised US$400-million from investors in January, increasing the valuation of the company to US$32-billion. It attracted money from investors such as Singapore state investor Temasek and the Ontario Teachers’ Pension Plan. John J. Ray III has been appointed to take over as C...

Emera Inc. EMA-T is putting capital spending on clean energy projects in Nova Scotia on hold as it works through the consequences of the Nova Scotia government’s imposed rate cap on the parent company of Nova Scotia Power. In a conference call to discuss the power utility’s latest financial results, Emera chief executive Scott Balfour said Friday that while the company will continue to make investments in safety and reliability of its network, it won’t be able to spend on other projects in the province due to the cap. “The last capital plan included $500-million in planned investment in the Eastern Clean Energy Initiative, including the Atlantic Loop, to fund new wind generation, transmission, infrastructure upgrades and battery storage to help facilitate the transition away from coal-fired generation,” he said. “Given the restrictions imposed by Bill 212, these cleaner energy investments have been forced to be put on hold as our capital investments at Nova Scotia Power are now requi...

Two provincial privacy watchdogs say they have received data breach reports from Sobeys, which has been dealing with “IT system” issues for much of the past week affecting customers seeking prescriptions at some pharmacies it operates. Quebec’s access to information commission confirmed Thursday it received a declaration of a “confidentiality incident” from the grocer. It said confidentiality incidents occur when there is unauthorized access, use or loss of personal information or or any other breach of the protection of this information. Alberta’s privacy commission also confirmed that it has been notified by the company about the incident and is aware that it is being investigated. At the federal level, the Office of the Privacy Commissioner of Canada says it is in communication with the company to obtain more information and determine next steps. On Monday the parent company of Sobeys, Empire Company Ltd. EMP-A-T, released a statement on the issue, saying some pharmacies were havi...

Elizabeth Holmes urged a U.S. judge not to send her to prison, as the founder of Theranos Inc prepares to be sentenced next week for defrauding investors in the blood testing start-up. In a Thursday night court filing, lawyers for Holmes asked that she receive 18 months in home confinement, followed by community service, at her Nov. 18 sentencing before U.S. District Judge Edward Davila in San Jose, California. The lawyers said prison time was unnecessary to deter future wrongdoing, calling the 38-year-old Holmes a “singular human with much to give” and not the robotic, emotionless “caricature” seen by the public and media. “No defendant should be made a martyr to public passion,” the lawyers wrote. “We ask that the court consider, as it must, the real person, the real company and the complex circumstances surrounding the offense.” Prosecutors are expected to file their sentencing recommendation soon. A jury convicted Holmes in January on four counts of wire fraud and conspiracy. Eac...

Manulife Financial Corp. MFC-T says it will name Don Lindsay as chair of the company’s board early next year. Lindsay will replace John Cassaday, who will retire in February after 30 years on the Manulife board, including the past five as chair. Lindsay has served on the Manulife board for the past 12 years and will serve as vice-chair until Cassaday’s retirement. Lindsay is the former CEO of Vancouver-based mining company Teck Resources Ltd. He retired from Teck earlier this year after 18 years at the helm of that company. Lindsay also recently served as the chair of the Business Council of Canada. https://www.tausiinsider.com/manulife-to-appoint-former-teck-resources-ceo-don-lindsay-as-board-chair-in-february/?feed_id=421071&_unique_id=64996cb20e496

A ReconAfrica oil drilling site in Namibia. John Grobler/Tausi Insider A Canadian oil company says it will push ahead with exploration drilling and seismic work in Namibia, despite its failure to find commercial amounts of oil in its latest well. Reconnaissance Energy Africa Ltd. RECO-X, also known as ReconAfrica, is exploring for oil in the Kalahari region of Namibia, not far from the Okavango River, which flows into the Okavango Delta, a world-famous wildlife region that attracts thousands of tourists annually. Environmentalists have been fighting the project for the past three years, with help from celebrities such as Prince Harry and Leonardo DiCaprio. They are concerned that it could jeopardize elephant migration routes and underground water sources that reach the Okavango River. ReconAfrica announced on Wednesday that it did not find enough oil for its Makandina 8-2 Well to be commercially viable. The well, which it began drilling in late June, was at a total depth of 2,056 met...

Collapsed cryptocurrency trading firm FTX confirmed there was “unauthorized access” to its accounts, hours after the company filed for Chapter 11 bankruptcy protection Friday. The embattled company’s new CEO John Ray III said Saturday that FTX is switching off the ability to trade or withdraw funds and taking steps to secure customers’ assets, according to a tweet by FTX’s general counsel Ryne Miller. FTX is also co-ordinating with law enforcement and regulators, the company said. Exactly how much money is involved is unclear, but analytics firm Elliptic estimated Saturday that $477 million was missing from the exchange. Another $186 million was moved out of FTX’s accounts, but that may have been FTX moving assets to storage, said Elliptic’s co-founder and chief scientist Tom Robinson. A debate formed on social media about whether the exchange was hacked or a company insider had stolen funds, a possibility that cryptocurrency analysts couldn’t rule out. Until recently, FTX was one of...

Shopify Inc.'s headquarters in Ottawa on May 3, 2022. During the pandemic, the company partnered with the government on an initiative to help small businesses grow, and on the COVID Alert app. Sean Kilpatrick/The Canadian Press Vass Bednar is the founder of Regs to Riches , a senior fellow at CIGI, and the executive director of McMaster University’s master of public policy in digital society program. I recently reported Shopify to … itself. The Twitter account “ Deceptive Design ,” which illuminates deceptive design patterns, had noted two fishy apps available on the app store of Shopify Inc. , the Ottawa-based e-commerce platform. One advertises the ability for merchants using Shopify to create fake low-stock indicators. Another adds faux time pressure for customers through a large animated countdown timer. These apps are made by third-party app developers and are not necessarily Shopify’s fault. But Shopify claims certain standards in its official requirements for apps . By a...

Turquoise Hill Resources Ltd. TRQ-T says if Rio Tinto’s RIO-N proposal to take the company private does not go ahead its immediate priority will be to address the company’s liquidity concerns. The company says it will implement all elements of its binding funding heads of agreement with Rio Tinto, which holds a majority stake in the company, to provide it with the needed liquidity and resources to meet its obligations as it works to expand its Oyu Tolgoi copper and gold mine in Mongolia. Turquoise Hill, which keeps its books in U.S. dollars, made the comments as it reported a profit of US$40-million or 23 cents per diluted share for the quarter ended Sept. 30 compared with a profit of US$54.4-million or 28 cents per diluted share in the same quarter last year. Revenue for the quarter totalled US$391.1-million, down from US$662.1-million a year earlier. In its outlook, the company maintained its copper production guidance within a range of 110,000 to 150,000 tonnes, while it raised it...

A Home Depot location in Mexico City, on Jan. 15. LUIS CORTES/Reuters Home Depot Inc HD-N on Tuesday left its annual forecasts unchanged even as quarterly results topped Wall Street expectations, raising concerns about demand heading into the holiday season amid a slowing housing market. Shares in the largest U.S. home improvement chain slipped in early trade, with the number of transactions falling in the quarter as surging inflation deterred do-it-yourself customers. Mortgage rates have more than doubled since the start of 2022, cooling the housing market that boomed in the pandemic. Home Depot reiterated its full-year outlook, which Jefferies analysts said implied its fourth-quarter earnings would come in below Wall Street. Although demand from contractors, builders and other professional customers remained strong, DIY customers who had splurged on paint, tools and gardening equipment last year cut back on spending in the third quarter of this year. “Home Depot is not immune to a ...

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...

Attabotics CEO Scott Gravelle, pictured in 2020, says the warehouse robotics company is looking to introduce a recurring revenue model where customers pay as they use the technology, in order to provide a stream of cash that is steadier than one-time installation contracts. Jeff McIntosh/Tausi Insider Export Development Canada has led a US$72-million investment in Calgary warehouse robotics startup Attabotics Inc., part of a recent strategy by the Crown corporation to boost support for globally-minded medium-sized companies. The federal government’s export financing arm is leading the investment, while Ontario Teachers’ Pension Plan, which led a US$50-million of convertible debt financing to Attabotics in 2020, has converted its stake into equity and invested another US$11-million as part of this round. It’s the first deal involving Teachers’ venture growth unit since its $95-million investment in cryptocurrency exchange operator FTX vaporized last week. Other Attabotics investors in...