Commodities lead TSX slump
The main TSX index took a triple digit slump Tuesday as commodities and healthcare tumbled.
Materials fell 3 per cent with healthcare and energy down 2.5 per cent and only the IT sector group managed to keep its head above water.
Wall Street was also lower ahead of the Fed’s interest rate decision in the next session; Dutch election fears pushed European indexes into negative territory; Asian markets were mixed on global issues and regional data.
The S&P/TSX Composite Index closed down 165,2 (1.06 per cent)
The Dow Jones closed down 44.11 (0.21 per cent)
Oil is trending mixed (Brent up at $51,56, WTI down at $48.37 at 4.45pm)
Gold is trending lower (1197.50 at 4.45pm)
The loonie is valued at U$0.7415
Valeant down 10 per cent as Ackman stake loses $3bn
News that billionaire activist investor Bill Ackman was ditching his fund’s stake in Valeant Pharmaceutical meant more bad news for the Montreal drugmaker.
Its shares fell 10 per cent to an all-time low Tuesday as news spread that Pershing Square, Ackman’s fund, took an estimated C$3.5 billion loss on divesting its stake in the firm.
Hudson’s Bay in talks to acquire luxury retailer
Hudson’s Bay Company is talking to luxury US retailer Nieman Marcus according to the Wall Street Journal.
Nieman is owned by the Canada Pension Plan Investment Board and Ares Management but the WSJ’s sources say that Hudson’s Bay wants control of the company without its debt.
Franchisee rebellion against Tim Horton’s parent
Restaurant Brands International, parent of Tim Horton’s and Burger King, is facing a rebellion from franchisees over its cost-cutting.
The Globe and Mail reports that franchisees are concerned about damage to the brand from measures which they say have caused product shortages and quality reductions.
They franchisees have formed a group called Great White North Franchise Association to present their case to RBI.
RBI president and CEO Robert Diaz told the Globe and Mail that the company will continue to work with franchisees to deliver a great guest experience and growth for franchisees.