Energy stocks fall again as crude hits 2-month low
Canada’s energy firms never get much rest from the turbulent oil prices and the price of crude took another plunge Tuesday, with Wets Texas Intermediate and Brent losing around a dollar a barrel. Analysts from Goldman Sachs said that oil prices could get worse as storage for refined products nears capacity; the IMF reported that Saudi Arabia could be broke in 5 years if prices and policies don’t change.
Canada’s railway stocks were also lower but fortunately bank stocks and Tim Hortons’ owner Restaurant Brands gained offsetting some of the losses.
Asian markets had closed mixed as continued weak data from China weighed on the region, although as is often the case Shanghai managed to reverse its losses to close slightly up.
European indexes were concerned about oil and China as well as some regional issues and the major indexes closed with losses of around 1 per cent.
Wall Street also closed lower as the transport sector weighed on stock prices.
The S&P/TSX Composite Index closed down 91.30 (0.66 per cent)
The Dow Jones closed down 41.62 (0.24 per cent)
Oil is trending lower (Brent $46.87, WTI $43.25 at 4.25pm)
Gold is trending higher (1166.90 at 4.25pm)
The loonie is valued at U$0.7539
BoC looks at new ways to calculate inflation
The bank of Canada says that it is investigating alternative means for calculating inflation which could influence policies such as interest rates. Timothy Lane, deputy governor, said that the bank is not expecting to use alternatives to existing policy, quantitative easing for example, unless it became necessary.
Tim Hortons owner plans faster international growth
Restaurant Brands International, the owner of Timmies, says it is looking at a faster roll out of its brands in international markets. The firm, which also owns Burger King, announced its quarterly results with sales and net profits increasing while costs fell. CEO Daniel Schwartz said that it will be announcing franchise partners to grow the brands outside North America in the next year.
Bombardier set to lose big from C-series says report
Bombardier could lose U$32 million for every C-series jet it sells in 2016-17 according to analysis from aviation consultants Leeham Co. Although losing money on initial sales of aircraft is not unusual, the C-series being 3 years late coming to market will saddle the Canadian firm with costs for some time.