TSX closes higher as Middle East tensions boost oil
Energy stocks were among those gaining Tuesday as tension in the Middle East increased following the shooting down of a Russian fighter jet by Turkish forces; and disagreement among OPEC members about policy ahead of its December meeting.
The main Toronto index gained to close higher as oil increased more than 2.5 per cent. Wall Street was also higher.
Asian markets closed broadly higher while European markets, more exposed to the Russia-Turkey tension, closed with losses.
The S&P/TSX Composite Index closed up 25.45 (0.19 per cent)
The Dow Jones closed up 19.51 (0.11 per cent)
Oil is trending higher (Brent $46.08, WTI $42.89 at 4.10pm)
Gold is trending higher (1075.10 at 4.10pm)
The loonie is valued at U$0.7517
Black Friday unlikely to be a boom for Canadian retailers
For US firms Black Friday is highly profitable as part of the Thanksgiving holiday weekend but retailers here may not feel the benefit despite their best efforts. Statistics Canada looked at historic sales data for November and found that retail sales only increased from 8.4 per cent of the annual total to 8.5 per cent between 2006 and 2014. Although Canada’s retailers may be offering discounts and longer trading hours for Black Friday the data suggests that December will continue to be the choice for shoppers, accounting for 9.3 per cent of the year’s shopping. However that percentage has declined since 2006 when it was 9.9 per cent.
Bombardier sees tough year ahead but optimistic future
Bombardier is not expecting an easier year in 2016 but the longer term is looking more positive. Next year is expected to be a tough year with lower earnings and revenue despite recent funding arrangements. CEO Allain Bellemare revealed a detailed 5-year plan to investors at a presentation in New York with revenue in 2020 expected to hit U$25 billion, an EBIT margin of 7-8 per cent and free cash flow of at least 80 per cent of net income. The firm is also reported to be close to securing certification for its CSeries jets.
Canada lagging in cybercrime fight
Canada is falling behind some other countries in the fight against cybercrime. That’s according to the Canadian Advanced Technology Alliance which says that even during the election there was no mention of the growing threat. Katherine Thomson from the advocacy group told CBC News that Canada is “failing, we’re falling behind.” Although Public Safety Canada is committing $142 million over the next five years to tackle cybercrime it is mainly for issues of national security and infrastructure rather than corporate or individual risk.