TSX ends flat ahead of OPEC meeting
World markets are focused on two key meetings taking place in Europe Thursday.
The most significant is the OPEC members’ conference in Austria. There was new talk of a potential output cap Wednesday although most analysts are not expecting much. Producing nations including Iraq and Saudi Arabia have been ramping up output so any cap is likely to be on the high side.
Oil prices have gained ahead of the meeting.
Also tomorrow, is the ECB meeting with investors focusing on inflation and growth projections.
Ahead of those meetings, major markets were flat at best although Asian and European indexes were broadly weak. Wall Street managed slim gains.
The S&P/TSX Composite Index closed down 2.09 (0.01 per cent)
The Dow Jones closed up 2.47 (0.01 per cent)
Oil is trending higher (Brent $49.90, WTI $49.20 at 4.25pm)
Gold is trending lower (1214.80 at 4.25pm)
The loonie is valued at U$0.7653
PE firm alleges conspiracy in Wind Mobile acquisition
Private equity firm Catalyst says that a group who went on to buy Wind Mobile Canada, its former owners and an investment bank; conspired against Catalyst to scupper its exclusive deal to acquire the operator. The lawsuit seeks damages for Catalyst, which it says are crystalized by the group’s later profits from the sale of Wind to Shaw.
Lululemon founder wants annual board elections
The founder of yogawear firm Lululemon has called for its board to face annual election to make it more accountable. Chip Wilson holds 14.2 per cent of the firm’s stock and is the largest single shareholder. He called into question whether the current board has the right mix of directors and leadership. The board says it has.
Under Wilson’s plan, there would be an annual election for all directors instead of the current staggered process where only some board members can be replaced in any year.
National Bank profits down on energy losses
National Bank continued the trend Wednesday by announcing lower net income due largely to greater provision for bad loans from the energy sector. The bank made $210 million (52 cents per share) after a $183 million provision for defaults. Without that provision its net income would have been up 2 per cent on the $404 million net profit made in the second quarter of 2015.