Resources pull TSX lower, global growth weighs
Canada’s resources industries were a big concern as the wider issue of global growth dominated world markets.
Although Asian markets had closed mainly higher from a stronger handover from Wall Street in the previous session concern about slowing global growth spread across European markets and then to New York and Toronto.
Meanwhile the IMF director Christine Lagarde warned that the downside risks of weak global growth, including commodity prices, have increased.
The S&P/TSX Composite Index closed down 288.4 (2.09 per cent)
The Dow Jones closed down 179.7 (1.09 per cent)
Oil is mixed (Brent higher at $48.97, WTI lower at $46.17 at 4.20pm)
Gold is trending lower (1124.20 at 4.20pm)
The loonie is valued at U$0.7544
CN Rail accuses ex-employee of corporate espionage
Canadian National Rail alleges that an ex-employee shared secret information with Canadian Pacific Railway. A lawsuit alleges that CN lost revenue and market share from the actions of an employee who then left and joined its rival. Although the allegations have been made they are not proven in court and Canadian Pacific’s response is not yet known.
Canada could take enforcement action against Volkswagen
German automaker VW has already lost billions in market value after it was found to have given inaccurate emissions data. Now along with many other jurisdictions Environment Canada is talking about potential criminal action if it is found that VW used software to switch to greener running when tested.
Total has sold stake in Fort Hills to Suncor
French oil company Total has sold 10 per cent of its stake in the Fort Hills oil sands project in Alberta to Canada’s Suncor for $310 million. Reuters says that the deal reduces Total’s stake to 29.2 per cent and increases Suncor’s to 50.8 per cent. The rest is held by Teck Resources.
Study days LNG delays to cost BC $20 billion a year
Delays in launching liquefied natural gas projects in British Columbia will cost the province $20 billion a year from 2020 according to the Fraser Institute. Its study concludes that the lost revenue will impact jobs growth and public services. The delays have also cost Canada the potential to be the world’s largest LNG exporter according to the study.
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