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The $15.9 million settlement of a class-action lawsuit related to TD Bank Group’s non-sufficient fund fees has been approved by an Ontario Superior Court.
The settlement will compensate customers who were double-charged a $48 fee and comes as scrutiny grows on the charging of such fees, including a push by the federal government to lower them.
The suit focused on the issue of whether TD properly informed customers that they could be charged the fee twice for the same purchase, which can happen if a merchant tries for a second time to get their payment.
For lead plaintiff Tyler Dufault, being 45 cents short on a PayPal bill led to $96 in fees from TD.
Adam Tanel, a partner at Koskie Minsky which brought the class action, says about 105,000 people who were also double-charged should get compensation, while TD has also agreed to amend some practices around the fees.
The other Big Five banks in Canada are also facing similar class actions over the double-charges.
— The Canadian Press
Strength in base metals and telecom helped Canada’s main stock index post a small gain, while U.S. markets moved lower.
The S&P/TSX composite index closed up 32.92 points at 21,255.61.
In New York, the Dow Jones industrial average was down 145.13 points at 38,627.99. The S&P 500 index was down 24.16 points at 5,005.57, while the Nasdaq composite was down 130.52 points at 15,775.65.
The Canadian dollar traded for 74.16 cents U.S. compared with 74.11 cents U.S. on Thursday.
The April crude contract was up 87 cents at US$78.46 per barrel and the March natural gas contract was up three cents at US$1.61 per mmBTU.
The April gold contract was up US$9.20 at US$2,024.10 an ounce and the March copper contract was up eight cents at US$3.84 a pound.
The Canadian Press
Strength in the base metals sector helped Canada’s main stock index move higher in late-morning trading, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 0.42 per cent at 21,311.93.
In New York, the Dow Jones industrial average was down 0.02 per cent at 38,762.06. The S&P 500 index was up 0.07 per cent at 5,033.31, while the Nasdaq composite was down 0.15 per cent at 15,883.05.
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The Canadian dollar traded down 0.07 per cent 74.15 cents US compared with 74.11 cents US on Thursday.
The April crude contract was up 0.72 per cent at US$78.59 per barrel and the March natural gas contract was up three cents at US$1.61 per mmBTU.
The April gold contract was up 0.31 per cent at US$2,021.10 an ounce and the March copper contract was up seven cents at US$3.83 a pound.
— The Canadian Press
Air Canada shares were down as much as 6.5 per cent on Friday as investors digested the carrier’s latest earnings report.
The airline reported a fourth-quarter profit of $184 million, up from $168 million a year earlier, as its operating revenue rose 11 per cent.
The airline said the profit amounted to 41 cents per diluted share for the quarter ended Dec. 31, compared with 41 cents per diluted share in the last three months of 2022.
Net income surged despite a 21 per cent increase in labour costs in the fourth quarter that arose from 3,200 more employees as of Dec. 31 than at the start of the year, as well as from “wage inflation” and profit sharing, said chief financial officer John Di Bert.
Even with advance bookings up six per cent year-over-year last quarter, Air Canada faces uncertain patches in 2024.
A new agreement with its 4,500 pilots now under negotiation is poised to hike wages. Customer compensation rules currently being drafted are also among the “net headwinds” blowing against profit margins, as are expected hikes to airport fees, Di Bert said.
“Costs are coming in notably higher than what had been expected previously,” said RBC Capital Markets analyst Walter Spracklin.
Operating expenses increased eight per cent due to higher costs reflecting the increased capacity and traffic, partially offset by lower jet fuel prices. Operating expenses missed analyst estimates.
Operating revenue totalled $5.18 billion, up from $4.68 billion in the fourth quarter of 2022.
The airline said the increase came as its operated capacity increased nine per cent compared with a year earlier.
On an adjusted basis, Air Canada says it lost 12 cents per diluted share in its latest quarter, compared with an adjusted loss of 61 cents per diluted share a year earlier.
— The Canadian Press
Ottawa is considering alterations to its proposed clean electricity regulations.
The possible changes come after consultations with industry.
The government says the changes would give power generators more flexibility while still reducing greenhouse gas emissions.
They would tailor emission reduction requirements and performance standards to individual facilities.
The changes would also allow power producers to pool the emission limits of more than one generator and to purchase offsets if they exceed those limits.
The government is asking industry to respond to the suggested changes by March 15.
— The Canadian Press
Another hotter-than-expected update on inflation is keeping U.S. stocks in check on Friday.
The S&P 500 was down 0.3 per cent in morning trading after setting an all-time high the day before. The Dow Jones industrial average was down 0.2 per cent and the Nasdaq composite was down 0.78 per cent.
Friday’s report on U.S. inflation at the wholesale level was the latest reminder that the battle against rising prices still isn’t over. Prices rose more in January than economists expected, and the numbers followed a similar report from earlier in the week that showed living costs for American consumers climbed by more than forecast.
Treasury yields rose in the bond market immediately after the report’s release. The data kept the door closed on hopes that the United States Federal Reserve could begin cutting interest rates in March, as traders had earlier hoped. It also discouraged bets that a Fed move to relax conditions on the economy and financial markets could come even in May.
In Toronto, the S&P/TSX composite index was up 0.26 per cent on strength in financial, energy and materials stocks.
— The Associated Press
Canadians bought up a record amount of foreign securities at the end of last year as investors piled into U.S. stocks.
Investment in securities outside the country hit $29.4 billion in December, according to data released Friday by Statistics Canada. That’s the largest net outflow of purchases into foreign stocks and bonds in the history of records going back to 1988.
The unprecedented outflows coincide with a sustained rally in the U.S. stock market at the end of last year. The purchase of securities abroad was driven by U.S. large-cap technology shares and investment fund shares tracking broad US equity market indexes, the agency said.
The data confirm Canadian investors’ elevated demand for global securities — specifically in the United States — amid increased market optimism that major central banks have finished hiking interest rates and expectations for a soft landing in the North American economies. The outflow in December also follows a record level of investment into U.S. government bonds in November, as Canadian firms took positions as global bond markets rallied.
Canadian investment in non-U.S. shares also contributed to December’s record — outflows hit $6.3 billion, largely into European equities.
Foreigners had less appetite for Canadian equities at the end of the year, divesting a net $532 million shares after a $5 billion outflow in November. Still, foreign investment into Canadian debt was $11 billion, led by purchases of federal government bonds and money market paper.
— Bloomberg
Mithaq Capital SPC says it’s dropping its hostile takeover offer for Aimia Inc. after not enough shares were tendered before the bid expired on Thursday.
As a result, no shares were acquired under the proposal and any shares that had been deposited under the bid will be returned, the company says.
However, Mithaq says it still has concerns with the strategic direction of the company and is evaluating all options available to it in connection with Aimia’s upcoming annual meeting of shareholders.
Mithaq, a segregated portfolio company and affiliate of Mithaq Holding Co., a family office based in Saudi Arabia, is Aimia’s largest shareholder with a 28 per cent stake in the company.
It had offered $3.66 per share in cash for the stake in Aimia it does not already own.
However, Aimia recommended shareholders reject the offer because it said it undervalued the company and was not compelling.
— The Canadian Press
Ontario discount retailer FactoryDirect.ca, owned by RGLogistics Ltd. Partnership, is closing all 14 of its stores and holding a liquidation sale after filing a notice of intention under the Bankruptcy and Insolvency Act.
Hundreds of employees will be affected by the closures, according to a Feb. 16 press release.
A high inflationary environment in the wake of the pandemic led to weaker sales and elevated overhead costs, the release said.
Liquidation sales will begin on Feb. 17.
The first Factory Direct store opened almost 30 years ago. At one point, the company operated 24 stores under the brand.
— Financial Post
Shares advanced in Europe and Asia on Friday after stocks on Wall Street set a fresh record following mixed reports on the state of the U.S. economy.
Tokyo’s benchmark Nikkei 225 index traded near a record high, 35 years after it peaked and then plunged with the collapse of Japan’s financial bubble.
Germany’s DAX gained 0.6 per cent to 17,153.79 and the CAC 40 in Paris also was up 0.6 per cent, at 7,790.14. Britain’s FTSE 100 climbed 0.8 per cent to 7,654.71.
The future for the S&P 500 gained 0.1 per cent while that for the Dow Jones industrial average was down 0.1 per cent.
The S&P/TSX composite index closed up 1.60 per cent on Thursday.
— The Associated Press
Prime Minister Justin Trudeau will participate in a fireside chat hosted by the Winnipeg Chamber of Commerce this morning.
Fresh data on wholesale trade drops at 8:30 a.m. In the U.S., expect the January producer price index, housing starts and building permits and the University of Michigan consumer sentiment index.
Earnings today include Air Canada and TC Energy Corp.
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Additional reporting by The Canadian Press, Associated Press and Bloomberg
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