The Daily Chase: Canadian Tire, Cineplex deliver earnings; U.S. inflation accelerates
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Here are five things you need to know for Aug. 10, 2023.
House of Mouse: Shares of Disney are modestly higher, but we will see if they can hold the gains. The company delivered a mixed set of results that saw profit beat expectations but revenue and Disney + subscribers miss forecasts. The old/new CEO Bob Iger has been back at it again and is laser focused on cutting costs and losses in the streaming business. Losses in direct-to-consumer were less than forecast (only -$500M vs the -$780M expected) and the company said it will get better by next year. How? By charging more! Prices are going up by nearly 30 per cent for users in the U.S. and in Canada users will get an ad-supported model starting at $7.99/month in November. If you don’t go for that option, your prices will be going up in December. Will consumers eat it? Ask any parent if avoiding a tantrum is worth an extra $3/month. Disney already knows the answer.
A ludicrously capacious deal: Two luxury design houses with terrible names are leaning on each other. Tapestry (Coach, Stuart Weitzman) is buying Capri Holdings (Michael Kors, Jimmy Choo, and Versace) for a 65 per cent premium. At $57 per share the offer certainly is a nice premium to yesterday’s close but a far cry from the nearly $100 per share Capri traded at in the heyday of 2014. Of course, both companies have struggled to take on the behemoth that is LVMH and this gives them a better chance.
Canadian Tire warns: Canadian Tire managed to beat earnings expectations but it came with weaker than expected revenue and a withdrawal of the retailer’s financial forecasts. Sales in all of Canadian Tire’s banners except Marks fell from last year. The company is also abandoning its financial goals made in March 2022. They blame current macro environment and consumer demand differing significantly from when they laid out in their goals. Inflation and higher interest rates have affected its ability to drive sales growth. Despite what sounds like a dire warning, RBC’s Irene Nattel calls this a non-event, saying “The Street had broadly discounted those as unachievable.” We will see if that’s true when the market opens.
Jay Allen is a fan of U.S. President Donald Trump, and voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.
Another climb for oil prices sent the U.S. stock market sharply lower, as hopes collapsed for a possible cut to interest rates by the Federal Reserve.
Global oil prices will continue to rise as the war in the Middle East continues and the Strait of Hormuz remains inaccessible, according to an energy expert.
Global oil prices will continue to rise as the war in the Middle East continues and the Strait of Hormuz remains inaccessible, according to an energy expert.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Jurors wade through daunting evidence in high-stakes Meta trial about social media risks to children
A stream of testimony and evidence has been presented in a New Mexico case exploring what Meta knew about the effects of its platforms on children.
Markets in Canada and the U.S. continued to trade lower while oil went up late morning on Friday as inflationary fears prevailed among investors.
Gold prices fell by 1.8 per cent on Friday as the dollar strengthened on a report that the United States will deploy extra troops in the Middle East, fanning concerns of higher oil prices, inflation, and with it, elevated interest rates.
Canada’s federally backed farm lender is offering financial aid to farmers, agricultural businesses and food companies hit by the spike in fertilizer and energy prices, it said on Friday.
Statistics Canada says retail sales were up 1.1 per cent at $70.7 billion in January, led by sales at motor vehicle and parts dealers.
As Qatar reels from an Iranian attack that has hobbled its giant natural gas company, its boss, who doubles as the country’s energy minister, says he had warned officials and executives of just such a danger should Iran’s own sites be hit.
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