These are stories Report on Business is following Thursday, May 26. Get the top business stories through the day on BlackBerry or iPhone by bookmarking our mobile-friendly webpage.
Gadhafi stashes billions Libya's sovereign wealth fund has stashed billions of its oil wealth in Wall Street and European banks, an international advocacy group says.
Global Witness today posted on its website details of the Libyan sovereign wealth fund's holdings, and The New York Times said it independently verified the document. It was prepared by KPMG in London.
Among the banks are Goldman Sachs Group Inc., JPMorgan and Société Générale. No Canadian banks are on the list. The money is in both accounts and structured financial products.
The holdings appear to have been legal at the time the document was prepared in mid-2010, though sanctions have now been imposed.
The document also shows the wealth fund invested in several stocks, including, among those listed as strategic, Canada's SNC-Lavalin Group Inc. . The value of its holdings in SNC, which works in Libya, is listed at about $16-million at the time.
A spokesperson for SNC was not immediately available this morning.
Other assets included U.S. government bonds.
Overall, the wealth fund lost billions on complex financial instruments.
TD posts higher profit Profit at Toronto-Dominion Bank rose 12 per cent in the second quarter, driven by one of its best quarters ever in Canadian retail banking, but falling short of analysts' estimates, Globe and Mail banking writer Tim Kiladze reports.
Canada's second-largest bank earned $1.33-billion, or $1.46 a share, in the quarter, compared with $1.18-billion, or $1.30 a share a year ago.
"This was the second best quarter on record for Canadian personal and commercial banking, despite fewer days in the quarter and, as expected, some slowing in personal banking volume growth from the exceptional levels seen in 2010," said Canadian banking chief Tim Hockey.
CIBC profit climbs Canadian Imperial Bank of Commerce today posted a gain in second-quarter profit from a year earlier, though earnings fell from the first quarter.
CIBC earned $678-million or $1.60 a share, diluted, compared to $660-million or $1.59 a year earlier. Profit missed analysts' estimates and were down from $799-million or $1.92 in the first quarter, The Globe and Mail's Tim Kiladze reports.
"CIBC delivered solid performance during the second quarter," said chief executive officer Gerry McCaughey . "The investments we are making in our retail and wholesale businesses are furthering our strength in Canada and positioning us well for the future."
National Bank boosts dividend National Bank of Canada today boosted its quarterly dividend by a nickel as it posted a 13-per-cent jump in second-quarter profit. It's the second dividend increase in six months, The Globe and Mail's Grant Robertson reports.
The bank hiked its dividend to 71 cents a share as it announced profit climbed to $295-million or $1.48 a share, diluted, from $261-million or $1.50 a year earlier.
"National Bank, which was recently recognized as one of the world's strongest banks, continues to be well positioned to expand its activities while paying excellent dividends to shareholders," said chief executive officer Louis Vachon.
National also announced the acquisition of Wellington West.
Quebecor profit flat Quebecor Inc. today posted a 4.5-per-cent jump in first-quarter revenue, though profit dipped slightly.
Quebecor earned $34.3-million or 53 cents a share, basic, in the quarter, compared to $34.9-million or 54 cents a year earlier. Revenue climbed to $990.5-million.
"Quebecor posted revenue and operating income growth in the first quarter of 2011 despite the impact of major investments in new products and services in 2011 for the purpose of protecting and expanding our markets, without affecting our financial position," said chief executive officer Pierre Karl Peladeau, noting the roll-out of a new mobile network by its Videotron unit.
"Despite the miss this quarter, we continue to expect Quebecor to generate decent profitability from its telecom segment, even with the offset from wireless startup costs as the wireless subscriber base increases," said Desjardins analyst Mher Yaghi.
"With the stock having declined from its highs, we believe that valuation as well as improving cash flow and profitability metrics in 2012 should offer good support to the stock."
Lundin stock sinks Shares of Lundin Mining Corp. plunged in overseas trading today after the company pulled itself off the market, saying it couldn't get a bid that reflected its worth.
Vancouver-based Lundin said it received proposals from several suitors interested in acquiring the entire company as well as other offers for individual assets, The Globe and Mail's Andy Hoffman and Brenda Bouw report. However, Lundin said it has decided that all of the proposals were too low.
Further bids, said UBS Securities Canada analyst Matt Murphy, appear unlikely.
TD Newcrest today cut its target on Lundin stock to $9 from $10.50.
U.S. economy disappoints The U.S. economy turned in a disappointing showing this morning.
Economists had expected an initial reading of first-quarter economic growth would be revised higher, but the second measure came in at the same 1.8 per cent.
At the same time, the U.S. government reported that new claims for jobless benefits climbed higher last week, to 424,000, above the key 400,000 mark.
"Risks to the recovery continue to emanate from external sources," said senior economist James Marple of Toronto-Dominion Bank.
"The core risks to the outlook are the sovereign debt problem in Europe that threatens financial stability should a debt restructuring occur and efforts by China to rein in its economic growth to combat inflation that could have global repercussions."
In Economy Lab today
There are many reasons why Canada's deficit-taming experience of the 1990s is of little help as a guide for U.S. policy-makers today, Stephen Gordon writes.
In International Business today
South Africans are witnessing a humiliating slide in the country's gold status, The Globe and Mail's Geoffrey York reports from Johannesburg.
From today's Report on Business
- Standoff at GM: Retiree benefits v. the Impala
- Riding the wave in real estate
- CEO's abrupt exit leaves a hole at Tim Hortons
This article has been changed from an earlier version to correct the TD price target on Lundin stockReport Typo/Error
- SNC-Lavalin Group Inc$56.20+0.29(+0.52%)
- Toronto-Dominion Bank$57.29-0.21(-0.37%)
- Canadian Imperial Bank of Commerce$103.84+0.56(+0.54%)
- National Bank of Canada$46.97+0.02(+0.04%)
- Quebecor Inc$40.37+0.26(+0.65%)
- Lundin Mining Corp$5.04-0.01(-0.20%)
- Updated August 26 4:00 PM EDT. Delayed by at least 15 minutes.