These are stories Report on Business is following Thursday, April 9, 2015.
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Follow the bouncing ball
The ever-bouncing Canadian dollar is no doubt vexing companies and consumers alike.
And in the end, as Camilla Sutton put it today, there has been "a lot of up and down, and then right back to where we started."
It's the wild swings that are something of a curse.
Yesterday, for example, the loonie touched a low of 79.63 cents U.S. and a high of 80.66 cents, meaning a swing of more than a penny.
Ms. Sutton, Bank of Nova Scotia's chief currency strategist, noted the range since the start of February, from 77.93 cents to 80.89 cents.
"So we've really been in this range where we have these really big intraday moves," she said.
For companies that don't hedge, that's a big problem.
So far this year, the currency has lost 7.3 per cent.
That's swell news for Canadian exporters, whose goods become cheaper in the U.S. as the loonie erodes.
"But if you're an importer, you probably don't have 7.3 per cent in your margins," Ms. Sutton said. "So you're really susceptible."
This affects consumers, too, whether or not they're travelling to the United States, where they're losing buying power.
Imported products are suddenly more expensive, and we've seen this in the latest inflation reports, notably where food is concerned, though other items, as well.
You can look at it the other way around, too, as U.S. companies report the hit to their results from a stronger greenback.
Part of the problem, as well, is that companies will be finding it difficult to forecast as much of the trouble stems from the ups and downs of oil prices and the U.S. dollar.
Yesterday, for example, oil prices fell on the latest U.S. inventories report, while the U.S. dollar gained strength on the back of comments that led to speculation of where U.S. interest rates are headed, and when.
By late afternoon today, the loonie had ranged from 79.30 cents to 79.94 cents.
- Oil rallies after slump but sentiment weak
- Fed officials say June rate hike still possible, hinges on data
Bombardier shakes it up. Again
Bombardier Inc. is shaking up its management ranks further, replacing its chief financial officer and head of commercial aircraft as more senior executives leave the company during one of the most difficult periods in its history.
Pierre Alary, Bombardier's CFO, will retire, The Globe and Mail's Nicolas Van Praet reports. He'll remain in place until his replacement is found, Bombardier said in a statement.
Mike Arcamone, who had led the effort to develop Bombardier's new C Series airliner as head of commercial aircraft, is also leaving the company. Replacing him is Fred Cromer, an industry veteran who was most recently president of International Lease Finance Corp.
Scotiabank CEO urges change
Canada's energy producers need to tap new markets abroad, but are being constrained by a lack of infrastructure caused by inter-provincial bickering and political indecision, says Bank of Nova Scotia's chief executive.
"Global market access for Canadian energy must be a common objective that we pursue vigorously," Brian Porter said today in prepared remarks for the bank's annual general meeting in Ottawa, The Globe and Mail's David Berman reports.
"Now is the time for leaders to come together."
Mr. Porter's call-to-action follows a dramatic collapse in the price of crude oil and ongoing delays in extending the Keystone pipeline to refiners in the United States, ramping up concerns among some business leaders that Canada's goal of becoming an energy powerhouse is at risk.
OECD warns on economy
Canada's economy is softening, the OECD warned today in yet another signal of how the collapse in oil prices is hurting the country.
The Organization for Economic Co-Operation and Development didn't blame the softness on crude, but we all know that's what's behind it, and why economists in general have been slashing their projections for growth in gross domestic product.
The OECD released its monthly composite leading indicators, which signal stronger times for the euro zone, the United States, Britain and Japan.
"On the other hand, CLIs signal growth easing in China and Canada, albeit from relatively high levels," the group said.
- OECD joins growing chorus warning of a weaker economy
- David Parkinson: Don't sacrifice flexibility in the name of balanced budgets
Kik weighs in options
Canada's popular Kik Interactive is looking at its avenues going forward, including possibly selling.
The company, which sprang from the University of Waterloo and now has some 200 million users, said in a statement that it has been approached for so long now, and has said no, that it's worth looking at what might be out there.
"We kept on getting approached and finally decided we should at least consider all the options," chief executive officer and founder Ted Livingston said in a statement.
"So now we're talking to pretty much every company to see what a partnership might look like. We hired Qatalyst, who we've known for years, to help us do that. To be clear, we are absolutely committed to staying independent."
Kik's messenger service was started in 2009 by U of W students. It's used in about 230 countries.
Greece in spotlight
Greece is making headlines for paying its bills.
Athens is repaying about $485-million (U.S.) to the International Monetary Fund today, though at the same time, reports say, European Union officials have given the country just six working days to come up with a list of economic reforms.
"Greece still has a long way to go, but this repayment would begin to repair the country's poor relationship the rest of the euro zone," said IG market analyst David Madden.
"Traders are more than aware Greece's economy is being crushed under the weight of its own debt, but as long as Athens appears willing to play ball with the [European Central Bank] then equity markets will keeping edging higher."
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Business ticker
- Dentons bolsters U.S. base with McKenna Long & Aldridge merger
- Corus swings to loss on writedown, warns on full-year profit
- Postmedia losses widen on hit from weaker loonie, declining ad revenues
- Bank of England keeps rates on hold as it awaits inflation signs
- Canada's building permits drop on non-residential weakness