Evening Update: Rogers stock downgraded by analysts amid leadership battle

Good evening, let’s start with today’s top stories:

Analysts downgrade Rogers stock as concerns grow over leadership battles

The recent dramatic board upheaval at Rogers Communications is starting to translate into analyst downgrades, amid concerns that leadership uncertainty could weigh on the wireless giant as it navigates the pandemic and strong competition within the telecommunications sector.

The drama continued to unfold over the weekend as Edward Rogers was reappointed chair at a board meeting yesterday that was called invalid by three rival family members as well as the five company directors who Rogers says he has now replaced.

Rogers is at odds with his mother and two sisters over which independent directors sit on the company’s board. The power struggle erupted after Rogers tried to unseat chief executive officer Joe Natale and remove other executives. The company is in the middle of a $26-billion takeover of Shaw Communications.

Martha Rogers took aim publicly at her brother and his “Old Guard puppet masters” in a series of tweets on the weekend and called for him to step down.

Opinion: Rogers family feud proves the dual-class share structure is a train wreck for corporate governance – Mark Wiseman

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Ontario tables omnibus labour legislation bill that includes a ban on non-compete clauses

Ontario Labour Minister Monte McNaughton today tabled a bill with a long list of labour-law changes, unveiled over the past week, that he says are aimed at redressing imbalances in the work force, including a ban on non-compete clauses and rules forcing businesses to allow delivery drivers to use their washrooms.

A non-compete clause typically attempts to ban an employee from taking their talents to a competitor after leaving their job – sometimes for years. The growing use of these clauses has been flagged as a problem across North America.

The provincial government also says the bill is the first legislation in Canada that would give employees the right to disconnect outside of work hours. It would require employers with 25 or more staff to develop disconnecting-from-work policies, which could include expectations about response time for e-mails outside of work hours.

Opinion: Why non-compete agreements are becoming a casualty of the ‘great resignation’ – Rita Trichur

ALSO ON OUR RADAR

Military coup in Sudan: Sudan’s military seized power today, dissolving the transitional government hours after troops arrested the Prime Minister, and thousands flooded the streets to protest the coup. Security forces opened fire and at least three protesters were killed and 80 people wounded, according to the Sudan Doctors’ Committee. Read more: A look at the events behind the coup in Sudan.

Major storm hits B.C. coast: Wind warnings and special weather statements remain posted for Vancouver Island and British Columbia’s inner south coast, but it appears the region has dodged significant damage from a powerful storm. The rough weather is also expected to delay the recovery of 40 containers that fell overboard from a cargo ship that caught fire off the coast of Vancouver Island over the weekend.

Chrétien says he was unaware of residential school abuse: Former prime minister Jean Chrétien told a Quebec TV talk show yesterday that the issue of abuse at residential schools was never brought to his attention during his time as Indian affairs minister from 1968 to 1974.

Tesla market cap tops US$1-trillion: Tesla has surpassed US$1-trillion in market capitalization, the fifth U.S. company to join the club that includes Apple, Microsoft, Amazon and Alphabet, as the company founded by Elon Musk received its biggest order – 100,000 electric rental cars for Hertz.

MARKET WATCH

On Wall Street, the Dow and S&P 500 closed at record highs today, as earnings season kicked in to high gear with bellwethers in multiple sectors poised to announce results. Canada’s main index also closed higher, extending its winning streak to 14 straight sessions - the longest in decades.

The Dow Jones Industrial Average rose 64.13 points or 0.18 per cent to 35,741.15, the S&P 500 gained 21.58 points or 0.47 per cent to 4,566.48 and the Nasdaq Composite added 136.51 points or 0.9 per cent to end at 15,226.71.

The S&P/TSX Composite Index climbed 68.69 points or 0.32 per cent to 21,284.84.

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TALKING POINTS

In promising a post-COVID era in just five months, is Doug Ford repeating Jason Kenney’s mistakes?

“The pandemic has never been milder in Ontario but, in Saskatchewan and Alberta, things have never been worse. Their disastrous fall is the direct result of the pride of just a few months earlier, when the two premiers insisted that COVID-19 could bend to the needs of their timetables.” – Globe editorial

It’s time for Bank of Canada to raise its message on inflation, if not interest rates just yet

“One well-placed sentence on Wednesday would be a big leap in advancing the inflation discussion, from, ‘Oh, it’s just temporary,’ to a clearer policy direction.” – David Parkinson

Maple Leafs are taking the gloves off early this year

“It’s okay to lose a few. Just don’t lose badly. If you do lose badly, be gracious. Toronto fans are totally fine rooting for a loser, but they don’t like losers who lip back.” – Cathal Kelly

LIVING BETTER

Whole grain, whole wheat, sourdough – what’s your healthiest choice when it comes to buying a loaf of bread? Dietitian Leslie Beck unpacks what you need to know here. They include:

• Breads labelled “100 per cent whole grain” contain only whole grain flours, delivering the nutritional benefits of all three components: bran, germ and endosperm.
• Those touting to be “100 per cent whole wheat” may not be whole grain bread. Look for “whole grain whole wheat flour including the germ” on the ingredient list.

TODAY’S LONG READ

Guess Who won’t make it into the Rock & Roll Hall of Fame

Friday sees the release of Bachman Cummings: The Collection, a seven-CD collection of five albums by the Guess Who, along with best-of compilations of Bachman-Turner Overdrive and solo Burton Cummings material. I have my copy of the box set. Does the Rock & Roll Hall of Fame have theirs? Because the collection makes a compelling case for the inclusion of the Guess Who.

On Saturday, the Hall inducts its 2021 class. Not only is the Guess Who not among this year’s laureate crop of Tina Turner, Carole King, the Go-Go’s, Jay-Z, Foo Fighters and Todd Rundgren, the Canadian wheat-field rockers didn’t have a real shot of inclusion. Despite being eligible since 1991, the Guess Who has never been so much as nominated.

What makes this year’s omission more glaring than usual is that Turner and King are being inducted for the second time each. Turner is already in as a member of Ike & Tina Turner; King was given a non-performer award in 1990 as a songwriter with her writing partner and former husband, Gerry Goffin. So, while Turner and King make return visits, Randy Bachman and Burton Cummings (and assorted other Guess Who members) only gain entry into the hall by purchasing tickets. Read Brad Wheeler’s full story here.

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