Here are the top reads on deals and financial services over the last 24 hours,
Hot U.S. economy boosts TD and CIBC profits, but competition is rising: Toronto-Dominion Bank and Canadian Imperial Bank of Commerce can thank a hot U.S. economy for higher profits. But the banks' sizable American operations aren’t expected to deliver as much growth in 2019 because of rising competition. Story (Tim Kiladze, for subscribers)
CIBC, TD say 2019 outlook clouded by economic uncertainty, trade tensions: Toronto-Dominion Bank and Canadian Imperial Bank of Commerce, two of Canada’s biggest lenders, said on Thursday that global economic uncertainty and trade tensions could hurt their performances next year. Story (for subscribers)
RBC eyes annuities business as earnings driver for insurance arm in 2019: Royal Bank of Canada’s annuities business is poised to fuel earnings growth for its insurance arm in fiscal 2019. Typically used for retirement planning, annuities are a type of insurance product that provides a steady stream of fixed income where investors pay a lump sum up front and in return receive monthly payments for life. Story (Clare O’Hara, for subscribers)
‘Exempt market’ sees surge in investments, but mostly from big money, OSC report finds: An explosion of capital has been raised under a series of rule changes that were thought to make it easier for small companies and retail investors to connect − but big companies and sophisticated investors are taking up the bulk of the market. That’s the conclusion from an Ontario Securities Commission report on the “exempt market,” or deals where the companies raising money relied on exemptions from the full, lengthy disclosures found in a traditional offering prospectus. Story (David Milstead, for subscribers)
Sleep Country buys mattress startup Endy for up to $89-million: Mattress retailer Sleep Country Canada Holdings Inc. has agreed to buy one of its biggest upstart e-commerce competitors, Endy, for up to $89-million. Endy, which was founded in 2015 makes its mattresses in Canada and ships for free across the country, is one of more than 100 “bed-in-a-box” retailers that sells primarily online, with such other competitors as Casper. Story (Josh O’Kane, for subscribers)
Rogers sells personal-finance website MoneySense to Toronto-based Ratehub: Rogers Communications Inc. has sold personal-finance website MoneySense to Toronto-based Ratehub Inc., the owner of an online comparison site for financial products as well as mortgage brokerage CanWise Financial. It’s the first such deal announced since Rogers put eight of its magazines up for sale in the summer, some of them digital-only titles such as MoneySense. Story (Susan Krashinsky Robertson, for subscribers)
MORE FINANCIAL SERVICES NEWS
Investigation: Police raided six Deutsche Bank AG offices in and around Frankfurt on Thursday over money-laundering allegations linked to the “Panama Papers,” the public prosecutor’s office in Germany’s financial capital said. Story (for subscribers)
CMHC: Canada Mortgage and Housing Corp. saw its third-quarter profit drop compared with a year ago as the housing market showed signs of cooling off. Story (for subscribers)
IN CASE YOU MISSED IT: BOARD GAMES
The Globe and Mail’s comprehensive ranking of Canada’s corporate boards: For the 17th year in a row, Report on Business has rated the work of Canada’s corporate boards using a rigorous set of governance criteria designed to go far beyond minimum mandatory rules imposed by regulators. Tables (for subscribers)
How we ranked Canada’s corporate boards: Methodology
Growing up: Cannabis firms fall short on corporate governance: After months of focusing on how to grow marijuana, publicly-traded pot producers are facing a new problem: how to grow up. One of the key next steps in the industry’s evolution from outlaw business to legal industry is to bolster corporate governance – the set of best practices in how a board manages a corporation, and the disclosures that let investors know it’s being done right. Story (David Milstead, for subscribers)
Why three of Canada’s Big Cannabis firms scored low on corporate governance rankings: Explainer
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