Toronto’s Air Canada Centre will be renamed Scotiabank Arena in 2018.J.P. MOCZULSKI/The Globe and Mail
The Great Recession started in the U.S. housing market. Now, a new source of credit market woes is beginning to emerge for consumers: auto loans. Evidence is growing that North American car buyers are struggling to pay back what they've borrowed. The good news, however, is that compared to the housing market, auto loans make up a relatively small share of the overall credit market. Story (Andrew Willis, for subscribers)
Bank of Nova Scotia's $800-million, 20-year deal to secure the naming rights for the Air Canada Centre from Maple Leaf Sports and Entertainment was signed and sealed in the early hours of August 16. The bank beat out eight other companies, including other banks, in a push to refocus its marketing strategy. Story (James Bradshaw and Susan Krashinsky Robertson, for subscribers)
Toronto-Dominion Bank's profit jumped 17 per cent as the company sailed past expectations, joining the rest of Canada's 'Big Six' in surpassing analyst estimates for the third quarter. CFO Riaz Ahmed tempered expectations saying that although the Canadian economy has been strong there are a "number of headwinds that need to be taken into account," while looking forward. Story (James Bradshaw)
DAILY DEALS
Scotiabank is in talks with BBVA, the second-largest bank in Spain, to buy up to 100 per cent of its retail bank in Chile. BBVA Chile had a market value of $1.4-billion (US) on Wednesday. Scotiabank confirmed that it was in "non-binding, exploratory discussions" to acquire BBVA Chile. Story.
ELSEWHERE IN FINANCE
Wells Fargo & Co, America's third-largest bank, has found more unauhtorized accounts and online bill payment issues. The company says it will refund nearly 2 million more customers for charges they shouldn't have incurred. It's the latest bad news for a company that is still reeling from a sales scandal that damaged its reputation. Story
IN CASE YOU MISSED IT
Institutional Shareholder Services Inc., a major proxy adviser, told Home Capital investors to say no to more of Warren Buffet, the multi-billion dollar man who acquired $400-million in the mortgage lender's shares. ISS is urging shareholders to vote against a second share purchase by Buffet's Berskhire Hathaway Inc. at a Sept. 12 meeting. Story (Christina Pellegrini, for subscribers)
The Ontario Municipal Employees Retirement System (OMERS) is rebranding its Borealis Infrastructure wing as OMERS Infrastructure Management. The move tightens OMERS' ties to its infrascture division and is happening as many of Canada's largest pension funds turn infrastructure into a critical pillar of their investment strategies. Story (Jacqueline Nelson, for subscribers)