Here are five things you need to know this morning:
Consumers get their slice of bread price fixing settlement: Almost seven years after admitting to their role in a scheme to fix the price of bread, grocer Loblaws and parent company George Weston have agreed to pay $500 million to settle two class action lawsuits related to the scheme. The two companies revealed the settlement before markets opened this morning. For more than a decade starting in 2001, it’s alleged that Loblaws and other industry players in the grocery and bakery businesses worked together to artificially inflate the price of bread by as much as $1.50 per loaf. Loblaws blew the whistle on the scheme in 2017, getting immunity from criminal prosecution by assisting with an ongoing Competition Bureau probe into the matter. Other players, including major grocery chains, continue to deny any involvement, but the size of this morning’s settlement shows just how much is at stake. Last year, Canada Bread agreed to a $50 million fine to settle the issue from their perspective. We’ll speak to the lead lawyer who struck the deal with Loblaws this morning on The Open.
Loblaws earnings show profit decline: The settlement seems to have taken a bite out of the company’s quarterly results, posted before the bell this morning. The company says it booked a charge of $164 million related to the settlement costs during the quarter. Overall, profit fell by about 10 per cent to $457 million. That’s down from $508 million last year. Revenue inched up 1.5 per cent to $13.95 billion, less than the $14.17 billion that analysts were forecasting.
Jasper wildfire nears critical infrastructure: The situation unfolding in Jasper, Alberta right now is hard to watch, but in addition to the toll on human lives in the area, it’s also worth being aware of the impact on some critical infrastructure. CN Rail says it has reopened rail traffic through the area after briefly halting it as a precaution. In a situation that’s devolving rapidly, it’s hard to get an accurate picture of what’s happening, but we do know that the operators of the Trans Mountain Pipeline said that while everything was safe and operational on Wednesday, they had deployed sprinkler systems as a precaution. “Firefighters ... are working to save as many structures as possible and protect critical infrastructure, including the … Trans Mountain Pipeline,” Parks Canada said in a post on social media.
Businesses cutting hiring plans, CFIB says: Only 13 per cent of small businesses plan to increase their head count over the next few months. That’s the smallest percentage since 2021, according to a new survey from the Canadian Federation of Independent Business (CFIB). The survey is the latest barometer on a Canadian economy that seems to be clearly moving from overheated by inflation to cooling down. While they won’t be hiring, at least most aren’t planning layoffs, either. Nearly three quarters plan on holding staffing levels steady, the survey says.
Celestica beats expectations on higher revenue forecast: Celestica was quietly one of the biggest gainers on the TSX last year, and the technology company seems to be continuing its winning ways. The company posted quarterly results before the bell this morning, and the firm says it plans to take in $9.45 billion in revenue this year. That’s up from $9.1 billion last year and better than the $9.13 billion that analysts were expecting.
