Here are five things you need to know this morning:
A coalition of business groups is calling on the federal government to take action to avoid an interruption of rail service: The Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business, and Canadian Manufacturers & Exporters want the Minister of Labour to refer the ongoing railway dispute to the Canada Industrial Relations Board for binding arbitration to prohibit a strike or lockout. The groups note that alternatively, the government can reconvene Parliament and introduce back-to-work legislation. In a statement, the groups say: “The federal government must show leadership and act before our trains - and with them, our economy - grind to a halt.” A phased shutdown of the networks at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. is already underway as the clock ticks down on contact talks with the Teamsters Canada Rail Conference. Unless deals are reached, rail service at both companies is poised to stop at 12:01 a.m. ET on Thursday.
Ford Motor Co. is recalibrating its electrification strategy yet again: The company cancelled plans for a fully electric sport utility vehicle in a shift that may cost the carmaker around US$1.9 billion. Ford is scrapping an all-electric three-row SUV that already had been delayed. The vehicle was supposed to be built at Ford’s plant in Oakville, Ontario. Ford will further postpone a next- generation electric pickup and reduce spending on EVs to 30 per cent of its annual capital expenditures, from about 40 per cent previously. The automaker is also shaking up battery-sourcing plans, citing the need to better compete with lower-cost Chinese competitors.
Shares of Target Corp. surged in the premarket: The U.S. retailer topped revenue and profit expectations in its latest quarter. Comparable sales increased, ending a streak of four straight quarters of contraction. Shoppers made more visits to Target’s stores and website and bought more discretionary items like clothing. Target abandoned its attempted expansion into Canada back in 2015.
Shares of TJX Companies Inc. also moved higher in the premarket: The discount clothing and home retailer reported better-than-expected second-quarter results and raised its full-year forecasts. The parent of T.J. Maxx, Winners and Marshalls also announced that it is taking a 35 per cent ownership stake in Dubai-based retailer Brands For Less for US$360 million.
It’s a different story at Macy’s: The venerable department store chain slightly missed analysts’ estimates for its quarterly revenue and lowered its outlook for sales for the rest of the year. Macy’s is blaming increased discounting by competitors and a more cautious consumer. The company has been working on a strategy of closing stores with falling revenue and investing in ones where sales have been more robust.
