Here are five things you need to know this morning:
New CEO coming for Stellantis: Shares in automaker Stellantis will be one to watch today after the surprise resignation of the company’s CEO. Carlos Tavares stepped down on Sunday following a dispute with the company’s board on the direction of the company, and disagreement as to how to fix it. Tavares had led the company since its creation in 2021 out of the merger of Peugeot, Citroen and Fiat Chrysler. The shares are down about seven per cent premarket on the news.
Lion cuts 400 jobs: Electric vehicle maker Lion Electric has secured a cash lifeline from its lenders to extend a key debt deadline by another two weeks. The debt-laden vehicle maker has announced an at least temporary layoff of 400 workers this morning. That will bring its total staffing level down to 300 people, and the company’s facility in Joliet, Illinois will be idled. The company’s shares have steadily declined after peaking in 2021 at more than $25 on the TSX. On Friday they closed at 25 cents.
Lightspeed cuts 200 positions: TSX-listed payment firm Lightspeed Commerce Inc. said Monday it is undergoing a restructuring that will result in the layoff of about 200 people. The company said in a release premarket that the moves are designed to improve the company’s long-term growth opportunities. The company reiterated its outlook for fiscal 2025, noting that it still expects revenue to grow at least 20 per cent next year and rack up adjusted EBITDA of at least $50 million. Most of the charges related to the restructuring will be booked in the third quarter.
French markets jittery as government deficit talks break down: Markets in Europe are jittery this morning as the French government is facing the prospect of collapse over a fight about the deficit. Marine Le Pen’s far-right party has threatened to bring down the governing coalition over a fight about tax increases and spending cuts. The French deficit has ballooned from 4.7 per cent of GDP in 2022 to 5.5 per cent in 2023 and is on track to hit 6.2 per cent this year, Bloomberg reports. The euro is selling off on the uncertainty as the U.S. dollar continues its rally.
A diamond lasts forever, even on sale: DeBeers has cut diamond prices by more than 10 per cent across the board as the world’s biggest diamond producer abandons its longstanding practice of trying to keep a floor under the wholesale price. The company that essentially controls the global trade in diamonds has long been able to maintain baseline prices by limiting supply. But the pandemic kicked off one of the deepest demand slumps in decades, as man-made diamonds became increasingly popular with consumers. At its final wholesale diamond auction of the year, DeBeers cut prices across the board by as much as 15 per cent, Bloomberg reports. So why spend two months salary on an engagement ring if seven weeks worth will probably do the trick?