News of the day for August 22, 2024
Canadian Railroads Begin Lockout, Threatening US Trade
Canada’s two largest freight railroad operators, Canadian National Railway (CNI) and Canadian Pacific Kansas City (CP), locked out nearly 10,000 workers overnight after unsuccessful negotiations with the Teamsters Canada union, threatening U.S. cross-border trade as services were shut down. The lockouts could also hurt global supply chains as well as Canada, where international trade makes up about two-thirds of GDP. CPKC said it “is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period.”
Paramount Stock Rises as It Extends Deadline to Review Bronfman Offer
Paramount Global (PARA) shares are rising 2% after its special committee extended the “go-shop” deadline to Sept. 5 as it reviews the latest bid by Edgar Bronfman Jr. that may trump Skydance Media’s accepted offer. The media entrepreneur reportedly raised his offer for Shari Redstone’s media empire to $6 billion for controlling shareholder National Amusements and a minority stake in the entertainment giant. According to The Wall Street Journal, Bronfman’s new bid, which exceeds his previous $4.3 billion offer, “includes $1.7 billion for a tender offer that would give non-Redstone, nonvoting Paramount shareholders an option to cash out at a premium of $16 a share,” according to people familiar with the matter.
Snowflake Tumbles on Widening Loss
Snowflake (SNOW) shares are slumping 9% in premarket trading after the cloud data-warehouse software firm posted a widening net loss and rising costs that overshadowed higher-than-estimated quarterly results. The Montana-based company also left its gross margin forecast unchanged, disappointing investors even as it raised its annual revenue outlook. The company, whose stock is down 43% from its high this year, has been losing investor favor since naming a new CEO in February and disclosing a cyberattack in late May.
TD Bank Swings to Surprise Loss, Sets Aside $2.6B for AML Penalties
Toronto-Dominion Bank (TD) swung to a third-quarter loss as the Canadian lender announced it had set aside $2.6 billion more for U.S. anti-money laundering (AML) penalties during the period. The bank posted higher-than-expected revenue of 14.18 billion Canadian dollars ($10.43 billion) but an unexpected loss of C$181 million after reporting a C$2.88 billion profit last year. To help offset part of the AML provision, TD sold 40.5 million shares of Charles Schwab (SCHW), lowering its stake in the online broker to 10.1% from 12.3%. TD shares are down 4% in premarket trading.
Bavarian Nordic Stock Jumps on Revenue Beat, Mpox Vaccine Order
Shares of Bavarian Nordic are surging 13% in Danish trading after the company with the only approved mpox vaccine in the U.S. and Europe posted a quarterly revenue beat and announced a huge vaccine order. Bavarian Nordic, which reported second-quarter revenue of 1.43 billion Danish kroner ($212.9 million) that beat analysts’ consensus estimates, said it had signed a contract with an undisclosed European country to supply 440,000 doses of smallpox and mpox vaccine. Last week, the World Health Organization (WHO) declared the mpox outbreak in Africa a global health emergency.
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Image Source: Andrew Chin / Getty Images Teamsters union members hold picket signs at the entrance of CN Rail – Intermodal Yard on August 22, 2024 in Surrey, British Columbia.
