Agenda: Tesco, Caisse de dépôt et placement du Québec, MTY, Ford, Multinationals and taxation, Reopening of the US border, Market Review
Good results for British supermarket giant Tesco. According to Yahoo Finance, Tesco saw its profit jump by 68% in the first half, despite being in a sector that has been hit by supply chain problems, specifically a severe shortage of truck drivers. Nonetheless, Tesco’s sales have remained high since the beginning of the pandemic, as this sector has been deemed essential. Tesco has more than a quarter of the market share, far ahead of its competitors, Sainsbury's, Asda and Morrisons.
Assistance program from La Caisse de dépôt et placement du Québec for medium-sized businesses. The Caisse de dépôt et placement du Québec has announced a support package for medium-sized businesses with high growth potential. According to the CDPQ press release, a business could receive a maximum of $75 million in benefits. The objective of this offer is to support medium-sized companies that approach business practices differently, particularly with regard to their international goals, skills development, technological integration and the perspectives of environmental and social factors.
Rising profit for the MTY company. Montreal Food Group MTY, which operates more than 80 restaurant banners, reported a $1.4 million profit increase in the third quarter. Revenue also increased 13% from the third quarter of 2020. Network revenue increased 29% in Canada, 5% in the United States and 7% internationally. In the third quarter, online sales in North America were $185.5 million for this quarter, compared to $184.2 million last year.
Falling sales for automaker Ford. According to CNBC, Ford sales were down 27% for the third quarter. The production was limited due to a lack of semiconductors. In contrast, Ford mentioned that the situation is improving as its sales fell by only 18% in September compared to the previous year. Ford's sales decline remains larger than the auto industry as a whole. The picture is mixed depending on the manufacturer; sales plummeted 33% at General Motors while they rose 1.4% at Toyota.
Minimum 15% tax on multinationals. According to the Investment Executive, OECD has announced that one hundred and thirty-six countries have agreed to impose a minimum tax of 15% on multinationals. These 136 countries, which represent 90% of world GDP, will be able to generate approximately 216 billion Canadian dollars in additional revenue thanks to this minimum tax according to the OECD. Kenya, Nigeria and Sri Lanka, countries involved in the negotiations, are not among the signatories of this agreement.
Reopening of the US border on November 8. The United States Government has announced that on November 8, the United States will lift restrictions on non-essential travel for double-vaccinated people. According to CTV News, this reopening date applies to both travellers arriving by air and those crossing the land borders between Canada and Mexico. For travellers arriving by air, the United States will require proof of vaccination and a negative test within three days of departure. Airlines have set up a contact tracing system.
