Prof. Fournier Press Review: Sept 20 – Sept 24
Agenda: Ryanair, Canadian Pacific, United States and third dose/vaccine, Hydro-Québec, Tilray, Aurora cannabis, Market Review.
Job creation for Ryanair. Following the COVID-19 pandemic crisis, the airline Ryanair of Ireland plans to hire 5,000 employees in the next five years. According to Yahoo, the company has benefited from the departure of other airlines, which had to cease operations due to the economic crisis brought on by the pandemic. Therefore, Ryanair is increasing its growth forecast for the next five years and has forecasted that the number of passengers will increase by 50%, higher than the previous forecast of 33%.
Canadian Pacific buys Kansas City Southern. According to BNN Bloomberg, Kansas City Southern (KCS) accepted an offer from the Canadian Pacific Railway Company (CP Rail). The transaction is valued at approximately US $31 billion. Canadian National also submitted an offer, but KCS preferred CP Rail’s bid. This acquisition of KCS by CP Rail will provide the customers of both companies with significantly expanded market access and new competitive transportation options. The transaction will also support North American economic growth.
No third dose for the general population in the United States. According to CNN, the Food and Drug Administration (FDA) advisory committee has mentioned the need for a third dose of the vaccine for people 65 years of age and older, as well as for people at high risk of developing severe disease. The advisory committee also mentioned that caregivers should be included among these high-risk people. However, it is important to mention that the advisory committee expressed concerns regarding the possible side effects that would result from an additional dose of the vaccine if it were administered to the general population, especially to the youngest population.
Major contract for Hydro-Quebec with the state of New York. Hydro-Quebec and its American partner Transmission Developers have been selected to supply electricity to New York State starting from 2025 and will plan to sustain this contract for 25 years. According to a Hydro-Quebec press release, the electricity delivery contract will supply for more than one million American households. The project involves the construction of an underground transmission line between the Canada-US border and New York City.
Office closure for Tilray in British Columbia. Cannabis producer Tilray, which merged earlier this year with competitor Aphria, announces the closure of an office and a production facility in Nanaimo, British Columbia. According to CBC, Tilray argued that the goal of the decision is to reduce its operating costs. Tilray did not mention the number of employees that will lose their jobs, though the company clarified that this plan will open opportunities for workers at its facility in Vancouver Island. The closure will be staggered until Spring 2022.
Aurora cannabis announces closure of its facilities in Alberta. According to Reuters, Edmonton-headquartered cannabis producer Aurora announces that it will be closing one of its facilities in Alberta. The objective of this closure concerns the rationalization of its activities. More specifically, the closure concerns Aurora Polaris, the medical division of Aurora cannabis. Aurora Polaris activities will be transferred to the Aurora River, located in Bradford, Ontario. The company has not specified the number of employees who will be affected by this closure.
Market Review. The New York Stock Exchange ended slightly higher on Friday after a session marked by low volumes and high volatility, which ended the week choppy with the Evergrande crisis and the Federal Reserve meeting. The Toronto Stock Exchange recorded a decline for three consecutive weeks. A phenomenon spawned amid concerns over the Chinese real estate market and the country’s ban on cryptocurrencies. Read more from CNBC.