Agenda: Tourism Montréal, Pfizer, Multinational enterprises taxation, Economic recovery & Delta variant, Richard Branson & Supersonic ship, Porter Airlines, JP Morgan, Pepsi, BlackRock, Bank of Canada, Aerospace industry, Market Review.
Major investment to help revive tourism in Montreal. Given the pandemic, the tourism sector has suffered very difficult times. To help this sector, the government of Quebec and Tourisme Montréal are injecting $13 million, according to Radio-Canada. Therefore, organizations and cultural events in Montreal will be the most important beneficiaries of this investment. Read more here.
Pfizer and COVID booster shot. Given the spread of the highly contagious Delta variant virus, Pfizer has planned to urge U.S. authorities to authorize a booster dose of its COVID-19 vaccine. It hopes to provide enhanced immune protection for the population who have received the first two doses, reports Le Figaro. Read more here.
Multinationals and a corporate tax of 15%. In order to put an end to tax havens, more than 130 countries have approved a reform of the taxation of multinational enterprises. This new law should be in effect for 2023, reports Reuters. Read more here.
Significant threat to economic recovery: Delta variant. According to Reuters, there is a major risk to the global economy: the spread of the Delta variant. NPR has reported delta to be about 225% more transmissible than the original SARS-CoV-2 strains, and it continues to gain momentum in several countries. What does not help this situation is that for some countries, the level of immunization is low. Read more here.
Mission accomplished for Richard Branson and his supersonic ship. On July 11, CNBC reported that billionaire Richard Branson achieved his longed goal of reaching space and is the first billionaire space company to ride his own spacecraft. He and a team of six successfully boarded his first commercial spacecraft and were able to experience the sensations of weightlessness for a few minutes. The spacecraft launched into the air from Spaceport America, a base built in the desert of New Mexico in the United States. Read more here.
Porter Airlines is preparing for a return to service with an aircraft order. According to Reuters, Canadian regional carrier Porter Airlines reached an agreement with Brazilian Embraer to purchase up to 80 Embraer jets. According to the list price, the aircraft order is valued at U.S. $5.82 billion with 30 firm orders. The entry into service of these is scheduled for the second quarter of 2022. Porter’s flights have been suspended for about 18 months due to the pandemic. The resumption of service for Porter is scheduled for September. Read more here.
The reduction in reserves positively influences the profits of JPMorgan. Given the improving economic outlook, U.S. bank JPMorgan reduced its reserves at the start of the pandemic, thus improving its second-quarter profit, states CNBC. To mitigate the possible defaults of its customers, JPMorgan had decided in the second quarter of 2020 to increase its reserves by 8.9 billion dollars. For the same period in 2021, its reserves were reduced by $3 billion. Read more here.
Upward forecast for Pepsi. CTV News reports that given a reduction in the COVID-19 crisis that has opened the door to a rise in consumer demand, beverage producer Pepsi has revised its forecast for sales and profits upwards for the year. For the year 2021, Pepsi anticipates an increase in its revenues of 6%. For drinks sales in Europe, they increased by 21% and by 24% for North America. Read more here.
BlackRock hits record-high assets under management. During the last year, the company experienced a 30% increase in assets. CNBC reports that the world’s largest asset manager, BlackRock, reached a record level of 9.496 billion dollars. In the previous quarter, BlackRock broke the $9 billion mark for the first time. BlackRock’s major clients include sovereign wealth funds, pension funds and large fortunes. The money entrusted by clients is invested in the financial markets by BlackRock. Read more here.
Key rate unchanged by the Bank of Canada. Reduced forecast of economic growth in Canada, mentions the Bank of Canada. No increase in its key rate even if the risks associated with COVID-19 decrease. According to La Presse, the central bank was aiming for 6.5% growth in 2021, but now it expects a growth of 6%. Restrictions and confinements were significant reasons for this change in forecast. Read more here.
$693 million for the aerospace industry. According to La Presse, the governments of Canada and Quebec have announced that they will invest up to $693 million in the aerospace industry. The objective of these investments is to assist in the development of innovative projects in the Canadian aerospace industry. The totality of these projects would allow more than 6000 students to carry out internships in companies as well as the creation of 1000 jobs in the field of aerospace. The companies benefiting from these investments will notably be CAE, Pratt & Whitney and Bell Textron. Read more here.
Wall Street is influenced by inflation. Ending the week on a negative note associated with inflation and profit-taking, the New York Stock Exchange closed the day lower. The Toronto Stock Exchange fell 0.98% to 19,995 points. Read more here.
