January 11, 2021
Wolf On Wall Street II
Happy Tuesday. This is a big day for us—The Peak is on Product Hunt! If you're a hunter, the team and I would really appreciate your support. Check us out here.
Markets
|
TSX | 17934.45 | -0.6% |
|
|
S&P 500 | 3799.61 | -0.66% |
|
|
DOW | 31008.69 | -0.29% |
|
NASDAQ | 12917.50 | 0.16% |
|
|
Gold | 1845.20 | -0.3% |
|
|
Oil | 52.13 | -0.23% |
|
|
Dollar | 0.78 | -0.05% |
-
359,054 doses have been administered in Canada, as of writing. 0.925% of Canadians have received a dose and 65.9% of doses delivered have been administered.
- RBC's Chief Executive Dave McKay says the economy will not be able to reopen until 4 million Canadians are vaccinated.
- Canada opted not to purchase an additional 16 million additional doses from Moderna because they wouldn't arrive uantil late 2021.
- Minister Dominic LeBlanc said Canada is still on track to have the entire population vaccinated by September 2021.
- Premier Ford and Mayor Tory announced that the Metro Toronto Convention Centre would be converted to mass vaccination facility.
.gif)
Investors are suing TD in an attempt to recover $5.7bil lost in the world's second largest ever ponzi scheme.
The backstory: In the mid-2000s, Texas real estate investor, Robert Stanford, started Stanford Financial Group. Like a sequel to the Wolf of Wall Street, Stanford Financial Group posed as a bank and managed money for over 30,000 unsuspecting clients.
- In 2009, the SEC suspected some funny business and exposed SFG as a massive $7.2bil fraud. Officials said that it was the second biggest ponzi scheme ever—second only to the fraud GOAT Bernie Madoff—and sentenced Stanford to 110 years in prison.
Where does TD fit in: Throughout the 90s and early 2000s, Stanford Financial Group was a major client of TD and used their banking services to funnel billions of dollars of client funds to offshore accounts.
- The lawsuit alleges that TD failed to detect red flags and should be forced to compensate victims of the fraud. In earlier court filings, the plaintiffs sought compensation for up to $7bil.
TD claims no wrongdoing and say they had no reason to suspect that Robert Stanford was committing financial crimes. The trial is expected to last for three months.
Looking forward: The risks/rewards for both parties are big enough that we expect this to be a high profile trial so stay tuned for more courtroom drama over the next three months.
Zoom out: If found responsible, TD could be on the hook for a significant penalty that would hurt their 2021 earnings.
Rioters broke into the US Capitol and all Americans got was campaign finance reform. In a strange turn of events, major American corporations are reconsidering their political donation strategy after last week's break in at the US Capitol.
What's happening: Condemnation of last week's riot has prompted many corporations to announce that they will withhold donations to candidates who voted against the certification of President-Elect Biden's victory.
- Companies refusing to donate to Republicans who voted against certification include Marriott, Dow Chemicals, and Blue Cross Blue Shield.
Some organizations—like Target, Bank of America, and FedEx—announced that they'll be reviewing their entire political spending policy. And JP Morgan is ceasing all contributions to all affiliated Political Action Committees (vehicles big companies use to donate unlimited amounts of cash to politicians).
Why does this matter: Fearful of the reputational risks associated with contributing to Republicans who incited violence at the Capitol, consumers are forcing brands to rethink their political spending strategy.
- Many Republican candidates targeted in these decisions depend on corporate donations to retain their seats. So if it holds, the actions of these companies could materially change the balance of power in Congress.
What about Canada: Unlike our neighbours to the South, Canada has strict rules limiting the influence of corporate money in our politics. At the federal level, corporations are prohibited from making donations, and most provinces either ban or tightly restrict the practice.
.jpg)
Ah, I love the smell of a deal war in the morning! Quebec billionaire Pierre-Karl Péladeau is mounting a bid to undermine Air Canada's bid to takeover rival airline Air Transat.
The backdrop: Last month, Air Transat shareholders approved a bid by Air Canada to purchase the airline for $188.7mil—down 75% from the original, pre-pandemic bid of $720 mil.
- The hold up? The deal needs to be approved by regulators in Canada and Europe before it can proceed.
Critics—including PKP—argue that Air Canada taking over Air Transat will reduce competition in Canadian air travel and result in higher prices for travellers.
Enter PKP: Sniffing a deal, PKP is doing everything he can to put the breaks on the acquisition.
- The Quebec media tycoon initially presented his own offer that would pay 20% more than Air Canada but the deal was swiftly rejected by Transat board members who preferred Air Canada's terms.
Now, Pierre-Karl Péladeau is making the case to regulators and politicians that it's in consumers best interest to deny Air Canada and accept his bid.
Whats next: According to The Globe, Minister Garneau is expected to present a recommendation to cabinet shortly and a decision is likely to be made late January or early February.
Bottom line: Although self-interested, PKP makes some good points and the Competition Bureau agrees, saying the merger "is likely to result in substantial anti‑competitive effects". But it's not like we'll be travelling anywhere anytime soon...
Yesterday, The Globe published an investigation that included interviews with multiple Amazon employees on the status of health and safety at the company's warehouses.
- Among other concerns, employees cited poor communication about COVID-19 outbreaks, intense pressure to work quickly—making it difficult to socially distance—and fear of reprisal for washroom breaks.
When asked the number of COVID-19 outbreaks at their facilities, Amazon refused to answer saying the numbers lack context.
- Amazon responded to the investigation saying, "we’re committed to growing our operations and investing across the country responsibly at a time when many people are relying on us to create great, safe jobs.”
Community groups are concerned: Local advocates worry that Amazon's warehouses are becoming a hotbed for community spread and they question whether Amazon's health and safety messaging is getting through to a workforce made up of many new Canadians.
Why it matters: As COVID-19 cases continue to spike throughout the country, expect governments to take a heavier handed approach to workplaces—especially industrial—who don't prioritize health and safety.
The US House of Representatives introduced articles of impeachment against President Trump for the second time in his tenure.
An Ontario father-son team claim that Tim Hortons stole their idea for a COVID-safe lid application tool.
The US re-added Cuba to a list of state sponsors of terrorism in an attempt to complicate President-Elect Biden's intention of normalizing relations.
Dry January: Kicking the pinot his month? Here are 31 mocktail recipes to help you through your alco-holiday.
The Award goes to: I had no idea that the Oscar's were still happening this year... but apparently their are and here's a handy guide to them.
Soul-less: Once a cultural phenomenon, SoulCycle—the super popular spin studio—has lost its step. Vox explains why.
Pizza Party: We're all stuck in lockdown—why not make it social with a Zoom pizza party? Here's a delicious recipe to get you started.