B.C. sees increase in home sales, except in Vancouver
Despite an uptick in home sales across the province, the market remains cool in Vancouver - here's why that could be.
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Globe and Mail
an hour ago
- Globe and Mail
Privacy Failures at Center of Landmark Meta (META) Board Case
Mark Zuckerberg is poised to testify as lead witness in an $8 billion shareholder suit alleging he ran Facebook (META) as an unlawful enterprise that enabled widespread data harvesting without user consent. Shareholders of Meta Platforms (META) are suing Zuckerberg and other executives over violations of a 2012 FTC privacy agreement, seeking reimbursement for the record $5 billion fine and related costs stemming from the 2018 Cambridge Analytica scandal. Market Overview: Trial seeks to recoup $8 billion in fines from Zuckerberg, Sandberg and board members Defendants include Sheryl Sandberg, Marc Andreessen, Peter Thiel (PLTR) and Reed (NFLX) Hastings Non-jury case begins in Delaware Court of Chancery and spans eight days Key Points: Shareholders must prove directors breached their oversight duties under Delaware law Meta invested billions since 2019 in privacy safeguards amid ongoing AI scrutiny Plaintiffs allege Zuckerberg dumped stock for $1 billion profit ahead of scandal Looking Ahead: Watch for judge Kathaleen McCormick's rulings on oversight and reimbursement Assess implications for corporate governance and director liability standards Monitor Meta's continued investments in privacy and AI compliance efforts Bull Case: Meta's proactive investments in privacy safeguards and compliance since 2019 demonstrate a strong commitment to addressing past shortcomings, potentially strengthening its defense and reassuring regulators and investors. Mark Zuckerberg's testimony and the board's legal strategy could successfully argue that any stock sales were pre-arranged under compliance plans, mitigating allegations of insider trading and undermining the plaintiffs' case. The trial could set a precedent that clarifies director oversight duties without imposing overly punitive standards, offering Meta and other tech firms greater clarity and confidence in managing governance risks. Continued investments in privacy and AI compliance may help Meta rebuild trust with users, regulators, and partners, supporting long-term platform growth and competitive positioning. If the court finds that directors did not knowingly breach their duties, Meta could avoid significant financial penalties, preserve cash for innovation, and maintain strategic flexibility in a rapidly evolving digital landscape. A favorable outcome could reinforce Meta's board structure and governance practices, attracting institutional investors seeking strong oversight and risk management. Bear Case: The $8 billion shareholder suit exposes Meta and its leadership to significant financial and reputational risk, with potential for costly penalties and stricter future oversight if the court rules against the company. Allegations that Zuckerberg and other executives breached their oversight duties and profited from pre-scandal stock sales could erode investor confidence and trigger further legal or regulatory action. Renewed scrutiny of Meta's privacy practices—especially as it trains AI models on user data—may fuel ongoing public and political backlash, threatening user trust and platform engagement. A ruling that raises the bar for director liability could have far-reaching implications for corporate governance, making it harder for Meta and other tech companies to attract and retain top board talent. Even if Meta prevails, the trial may distract management, consume resources, and keep privacy concerns in the headlines, weighing on the stock and complicating strategic initiatives. Negative outcomes or damaging disclosures during the trial could embolden additional lawsuits or regulatory probes, compounding legal risks and operational uncertainty. While the trial revisits decade-old policies and board meetings, it unfolds amid renewed privacy concerns as Meta trains AI models on user data. Investors will watch closely as plaintiffs attempt the rare feat of proving directors knowingly violated the law, and as defendants argue Zuckerberg's stock trades were pre-arranged under a compliance plan.
Globe and Mail
2 hours ago
- Globe and Mail
Why is Canada's TSX at all time highs, while Economic Indicators are very Concerning?
TSX at All Time Highs (About (STA Research): Is a Canadian investment research company, consisting of Financial Professionals specializing in advanced stock research and analysis). Canada's TSX (Toronto Stock Exchange) is hitting all-time highs while many key economic indicators (continued falling GDP per Capita growth, rising unemployment (almost at 7%), dropping productivity, personal and corporate capital outflows, with limited business investment alonside rapid rising government and personal debt levels) are signaling concerning trends that warrant closer examination. Here are several potential factors and explanations that could explain this seeming disconnect between the stock market performance and broader economic conditions: 1. Stock Market vs. Real Economy The first thing to understand is that stock markets and the real economy often don't move in lockstep. Stocks represent the value of companies (and their future growth prospects) rather than the state of the broader economy. Markets can remain optimistic about corporate earnings and future growth, even when broader economic indicators—such as unemployment, inflation, or GDP growth—show signs of weakness. Earnings Growth: The TSX is seeing a rise in its value due to strong earnings growth in key sectors (such as energy, commodities, and financials), even while macroeconomic conditions deteriorate. Companies within the TSX, especially in the energy and materials sectors, are benefiting from high commodity prices (oil, metals, etc.) while the overall economy struggles. Divergence of Corporate Performance: While the economy may be slowing down, large companies with significant revenue from global markets or higher margins are still reporting strong profits. This leads to rising stock prices, even in the face of broader challenges. 2. Commodity Boom and Canada's Resource-Heavy Economy Canada's stock market is heavily weighted toward sectors like energy, materials, and financials, which make up a significant portion of the TSX Composite Index. Many of these sectors have been benefiting from high commodity prices, especially: Oil and Gas: Global energy demand has driven up oil and gas prices, leading to a significant boost in the market capitalization of companies like Suncor, Enbridge, and Cenovus, all of which are heavily represented on the TSX. Metals and Mining: With ongoing demand for metals (such as copper, lithium, and gold), companies in the mining sector have seen increased earnings, which has lifted the overall market, even as other economic indicators are more concerning. These commodity-driven sectors are benefiting from high inflation in global markets, particularly in energy and raw materials, and can sometimes push stock prices higher despite domestic economic difficulties. 3. Capital Inflows and Global Liquidity Another significant factor driving the TSX to all-time highs may be global capital inflows, especially from institutional investors, looking for higher returns or stability amid global uncertainty. Canada's relatively stable financial system, coupled with its resource-rich economy, often makes it an attractive destination for foreign investment. Low Interest Rates: In the past few years, central banks (including the Bank of Canada) have kept interest rates low, which often makes equities more attractive relative to fixed income (bonds) and cash. This leads to more money flowing into the stock market, pushing prices higher, even when there are signs of economic weakness in other areas. Investors Seeking Safe Havens: In times of economic uncertainty, investors may seek refuge in companies that have strong balance sheets and stable dividend payments—traits that are commonly found in resource and energy companies. 4. Sector-Specific Strength While the broader economy may be facing challenges like inflation, high consumer debt, and slower growth, the TSX might be benefiting from a sector-specific boom. For instance: Financials: The TSX has a large weighting in financial institutions, many of which are experiencing profitability due to strong loan growth, higher interest rates, and the overall stability of Canada's financial sector. Technology & Health: Although not as dominant in the TSX as other sectors, there has been growth in tech and healthcare stocks, which have benefited from global trends and long-term growth prospects, even if domestic economic indicators are more concerning. 5. Inflation and Corporate Pricing Power Inflation, although a concern for the economy, can benefit certain companies—particularly those with significant pricing power. Many commodity-based companies and large-cap corporations are able to pass on costs to consumers, maintaining profitability despite inflationary pressures. This has helped keep their stock prices high, even when inflation and rising costs are hurting consumers. Corporate Earnings Resilience: Despite concerns over inflation, and economic slowdown, many companies on the TSX have managed to grow earnings, which helps push stock prices up. 6. Expectations of Future Economic Recovery Despite concerning economic indicators today, many investors might be betting on a future recovery in certain sectors or believe that economic pressures (such as inflation) are temporary. Optimism about the post-pandemic recovery, the green energy transition, or the potential for geopolitical stabilization might lead investors to take a long-term view on Canadian equities, especially those in energy and materials. 7. The Disconnect Between Economic Data and Investor Sentiment The stock market is heavily influenced by sentiment and expectations about the future. Economic data can often be backward-looking, while markets are forward-looking. If investors are optimistic about future growth, particularly in key sectors like energy and resources, they may continue to drive up stock prices despite short-term concerns about economic conditions. Market Timing and Speculation: Short-term market movements are also often influenced by speculation, and the expectation that certain sectors will outperform can cause overvaluation in the stock market, despite real economic weakness. 8. Government and Central Bank Actions Monetary and fiscal policies have played a huge role in shaping market conditions. Despite concerns about the economy, loose monetary policies (low-interest rates, quantitative easing) from central banks globally, including the Bank of Canada, have contributed to a liquidity-driven rise in equity markets. Additionally, government spending (such as infrastructure investments and subsidies) can provide short-term boosts to sectors like construction and energy, which can lift stocks. Outlook Canada's economy in 2025 presents a concerning outlook, as the unemployment levels remains elevated, while the broader economic landscape faces challenges, such as GDP growth concerns, inflationary pressures, and higher interest rates. The resource-heavy sectors like energy, financials, and natural resources continue to perform well, providing some economic stability and contributing to the all-time highs on the TSX. However, concerns persist with rising housing costs, consumer debt, and regional disparities in job growth. The Canadian economy is navigating through these complexities with a mix of optimism from strong commodity exports and cautiousness due to global and domestic risks.
CTV News
3 hours ago
- CTV News
Plans roll forward to get Northlander passenger train back on the tracks
Ontario Progressive Conservatives are pledging to improve road and rail transportation in northern Ontario, including investing $75 million to restore the Northlander passenger rail service between Toronto and Timmins, Ont. (File) Plans are moving forward to get the Northlander passenger train back on the tracks. On Friday, the Ontario government revealed it had awarded three contracts to design and manufacture nine station shelters, rail safety and warning system upgrades. 'The return of the Northlander will ensure access to essential services like health care and education while supporting economic prosperity and tourism across the region,' stated Jill Dunlop, Simcoe North MPP. Enseicom Inc. will design and manufacture the station shelters in Matheson, Kirkland Lake, Temiskaming Shores, Temagami, South River, Huntsville, Bracebridge, Gravenhurst, and Washago over the next two years. Each shelter will be equipped with seating, lighting, and heating. 'The shelters will be safe, comfortable and accessible, providing a consistent, modern passenger experience for customers boarding and exiting the train all along the route,' noted Chad Evans, Ontario Northland's chief executive officer. Remcan Ltd. will be responsible for track upgrades that go beyond improving rail safety. The province says these upgrades will also reduce maintenance needs and decrease the risk of derailments. Warning system upgrades along the Northlander corridor will be completed by X-Rail. 'These upgraded amenities will contribute to providing safe, accessible transportation options to residents and visitors while helping support the growth and development of our local economy through improved access to tourism and job opportunities,' said Bracebridge Mayor Rick Maloney. Construction is slated to start this summer on platforms, parking areas, pathways, and track improvements. Once the Northlander passenger rail service is revived, it will operate four to seven days a week, depending on travel demands.
