Credit Fund's Collapse Leads to $1 Billion Lawsuit Against EY
In a claim filed with Ontario's Superior Court last month, PricewaterhouseCoopers alleged that EY issued unqualified opinions on Bridging's books from 2014 to 2020 despite red flags, including inflated asset values and hidden defaults.
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Yahoo
21 minutes ago
- Yahoo
Air Canada strike will hit earnings, but not for long, say analysts
Air Canada flights partially resumed Tuesday afternoon following a multi-day strike that left thousands of customers grounded, but the true impact to the company's stock might still be up in the air. The Canadian Union of Public Employees (CUPE), the union representing Air Canada's flight attendants, said the company had failed to address key issues, such as low wages and unpaid work, and the two parties had been in a months' long labour dispute over the renegotiation of contracts for months. About 10,000 flight attendants went on strike Saturday morning, while Air Canada estimated about 500,000 customers' flights were cancelled. While a tentative deal was reached on Tuesday, ensuring ground pay for workers and allowing about 53 per cent of flights to take off, Canada's flag carrier said it could take up to seven to 10 days before operations fully resume as normal. The company's stock was trading at just above $19 on Thursday at 1 p.m. Here's what analysts are saying about the strike's repercussions to Air Canada's stock. 'Short-term reputational hit:' National Bank National Bank of Canada stock analyst Cameron Doerksen said he expected Air Canada to be affected by customers booking flights through other airlines both in the lead up to and during the strike, but there could a 'short-term reputational hit' to the brand as well. 'The airline may launch more seat sales as a result, which could hurt yields and revenue,' Doerksen wrote in a note. 'We see these impacts as short-lived for Air Canada, but they could temper financial results in the next quarter or two.' National Bank also anticipates structural contract changes for flight attendants at other airlines could come in the wake of the strike. Doerksen said he is maintaining his outperform rating and $26 target on Air Canada shares, which still trade at a 'sizable discount' to its peers — for now. 'We expect to refine our estimates once there is more clarity on the pace of operational recovery,' he said, adding Air Canada may provide an update on the estimated financial impact from the disruption in the coming weeks. Impact will likely be felt in Q3: CIBC The impact from the labour disruption will likely be felt most keenly in the third quarter of the year, with some lingering effect in the fourth quarter as well, analysts from the Canadian Imperial Bank of Commerce (CIBC) wrote in a note. 'While we recognize that AC's brand has taken a hit during these last few days as customers were forced to cancel or reschedule their travel plans, we have not assumed any longtail impact on AC's demand outlook or its ability to achieve (its) 2028 targets,' they said. The CIBC analysts are maintaining the company's 'outperformer' rating and $24 price target, but cut its 2025 EBITDA (earnings before interest, taxes, depreciation and amortization) by an estimated $250 million. Labour relationships key to credit ratings: Morningstar DBRS The Air Canada labour dispute likely caused a 'considerable financial loss' for the airline, while affecting other sectors such as tourism and those that depend on air cargo, wrote Rohit Kumar, assistant vice-president, corporate ratings, at Morningstar DBRS, in a note. Air Canada pulls forecast amid flight attendants' strike Air Canada flight attendants go on strike, grounding hundreds of planes Kumar said labour relationships are an important consideration when it comes to credit ratings. 'An airline's favourable relationship with employees and unions ensures operational reliability as well as financial stability.' He pointed to staffing risks, such as scarce skilled labour, uncompetitive wages or labour conflicts, that could result in a material financial or operational impact and influence a company's credit rating. Air Canada is not rated by Morningstar DBRS. Dent in cash flow may affect spare liquidity: BMO Bank of Montreal stock analyst Fadi Chamoun said in a note to clients he expects the strike will slash Air Canada's third-quarter EBITDA by an estimated $400 million, though 'other commercial costs' could move this estimate slightly higher. He reduced Air Canada's 12-month price target from $29 to $28. That said, Chamoun said in the note that Air Canada's strong moat and market position means it can weather the strike's impact, along with a 'modest' drop in future bookings. He also gave the company an outperform rating. 'We don't expect the medium-to-long-term financial framework to be materially impacted, albeit the cash flow dent may impact spare liquidity, which we assumed would have gone towards share repurchases,' Charmoun said. • Email: slouis@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Yahoo polls: Did back-to-school costs stretch your family budget this year? Have your say
Despite easing inflation, Canadian parents face steeper back-to-school costs in 2025 with average spending at $700 per child, fuelling more financial stress Canada's annual inflation rate dipped to 1.7 per cent in July, down from 1.9 per cent in June, thanks in large part to a 16.1 per cent drop in gasoline prices from last year following the removal of federal carbon tax. However, two components that directly impact Canadian household budgets continued on an upward trajectory. Food prices rose 3.3 per cent with shelter costs climbing 3 per cent. While overall inflation cooled, core inflation remains elevated, intensifying financial pressure on Canadian families with the back-to-school season in full swing. Yahoo News Canada wants to hear from you on your experience this back-to-school season. It's already a big-ticket expense, back-to-school shopping might have strained your family budgets more so this year amid U.S. tariffs and inflation surging prices. Did your back-to-school spend this year exceed your expenses last season? According to surveys conducted by several different polling firms, Canadian parents of kids in K-12/college expected to spend an average of about $700 per child on back-to-school items like books, clothing and supplies. A NerdWallet Canada survey conducted by the Harris Poll in July 2025 found that parents estimate they'll spend $741, on average — $200 more than last year's average. A different survey by Caddle and the Retail Council of Canada estimated the spend to be between $600 and $750 per child this back-to-school season, while a survey pinned the cost per child at just over $830. The surveys also found the respondents admit back-to-school season strains their financial budget with many saying they've already exceeded their budget. Parents also shared how they changed their shopping habits to keep up with tariff-driven price hikes. however, a majority say school supplies are expensive enough without tariffs, which only elevate the existing financial strain. Potential impact of Trump's tariffs on Canadian back-to-school shopping U.S. President Donald Trump hiked the Canadian tariff rate from 25 per cent to 35 per cent on Aug. 1. But, what does that mean for Canadian families shopping for back to school this summer? Many of the school supplies, including clothing, sneakers and backpacks, are made in countries facing high U.S. tariffs which could result in a ripple effect transcending borders as production and shipping charges soar. Canadian prices often tend to walk hand-in-hand with U.S. prices, meaning brands bearing the brunt of tariffs and selling across both U.S. and Canadian markets may match U.S. price increases to maintain parity. Clothing, especially boys' and girls' apparel, is up 25 per cent in the U.S. Backpacks and travel bags already cost 30 per cent more than they did in 2019. Canadian families shifting shopping habits, trying cost-saving strategies NerdWallet Canada survey takers say they are changing the way they shop to make room for the increased costs. While some parents are switching to cheaper brands or retailers, others are simply cutting back on back-to-school clothing and supplies this year. Other strategies include leveraging financial tools, such as using credit cards, buy now pay later, shopping early, hunting deals and sales, price-matching, thrift stores, exchanging and also buying Canadian-made goods. Despite Canada's economy technically calming, the back-to-school burden isn't letting up as families navigate turbulent waters amid a rise in essential costs. If you enjoy participating in Yahoo polls and making your voice heard, we'd love to hear from you in the upcoming polls. Stay tuned! Joy Joshi is a senior editor and writer at Yahoo News Canada.
Yahoo
21 minutes ago
- Yahoo
Canada's Carney spoke to Trump and discussed trade, Ottawa says
OTTAWA (Reuters) -Canadian Prime Minister Mark Carney spoke to U.S. President Donald Trump on Thursday and had "a productive and wide-ranging conversation" on trade challenges and other issues, Carney's office said in a statement. The leaders agreed to reconvene shortly, the statement added, but did not give details.
