
Air Canada set to resume flights as cabin crew return to work
"While the restart of our operations will begin immediately, we expect it will take several days before our operations return to normal," the airline said.
The flight attendants' union and the airline had on Tuesday reached a tentative deal, but its details have not been disclosed. The union said unpaid work was over.
Flight attendants had walked off the job on Saturday after contract talks with the airline collapsed. They had pushed for compensation for duties such as boarding passengers.
The airline is yet to reinstate its third-quarter and full-year profit outlook, which were withdrawn due to the strike.
The proposed wage hikes at Air Canada would mean up to C$140 million in incremental costs, according to Canaccord Genuity analyst Matthew Lee.
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Reuters
a minute ago
- Reuters
Tech selloff pushes down Nasdaq, S&P 500; investors cautious ahead of Fed meeting
Aug 20 (Reuters) - Wall Street's main indexes fell on Wednesday, with a selloff in tech stocks driving the Nasdaq to a two-week low as caution prevailed ahead of the Federal Reserve's highly anticipated Jackson Hole symposium this week. After driving much of the market's recovery from the April selloff, tech stocks are pulling back as investors reassess high valuations. The S&P 500 technology index (.SPLRCT), opens new tab slid 1.1% on the day. "We're seeing more downside in the names that have run the most over the last four months, in tech in particular, and maybe a little bit of profit taking in anticipation of more data on the economy and more guidance from the Fed," said Jim Baird, chief investment officer at Plante Moran. Analysts listing other factors behind the tech sell-off mentioned OpenAI CEO Sam Altman's comments last week about artificial intelligence stocks being "in a bubble," and a Massachusetts Institute of Technology study that showed many tech companies were struggling to translate AI into actual profits. Some investors also worried about government interference in the private sector. President Donald Trump's administration is looking into taking equity stakes in chip firms such as Intel (INTC.O), opens new tab, weeks after unprecedented revenue-sharing deals with Nvidia and AMD. Nvidia (NVDA.O), opens new tab slid 1.2% and Advanced Micro Devices (AMD.O), opens new tab fell 2%, while Intel (INTC.O), opens new tab and Micron (MU.O), opens new tab fell between 7% and 5.3%. Nvidia's quarterly results on August 27 are keenly awaited for clues on demand for artificial intelligence. Other megacap growth names such as Apple and Meta (META.O), opens new tab also came under pressure, falling 1.8% and 0.9%, respectively. "It's much more about profit-taking and temporary rebalance here," said Phil Blancato, chief executive officer of Ladenburg Thalmann Asset Management in New York. "If you get a Federal Reserve (interest rate) cut or a mention of it on Friday, this will reverse pretty quickly, but this is a lot to do with names pushed up to really lofty levels." At 1:55 p.m. the Dow Jones Industrial Average (.DJI), opens new tab rose 9.10 points, or 0.02%, to 44,931.37, the S&P 500 (.SPX), opens new tab lost 23.18 points, or 0.36%, to 6,388.19 and the Nasdaq Composite (.IXIC), opens new tab lost 182.28 points, or 0.85%, to 21,132.67. The Nasdaq was on track for its biggest two-day drop since April, when U.S. tariff announcements had rattled global financial markets. Minutes from the Fed's July meeting, where interest rates were left unchanged, showed almost all policymakers viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50%, despite two dissenters. Remarks from Atlanta Fed President Raphael Bostic are expected on Wednesday afternoon. The central bank's annual conference in Jackson Hole, Wyoming, kicks off on Friday, with Chair Jerome Powell expected to speak, remarks that will be closely watched for policy signals. Investors have been pricing in a 25-basis-point rate cut in September, according to data compiled by LSEG. Meanwhile, investors also monitored Trump's call for the resignation of Fed Governor Lisa Cook, with the president citing allegations that she was involved in mortgage fraud. Earnings from big retailers, seen as a barometer for the health of the American consumer, are also due this week as sentiment has taken a hit from concerns that tariffs could drive prices higher. Target (TGT.N), opens new tab tumbled 6.6% after the company named a new CEO and retained its annual forecasts that were lowered in May. Cosmetics giant Estee Lauder (EL.N), opens new tab fell 5.3% after tariff-related headwinds weighed on its annual profit forecast. Declining issues outnumbered advancers by a 1.06-to-1 ratio on the NYSE. There were 125 new highs and 55 new lows on the NYSE. The S&P 500 posted 21 new 52-week highs and no new lows while the Nasdaq Composite recorded 31 new highs and 110 new lows.


Reuters
31 minutes ago
- Reuters
Fed dissenters appeared alone in favoring rate cut at July meeting, minutes show
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Reuters
31 minutes ago
- Reuters
Breakingviews - Thoma Bravo hails tech's ‘show me the money' era
TORONTO, Aug 20 (Reuters Breakingviews) - The cycle of technology fads is brutal. Once the darlings of public markets, given wide latitude to chase unprofitable growth, cloud software developers now seem pedestrian next to the incredible promise of artificial intelligence. Private equity firm Thoma Bravo's $11.2 billion mooted deal to buy, opens new tab human resources application provider Dayforce (DAY.N), opens new tab, disclosed on Wednesday, signals the end result of this shift: accept being a bit boring and transition into a cashflow machine, or become a target. Interest-rate hikes beginning in 2022 challenged the industry's 'expand at all costs' mantra: burning cash became more expensive, forcing a retrenchment that trimmed growth and valuations. Some firms have since regained speed, steadily beating, opens new tab Wall Street's revenue expectations by growing margins since early 2024, according to Altimeter Capital. Valuations, though, are still in the dumps. It might be a matter of measuring up to the next big thing. Bessemer Venture Partners research, opens new tab shows that, on average, private cloud software firms have taken about 7 years to hit $100 million in annual recurring revenue. Successful AI startups are crossing that threshold in just 4 years, or as little as 18 months for particularly hot breakthroughs. Just compare the BVP Nasdaq Emerging Cloud Index, which is down 10% year-to-date, to an exchange-traded fund tracking the AI-exposed Magnificent Seven stocks, up 7%. If you can't impress with growth, the next best thing is to at least throw off cash. Here, Dayforce has fallen behind its peers. The company is expected to achieve a free cash flow margin of 13.7% in the financial year ending this December, according to Visible Alpha. Rivals Paycom Software and Paylocity should notch margins of 18% and over 20%, respectively. Little wonder that Dayforce's stock had fallen over 25% thus far in 2025 before news of a potential sale arrived. Thoma Bravo's mooted $70 per share offer would represent a respectable 32% premium, valuing the company at a little over 6 times last year's revenue. That roughly matches the average multiple paid in deals across the industry in the second quarter, according to, opens new tab Software Equity Group data. Buyout barons can benefit from software investors' short attention spans. TD Cowen analysts reckon that Thoma Bravo could plausibly increase Dayforce's cash flow margin to over 20% while maintaining low-double-digit topline growth. If it can subsequently exit after five years at a multiple of between 6 and 7 times revenue, an average of where peers Automatic Data Processing and Paychex trade, its annualized rate of return could hit 24%, Breakingviews calculates. Dayforce struggled to meet public markets' 'show me the money' challenge. Private equity is probably happy to do the job.