Live news: Lululemon and Peloton team up, breathing life into struggling fitness company’s shares

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Today’s top stories


8:45 a.m.

CEBA changes ‘unhelpful,’ CFIB survey of business owners says

A small business with a CEBA sign in Toronto, in April 2020. Photo by Ernest Doroszuk/Toronto Sun/Postmedia

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Eighty per cent of owners said Ottawa’s extension to the loan deadline was “unhelpful,” a survey from the Canadian Federation of Independent Business said.

The extension offered “false hope,” CFIB said, because it did not grant owners extra time to take advantage of a loan forgiveness grant worth up to $20,000. That deadline, originally sent for Dec. 21, 2023, was only extended by 18 days.

“All summer, small business owners from across the country have been telling MPs they need an extension in the deadline to repay CEBA loans in order to keep the forgivable portion. Ottawa has been told the scope of the problem, government has been told what’s at stake. Unfortunately, their pleas fell on deaf ears,” Dan Kelly, CFIB president said.

Eighty-seven per cent of owners surveyed said extending the forgivable deadline to the end of 2024 would be “greatly beneficial” to their operations.

Financial Post


8:15 a.m.

Bank of Canada to start cutting rates in second half of 2024: Desjardins

A woman walks past the Bank of Canada building in Ottawa. Interest rate cuts are expected in the second half of 2024, Desjardins economists say. Photo by Adrian Wyld/The Canadian Press

Canada’s near-term economic struggles will ease next year when growth returns and the Bank of Canada begins cutting its key lending rate, a new forecast from Deloitte Canada said.

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A better-than-expected U.S. outlook and continued population growth here will offset some of the downward pressure from high household debt, soaring interest payments and stubbornly persistent inflation, the company said in its latest economic outlook report, released Thursday.

“We do have an economy getting back on its feet in the first half of next year,” said Dawn Desjardins, chief economist at Deloitte Canada, who co-authored the report.

“The recovery will pick up steam in the second half of 2024 because it’s during the time we anticipate the Bank of Canada will be able to pivot from having high interest rates we’re living with today,” she said.

The report estimates GDP will rise one per cent this year and 0.9 per cent next year. Deloitte Canada had earlier predicted GDP would contract 0.9 per cent in 2023.

The next two quarters for the Canadian economy, however, are going to be tough, Desjardins said.

“Canada’s economy has entered a rough patch and the growth is likely to be negligible,” she said. “In fact, we have a few negative quarters in the forecast.”

The Canadian Press

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7:30 a.m.

Lululemon and Peloton team up

Peloton Interactive Inc. shares are rising in pre-market trade after a deal was announced with Canadian giant Lululemon Athletica Inc. to tap its online workouts and team up on apparel.

The deal will make Vancouver-based Lululemon the primary athletic apparel partner of Peloton, while New York-based Peloton will be the exclusive digital fitness content provider to Lululemon.

Subscribers to Lululemon’s digital services will also get access to various levels of Peloton digital classes, depending on their payment tier.

The deal comes as Lululemon moves to discontinue selling its digital fitness screen called the Studio Mirror and wind down its digital app-only membership.

Peloton, meanwhile, has had a rocky stretch that saw its founder step down as CEO last year. The company is working to rebrand as a health technology company.

The Canadian Press


Stock markets: Before the opening bell

Stocks are drifting lower today, knocked by fresh fears over China’s property sector after trading in shares of heavily indebted Evergrande Group was suspended in Hong Kong.

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Evergrande is the world’s most heavily indebted real estate developer and is at the centre of a property market crisis that is dragging on China’s economic growth.

It’s just one in a long list of investor worries this month that has put September on track to be the worst month for stocks this year. Another is the threat of a U.S. government shutdown as Capitol Hill threatens a stalemate that could shut off federal services across the country as soon as this weekend.

Dow futures this morning are down nearly 0.1 per cent and S&P 500 futures are virtually unchanged.

Canada’s main stock index closed last night more than 100 points lower despite strength in energy stocks as the price of oil climbed. The S&P/TSX composite index closed down 120.17 points at 19,435.98.

WIT oil briefly surged to US$95 a barrel yesterday, its highest price since August last year, before paring gains. It was trading at US$93.45 this morning.

With demand proving resilient, many in the market now see US$100 oil as inevitable, even as the dollar rallies and worries about high global interest rates persist.

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The Associated Press, Canadian Press and Bloomberg


What to watch today

Innovation Minister François-Philippe Champagne is among speakers at the ALL IN 2023 in Montreal, an event focused on artificial intelligence, governance and how it transforms industries.

The Canadian Club hosts a forum on Indigenous Ownership & Canada’s Economic Future in Toronto

Canada job vacancies and employment growth numbers for July are coming out at 8:30 a.m. ET and are likely to confirm that labour demand continues to slow. We will also get the latest numbers on real gross domestic product from the United States.

Earnings out today include BlackBerry Ltd., Aritzia Inc. and Nike Inc

Additional reporting by The Canadian Press, Associated Press and Bloomberg


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