Canada Stocks-tsx Climbs As Energy Shares Rise On Gulf Storm Threat

Air Canada chases aggressive cost cutting as regional airlines face strong headwinds

government shutdown dragging into a fourth day, investors watched closely as Republican members of the House of Representatives got together to chart their next course of action. But the market appeared to shrug off fears that lawmakers will fail to resolve the budget crisis and prevent a debt default. Rick Hutcheon, president and chief operating officer at RKH Investments, said the TSX will tread water until the U.S. political situation is resolved but will make gains as the economy improves and commodity prices stabilize. “Everyone is sitting on their hands, waiting for Washington to make their move,” he said. “They’ll have their bickering and fighting, but ultimately they’ll come to an agreement.” “I don’t see it having a huge impact on Canada,” he said, but added that the longer the U.S. impasse lasts, the more negative it could be for the Canadian market. The Toronto Stock Exchange’s S&P/TSX composite index was up 37.36 points, or 0.29 percent, at 12,772.48. Nine of the 10 main sectors on the index were higher. Financials, the index’s most heavily weighted sector, advanced 0.3 percent. Royal Bank of Canada rose 0.4 percent to C$66.23, and Toronto-Dominion Bank was up 0.4 percent at C$91.53. Energy companies climbed, with Suncor Energy Inc added 1.2 percent to C$36.67, playing the biggest role of any single stock in leading the market higher.

It is no wonder Air Canada is looking for reduced operating costs in those markets as competition remains intense. Air Canada international capacity (% of seats) by region: 30-Sep-2013 to 6-Oct-2013 Source: CAPA – Centre for Aviation and Innovata Jazz Air Canada Express routes as of Oct-2013 Source: Chorus Aviation Based on current schedules in Innovata (29-Sep-2013 to 5-Oct-2013) Air Canada and Porter combined offer roughly 6,700 seats between the Toronto area and Boston. Dispersion of the seats is fairly equal with Air Canada representing a 55% share and Porter comprising the remaining 45%. Interestingly, Innovatas schedules show that most of Air Canadas Boston-Toronto flights are operated with Embraer 175s, which are flown by Sky Regional. On routes to Boston where it is uncontested Halifax , Montreal and Ottawa Jazz aircraft are deployed. With a few months of Sky Regionals operations under its belt, perhaps Air Canada believes it can garner lower cost on some of the flights to Boston outside of Toronto. Air Canada operates a mix of E-Jets and other regional jets in US eastern transborder routes Air Canada is still the leading carrier between Toronto Pearson and the New York area (JFK, LaGuardia and Newark), holding a 44% share of the approximately 28,000 weekly one-way seats in the market. In the nearly 16 months it has served Toronto-LaGuardia, WestJet has quickly gained a 21% share, which represents some of the pressure felt by Air Canada on transborder service to New York. Additionally, Porter operates roughly 5,530 one-way weekly seats between City Centre and New York. Toronto Pearson International to New York (seats per week one way): 19-Sep-2011 to 23-Mar-2014 Source: CAPA – Centre for Aviation and Innovata Note includes LaGuardia, JFK and Newark airports But similar to Boston, most of the Toronto-LaGuardia service is largely flown with two-class Embraer 175s. That is understandable given the higher level of business demand between those two cities.

Petronas to build $35bn LNG plant in Canada

View gallery The Malaysian firm Petronas, the logo of which is shown here in Kuala Lumpur, is to embark on a $35 billion liquid natural gas project in Canada (AFP Photo/) 5 hours ago Kuala Lumpur (AFP) – Petronas will embark on a $35 billion liquid natural gas (LNG) project in Canada following the reversal of Ottawa’s decision to block the Malaysian national oil company’s purchase of Canadian gas producer Progress Energy Resources. At a joint press conference Sunday with his Canadian counterpart, Malaysian Prime Minister Najib Razak said this followed from the “approval principally” given for the state energy firm’s $5.5 billion purchase. Najib announced that Petronas will spend CAD$36 billion to build “all the facilities upstream including investment in a pipeline” which he said was the “largest foreign direct investment in Canada by any country”. “We believe this project will be mutually beneficial because it will open up Canadian energy to new markets, principally East Asia,” he added of the “gargantuan investment”. Petronas’ bid for Progress was initially blocked in October last year, raising questions over Canada’s openness to foreign investment, before Canadian Prime Minister Stephen Harper reversed the decision in December. Harper batted away concerns over Canada’s foreign investment policy Sunday, saying that total FDI “has continued to increase over the past year and has increased very rapidly. I’m told it’s up by almost a third”. “We view the Petronas investments very positively and all the indications I have is that Petronas is looking at further investments. Obviously our policy involves the use of discretion when it comes to state-owned enterprise,” he said. Harper added that each investment would be judged on its own merit and whether it serves the interests of Canada’s economy, while Najib also pointed out that the pipeline deal in the Petronas LNG project has been awarded to a Canadian firm. Government

Canada set to strengthen cooperation in security and economic areas

The prime minister said he understood the potential for security cooperation during his visit to the Malaysian Maritime Enforcement Agency’s headquarters yesterday. We also witnessed the signing of commercial contract by OSI Maritime System Ltd with Malaysian Navy today, he said at a joint media conference with Malaysian Prime Minister Datuk Seri Najib Tun Razak after their bilateral talks here today. He also noted that on economic cooperation, bilateral trade and investment was growing well. There is tremendous upside potential in both areas, he added. Harper also pointed out that Malaysian companies were extremely well in Canada and likewise Canadian firms in Malaysia. Touching on Petronass 36 billion Canadian dollar liquefied natural gas project in Canada, he said the Petronas hefty investment had given a positive indication that the oil giant was looking for further investments with the Canadian government. “We are really excited about the possibility and we also had talks on the energy sector”, he added. Both leaders also witnessed the signing of a Memorandum of Understanding on the Declaration of Intent to Sign a New Agreement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income between Malaysia and Canada. Canadian Prime Minister Stephen Harper who is on a three day visit to Malaysia from Friday, was accorded a ceremonial welcome at the Perdana Square, here, earlier today. Harper was greeted upon arrival by Malaysian Prime Minister Datuk Seri Najib Tun Razak at 9.30am, before the national anthems of Malaysia and Canada were played. Harper then inspected a guard-of-honour mounted by 106 officers and men of the First Battalion of the Royal Malay Regiment. Also present to welcome Harper were Deputy Prime Minister Tan Sri Muhyiddin Yassin, Chief Secretary to the government Tan Sri Dr Ali Hamsa, and several cabinet ministers. The two leaders were then ushered to Level Five of the Perdana Putra building here to begin their bilateral meeting, where several memorandums of understanding are expected to be signed, followed by a joint press conference Story first published on: October 06, 2013 11:04 (MYT) Tags: Canadian Prime Minister, Stephen Harper, Najib Tun Razak Related Stories