BASEBALL
BlueJayswinfinaltwospring
gamesbeforeMLBsuspends
operations BTENNIS
CanadadrawsSweden,
Kazakhstanforround-robin
groupatDavisCupfinal BHOCKEY
CougarsbeatVarsityBlues
inovertimeinUSports
women’squarter-final BSPORTS
B10-BOTTAWA/QUEBECEDITION ■ FRIDAY,MARCH13,2020 ■ GLOBEANDMAIL.COMS&P/TSX
12,508.
-1,761.DOW
21,200.
-2,352.S&P
2,480.
-260.NASDAQ
7,201.
-750.DOLLAR
72.36/1.
-0.39/+0.GCAN10-YR
0.59%
-0.OIL(WTI)
US$30.
-0.GOLD(oz.)
US$1,575.
-14.COMPANIESBOMBARDIER..........................................................B
CARNIVAL...............................................................B
CINEPLEX................................................................B
CINEWORLD............................................................BFedlifelinefailstoboostreelingmarkets
S&P500suffersworstone-dayslidesince1987despitevowtoinject$1.5-trillionintofinancialsystemtokeepcreditflowing
Montreal-based airlineTransat ATsays a slump in
ticket sales is deepening as the global airline indus-
try faces plummeting demand and new flight re-
strictions between parts of Europe and the United
States because of efforts to contain the COVID-
pandemic.
Transathasstoppedhiring,suspendedroutesand
cut costs as it seeksgovernment help to weather a
50-per-cent plunge in sales and avoid layoffs. The
airlineandtouroperatorisalsoseekingreliefonair-
portfees,taxesandaircraftleasepayments,saidAn-
nick Guérard, Transat’s chief operating officer.
“We need help,” Jean-Marc Eustache, chief exec-
utiveofficerofTransat,saidatanewsconferenceaf-
terthecompany’sannualmeetingandthereleaseof
its first-quarter financial results.
Transat’slossnarrowedto$33-million,or90cents
ashare,inthethreemonthsendedJan.31,compared
withalossof$53-million($1.41)inthesameperioda
year ago. Revenue was $690-million, up by 7 per
cent. The period does not include the February-
March beginnings of the COVID-19 crisis.
Airlines around the world have cancelled routes
and parked planes after governments wrestling to
contain the respiratory illness order quarantines
and tell people to limit social contact and travel to
stricken regions. U.S. President Donald Trump
sparked an angry backlash from European officials
and the airline industry on Wednesday by banning
non-U.S. travellers from most of Europe. The move
sent airline stocks plummeting, deepening a dou-
ble-digit fall along with broader markets.
AIRLINES,B‘Weneedhelp’:
Transatdropsroutes
amidslumpinsales
ERICATKINSTORONTO
NICOLASVANPRAETMONTREALAEROSPACE
‘Prettyprecariousposition’:NewCEO
atBombardierfacesbigchallenge BSICKLEAVE
Coronavirusrenewspushforbenefits
forworkersingigeconomy BWorriesonBayStreetThursdayspreadfarbeyondstockstocompanies’linesofcreditandtheirabilitytofinance
businessactivityintheshortterm.FREDLUM/THEGLOBEANDMAILF
or once, we want Canada’s political leaders
to be more shortsighted.
The economic impact of the coronavirus
pandemic is real.
It’s time to take steps to counter it, starting with
first things first: pumping money into efforts to
fight the spread of the virus and to help people
affected by it.
Scotiabank economists made news on Thursday
by predicting there will be a recession unless Otta-
wa pumps out about $20-billion in stimulus
spending. Other respected economists were al-
ready saying similar things: A short-term stimulus
package is needed. Alberta Premier Jason Kenney
talked about $20-billion, too.
But then some of the premiers who were pre-
paring for the now-cancelled first ministers’ meet-
ing piped in with the usual demands. Ontario Pre-
mier Doug Ford wanted to talk about larger annual
increases in federal health-care transfers. That’s an
important issue. But not now. It is time to focus on
the short term.
The U.S. Federal Reserve said Thursday it will
intervene to the tune of injecting US$1.5-trillion of
liquidity into markets to prevent what it called
“disruptions” – an emergency move to stabilize
financial markets.
The Bank of Canada has already cut its short-
term lending rates by half a percentage point, and
might do more soon. But market lending rates are
already very low, so it’s not clear that rate cuts will
spark economic activity.
CLARK, BOttawa’snewfiscal
mantrashouldbethink
short-term,startnow
CAMPBELLCLARKOPINION It has been one of the enduring images of the CO-
VID-19 pandemic: empty toilet paper shelves in
stores around the world as fearful citizens stockpile
staples for long home stays.
But the head of Canada’s largest producer of toi-
let tissue says that despite a jump in demand,
there’s no shortage of product in Canada.
“We’ve got all the raw material, we’ve got all the
assets running, we have all the production, our sites
are at full capacity to recover from this spike,” said
Dino Bianco, chief executive officer of Mississauga-
basedKruger Products LP, maker of Cashmere and
Purex brand toilet paper, which has a 33-per-cent
market share. (Kruger also makes Scotties facial tis-
sues, the market leader in its category, and Sponge
Towels paper towels.) “You’re going to see it catch
up in days and weeks.”
He added: “We’re essentially selling it at exactly
the same price to all our customers. Ethically, we do
not want to take advantage of a situation that is of
great consumer and community need.”
J.D. Irving Ltd.of Saint John, the No. 2 player in
Canada and maker of the Majesta and Royale
brands, said its tissue operations are running at full
capacity. It did not provide any information on pro-
duction, as it is a private company.
The run on supplies started two weeks ago after
authoritiesincludingOntarioHealthMinisterChris-
tine Elliott warned citizens to prepare for possible
extended quarantines.
It has created some short-term uncertainty for
Krugeranditspubliclytradedpart-owner,KPTissue
Inc., with customers increasing order sizes 20 per
cent to 50 per cent.
TOILETPAPER,BPlentyoftoiletpaper
togoaround,Canada’s
biggestproducersays
SEANSILCOFFStocks plunged into a full-on bear-market rout and
the U.S. credit market showed stresses of its own as
financial players grapple with the fallout from a
global economy reeling over the impact of the coro-
navirus pandemic.
Canada’s main stock index plummeted 12.3 per
cent, its biggest one-day drop since 1940, while U.S.
stocks sank 9.5 per cent, both extending major de-
clines in recent sessions amid growing fear about
the spreading virus.
The situation is so severe that the U.S. Federal Re-
serve on Thursday afternoon said it will pump
US$1.5-trillion into the financial system through the
purchase of a range ofU.S. government debt, recall-
ing extraordinary measures taken during the 2008
financial crisis in a bid to add liquidity for banks.
“These changes are being made to address highly
unusual disruptions in Treasury financing markets
associated with the coronavirus outbreak,” the New
York Fed said in a statement.
The Bank of Canada also took steps to ensure sta-
bility in Canada’s financial system and to support
interbank lending. The central bank said it’s ex-
panding a program of purchasing bonds, starting
with a $500-million operation on Monday, followed
by other moves on Tuesday totalling $7-billion.
“The Bank of Canada continues to closely mon-
itor global market developments and remains com-
mitted to providing liquidity as required to support
thefunctioningoftheCanadianfinancialsystem,”it
said in a statement after the close of markets on
Thursday.
The Fed move, however, failed to soothe rattled
nerves.
MARKETS,BDAVIDBERMAN
INVESTMENTREPORTER