Corporate governance - Vigil

The European Union braced on Friday for a possible letter from U.S. President Donald Trump, outlining planned duties on his largest trade and investment partner after a broadening of his tariff war in recent days. The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realization it will probably have to settle for an interim agreement and hope something better can still be negotiated. The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on U.S. terms.

Meta Platforms is very unlikely to offer more changes to its pay-or-consent model, meaning it is almost certain to be hit by fresh EU antitrust charges and hefty daily fines, people with direct knowledge of the matter said on Friday. The European Commission last month warned Meta of possible daily fines after being told that the U.S. social media giant would only make limited changes to its model to comply with the European Union's Digital Markets Act. The Facebook owner was hit with a 200-million-euro ($234 million) fine in April after the EU antitrust enforcer said its pay-or-consent model breached the DMA from when it was introduced in November 2023 to November 2024.

Brazilian President Luiz Inácio Lula da Silva said Thursday that he will impose retaliatory tariffs on the United States if President Donald Trump follows through on a pledge to boost import taxes by 50% over the South American country’s criminal trial against his predecessor, Jair Bolsonaro. Lula said he will trigger Brazil’s reciprocity law approved by Congress earlier this year if negotiations with the U.S. fail. “If there’s no negotiation, the reciprocity law will be put to work. If he charges 50 (% tariffs) from us, we will charge 50 from them,” Lula told TV Record in excerpts of an interview that will be fully aired later in the day. “Respect is good. I like to offer mine and I like to receive it.”

Tesla’s board of directors faces a looming deadline to schedule its annual shareholder meeting. On Wednesday, a group of 27 shareholders called on Tesla’s board of directors to get the yearly meeting on the books, saying that if that didn’t happen by July 13, the company would be out of compliance. In Texas, where Tesla is based, companies are required to hold annual meetings with investors every year within 13 months of the last one, if it is requested by shareholders. Tesla’s last meeting was on June 13, 2024.  “We think it’s a very important moment for the board to face shareholders and answer questions about the company’s performance, the attention span of the CEO and other matters which seem to be top of mind at the moment,” Kevin Thomas, chief executive of Canadian advisory firm Share, said in an interview.

The Healthcare of Ontario Pension Plan has named a new chief risk officer and promoted three other senior staff as chief executive officer Annesley Wallace tweaks the fund’s leadership and strategy. Linda Halley will be taking over as the organization’s chief risk officer, after her recent stint as interim chief financial officer, HOOPP announced on Wednesday. Ms. Halley has worked at the fund for 24 years, rising through the ranks within the finance department. Ms. Halley succeeds Saskia Goedhart, who joined HOOPP as CRO in 2020, and is now leaving the pension fund manager. Also departing as part of the shuffle is chief operating officer Tim Shortill, who spent six years at the pension plan.

U.S. President Donald Trump said he would impose 35-per-cent tariffs on imports from Canada starting Aug 1, upping pressure on Ottawa as it seeks to secure a deal with the White House in the coming weeks. In a letter posted on his website Truth Social on Thursday evening, Mr. Trump said he would increase the tariffs that were imposed on Canada in March and currently stand at 25 per cent, with notable carve outs. Mr. Trump justified the levies – which don’t apply to goods that comply with continental free trade agreement rules – as an effort to force Canada to do more to address U.S complaints about fentanyl trafficking and illegal migration. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with Your Country,” Mr. Trump wrote.

Le gouvernement fédéral prolonge les modifications apportées en mars au programme d’assurance-emploi en réponse à la guerre commerciale avec les États-Unis. Ces modifications visaient à aider les entreprises à conserver leurs travailleurs en réduisant leurs heures de travail et en les indemnisant par l’assurance-emploi (AE) pour la perte de salaire. Les modifications à l’AE sont entrées en vigueur en avril et devaient prendre fin samedi. Le cabinet de la ministre de l’Emploi, Patty Hajdu, a indiqué que les modifications s’appliqueront jusqu’au 11 octobre et devraient aider 290 000 travailleurs. 

L’emploi a progressé plus que prévu en juin, et le taux de chômage est passé de 7 % à 6,9 % au Canada. Au Québec toutefois, le taux de chômage a fait un bond de 0,5 % pour atteindre 6,3 %. L’emploi a augmenté de 83 000 au pays, la première augmentation depuis le mois de janvier. Ce sont surtout des emplois à temps partiel, concentrés dans le commerce de gros et de détail et dans le secteur des soins de santé. Au Québec, il y avait 23 000 emplois de plus en juin, mais le taux de chômage a augmenté parce que plus de personnes se sont mises à la recherche d’un travail. 

The federal government is set to reimburse car dealers for electric-vehicle subsidies they paid to customers before Ottawa shut down the program in January. The government will host a webinar with the dealerships on Friday outlining how the program will be reopened to reimburse the businesses for rebates of up to $5,000 car, incentives Ottawa cancelled after Tesla claimed millions of dollars in rebates in a short period. However, the government is still not saying when it will fulfil its promise to resume the rebate program it calls Incentives for Zero-Emission Vehicles (iZEV) for current car buyers. “The reimbursement process for unpaid claims will be announced to dealerships on Friday,” said Laura Scaffidi, spokeswoman for Transport Minister Chrystia Freeland. “All eligible claims will be paid out.”

The French competition authority said on Wednesday it had informed Meta Platforms that the Facebook owner was accused of abusing its dominant position in the online advertising sector.
"(...) An objection has been notified to (...) Meta," the authority said in a statement, adding this investigation, likely to last several months, was ongoing and that the it does not mean the company will be found liable. A spokesperson for the competition authority told Reuters that the procedure has been triggered by a complaint filed in October 2022 of Adloox, an advertising platform, which has since been bought by private U.S. company Scope3. In April, French media companies, including TF1, France TV and BFM TV, said they were suing Meta over what they say are unlawful business practices. The company will also face trial this October in Spain over a 551 million euro ($645.06 million) complaint lodged by more than 80 media companies accusing it of unfair competition in advertising.

The Organization of the Petroleum Exporting Countries doubled down on its view that global oil demand will keep rising through mid-century and that there is no peak in sight. In its annual report on long-term energy trends, the cartel nudged up its forecast, projecting oil demand will reach 113.3 million barrels a day in 2030 and nearly 123 million in 2050, up from 103.7 million barrels last year. Oil is expected to hold nearly 30% of the energy mix, while combined with gas it will stay above 50% through the period. “Oil underpins the global economy and is central to our daily lives,” OPEC said. “There is no peak oil demand on the horizon.” Members of the group–whose economies rely heavily on revenue from oil exports–have traditionally taken a more bullish stance than other forecasters. The International Energy Agency, which represents major oil-consuming nations including the U.S., instead expects global oil demand growth to plateau by the end of the decade.

Hindustan Unilever on Thursday named Priya Nair, currently president of parent Unilever's beauty and wellbeing division, as managing director and CEO, replacing Rohit Jawa, who steps down on July 31. Nair joined HUL in 1995 and held several sales and marketing roles across home care, beauty and wellbeing, and personal care businesses, the company said. Jawa leaves Unilever after more than 37 years with the company.

British lender HSBC said on Friday it had decided to leave the banking sector's main climate coalition but remained "resolute" in targeting net-zero emissions across its business by mid-century. The decision to leave the Net-Zero Banking Alliance sees it join global peers including JPMorgan, Citi, Morgan Stanley, Macquarie and Bank of Montreal who have all exited this year. HSBC said while the alliance had helped create the frameworks to set emissions-reduction targets, the foundations were now in place as it prepares to update its net-zero transition plan later in the year. "We believe supporting our customers' transition brings benefits to their businesses, helps generate long-term financial results for our shareholders, and contributes to making the global economy more resilient," it said in a statement on its website.

Nike said in an internal memo seen by Reuters on Thursday that Jared Carver, president and CEO of Converse, would step down and be succeeded by longtime company executive Aaron Cain. Nike is in the midst of realigning its business by sport across its Nike, Jordan and Converse brands. It has faced sluggish sales growth and mounting competition in the global athletic wear market, prompting cost-cutting measures and a strategic pivot toward performance-focused sports segments. Carver spent 15 years at Converse, including in leadership roles in North America and EMEA. Cain, a 21-year Nike veteran and currently vice president and general manager of Nike Global Men's, will relocate to Boston and take charge as president and CEO after a transition period through the end of July.

U.S. President Donald Trump singled out Brazil for import taxes of 50 per cent on Wednesday for its treatment of its former president Jair Bolsonaro, suggesting that personal grudges rather than simple economics are playing a part in the U.S. leader's use of tariffs. The president posted form letters to his social media account Wednesday informing certain countries that they would be facing tariff rates in the double digits starting Aug. 1.  Trump avoided his standard form letter with Brazil, specifically tying his tariffs there to the trial of Bolsonaro, who is charged with trying to overturn his 2022 election loss. Trump has described Bolsonaro as a friend and hosted the former Brazilian president at his Mar-a-Lago resort when both were in power in 2020.

Unilever has appointed a new CEO for Ben & Jerry’s, stepping up a dispute with the ice-cream brand’s independent board. Jochanan Senf, a longtime Unilever executive who previously served as managing director of Ben & Jerry’s Europe business, will start in the new role this month Unilever is embroiled in a legal fight with Ben & Jerry’s independent social-mission board over issues including the removal of the brand’s previous chief executive, David Stever. The board in a March legal filing accused Unilever of ousting Stever because he had defended the brand’s social-activism efforts. In an unusual provision of the acquisition agreement Unilever struck with Ben & Jerry’s more than two decades ago, the brand’s independent board retains decision-making about its social mission and marketing. The board and Unilever have fought bitterly for years over the brand’s social activism—particularly its public stances on Israel and the Palestinian territories.

A federal Crown corporation tasked with investing in revenue-generating infrastructure projects is not on track to use up its capital endowment in the coming years, according to a new report. The Parliamentary Budget Officer estimates that the Canada Infrastructure Bank will disburse $14.9-billion by 2027-28, well below the $35-billion of capital it was given by the federal government. Meanwhile, it has already spent $1-billion on Indigenous investments, which was the amount of funding it was provided for those projects. The CIB was created in 2017 with the aim of partnering with governments, Indigenous communities, institutional investors and businesses on major infrastructure projects that are in the public interest.

L’organisme de surveillance financière du Parlement affirme que la Banque de l’infrastructure du Canada (BIC) est en retard de plus de 20 milliards sur ses objectifs d’investissement pour les années à venir. Dans un nouveau rapport, le Bureau du directeur parlementaire du budget indique que la Banque de l’infrastructure est en voie de débourser 14,9 milliards d’ici 2027-2028, soit bien en deçà de son objectif de 35 milliards. Ce montant est également inférieur de 1 milliard aux projections antérieures du DPB de 2021. Ayant démarré ses activités en 2017, la Banque investit aux côtés de partenaires des secteurs privé et public pour contribuer au lancement de projets d’énergie verte et d’autres projets d’infrastructure au Canada.

Les entreprises étrangères ont investi plus d’argent dans la grande région de Montréal, malgré les menaces de Donald Trump. Le président américain n’est d’ailleurs plus la principale préoccupation des investisseurs. C’est plutôt le va-et-vient des politiques canadiennes et québécoises en immigration qui les chicote, selon le patron de Montréal International. Stéphane Paquet a admis qu’il aurait été surpris si on lui avait dit cet hiver, au plus fort des menaces du président républicain contre le Canada, que l’organisme sans but lucratif aurait accompagné pour 1,69 milliard en investissements étrangers au cours de la première moitié de l’année.

François Dauphin, PDG de l’Institut sur la gouvernance, se montre aussi réticent à blâmer la Caisse. « C’est complexe, il y a énormément de variables à considérer », observe-t-il, prudent. La Caisse conteste le chiffre de 9,6 milliards avancé dans le rapport de la rapporteuse spéciale. C’est que ce montant inclut des investissements dans des multinationales comme Microsoft, Amazon ou Alphabet (Google). La rapporteuse reproche à ces entreprises de faire des affaires avec le secteur militaire israélien. La Caisse plaide que ces multinationales ne réalisent qu’une faible portion de leurs affaires en Israël et trouve injuste de considérer l’ensemble de ces investissements comme soutenant la guerre.

The U.S. Senate Wednesday voted 53 to 43 to approve long-time Republic Airways CEO Bryan Bedford to head the Federal Aviation Administration. Bedford, the former head of the regional air carrier that operates nearly 1,000 daily flights for major airlines, stepped down last week after more than 25 years leading the airline and was nominated by President Donald Trump. Approved for a five-year term, Bedford will oversee $12.5 billion in funding to remake the aging U.S. air traffic control system passed by Congress last week. Bedford, who has been critical of the FAA's culture and leadership, has also pledged to maintain tough oversight of Boeing  which came under harsh criticism from the National Transportation Safety Board last month for a mid-air emergency involving a new Alaska Airlines 737 MAX 9 missing four key bolts.

Former chief executive officer and president of Maple Leaf Sports & Entertainment, Tim Leiweke, has been indicted by the U.S. Department of Justice for allegedly orchestrating a conspiracy to rig the bidding process for an arena at a public university in Austin, Texas. It was announced later Wednesday that Leiweke would step down as CEO of Oak View Group, a sports and real estate company he co-founded. He will transition to vice-chairman of OVG’s board of directors and remain a shareholder of the company. “It has been my great honour to help found and lead OVG as it has grown into the special, customer-oriented company it is today,” Leiweke said in a statement. The board has appointed Chris Granger, president of OVG360, to serve as interim CEO.

Le Syndicat des travailleurs et travailleuses des Postes vient d’être débouté par le tribunal dans sa plainte de pratiques déloyales qu’il avait déposée contre Postes Canada. Le Conseil canadien des relations industrielles a en effet rejeté la plainte que le syndicat avait déposée, le 3 juin dernier, après que Postes Canada eut rendu publiques ses offres au syndicat et demandé à la ministre fédérale de l’Emploi d’ordonner un vote des syndiqués sur ces offres. Le syndicat alléguait que Postes Canada avait ainsi négocié directement avec ses membres, en ne respectant pas le fait que c’est lui qui est l’agent négociateur des conditions de travail de ses 55 000 membres. Le tribunal administratif, spécialisé dans les questions de relations de travail au fédéral, a rejeté cette interprétation. Il a jugé que « les communications de l’employeur ne présentent aucune affirmation antisyndicale ni aucune référence méprisante à l’endroit du Syndicat ou des positions qu’il adopte, et elles n’ont pas nui au Syndicat face aux employées et employés des unités de négociation ».

The Turkish Competition Authority said on Thursday it had decided to impose an administrative fine of around 355 million lira ($8.87 million) on Google for failing to comply with regulatory obligations. In a statement, the antitrust body said Google was found to have implemented certain designs that violated regulations during the compliance process of a previous investigation, leading to the fine.