Good morning, Friday daydreamers! It is finally here, but you do have the rest of this day to get through before heading out on the water for some R&R. So stick to it, get caught up with the business news here, and then go do whatever floats your boat. I hope this first story doesn’t bring on any guilt …
U.S. millennials are waking up to the grim financial future left to them by Baby Boomers — and they’re angry. That future is likely one in which the few are rich and living longer while the many struggle to get by and are dying younger. In less than 20 years, Social Security won’t be able to pay out full benefits, and any solution will probably mean more taxes and benefits cuts. Boomers, who are exiting the workforce in droves, will already be comfortably seated when the music stops.
DON’T CHANGE COURSES MIDSTREAM
. When Enbridge tried to create more “air barrels” (more pipeline space bought by refiners than needed) in May, it upset certain U.S. refiners, who panicked at the thought of getting zero pipeline space. Though Enbridge reversed its decision the next day, contracts had been killed by Canadian producers and alternative (lower-quality) replacement oil found by refiners. As
Geoffrey Morgan writes, it cost millions, and the rancour still lingers.
THE WIRELESS GUY
After 10 years as CEO of BCE, George Cope spoke with Emily Jackson for a look back on how he turned around the 138-year-old telephone company. As Bell’s century-old landline business ceded to broadband, the local phone business went from being responsible for “literally all” the company’s revenue to just 7% this year. As the 6′-7″ former teen basketball star puts it: “In the truest sense of the word, you keep score in business. I like that part of it.”
FOLLOW THE LIGHT
Manulife has said it will cut 700 jobs of its 13,000 staff in its Canadian business unit. The job cuts will be voluntary and through attrition over 18 months, as it automates customer transactions and consolidates administrative functions. CEO Roy Gori has said the insurance industry is “still in the dark ages.”
IT’S A FOREIGN AFFAIR
TD has overtaken RBC for the first time in six years, becoming Canada’s No.1 bank with returns more than double its rival. TD shares have surged 18% in the past 12 months while RBC’s have gained 7.1%. Canada’s two largest lenders dominate domestic banking, but differ in their strategies abroad, with one portfolio manager saying “It’s just investors going to TD for the bigger U.S. exposure, not necessarily something against Royal.”