Oil exporters face fall in foreign exchange reserves

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Article source: https://www.ft.com/content/ed4eb330-575e-11e7-80b6-9bfa4c1f83d2

How a broke 30-year-old failure became America’s billionaire tire king





© Michael Buckner—Getty Images for CFN


Bruce Halle, the 87-year-old founder and president of Discount Tire, never set out to be a billionaire.

“Initially when I was starting the company, I was 30 years old,” he once said in an interview with the trade publication Tire Business. “I was married. We had two children. I was just trying to make a living, you know, trying to buy bread and milk and pay the rent. That’s all. I started that way.”

Halle founded Discount Tire in 1960 in Ann Arbor, Mich., with what he says was just six tires — two new ones and four retreads, according to the 2012 Halle biography Six Tires, No Plan. Prior to that, he’d subsisted on wages from a Ford plant, car dealership commissions, and benefits from the GI Bill (he served in the Korean War). He also owed $12,000 to Goodyear, and was coming off two other failed ventures.

“I was stuck,” he said according to the book. “I had to open the tire business to get myself out of that mess.”

Today, Halle is worth $6 billion, according to Forbes, which recently published the latest edition of “The Richest Person in Every State” list confirming that Halle is yet again the wealthiest individual in Arizona. Discount Tire has 940 stores across 33 U.S. states, according to a company representative, employing 18,635 people

Article source: http://www.msn.com/en-ca/money/companies/how-a-broke-30-year-old-failure-became-americas-billionaire-tire-king/ar-BBDeXuI?srcref=rss

As airbag crisis spirals, Takata files for bankruptcy protection

FILE PHOTO - A logo of Takata Corp is seen with its display as people are reflected in a window at a showroom for vehicles in Tokyo© REUTERS/Toru Hanai/File Photo
FILE PHOTO – A logo of Takata Corp is seen with its display as people are reflected in a window at a showroom for vehicles in Tokyo

Takata Corp. filed for bankruptcy protection in the biggest corporate failure in postwar Japanese manufacturing, buckling under liabilities from millions of recalled air bags that have been linked to more than a dozen deaths.

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The company and its units filed for bankruptcy protection in the U.S. and Tokyo. The Chapter 11 bankruptcy in Delaware listed more than $10 billion in liabilities, including claims from automakers like Honda Motor Co. and Toyota Motor Corp. and people who have brought class action lawsuits.

The filings removes the last hurdle for the 84-year-old company to be sold to Key Safety Systems Inc., the U.S. air-bag maker owned by China’s Ningbo Joyson Electronic Corp., which has agreed to buy the business for 175 billion yen ($1.6 billion). Key Safety will substantially retain all of Takata’s employees worldwide and the acquisition of the businesses and bankruptcy proceedings are expected to be completed by the first quarter of 2018, it said.

Seventeen

Article source: http://www.msn.com/en-ca/money/companies/takata-seeks-us-bankruptcy-protection-after-air-bag-recalls/ar-BBDejLm?srcref=rss

Canadian softwood producers brace for 2nd wave of U.S. lumber duties

© Boissinot/Rex Shutterstock

Canada’s softwood lumber industry is bracing for a second wave of U.S. duties expected to come Monday that could put further pressure on producers, particularly smaller ones, to cut jobs.

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The U.S. Department of Commerce announced in April preliminary countervailing duties against five companies ranging between three and 24 per cent, with other producers facing a tariff of 19.88 per cent.

This time, the U.S. is expected to announce preliminary anti-dumping duties with an average rate of around 10 per cent, which would be added on to the previous levy.

Analyst Paul Quinn of RBC Capital Markets believes the U.S. will play hardball and impose high anti-dumping rates in order to push Canada to agree to a deal before negotiations on NAFTA begin in August.

“Anti-dumping (duties) is a way to scare the Canadians and try to force them to get something done,” he said from Vancouver.

Canada’s share of the U.S. softwood lumber market was 27 per cent in May, down from 31 per cent a year earlier, according to monthly Canadian government reports. That represented a $165-million loss in exports for the month, including $105 million in B.C. and $18 million in Quebec.

Final duty rates have been lower than preliminary tariffs in the past. But Quinn said that could change this time because the

Article source: http://www.msn.com/en-ca/money/topstories/canada-prepares-for-round-2-of-softwood-duties/ar-BBDb6R6?srcref=rss

For Loonie bears, oil slump has come at just the right time

nbsp;© David Sucsy/Getty Images
 

Slumping crude prices appear set to cut short the loonie’s best run this year. That’s music to the ears of hedge funds that are still near the most bearish on the Canadian dollar in over two decades.

The currency’s rally, fueled in part by surprisingly hawkish comments from central bank officials this month, is on the cusp of stalling as crude prices plunge. The currency weakened 0.4 percent last week, after a six-week, 4.1 percent rally that was its strongest since late last year. Historically, the oil-sensitive currency has been more correlated to crude than monetary policy amid commodity routs. With grim prospects for when oil might climb out of its downtrend, the loonie looks poised to extend its slump as one of the worst performing major currencies into next quarter.

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“The Canadian dollar, which had been blithely ignoring the latest sag in crude, has finally awoken to the oil slick,” Bank of Montreal economist Douglas Porter wrote in a note to clients last week. “Suffice it to say if oil stays on the defensive, the loonie’s rebound is over, and the BOC is going to stay on the sidelines for a while longer yet.”

Loonie bears were squeezed after Bank of Canada Governor Stephen Poloz and his deputy Carolyn

Article source: http://www.msn.com/en-ca/money/markets/for-loonie-bears-oil-slump-has-come-at-just-the-right-time/ar-BBDeRxI?srcref=rss