Today is expected to be a calm day on the markets as trading in the U.S. and Europe is on pause. The Memorial Day holiday in the U.S. and a bank holiday in major European trading hubs mean there will be no trading activity in these regions. Meanwhile, in Toronto, the TSX index will begin the week at 22,320, close to the all-time high of 22,554 it reached last week. Analysts suggest that if the TSX hits a new peak this week, it will likely be due to strong quarterly earnings reports from Canada’s major banks, which are expected to release their results in the coming days.
Indigo Shareholders to Vote on Privatization Deal
Shareholders of Indigo Books & Music will vote today on a proposal to take the company private at $2.50 per share. The offer is made by financier Gerry Schwartz, who is married to the company’s CEO and founder, Heather Reisman. Schwartz’s firm, Trilogy Retail Holdings, already holds a controlling interest in Indigo, making the approval of this deal seem likely. For the deal to proceed, it needs two-thirds of all votes, as well as a simple majority from shareholders not affiliated with Trilogy. A special committee of independent directors has already endorsed the proposal.
Elon Musk’s AI Startup Raises $6 Billion
Elon Musk’s artificial intelligence startup, xAI, has secured $6 billion in a new funding round. This Series B financing is the second major investment for the company since it was founded last year. Musk, who was an early supporter of OpenAI, decided to create his own AI firm after expressing concerns about the industry. The funds raised will help xAI bring its products to market.
China Responds to G7 Criticism
Chinese officials have responded strongly to criticisms from the G7 finance ministers regarding China’s trade policies. Over the weekend, the G7 issued a statement condemning China for its anti-competitive practices. In retaliation, China accused Western economies of engaging in protectionism by setting up barriers to Chinese progress. This exchange comes amidst escalating tariff tensions, with the U.S. imposing heavy tariffs on Chinese-made electric vehicles and China threatening tariffs on imported cars.
Bombardier Faces Class Action Lawsuit
Bombardier is preparing to defend itself against a class action lawsuit related to statements made by former officers of the company in 2018. The Quebec Superior Court has authorized the lawsuit, which claims that the company made false or misleading statements during that period. Bombardier has stated it will vigorously contest the allegations and is considering an appeal. The court has not yet ruled on the merits of the case.
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