Saturday, October 29, 2022

Meta’s US$677B rout boots it out of world’s top 20 stocks

(Bloomberg) -- Meta Platforms Inc. shareholders are paying dearly for its spending on the metaverse: The Facebook parent’s market value has collapsed by a whopping $676 billion this year, forcing it out from the ranks of the world’s 20 largest companies.

The punishment shows no signs of easing anytime soon. Meta’s stock tumbled 25%, its worst one-day drop since February, after it spooked investors with ballooning costs to fund its version of virtual reality and a decline in revenue.

Meta was the sixth biggest US company by market capitalization at the start of the year, flirting with a $1 trillion market value. Fast forward 10 months and the stock is now worth about $260 billion, ranking it 27th in the world. Its market value is now smaller than companies including Chevron Corp., Eli Lilly & Co. and Procter & Gamble Co.

Once a Wall Street darling, Meta is gradually losing favor with brokerages. At least three investment banks -- Morgan Stanley, Cowen and KeyBanc Capital Markets -- cut their rating on the stock after the company gave a disappointing quarterly revenue outlook.

“Meta remains too aggressive with its investments in long-term initiatives despite a sharp deceleration in expected revenue growth,” said Mandeep Singh, an analyst at Bloomberg Intelligence. “The company’s opex and capex view for 2023 is surprising, given the lack of traction so far with its metaverse efforts.” 

While Thursday’s slump was a big move, it pales in comparison to its record-setting rout in February when it plunged 26% on the back of woeful earnings results, and erased about $251 billion in market value. That was the biggest wipeout in market value for any US company ever. 

The decline in the stock this year has attracted value investors, who buy beaten-down stocks in anticipation of a turnaround. But there’s no sign of those bets paying off any time soon. 

Meta announced its shift to investing in virtual reality a year ago, along with a name change of the company from Facebook Inc. to Meta Platforms. The company said Wednesday it expects total expenses for this year to be $85 billion to $87 billion. 

For 2023, that number will grow to an expected $96 billion to $101 billion. That’s the big negative, since investors were hoping Meta would aggressively cut costs, said Neil Campling, an analyst at Mirabaud Securities. 

The company’s quarterly capital expenditure was more than all but what 16 of the S&P 500 companies spent last year, according to Bloomberg data. 

Campling likened a buillish trade in Meta to IBM in 2005, saying “like IBM symbolizes dinosaur tech 1.0… so Meta faces the risk of being the next-generation fossil.”

--With assistance from Tom Contiliano, Kit Rees and Matt Turner.

(Updates pricing throughout)

©2022

Anticipate unavoidable flight disruptions as labour shortages persist, say experts

The airline industry is warning that flight disruptions will be unavoidable this upcoming holiday travel season as an ongoing labour shortage drags on.

At a parliamentary committee hearing Wednesday, travel industry representatives said problems retaining certain workers, such as pilots and air traffic controllers, persist heading into the busy winter season.  

Air Line Pilots Association Canada president Tim Perry told MPs that airlines are not doing enough to retain pilots because they have resisted increasing their pay. 

Referring to the problem surround pilots in this country as a labour shortage is an "oversimplification," Perry said. 

He said airlines are relying on temporary foreign workers to fill the employment gap, which in some cases raises concerns around training and safety.  

Pilots from other jurisdictions are fundamentally disconnected from their union and can undermine the collective bargaining process as a whole, said Perry. 

New job vacancy numbers from Statistics Canada on Thursday show the country's tight labour market continuing in August as vacancies were little changed from July. 

The vacancy rate in the transportation warehousing industry was 5.9 per cent in August, down a full percentage point from the month prior, but it remains one of the sectors with the highest rate of job vacancies. 

Canadian Air Traffic Control Association president Nick von Schoenberg told the committee there is a desperate shortage of air traffic controllers that has put unacceptable demands on workers because there are no longer enough controllers to meet requirements. 

"Historical short-staffing has meant that the system has always relied on a high amount of overtime by controllers to function," said von Schoenberg. 

"This is resulting in unacceptable demands on workers as they are routinely expected to work long days with insufficient support." 

The air traffic controller shortage existed long before the pandemic and will not be addressed in time for next summer, said von Schoenberg, but may be mitigated with some creative solutions. 

Andrew Gibbons, vice-president of external affairs for WestJet, was also at the committee meeting and said the pandemic was the greatest crisis his company and the sector has ever faced.    

"We're not out of the woods," said Andrew Gibbons. "We're still facing the effects of this crisis."   

Von Schoenberg said that the pace and strength of the recovery by the aviation sector has contributed to the shortage of air traffic controllers, which in turn is contributing to delays. 

He called on NAV Canada for a reliable training system and said that the corporation must do whatever it takes to retain staff. 

Nav Canada spokesman Brian Boudreau confirmed that staffing levels have been an issue at some airports and may have impacted service as a result.  

The air navigation operator plans to hire 500 new employees this year and aims to train 500 prospects over the next two years, with another 250 already enrolled in Nav Canada's training program, said Boudreau. 

The National Airlines Council of Canada did not provide a comment on the matter of pilot staffing levels. 

Representatives from both the council and Nav Canada are scheduled to attend the next parliamentary meeting on labour shortages on Monday.  

Suncor to acquire Teck Resources' stake in Fort Hills oilsands project for $1B

SUNCOR ENERGY INC (SU:CT)

45.86 0.48 (1.06%)
As of: 10/29/22 3:03:48 am
REAL-TIME QUOTE. Prices update every five seconds for TSX-listed stocks
Jan '22Apr '22Jul '22Oct '222030405060
Chart Type - 1year
See Full Stock Page »

 

Suncor Energy Inc. will buy out Teck Resources Ltd.'s 21.3 per cent stake in the Fort Hills oilsands project for approximately $1 billion, the two companies announced late Wednesday.

The 194,000 barrel-per-day capacity oilsands mine north of Fort McMurray, Alta., is currently co-owned by Suncor, Teck, and French company Total Energies EP Canada Ltd.

Upon closure of the deal, Calgary-based Suncor, which is the operator of Fort Hills, will see its stake in the oilsands project increase to 75.4 per cent. TotalEnergies will own the remaining 24.6 per cent.

"The acquisition of an additional interest in Fort Hills meets our return objectives, builds upon our strategy to optimize our portfolio around our core operated assets and underscores Suncor's confidence in the long-term value of the Fort Hills project," said Suncor interim president and CEO Kris Smith in a news release.

The Fort Hills oilsands mine began operation in 2018 but has been dogged by difficulties. 

The mine was unable to ramp up quickly to full capacity, in part because of the Alberta government's 2019 move to curtail oil production in the province to help address the widening price discount for Canadian oil caused by a shortage of pipeline export capacity.

Then in 2020, one of Fort Hills' two production trains was shut down due to low oil prices because of the COVID-19 pandemic.

The deal announced Wednesday is based on a current market value for Fort Hills, Suncor said, and as a result, Suncor will recognize a non-cash accounting impairment charge on its existing 54.1 per cent interest of approximately $2.6 billion in its third-quarter results, which will be announced Nov. 2. The company will also hold an investor presentation on Nov. 29.

Vancouver-based Teck said it expects to record a non-cash impairment charge of $950 million in the third quarter of 2023. Teck is slated to hold its third-quarter earnings call Thursday morning.

Teck has been saying for some time that it was interested in selling its stake in Fort Hills. The company is currently constructing a $5 billion copper mine in Chile. It has said it wants to concentrate on metals and minerals that are essential for a low-carbon world, including copper, zinc and steelmaking coal.

"This transaction advances our strategy of pursuing industry-leading copper growth and rebalancing our portfolio of high-quality assets to low-carbon metals," said Teck CEO Jonathan Price in a release Wednesday, adding the company will review the use of the proceeds from the sale early in 2023.

On Wednesday, Suncor said it has conducted an in-depth review of the Fort Hills project and has begun a multi-year "improvement initiative" aimed at boosting the mine's production and lowering operating costs.

"While the Fort Hills mine has faced challenges in the early years of the mine life, including challenges due to government-directed production shut-ins, I have full confidence in our current mine plan assembled with fresh external mining perspectives," Smith said.

Suncor said it will finance the transaction with cash from asset sale processes currently underway.

The transaction is subject to regulatory approval and is expected to close in the first quarter of 2023.

Friday, October 28, 2022

Indoor growing could feed Canadians — and others — year-round

Whether it was pandemic-driven supply chain delays, a war in Europe causing grain prices to spike or flooding in British Columbia disrupting rail lines and highways, the past two and a half years have shone a light on how vulnerable Canada's food system is to climate change and other global factors.

Amid rising food and energy costs and more frequent extreme weather events, experts and sector insiders say the indoor agriculture industry has the potential to feed Canadians more reliably and maybe more sustainably by using greenhouses, vertical farms and hydroponic technology to grow food even in the winter, in remote communities, urban centres and everywhere in between.

“The possibilities are endless,” said Sylvain Charlebois, director of the Agri-Foods Analytics Lab at Dalhousie University. 

Canada is highly self-sustaining when it comes to meat and dairy, but relies heavily on imports for produce, making the country vulnerable to shortages and price fluctuations, according to the findings of a 2021 review article published in scientific journal Agronomy by several University of Guelph researchers and a representative from Ontario Greenhouse Vegetable Growers.

Meanwhile, Statistics Canada data shows that Canada is growing more and more in greenhouses every year. In 2020, Canada exported more than half of the greenhouse vegetables it grew to the U.S. at a value of $1.4 billion. 

Greenhouses have a lot of potential to feed Canadians more than they already do, the researchers said, but face challenges including rising costs, labour shortages, and infectious plant pathogens. 

Still, they’re the largest and fastest growing area of Canadian horticulture, with demand for local food on the rise, and technology helping to automate and increase the scale of operations.

Charlebois said in order for year-round growing to be economically sustainable on a larger scale, Canada needs to not only feed itself, but also continue to export, especially to the U.S. as it struggles with climate change’s effect on its agricultural sector.  

“If we do this right, from a food autonomy perspective, I could certainly see Canada being a huge supplier of produce to Americans in maybe a decade or two.”

Over the past several years, Canada’s winter production has expanded, said food economist Mike von Massow.

“In fact, because cannabis hasn't been as much of a panacea as some people thought it might be, we're seeing some conversion of some greenhouses that were put up for cannabis,” he said.

Great Northern Hydroponics may have been among the first in Canada to start growing in the winter. President Guido van het Hof said they’ve been growing tomatoes year-round in the company’s hydroponic greenhouses for about a decade, and recently started growing strawberries, too. Hydroponic growing uses no soil, usually cultivating plants instead in a water solvent using a mix of nutrients.  

As the climate becomes more unpredictable, some U.S. berry growers, like Driscoll’s, are turning to Canadian growers to help fill their containers, noted Charlebois. 

This October, a team led by University of Waterloo biology professor Trevor Charles was awarded funding to study and develop year-round hydroponic strawberry production in Ontario. 

“This is an area that's moving really quickly,” said Charles, who is also the director of the Waterloo Centre for Microbial Research and CEO of Metagenom Bio Life Science. The goal is not only efficiency but also the best taste, he said.

That’s another benefit to local berries, said von Massow: they taste better.

“I don't know if you've eaten a winter strawberry, but they're relatively flavourless,” he said. 

The Agronomy authors said Canada should ramp up production of commodities it already grows in greenhouses, but also diversify its crops to further promote self-reliance in the Canadian food chain and reach more markets. 

“The rising demand for such commodities, such as okra and long beans, especially within Chinese, South Asian, and Afro-Caribbean communities, has been recognized in recent years as a significant market opportunity,” the researchers wrote.

Urban agriculture has been gaining traction, often using hydroponic technology to produce hyper-local food. 

Paul Shumlich, whose Calgary-based company Deepwater Farms grows a variety of greens, saw first-hand the role urban farms can play in the food system: his company’s sales spiked last fall when a flood in British Columbia closed some parts of Highway 1. 

And in remote areas of Canada, there is an increasing number of year-round growing projects in Indigenous communities. One example is a geothermal greenhouse in Potlotek First Nation on Cape Breton Island, funded as one of several pilot projects in Indigenous communities in Atlantic Canada.

Greenhouse manager John Lameman hopes the greenhouse, along with some outside growing space, bee hives and even a potential orchard, could one day reliably feed the community. 

In the short run, greens and berries grown year-round are more of a premium product, said von Massow. But he believes they will become more competitive.

“Both technology and climate change are extending the growing season in Canada,” he said. 

The capital cost of starting or expanding greenhouse or other alternative farming infrastructure is high, said von Massow, and variable costs, especially energy, are also high — and recent months have shown just how unpredictable those costs can be. 

Of course, energy is also a high variable cost for imported foods because of transportation, he said. 

Von Massow and Charles cautioned that year-round agriculture projects aren't always a more environmentally friendly alternative to imported produce because of the energy some of them consume.

But as technology improves, and more growers adopt wind, solar or even nuclear energy, von Massow thinks that will change. 

“I think without a doubt, we're going to get better and better at this.”

Insurance industry recommends climate risk score for houses

The Insurance Bureau of Canada is calling for the creation of a climate risk score that would indicate a property's susceptibility to damages caused by natural disasters. 

The IBC says disclosure of natural hazard and climate risk is needed because of the increasing frequency and severity of extreme weather events, such as hurricane Fiona. 

The report released Tuesday is the result of a national group of representatives from across Canada's housing supply chain who were invited in 2021 to develop a framework to communicate these risks to homeowners. 

IBC vice-president Craig Stewart says Canada needs to develop a universal climate risk disclosure system by 2025.

The report also recommends that flood maps be updated and that a risk action matrix be created for lenders and insurers.

Stewart says access to reliable climate-related data will help homeowners, builders, financial companies and the government invest in resilience and adaptation projects

THE WOMAN DARES SPEAK
Qatar summons German ambassador over minister's World Cup comments

Qatar Foreign Ministry said the comments made by German Interior Minister Nancy Faeser were "unacceptable and provocative".

The New Arab Staff & Agencies
28 October, 2022

Qatar Summoned the German Ambassador (Image Source:Twitter)

Qatar on Friday summoned Germany's ambassador to protest comments made by a minister casting doubt on whether the Gulf state should host the football World Cup.

Comments by German Interior Minister Nancy Faeser were "unacceptable and provocative" and required a "clarification", Qatar's foreign ministry said.

A letter handed to the ambassador highlighted Qatar's "complete rejection" of Faeser's comments, who had been due to visit Qatar on Monday.

Qatar has faced Western criticism over the issue of workers' rights and restrictions on same-sex relations, but Doha has hit back at what it says is unfair attacks and failure to recognise the reforms it has made, saying everyone is welcome at the world cup.

This is the first time a foreign ambassador has been summoned over such comments.

Voices
Sam Hamad

Faeser, in an interview with the ARD network aired Thursday, said that Qatar's hosting of the World Cup next month was "very tricky" for Germany.

Faeser, in a statement released ahead of her visit with the head of the German football federation Bernd Neuendorf, said that rights would be raised in talks.

"No World Cup takes place in a vacuum. Human rights always apply everywhere - and now the whole world is paying special attention," Faeser said.

Qatar's emir Sheikh Tamim bin Hamad Al Thani said this week that his energy rich country had been confronted by an "unprecedented campaign" of "double standards".

The country has highlighted widespread reforms to its labour and industrial safety record in recent years, that have been hailed by international labour unions.

Australia this week became the first World Cup team to release a statement on rights in the host country highlighting the "suffering" of workers.

Qatar responded by insisting that "protecting the health, safety, security, and dignity" of every worker was their "priority."

The spat comes at an awkward time for Germany, which has been negotiating for supplies of Qatari natural gas to make up for losses in Russian deliveries.

It is one of several European countries that have approached Qatar since Russia's invasion of Ukraine.

Thousands of workers evicted in Qatar's capital ahead of World Cup




Fri, October 28, 2022 
By Andrew Mills

DOHA (Reuters) - Qatar has emptied apartment blocks housing thousands of foreign workers in the same areas in the centre of the capital Doha where visiting soccer fans will stay during the World Cup, workers who were evicted from their homes told Reuters.

They said more than a dozen buildings had been evacuated and shut down by authorities, forcing the mainly Asian and African workers to seek what shelter they could - including bedding down on the pavement outside one of their former homes.

The move comes less than four weeks before the Nov. 20 start of the global soccer tournament which has drawn intense international scrutiny of Qatar's treatment of foreign workers and its restrictive social laws.

At one building which residents said housed 1,200 people in Doha's Al Mansoura district, authorities told people at about 8 pm on Wednesday they had just two hours to leave.

Municipal officials returned around 10.30 pm, forced everyone out and locked the doors to the building, they said. Some men had not been able to return in time to collect their belongings.

"We don't have anywhere to go," one man told Reuters the next day as he prepared to sleep out for a second night with around 10 other men, some of them shirtless in the autumn heat and humidity of the Gulf Arab state.

He, and most other workers who spoke to Reuters, declined to give their names or personal details for fear of reprisals from the authorities or employers.

Nearby, five men were loading a mattress and a small fridge into the back of a pickup truck. They said they had found a room in Sumaysimah, about 40 km (25 miles) north of Doha.

A Qatari government official said the evictions are unrelated to the World Cup and were designed "in line with ongoing comprehensive and long-term plans to re-organise areas of Doha."

"All have since been rehoused in safe and appropriate accommodation," the official said, adding that requests to vacate "would have been conducted with proper notice."

World soccer's governing body FIFA did not respond to a request for comment and Qatar's World Cup organisers directed inquiries to the government.

"DELIBERATE GHETTO-ISATION"


Around 85% of Qatar's three million population are foreign workers. Many of those evicted work as drivers, day labourers or have contracts with companies but are responsible for their own accommodation - unlike those working for major construction firms who live in camps housing tens of thousands of people.

One worker said the evictions targeted single men, while foreign workers with families were unaffected.

A Reuters reporter saw more than a dozen buildings where residents said people had been evicted. Some buildings had their electricity switched off.

Most were in neighbourhoods where the government has rented buildings for World Cup fan accommodation. The organisers' website lists buildings in Al Mansoura and other districts where flats are advertised for between $240 and $426 per night.

The Qatari official said municipal authorities have been enforcing a 2010 Qatari law which prohibits "workers' camps within family residential areas" - a designation encompassing most of central Doha - and gives them the power to move people out.

Some of the evicted workers said they hoped to find places to live amid purpose-built workers' accommodation in and around the industrial zone on Doha's southwestern outskirts or in outlying cities, a long commute from their jobs.

The evictions "keep Qatar's glitzy and wealthy facade in place without publicly acknowledging the cheap labour that makes it possible," said Vani Saraswathi, Director of Projects at Migrant-Rights.org, which campaigns for foreign workers in the Middle East.

"This is deliberate ghetto-isation at the best of times. But evictions with barely any notice are inhumane beyond comprehension."

Some workers said they had experienced serial evictions.

One said he was forced to change buildings in Al Mansoura at the end of September, only to be moved on 11 days later with no prior notice, along with some 400 others. "In one minute, we had to move," he said.

Mohammed, a driver from Bangladesh, said he had lived in the same neighbourhood for 14 years until Wednesday, when the municipality told him he had 48 hours to leave the villa he shared with 38 other people.

He said labourers who built up the infrastructure for Qatar to host the World Cup were being pushed aside as the tournament approaches.

"Who made the stadiums? Who made the roads? Who made everything? Bengalis, Pakistanis. People like us. Now they are making us all go outside."

(This story has been refiled to clarify that apartment blocks being emptied are in the same areas in Doha where visiting soccer fans will stay during World Cup, in the lead paragraph.)

(Reporting by Andrew Mills; Writing by Dominic Evans; Editing by Ken Ferris)



Outrage grows over Israel's brutal arrest, detention of 16-year-old Palestinian Shadi Khoury

Shadi Khoury, a 16-year-old school pupil, was beaten, blindfolded, and dragged away bloodied from his family home in a dawn raid in occupied East Jerusalem earlier this month.

The New Arab Staff
28 October, 2022

Israeli forces stormed Shadi Khoury's home in the early hours of 18 October 
[Mostafa Alkharouf/Anadolu via Getty-file photo]

International clamour is growing over Israel's arrest of a 16-year-old Palestinian boy at his home in occupied East Jerusalem earlier this month.

In the early hours of 18 October, a dozen Israeli soldiers and secret service agents stormed the family home of Shadi Khoury in the city's Beit Hanina neighbourhood.

The soldiers made a beeline for the teenager, beating, blindfolding and handcuffing him before taking him away, leaving a trail of his blood on the floors of their home, according to his family.

Israel, a prolific jailer of Palestinian children, has yet to give a reason for Khoury's arrest, his family said.

He was also interrogated while in detention without a lawyer present, they added.



As worry grows over the school pupil's condition, international lawmakers have spoken up about the teenager's plight.

British MP Layla Moran wrote a letter to the UK foreign minister urging action to help secure Khoury's release.

"It is deeply worrying that Palestinians are being arrested, arbitrarily detained, and refused access to a fair trial. It is especially concerning that this is happening to children," her letter read.

In Canada, parliamentarians Leah Gazan and Matthew Green called on her country's foreign minister to call for his release and to condemn Israel for the detention.

Francesca Albanese, UN special rapporteur for the Occupied Palestinian Territories, said Saturday that she was reviewing reports of Khoury's arrest "with horror".



Israel has imprisoned more than 12,000 children since the year 2000, according to prisoner rights group Addameer.


Among them is Ahmed Manasra, who was detained as a 13-year-old in connection with the stabbing and wounding of two Israelis in an illegal settlement in occupied East Jerusalem in 2015.

Manasra was found guilty of attempted murder in "proceedings marred by allegations of torture", even though the court found he did not participate in the stabbings.

He was initially handed a 12-year jail term as a 14-year-old in 2016, though this was later reduced to nine years and five months.

Manasra has mental health issues including schizophrenia and has spent time in solitary confinement.

A request for his early release was rejected in September.

There were 129 Palestinian children being held in Israeli military detention in September 2022, according to Defence for Children International - Palestine.

By June, some 490 children had been detained by Israel in 2022, a specialist Palestinian Authority body said.

The Khoury family had previously been targeted by Israeli forces, who previously arrested Shadi's parents at their home, according to Haaretz.

The army also raided and shut down two cultural institutions managed by Shadi's parents.
Andrew Tate: 'Misogynist' influencer 'converts to Islam', seen 'praying in UAE mosque'

The New Arab Staff
24 October, 2022

Controversial influencer Andrew Tate, who has been widely condemned as a 'misogynist', has converted to Islam according to social media reports.

Internet personality and former professional kickboxer Andrew Tate
 on Anything Goes With James English in 2021 [via Wikimedia Commons]


Controversial influencer Andrew Tate has converted to Islam, according to several claims on social media.

"This is why I’m Muslim," a verified account called 'Andrew Tate' wrote in a post on the conservative social media site Gettr.

"Any Christian who believes in good and understands the true battle against evil must convert. "So be patient, Indeed the promise of Allah is TRUTH" Quran 30:60."

The same account later posted a picture of Tate captioned with a quote attributed to Ibn Qayim, an Islamic theologian from the 1300s.

A video of Tate allegedly praying in a mosque in the UAE has been shared hundreds of times on Facebook and Twitter.



The video was shared by Tam Khan, a verified Facebook user who indicated in the caption that he filmed the video and appeared to confirm that Tate had taken the shahada - the oath required to accept Islam.

"Regarding his shahada we agreed it shouldn't be shown on a podcast or anything because people will claim it's for clout or fake following. Nobody is perfect, but Alhamdhulillah the guy has a good heart and pure intentions." wrote Khan.

The New Arab has reached out to Andrew Tate for comment.

The popularity of Andrew Tate, a former kickboxer and Big Brother contestant from Luton, UK, exploded on social media in 2022.

He has since been widely called a misogynist for his comments about women which has seen him banned from most major social media platforms, including Facebook, Instagram, YouTube and Twitch.

Before his ban, Tate's videos had racked up millions of views online.

Several users have claimed his conversion to Islam is simply a publicity stunt and stressed that Tate was not a role model for Muslims.
One use, known as Gilboa Prison Break on Twitter, said: "As Muslims, Allah (swt) has given us so many role models. Islam is a religion where you literally need not look elsewhere. Where did we go wrong for our young men to take people like andrew tate as role models over the prophets? Ahlul bayt? The companions? الله المستعان."

Another known as Nameless tweeted: "Andrew Tate is actively trying to stir up issues between Islam & Christianity out of ignorance. These religions have found peace with each other. Let's not go backwards from one guy who loves to hear himself talk."

Tate has an upcoming conversation with Muhammad Hijab, a Muslim presenter who has interviewed other controversial public figures, such as Canadian professor Jordan Peterson.