Business insolvencies jump despite stable economic growth

Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow

It’s not easy to find signs of aggregate consumer financial stress in Canada but as BMO senior economist Sal Guatieri points out, there has been a concerning jump in business insolvencies.

“The May data on Canadian insolvencies show growing stress for both consumers and businesses, especially the latter. Consumer insolvencies have largely returned to pre-pandemic norms, and are likely to rise further if interest rates stay high and the jobless rate rises. Of greater concern is that business insolvencies have already overshot 2019 levels at a time of reasonably healthy economic activity. … Businesses showed amazing resiliency during the Great Recession. But they are already under stress even before an expected mild economic slump”

“BMO: “Canadian Businesses Under Pressure”” – (research excerpt) Twitter


Citi analyst Ephrem Ravi maintains his bullish stance on battery-related commodity prices.

“In order to enable the Energy Transition and meet related customer and government demands, automakers are set to consume dramatically more industrial and battery metals over the coming years … We estimate that the value of automaker industrial and battery metal consumption outside of China may rise by $140bn to $230bn between 2023 and 2030 (+15% p.a), from ~$90bn at present, using spot prices. The bulk of the increase may come from lithium (+$87bn), alongside nickel (+$19bn), copper (+$14bn), and aluminium (+$14bn), assuming broadly unchanged prices from recent levels … We estimate that the value of desired metals hedging from automakers outside of China might quadruple from ~$23bn at present, to ~$80bn by 2030″


Also from BMO, analyst Sohrab Movahedi calculates that the major banks will be making less profits from basic lending operations.

“The Q2/23 results at the Canadian Banking Segment (making up nearly half of the “Big 6′s” total earnings) marked the first quarter of negative earnings growth since Q4/20, with group earnings down 4% y/y. The 4% y/y decline in earnings is reflective of double-digit revenue growth (NIM [net interest margin] expansion and resilient loan growth) that was more than offset by higher expenses and normalizing PCLs [provisions for credit losses]. The segment’s profitability, as represented by the group’s ROA [return on assets], was down y/y from 128bps to 114 bps (in line with the pre-pandemic average of 114bps), primarily reflecting the negative impact from higher PCLs. Looking ahead, the combination of a slowdown in

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Economic reconciliation ‘is everything’ to Indigenous people, business leader says

Indigenous and business leaders came together in Winnipeg on Tuesday to build relationships and share ideas as part of a forum focused on the economy and reconciliation.

More than a hundred business owners, government leaders and representatives of business organizations gathered at the Victoria Inn near the Winnipeg airport for the Southern Chiefs’ Organization’s economic reconciliation business forum.

Among the attendees was Michelle Cameron, who has founded multiple businesses, including Dreamcatcher Promotions and the INAC (Indigenous Nations Apparel Company) clothing store chain.

Reconciliation is central to her success, she told CBC.

“It is everything,” she said. “It is the foundation of how we grow as a community — not just the Indigenous community, but all of us. We all play a part in reconciliation and doing business and moving forward.”

When Cameron started a new business, Dreamcatcher Executive Offices, she turned to another Indigenous business owner to furnish the space.

Darrell Brown owns Kisik Commercial Furniture. He says Indigenous-owned businesses can be just as competitive as others, if given the chance.

“We know how to do business. We’re very good at it. All we need is the door open, and you listen to us and give us a chance, and we’ll show you what we can do.”

Exploring partnerships

True North Sports and Entertainment chief executive Mark Chipman gave the keynote speech at Tuesday’s event.

He highlighted the work his organization is doing in downtown Winnipeg to redevelop the Portage Place shopping centre, across the street from where the Southern Chiefs’ Organization is working to develop the former Hudson’s Bay building.

“I don’t know that one project is can be as successful without the other,” Chipman said in an interview.

“So I think we’ve just got a natural … playground, so to speak, to work together.”

The two organizations haven’t had any detailed conversations about co-operating, but Chipman mentioned their shared goals of creating housing in their respective projects as one possible avenue for collaboration.

SCO Grand Chief Jerry Daniels says companies also need to think about who they have at the top.

“Jamie Wilson [the vice-president of Indigenous strategy at Red River College Polytech] said it best this morning … if you don’t have Indigenous people on your board or on your executive branch of your company, then you’re probably not serious about true reconciliation,” Daniels said in an interview.

Several speakers and attendees spoke about the importance of

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U.S. shares marched greater as traders digested another batch of earnings and oil hit a seven-year excessive. The nation’s dairy farmers are feeling the squeeze of the pandemic, as supply chain issues are raising the cost of manufacturing and packaging milk. Sharell Macklin’s funds are in first rate form, however she is able to take a financial threat to invest her cash and increase financial savings so she can one day journey the world. The greenback has bounced off current lows and was agency in choppy commerce on Tuesday forward of a handful of knowledge releases and central bank meetings which investors anticipate to guide the charges outlook. Asian shares inched larger on Tuesday, as upbeat Wall Street earnings lifted the broader financial outlook although contemporary worries about China’s property sector hit Hong Kong and mainland markets. Stay updated on the influence of the pandemic recession, as the financial shocks proceed to reverberate from the Victorian shutdown and the price of closed borders and social distancing measures.

  • U.S. Treasury yields on Monday slip to begin the ultimate week of October, kicking off a interval that may feature knowledge on consumer confidence, gross domestic product and the Federal Reserve’s favorite inflation indicator.
  • WASHINGTON -U.S. President Joe Biden on Monday signed an order imposing new vaccine requirements for many international national air vacationers and lifting severe travel restrictions on China, India and far of Europe efficient Nov. eight, the White House mentioned.
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  • Bitcoin’s value stands at Rs forty eight,54,999 with a dominance of 45.14 %, an decrease of zero.21 % over the day.

Tesla Inc.’s shares soared, pushing the automaker’s value past US$1 trillion for the primary time. Get a weekly rundown of the top news, stock strikes and feature tales on the burgeoning marijuana sector, despatched straight to your inbox. BNN Bloomberg’s morning publication will maintain you updated on all day by day program highlights of the day’s prime stories, as nicely as government and analyst interviews. Real-time last sale information for U.S. inventory quotes reflect trades reported by way of Nasdaq solely.

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Shares in China Evergrande Group’s electrical automobile unit rose as much as 5.8% early on Tuesday, extending positive aspects from the day past because the cash-strapped developer … Read more

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Stocks have been pushing broadly higher as corporations turn in a lot stronger revenue reports for the summer season than analysts had expected. WASHINGTON — Children under 18 and people from dozens of countries with a scarcity of vaccines might be exempt from new rules that can require most travelers to the United States be vaccinated towards COVID-19, the Biden administration announced. WASHINGTON — Federal well being officials on Monday extended for almost three more months its guidelines that cruise ships must observe to sail through the pandemic. The U.S. Centers for Disease Control and Prevention said the extension makes only “minor modifications” to rules already in effect. DETROIT — Hertz announced Monday that it’ll purchase 100,000 electrical automobiles from Tesla, one of many largest purchases of battery-powered vehicles in historical past and the latest proof of the nation’s growing dedication to EV expertise.

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A joint assertion issued by the CR and WR clarified that solely classes identified by the government as on date are permitted to journey as per the usual working procedures . Speaking at an event, Gadkari regretted that some international locations are additionally utilizing proceeds from the sale of petrol and diesel to finance terrorism. Amit Shah also said India has made fast strides on the economic entrance under the Narendra Modi authorities and expressed confidence that by 2024, “we will be the third largest financial system on the earth”. Revenue from IT companies stood at Rs 9,576 crore, an increase of 6.2 percent on a sequential foundation from Rs 9,016 crore logged within the previous quarter. Byju’s has already hired investment banks like JP Morgan and Morgan Stanley to lift debt via Term Loan B in the US. Intel Corp. shares plummeted on Friday to the bottom level since January after the chipmaker reported third-quarter results and detailed a spending plan that it mentioned would pressure profitability over the next few years.

  • If the world follows the current US top-up strategy, it’ll find yourself with one huge oil and gasoline trade plus an equally large carbon-capture and storage business.
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Australia has joined the world in promising to make the nation carbon-neutral by 2050, forward of a global local weather change summit. The electric car maker’s hovering stock has pushed Wall Street greater, and the Australian market has followed. While the typical worth of an EV in Europe has increased by a 3rd, in China, the value of a new electrical automobile has nearly halved. Investors are looking forward to main tech earnings this week, hoping they can further increase stocks. If the world follows the current US top-up method, it’ll end up with one big oil and fuel business plus an equally large carbon-capture and storage industry. U.S. stocks rose to another document high as traders geared for a string of earnings reviews from expertise heavyweights including Facebook Inc., while maintaining in thoughts inflation considerations and rising COVID-19 risks.

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