U.S. core capital goods orders rise slightly in March
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New orders for key U.S.-manufactured capital goods increased moderately in March, suggesting that business spending on equipment likely remained weak in the first quarter. Non-defense capital goods orders excluding aircraft rose 0.2% last month, in line with economists' expectations. Core capital goods orders gained 0.6% year-on-year in March. Business spending on equipment has struggled in the aftermath of interest rate hikes from the Federal Reserve. Core capital goods shipments rebounded 0.2% after falling 0.6% in February. Non-defense capital goods orders surged 5.4% after rising 2.7% in February. Economists estimated that GDP increased at a 2.4% annualized rate in the first quarter. Orders for durable goods rose 2.6% in March. Transportation dominated the rise in orders last month, with bookings shooting up 7.7%. Boeing reported that it had received 113 orders for commercial aircraft, a surge from just 15 in February.
Caution about Canada’s private real estate sector abounds as valuations slow to adjust
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Valuations for Canada's privately held office property markets have practically frozen in place following a wave of markdowns in 2023, making valuation assessments next to impossible. Last year was difficult for owners of Canadian private real estate, with many pension fund managers losing money due to high interest rates, increased operating costs, and high vacancy rates. The Caisse de dépôt et placement du Québec saw its real estate portfolio decline 6.2% in 2023, the Ontario Teachers’ Pension Plan experienced a 5.9% loss, and the Ontario Municipal Employees Retirement System (OMERS) saw its real estate portfolio drop by 7.2%. However, there are pockets of strength in multi-family residential, open-air retail centers, and industrial properties. The BMO Global Asset Management's commercial property outlook notes that the industrial and multi-family segments remain strong due to high investor demand and tight supply. The office property market is of the greatest near-term concern and focus, with a timeline for a return to 'normal' estimated to be at least five years. Private real estate investors need to evaluate opportunities on a city-by-city basis, as every city is different. Property owners may struggle to refinance expensive debt in a higher-for-longer rate environment, potentially leading to firesales for lower-quality buildings. The U.S. and other advanced real estate markets are ahead of Canada in terms of valuation adjustments. Canada's commercial office real estate market is catching up but has not corrected to the same extent. Private fund assets in Canada are valued based on activity, and the auditors are making assumptions when there is no activity in the marketplace. Some investors are preparing to evaluate new investments in the Canadian real estate space later in 2024. There is an opportunity to redeem open-ended private real estate investment trusts (REITs) in Canada and reallocate the money to the U.S. market or invest in publicly listed REITs. The market is still waiting for evidence of a turnaround, as valuations have not yet adjusted.
#RealEstate #Valuations #OfficeProperty #Investors #PensionFunds
Closing Bell: Fobi Ai Inc up on Monday (FOBI)
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Fobi Ai Inc stock opened and closed at $0.07 on Monday. The shares advanced 7.69% from the previous day's close. The TSX Composite closed at 21807.37, the S&P 500 closed at 4967.23, the Dow Jones Industrial Average closed at 37986.40, and the Nasdaq Composite closed at 15282.01. Fobi Ai Inc traded on the Toronto Venture Exchange (TSX-V). A total of 386,651 shares were traded during the last trading day. Fobi Ai Inc has a market capitalization of $14.32 million and a float of 220,355 shares outstanding. Its annual EPS is $-0.07. Fobi Ai Inc is headquartered in Vancouver, CAN. It has an average recommendation of 'Strong Sell' from 0.00 analysts according to Zacks.
Closing Bell: Fobi Ai Inc up on Monday (FOBI)
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Fobi Ai Inc stock opened and closed at $0.07 on Monday. The shares advanced 7.69% from the previous day's close. The TSX Composite closed at 21807.37, the S&P 500 closed at 4967.23, the Dow Jones Industrial Average closed at 37986.40, and the Nasdaq Composite closed at 15282.01. Fobi Ai Inc traded on the Toronto Venture Exchange (TSX-V). A total of 386,651 shares were traded during the last trading day. Fobi Ai Inc has a market capitalization of $14.32 million and a float of 220,355 shares outstanding. Its annual EPS is $-0.07. Fobi Ai Inc is headquartered in Vancouver, CAN. It has an average recommendation of 'Strong Sell' from 0.00 analysts according to Zacks.
Greg Tamberlane Joins Peapack Private as Senior Vice President, Head of Commercial Bank Operations New York
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Greg Tamberlane has been appointed as Senior Vice President, Head of Commercial Bank Operations New York at Peapack Private. He will oversee operations for New York and lead a team of financial services professionals. Tamberlane brings 10 years of financial services experience, most recently serving as Vice President, Senior Manager of Digital Asset Solutions at Signature Bank. He holds a Bachelor of Arts degree in Mathematics and Computer Science from Purchase College in New York. Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.5 billion and assets under management and/or administration of $10.9 billion as of December 31, 2023.
Greg Tamberlane Joins Peapack Private as Senior Vice President, Head of Commercial Bank Operations New York
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Greg Tamberlane has been appointed as Senior Vice President, Head of Commercial Bank Operations New York at Peapack Private. He will oversee operations for New York and lead a team of financial services professionals. Tamberlane brings 10 years of financial services experience, most recently serving as Vice President, Senior Manager of Digital Asset Solutions at Signature Bank. He holds a Bachelor of Arts degree in Mathematics and Computer Science from Purchase College in New York. Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.5 billion and assets under management and/or administration of $10.9 billion as of December 31, 2023.
These energy stocks could raise their dividends, says TD analyst
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TD Cowen analyst Aaron Bilkoski believes that ARC Resources, CVE, and IMO in the energy sector have the potential to increase their dividends. Bilkoski expects ARC Resources to modestly increase its dividend with Q1 results by approximately the amount of shares repurchased last year. He also believes that CVE and IMO could hike their base dividends, similar to Q1/2023. Bilkoski also mentions that due to the dry winter, two environmental issues related to water availability for fracking and wildfires impacting activity are likely to be addressed with more clarity. There are currently 12 wildfires burning in Alberta. CIBC analyst Dean Wilkinson highlights the strong operating fundamentals of the real estate sector, particularly in multi-family residential and grocery-anchored retail. He also mentions concerns about the potential devaluation of the Canadian dollar relative to the U.S. dollar if Canada were to begin an interest rate cutting cycle while the U.S. economy remained robust. Wilkinson provides "outperformer" ratings on several REITs including BSR REIT, Chartwell Retirement Residences, Minto Apartment REIT, European Residential REIT, Smartcentres REIT, Killam Apartment REIT, Morguard North American Residential REIT, Dream Residential REIT, RioCan REIT, Brookfield Corp., and First Capital REIT. BofA Securities investment strategist Michael Hartnett mentions in his report that Canada is increasing capital gains tax rates from 50% to 67%. He also discusses the potential impact of higher inflation, higher yields, and higher taxation due to the promises and funding obligations of highly indebted Western governments. Hartnett notes that the simultaneous strength in tech stocks, commodities, and the U.S. dollar is a rare occurrence that has only happened in five of the past 60 years. Cybersecurity is highlighted as a top performer within the technology sector, with analyst Hamza Fodderwala recommending PANW and CRWD as preferred stocks. Fodderwala also sees opportunities in SMID-cap stocks, particularly RPD, due to high valuation discounts and the potential for M&A activity.
These energy stocks could raise their dividends, says TD analyst
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TD Cowen analyst Aaron Bilkoski believes that ARC Resources, CVE, and IMO in the energy sector have the potential to increase their dividends. Bilkoski expects ARC Resources to modestly increase its dividend with Q1 results by approximately the amount of shares repurchased last year. He also believes that CVE and IMO could hike their base dividends, similar to Q1/2023. Bilkoski also mentions that due to the dry winter, two environmental issues related to water availability for fracking and wildfires impacting activity are likely to be addressed with more clarity. There are currently 12 wildfires burning in Alberta. CIBC analyst Dean Wilkinson highlights the strong operating fundamentals of the real estate sector, particularly in multi-family residential and grocery-anchored retail. He also mentions concerns about the potential devaluation of the Canadian dollar relative to the U.S. dollar if Canada were to begin an interest rate cutting cycle while the U.S. economy remained robust. Wilkinson provides "outperformer" ratings on several REITs including BSR REIT, Chartwell Retirement Residences, Minto Apartment REIT, European Residential REIT, Smartcentres REIT, Killam Apartment REIT, Morguard North American Residential REIT, Dream Residential REIT, RioCan REIT, Brookfield Corp., and First Capital REIT. BofA Securities investment strategist Michael Hartnett mentions in his report that Canada is increasing capital gains tax rates from 50% to 67%. He also discusses the potential impact of higher inflation, higher yields, and higher taxation due to the promises and funding obligations of highly indebted Western governments. Hartnett notes that the simultaneous strength in tech stocks, commodities, and the U.S. dollar is a rare occurrence that has only happened in five of the past 60 years. Cybersecurity is highlighted as a top performer within the technology sector, with analyst Hamza Fodderwala recommending PANW and CRWD as preferred stocks. Fodderwala also sees opportunities in SMID-cap stocks, particularly RPD, due to high valuation discounts and the potential for M&A activity.
These energy stocks could raise their dividends, says TD analyst
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TD Cowen analyst Aaron Bilkoski believes that ARC Resources, CVE, and IMO in the energy sector have the potential to increase their dividends. Bilkoski expects ARC Resources to modestly increase its dividend with Q1 results by approximately the amount of shares repurchased last year. He also believes that CVE and IMO could hike their base dividends, similar to Q1/2023. Bilkoski also mentions that due to the dry winter, two environmental issues related to water availability for fracking and wildfires impacting activity are likely to be addressed with more clarity. There are currently 12 wildfires burning in Alberta. CIBC analyst Dean Wilkinson highlights the strong operating fundamentals of the real estate sector, particularly in multi-family residential and grocery-anchored retail. He also mentions concerns about the potential devaluation of the Canadian dollar relative to the U.S. dollar if Canada were to begin an interest rate cutting cycle while the U.S. economy remained robust. Wilkinson provides "outperformer" ratings on several REITs including BSR REIT, Chartwell Retirement Residences, Minto Apartment REIT, European Residential REIT, Smartcentres REIT, Killam Apartment REIT, Morguard North American Residential REIT, Dream Residential REIT, RioCan REIT, Brookfield Corp., and First Capital REIT. BofA Securities investment strategist Michael Hartnett mentions in his report that Canada is increasing capital gains tax rates from 50% to 67%. He also discusses the potential impact of higher inflation, higher yields, and higher taxation due to the promises and funding obligations of highly indebted Western governments. Hartnett notes that the simultaneous strength in tech stocks, commodities, and the U.S. dollar is a rare occurrence that has only happened in five of the past 60 years. Cybersecurity is highlighted as a top performer within the technology sector, with analyst Hamza Fodderwala recommending PANW and CRWD as preferred stocks. Fodderwala also sees opportunities in SMID-cap stocks, particularly RPD, due to high valuation discounts and the potential for M&A activity.
What Australia and the U.K.’s grocery codes can teach us about Canada’s food fight
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Progress on a Canadian grocery code of conduct has stalled as two major retailers refuse to sign it, claiming it will raise prices. The code is intended to set rules for fair dealing in negotiations between retailers and suppliers. Politicians and others have pushed back on claims the code could raise prices, saying similar codes in the United Kingdom and Australia had a stabilizing effect. The U.K. has had a mandatory grocery code since 2010, which applies to the country's 14 biggest retailers. Australia's grocery code, introduced in 2015, is voluntary but becomes legally binding once signed. Comparing food inflation data from Canada, the U.K., and Australia before and after the implementation of grocery codes shows mixed results. Canada's proposed code differs from the Australian and U.K. counterparts as it aims to cover both suppliers and retailers. The voluntary Canadian code may become mandatory if major players like Loblaw and Walmart refuse to sign it. Australia's code may also become mandatory based on a government-commissioned report. Both the U.K. and Australian codes have led to improvements in treatment by retailers and have had some impact on stabilizing food inflation.
#GroceryCode #Canada #Australia #UnitedKingdom #FoodPrices #Retailers #Suppliers #FoodInflation
Average long-term U.S. mortgage rate climbs above 7% to highest level since late November
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The average long-term U.S. mortgage rate has risen above 7% this week, reaching its highest level in nearly five months. The average rate on a 30-year mortgage rose to 7.1% from 6.88% last week, according to mortgage buyer Freddie Mac. This is an increase from the rate of 6.39% a year ago. The rise in mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting their affordability. The U.S. housing market is already constrained by a shortage of homes for sale and rising home prices. The increase in rates has led potential homebuyers to decide whether to buy before rates rise further or wait for potential decreases later in the year. Mortgage rates are influenced by factors such as the bond market's reaction to the Federal Reserve's interest rate policy and the movements in the 10-year Treasury yield. Home loan rates have been drifting higher in recent weeks due to stronger-than-expected reports on employment and inflation, which have raised doubts about when the Fed might start lowering its benchmark interest rate. Economists expect mortgage rates to ease moderately later this year, but forecasts generally call for the average rate to remain above 6%. The rise in mortgage rates is a setback for home shoppers during the spring home-buying season, traditionally the busiest time of the year for the housing market. Sales of previously occupied U.S. homes fell last month due to elevated mortgage rates and rising prices. The cost of refinancing a home loan has also increased this week, with the average rate on a 15-year fixed-rate mortgage rising to 6.39% from 6.16% last week.
U.S. Bancorp cuts 2024 interest income forecast, reports 22% drop in first-quarter profit
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U.S. Bancorp reported a 22% drop in first-quarter profit and cut its forecast for full-year interest income. The bank's net interest income (NII) declined 14% to $3.99 billion in the first quarter, and net interest margin contracted to 2.70%. U.S. Bancorp now expects NII between $16.1 billion and $16.4 billion for the full year, down from its previous forecast of over $16.6 billion. Provisions for credit losses rose to $553 million in the quarter. CEO Andy Cecere stated that despite a challenging interest rate environment, the bank saw growth in consumer deposits during the quarter.
#UsBancorp #InterestIncome #Profit #NetInterestIncome #NetInterestMargin #CreditLosses #ConsumerDeposits
U.S.-Africa Chamber of Commerce Appoints Robert Alexander of 360Wise Media as Board Director
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Robert Alexander has been appointed as a member of the Board of Directors of the U.S.-Africa Chamber of Commerce. The Chamber aims to foster trade, investment, and cultural exchange between Africa and the United States. Alexander's appointment brings expertise in media, branding, and marketing to advance the Chamber's goals. Dr. Sir Joe Madu, President of the Chamber, and Col. (Rtd) Brian Searcy, Chairman of the Board, expressed their enthusiasm for Alexander's appointment. As a member of the Board, Alexander will play a key role in shaping the Chamber's strategic direction and fostering collaboration between businesses, governments, and organizations across Africa and the United States.
#UsafricaChamberOfCommerce #RobertAlexander #360wiseMedia #Trade #Investment #CulturalExchange #Africa #UnitedStates
Consumers, votes and earnings: World market themes for the week ahead
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Upcoming data and earnings should keep traders nervy just as they stay alert to possible Japanese intervention to prop up the yen. British data and China’s latest numbers are also in focus, as India gets ready to vote and finance ministers and central bankers descend on Washington for the IMF/World Bank Spring meetings. U.S. retail sales data and corporate earnings, including Bank of America, American Express, and Procter & Gamble, will shed light on consumer spending. China's first quarter GDP numbers are expected to show 4.6% growth. India's national elections begin on April 19, with Prime Minister Narendra Modi seeking a third consecutive term. British inflation data will confirm the trend of slowing inflation and potential rate cuts. The IMF/World Bank Spring Meeting will address topics such as the U.S. economy, inflation, and emerging markets' debt burdens.
When are those rate cuts coming, already? The European Central Bank may be providing some hints
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The European Central Bank (ECB) is likely to use its Thursday meeting as a prelude to a first interest rate cut in June. The ECB will not change its interest benchmarks on Thursday, but the post-decision statement and President Christine Lagarde’s news conference will be scrutinized for hints about the potential downward path of rates in the future. Lagarde has hinted that the bank will wait until its June 6 meeting to take any action. The focus will be on how much more guidance Lagarde will give during her news conference. Rate cuts can boost stocks because they suggest a strong economy ahead that will boost corporate profits, and because lower interest rates make stocks relatively more attractive compared with interest-bearing holdings such as bonds or CDs.
Opinion: Cuba’s economic collapse is what happens when there is no free trade
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Cuba is experiencing an economic collapse due to a lack of free trade. The country is facing shortages of food, fuel, medicine, and electricity, leading to protests and a worsening economy. The root cause of this situation is an anti-reality ideology that rejects free enterprise and trade. Cuba's poverty and economic decline can be attributed to the lack of freedom and restrictions on human rights imposed by the government. In the 1950s, Cuba had a relatively strong economy with high spending on education and better healthcare outcomes. However, in recent years, Cuba's economy has deteriorated, and its per capita GDP is now among the lowest in the world. The government's policies have hindered economic growth and caused suffering for ordinary Cubans for over six decades.
Opinion: Private equity is part of the solution to Canada’s productivity crisis
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Private equity builds businesses for the wider benefit, acquires underperforming companies, and presents growth opportunities through efficient capital deployment and better alignment of management's interests. Private equity has been a key driver of the unrelenting growth of the U.S. economy. The U.S. Department of Justice and Federal Trade Commission have recently questioned private equity's incentives and announced a cross-government public inquiry into private equity and other private investment in the U.S. health care industry. Canada's Commissioner of Competition has expressed concerns about private equity roll-up strategies and their potential harm to competition. Canada's productivity has fallen behind the United States and its Group of Seven peers, with weak business investment, meagre competition, and a risk-averse business culture being cited as reasons. Private equity can combat these issues by providing liquidity, efficient allocation of capital and resources, instilling industry best practices, and creating positive disruption. Private equity has a longer history of positive contribution to economic growth, productivity, and prosperity.