Slowing Inflation Primes G-7 Central Banks for June
Inflation-related releases across the Group of Seven will prime central bankers for crucial June interest-rate decisions, just as they meet in Italy to discuss the state of the world economy.
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Inflation-related releases across the Group of Seven will prime central bankers for crucial June interest-rate decisions, just as they meet in Italy to discuss the state of the world economy.
Big US bond investors have been aggressively shifting money into long-dated notes, betting that the unloved asset class will be one of the winners from eventual interest rate cuts.
A measure of underlying US inflation cooled in April for the first time in six months, a small step in the right direction for Federal Reserve officials looking to start cutting interest rates this year.
Emerging-market currencies dipped Friday on dwindling optimism over Federal Reserve rate cuts, paring their fourth-straight week of gains.
The owner of a historic office building in Manhattan’s Financial District has filed bankruptcy to sell the property, which has been subject to foreclosure and suffered from a lack of tenants due to the Covid-19 pandemic.
May 4, 2017
By Andrew Bell
The ongoing woes for Home Capital (HCG.TO) and the potential fallout for Canadian home prices top the agenda on BNN again today.
Cutting the company’s rating into murky CCC territory, credit watcher DBRS warns that the company’s trust arm “has not demonstrated an ability to stabilize its funding and liquidity, as accelerated withdrawals of on-demand high interest savings account deposits continue.”
CIBC UPS PRIVATEBANCORP OFFER
We’re also tracking Canadian Imperial Bank of Commerce (CM.TO) after the bank once again increased its takeover bid for Chicago-based PrivateBancorp (PVTB.O) to value the U.S. company at US$4.9 billion or US$60.43 per share, up 26 per cent from the original offer last year. “We believe that this does materially increase the likelihood of success,” Barclays analyst John Aikens says.
Now, only at BNN.ca. Don’t delay! Watch Canadian stocks trade live here.
ALLIED UP FRONT
Look out for a parade of CEOs today including Michael Emory of Allied Properties (AP_u.TO).
Allied has been a strong performer, with its units climbing 33 per cent over five years while the REIT group as a whole - as tracked by the iShares S&P TSX Capped REIT Index Fund (XRE.TO) - has seen no capital appreciation.
Desjardins says Q1 saw a solid occupancy increase for Allied, which helps preserve the fabric of cities by re-purposing old buildings (something Canada's municipalities need to take seriously).
PENN WEST EARNINGS
At 11:30 a.m. ET, we’ll talk about the Q1 results at Penn West Exploration (PWT.TO) with CEO David French.
Penn West stock has slid almost 90 per cent in five years to trade at $1.99 yesterday. In late April, Accountability Research stuck with its hold rating, cautioning that "general doubt still overhangs the stock despite successful execution of a strategic plan that has meaningfully lowered outstanding debt and focused PWT on fewer and more economic plays."
But it said survival fears have faded after the energy producer managed to fix “a portfolio that was too large to reasonably develop, with too much debt.”
RBC expects Penn West “to modestly outperform the broader energy group today” after first-quarter results topped expectations.
MANULIFE UPDATE
And Manulife (MFC.TO) Don Guloien joins us at 4:45 p.m. ET. Scotia says the insurer’s first-quarter results were a “strong and steady start to 2017.”
Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.