BNN is the channel to follow today as investors wager that economic growth, at least in the United States, is accelerating.
After years of central banks trying to kick start business activity, investors are finally seeing decent wage growth and low jobless claims that add up “to a more normal environment,” Cameron Hurst of Equium Capital Management told us on Market Call yesterday.
Swings in interest rates - which have pushed the U.S. 10-year bond yield climb to almost 2.4 per cent from less than 1.4 per cent last summer- contributed to noise in the year-end report from Manulife Financial Corp. (MFC.TO). It posted $1.2-billion in fourth-quarter charges “related to the direct impact of equity markets and interest rates and variable annuity guarantee liabilities.”
But the giant insurer is lifting its dividend 11 per cent to 20.5 cents per quarter and Barclays says “underlying earnings growth remained impressive, particularly in Asia.”
At 4:10 pm. ET, we’ll talk to CEO Don Guloien. We’ll ask him how the new drive to cut financial regulation in Washington will affect the company’s U.S. operations, which were the biggest contributor to “core earnings” last year at $1.6-billion.
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SUNCOR PAYOUT
The dividend is also up at oil giant Suncor (SU.TO), which is increasing the quarterly payout by 10 per cent to $0.32. Raymond James reckons cash flow of $1.42 per share was well ahead of the $1.30 consensus.
However, the company now expects its new Fort Hills oil sands project to cost as much as $17 billion - up from a previous estimate of $15.1 billion - because of delays caused by last year’s forest fires in Alberta and other building costs. Fort Hills is a joint venture with French oil company Total SA and Teck Resources (TECKb.TO).
OIL SANDS POLITICS
We’re talking the politics of oil sands on Commodities at 11:20 a.m. ET with Glen Schmidt, CEO of Laricina Energy -- a privately held outfit advancing two bitumen plays. Alberta’s decision to cap emissions from the sector looks likely to prevent some companies from developing their assets. Schmidt says bigger and more politically connected producers may get preferential treatment.
HOME CAPITAL EARNINGS
Finally, we hear from another financial CEO at 3:30 pm. ET when Home Capital (HCG.TO) CEO Martin Reid walks us through the company’s latest results and gives us his take on the housing market.
National Bank analyst Jaeme Gloyn has cut the home lender to Underperform from Sector Perform this morning. The analyst reckons the Q4 numbers were “weak” and adjusted profit per share of 98 cents missed consensus by three cents, adding that “weaker originations, retention struggles, margin pressure and reduced fee income will act as earnings headwinds in the near term.”
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.
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