Here are five things you need to know this morning
China strikes back: North American stocks opened cautiously higher today, despite another salvo in the global trade war. China is raising tariffs on U.S. imported goods to 125 per cent. The new levies will go into effect tomorrow and come after the U.S. raised tariffs on Chinese goods to 145 per cent. Beijing’s Commerce Ministry says it will also file another lawsuit with the World Trade Organization against the U.S. tariffs. The Chinese duties will affect goods such as soybeans, aircrafts and parts, as well as pharmaceuticals.
U.S. banks kick off earnings season: Earnings season is now underway, as some major U.S. banks report their latest quarterly results. JP Morgan saw trading revenue spike 48 per cent in its latest quarter to US$3.8 billion, exceeding estimates and setting a new record. Overall revenue also beat expectations and the lender raised its profit forecast for the full year. However, CEO Jamie Dimon says the U.S. economy is facing considerable turbulence with the potential negatives of tariffs and trade wars, as well as ongoing inflation and high fiscal deficits. Wells Fargo beat profit estimates in its latest quarter with an increase of six per cent. The bank also beat expectations for credit-loss provisions and left its full-year guidance unchanged. The company’s CEO is also warning of slower economic growth due to tariffs, and says continued volatility is expected this year.
Mixed results at MTY: Here in Canada, MTY Food Group -- the operator of fast-food chains such as Mr. Sub and Thai Express -- posted revenue in its latest quarter that beat estimates but saw a decline in profit due to delays in openings and unseasonably harsh winter weather. Same-store sales also fell 1.5 per cent year-over-year. MTY says it is preparing for headwinds brought on by global trade tensions and the heavy use of tariffs by the trump administration.
Corus loss widens: Corus Entertainment saw a wider loss in its latest quarter amid declining demand for advertising, and also posted revenue that fell nine per cent compared to the year before. Radio revenue also saw a steep decline in the quarter. Corus notes that the industry landscape remains challenging with limited visibility. Corus has been trying to avoid a restructuring as it deals with a large debt load and pressures on the media industry.
