Markets are reacting cautiously to rising oil prices and continued uncertainty in the Middle East as tensions around the Strait of Hormuz remain unresolved. Investors are also balancing geopolitical risks against another strong corporate earnings season and signs of resilience in the U.S. economy.
BNN Bloomberg spoke with Laura Lau, chief investment officer at Brompton Group, about oil market risks, the outlook for equities, strong earnings growth across sectors and why demographic trends continue to support Canada’s senior housing market.
Key Takeaways
- Markets remain rangebound as investors weigh unresolved tensions around the Strait of Hormuz and the risk of higher oil prices if disruptions persist.
- Laura Lau said Brent crude reaching about US$110 per barrel would likely trigger broader market concerns about energy-driven inflation and economic pressure.
- Strong U.S. corporate earnings continue to support equities, with broad-based profit growth and companies maintaining margins despite tariff pressures.
- Investors remain focused on energy infrastructure, data centre power demand and potential new commercial agreements involving major U.S. power producers.
- Demographic trends and limited new supply continue to support Canada’s senior housing sector, giving operators pricing power and stronger occupancy growth.
Read the full transcript below:
LINDSAY: U.S. markets are having a mixed reaction this morning as the price of oil climbs following President Donald Trump’s rejection of Iran’s latest proposal aimed at ending the war in the Middle East. Joining us now for more on market reaction and the latest wave of corporate earnings is Laura Lau, chief investment officer at Brompton Group. Great to have you with us this morning. Thanks so much.
LAURA: Thank you for having me, Lindsay.
LINDSAY: What are your overall thoughts on what we’re seeing this Monday morning with the markets, especially given that it looks as though the Strait of Hormuz may not reopen as quickly as some had expected?
LAURA: It feels like the market is very optimistic that the Strait of Hormuz will reopen, but it’s not an easy situation to resolve. In Iran, there’s still a question around who is leading and who can make decisions, and their demands remain quite far apart from what the U.S. and Israel want.
Iran wants sanctions removed, frozen assets released and an end to attacks. They have offered some concessions, including willingness to give up some enriched uranium. On the U.S. side, it’s still not entirely clear what President Trump wants, although he does want the Strait of Hormuz reopened and the conflict to end.
You can see the ceasefire has not held very well. There have still been drones, bombings and other attacks. Trump has blockaded the strait, but he has not escalated the conflict further. Still, the two sides appear far apart, and Iranian officials today talked about submarines patrolling the Strait of Hormuz and potentially attacking ships.
There are real concerns about when the strait will reopen. Iran understands the U.S. election cycle and knows gasoline prices around US$4.50 a gallon are becoming politically damaging for Trump ahead of the midterm elections. As a result, we think Iran will continue applying pressure, which is why oil prices are moving higher today.
Brent crude at about US$110 per barrel would be the level where markets become much more concerned. We’re not there yet, but we could get there if the strait remains closed.
LINDSAY: And obviously what we’re seeing in the markets today is largely tied to developments in the Middle East, but we’re also getting another wave of earnings reports, which could be affecting markets as well. I want to get to some of those with you.
Barrick Mining reported earnings today and announced a share buyback program. What stood out to you from those results?
LAURA: The positive takeaway is that operations appear to be improving, especially in North America, which is the business expected to be spun off. Africa remains weaker, but investors already know that region has been difficult for Barrick, which is part of the reason for the planned IPO. That transaction will likely be completed by year-end.
That said, the capital allocation strategy is a little confusing. Last quarter, the company raised the dividend to 42 cents, and now it has reduced it back to 17.5 cents while also authorizing share buybacks. Investors are still trying to understand the long-term strategy.
Still, it is encouraging that operations are stabilizing. The market is also focused on the company’s new Fourmile discovery and how it plans to monetize that asset given its existing infrastructure in the area.
Another question investors are watching is how Barrick and its partner Newmont will reduce costs and optimize operations in Nevada.
LINDSAY: Another company reporting was Cineplex, which missed revenue forecasts in the latest quarter. The shares are down more than six per cent this morning. What are your thoughts there?
LAURA: The good news is that moviegoers are spending more on tickets and concessions. The weaker part of the report was advertising revenue, which is concerning.
That said, the first quarter is typically the weakest period for movie theatres because the film slate is usually lighter. The stronger periods tend to be the summer and holiday seasons, so I think investors should pay closer attention to the upcoming release schedule and whether the movie slate improves.
LINDSAY: Constellation Energy also reported revenue and earnings per share that beat expectations, but markets are still waiting for another major deal announcement. What are you watching there?
LAURA: It’s encouraging that operations remain strong. The two key things investors are watching are whether the company signs additional agreements with hyperscalers and whether it can continue securing contracts above market rates.
Constellation is the largest independent power producer in the U.S., and we know additional electricity demand will be needed to support data centres. The company has indicated it is in discussions, so investors are watching closely.
The other key issue is the refurbishment of Three Mile Island. Investors want more clarity around costs, potential cost overruns and whether there could be delays to the timeline.
LINDSAY: I also want to get to your stock pick today, which is Chartwell Retirement. Tell us why you like the company.
LAURA: There has been so much focus on artificial intelligence and whether that momentum is sustainable, so I wanted to highlight something less tied to that theme.
Chartwell operates in senior housing and senior living, mainly serving the mid- to high-end market. The key driver is demographics. The population aged 80 and older — which is typically their target demographic — is growing about four per cent annually, while new housing supply is growing only about one per cent. That gives operators pricing power.
We’re also seeing more ancillary service revenue beyond rent because seniors are generally requiring more support services following the pandemic.
Another important metric is net operating income growth, which rose 16 per cent year-over-year. Same-property growth was up nine per cent, which is very strong for a real estate business.
The company also recently entered a joint venture partnership with Fengate to acquire a 30 per cent ownership stake in a portfolio of 23 senior housing communities branded Seasons. Some of those properties are still being leased up, which creates additional growth opportunities.
LINDSAY: We’ll have to leave it there. Laura Lau, chief investment officer at Brompton Group, thanks so much for joining us today.
LAURA: Thank you.
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This BNN Bloomberg summary and transcript of the May 11, 2026 interview with Laura Lau are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
