Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Royal Bank of Canada suffered an outright decline in profit in the fourth quarter and missed estimates, as loan loss provisions rose and earnings slumped in the bank’s capital markets, insurance, and investor & treasury services units (notably, the latter division booked $83 million in costs tied to severance and other “repositioning” efforts). Still, it’s worth pointing out Royal’s full-year profit reached $12.9 billion – tough to lament a lender that’s able to earn more than a billion dollars per month in the calendar year. Meanwhile, National Bank managed to vault above all analyst estimates as its fourth-quarter adjusted profit climbed 11 per cent and it’s rewarding shareholders by boosting its quarterly dividend three cents to $0.71/share. National is the shining star among the Big Six so far this year, with shares up 26 per cent year-to-date.

BANK OF CANADA STILL ON HOLD

As expected, the central bank today kept its benchmark interest rate at 1.75 pr cent, while noting “nascent evidence that the global economy is stabilizing.” No surprise to see the BoC flag trade-related uncertainty as the biggest risk and give a hat tip to a recent uptick in business investment. All told, the Bank says it will continue to weigh “the adverse impact of trade conflicts against the sources of resilience in the Canadian economy.”

TORONTO HOME PRICES RISE MOST SINCE 2017

Bit of a different tune today from the Toronto Real Estate Board as it reported the region’s average home price moved up 7.1 per cent year-over-year in November, representing the strongest price growth since May 2017. Whereas TREB previously (and repeatedly) warned on the impact of the B-20 stress tests and called for them to be reviewed, today its president said “home buyers impacted by demand-side policies … have moved back into the market.”

OTHER NOTABLE STORIES

-Shares of Alphabet are little changed this morning as investors prepare for the next chapter for Google’s parent company after founders Larry Page and Sergey Brin announced late yesterday they’re stepping down from their management roles. Google CEO Sundar Pichai will become chief executive of the search giant’s parent.

-Bloomberg News sources are walking back U.S President Donald Trump’s remarks yesterday about a trade deal with China potentially having to wait until after next year’s election. “He was speaking off the cuff,” according to today’s report, which says the U.S. is expecting a phase one agreement will be in place before Dec. 15 when the next phase of tariffs are scheduled to kick in.

-Canadian Natural Resources has set its 2020 capital budget at $4.05 billion, representing a $250-million increase from this year as a result of Alberta’s decision to offer curtailment relief for conventional drilling activity.

-Dollarama’s profit was essentially in line with estimates in the third quarter, while its sales and same-store performance exceeded expectations. The company has also bumped up the low end of its full-year profit forecast.

-Dalhousie and the University of Guelph are out with their annual food price report, this time estimating meat prices will advance at the fastest pace of all product categories (+4 per cent to 6 per cent) in 2020 and predicting that total household spending on food in 2020 will climb $487, on average, to $12,667.

NOTABLE RELEASES/EVENTS

-Notable earnings: Royal Bank of Canada, National Bank of Canada, Laurentian Bank, Dollarama, Reitmans, Campbell Soup

-Notable data: ISM U.S. services index

-9:30 a.m. ET: Prime Minister Justin Trudeau holds news conference in London

-10:00 a.m. ET: Bank of Canada releases interest rate decision

-10:00 a.m. ET: U.S. House Judiciary Committee holds public impeachment inquiry hearing

-10:30 a.m. ET: U.S. President Donald Trump holds news conference in London

-11:30 a.m. ET: Uber Technologies CEO Dara Khosrowshahi addresses Economic Club of New York

-12:00 p.m. ET: Blackstone Group Chairman Stephen Schwarzman addresses Canadian Club in Toronto

-Canadian Natural Resources holds analyst day in Toronto

-Ontario Premier Doug Ford in Washington, D.C. to meet with business leaders and politicians

Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg'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.bnnbloomberg.ca/subscribe.