Latest News and Market Trends: National Bank of Canada, Rogers Communications, US-China Relations, and More

2023-08-30 14:06:44

(Illustration: Camille Charbonneau)

NEWS ESSENTIALS

• National Bank of Canada: provisions for loan losses impact Q3 earnings. National Bank of Canada reported lower adjusted earnings in the third quarter as the lender set aside more capital to cover potential loan losses amid tough economic conditions.

• The Canadian Competition Bureau ordered to pay nearly 10 million dollars (M$) to Rogers and Shaw. Canada’s merger tribunal has asked the competition bureau to pay Rogers Communications and Shaw Communications about $9.58 million for the protracted legal battle that followed its failed attempt to block the C$20 billion merger (G $) of the two telecommunications companies.

• The US Commerce Secretary leaves China on an optimistic note after remarking on China’s “uninvestable” character. U.S. Commerce Secretary Gina Raimondo spoke about U.S. companies’ desire to do business in China and her hopes for continued engagement with Chinese officials on market access on Wednesday after earlier remarks pointing to China as being “uninvestable».

• US LNG benefits from higher processing fees due to rising rates. Long-term buyers of U.S. liquefied natural gas (LNG) are willingly accepting higher liquefaction fees for new export projects, according to analysts and developers familiar with the matter.

• J&J expects 12.5% profit growth in 2023 after Kenvue spin-off. Johnson & Johnson expects 12.5% growth in adjusted annual profit after completing spin-off of consumer healthcare division Kenvue

TRENDS BEFORE OPENING

Toronto Futures Contracts increased slightly, supported by higher crude oil price. THE wall street futures have fallen and the American dollar was subdued as investors remained cautious about the state of the US economy and the path of central bank interest rates. THE European stocks struggled to find their way as losses at utilities limited gains, while insurers gained on positive results from Prudential. In Asia, the Nikkei Japanese closed at its highest level in three weeks, as investors bought back falling shares, while the Chinese and Hong Kong stocks remained more or less stable due to geopolitical risks and risks related to the real estate market. THE gold price varied little.

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TITLES TO FOLLOW

Results

• National bank of Canada: The bank posted a drop in its adjusted profit in the third quarter, as the group made more provisions to cover possible loan losses in a difficult economic environment. The smallest of Canada’s big six banks is the latest to set aside more funds in case consumers struggle to repay their loans amid rising interest rates and rising costs of living . The bank recorded $111 million in provisions for credit losses in the quarter, up from $57 million a year earlier. The bank’s adjusted profit for the three months ended July 31 was $790 million, or $2.21 per share, from $826 million, or $2.35 per share, a year earlier.

Others

• Rogers Communications: The Canadian competition tribunal has asked the competition bureau to pay around $13 million to Rogers Communications and Shaw Communications for the long legal battle that followed its unsuccessful attempt to block the C$20 billion merger of the two telecom operators. . In a decision dated August 28, the competition authority said the approach taken by competition commissioner Matthew Boswell to block the deal was “unreasonable”. The companies argue that Boswell “took an unnecessarily litigious approach throughout the litigation, which significantly increased the costs they had to bear,” the court said.