BNN - Friday, May 24, 2024 - 09:00 a.m. (ET) - Segment #1

they are phenomenal retail bank operators, they have stumbled here. They will fix it, possibly fire somebody pay a large fine and and you rise, you know, once again, what if they are told by U.S. regulators that they can't make acquisitions in the U.S. for a period of time. >> First, not sure that would be a bad thing. If you remember, they were going to make an acquisition. And then just when silicon valley bank or pitch >> They were really denied, probably from the regulators making an acquisition, which saved them because that would probably would not have been a great acquisition at that time. There's nothing wrong with, I think consolidating their business. They're already the 10th largest U.S. bank and possibly using capital to buy back shares and focus less on growth for a while. I don't think that would be a bad thing for to the shareholders. Okay, sounds like consider this when a suitable for a long-term hold. The absolutely are getting a dividend yield of over 5%. >> If you make nothing on the shares, you're given all rise over time. You're already, you know, starting off with a decent return. Okay, one more question for many there. Craig writes, would you buy british american tobacco at these levels? So we don't own any tobacco companies. This is not even a call against owning since talks all of these companies, including bt, have not had the growth from the vaping that they thought they were going to have that's where a lot of their investments have gone you know, this and these are 0 growth to declining companies with phenomenal dividend yields. As you mentioned earlier, teen investors don't get the dividend tax credit on foreign stocks. There are better places to get those kinds of returns. Lauren, thank you as always for being with us today. Paul, thank you so much for having me. It's been a lot of fun steinbach was our featured guest. >> Let's is the instructional? We know what would you like me to do? Yeah, let's go to us. Futures will take a look at the markets just before we say goodbye. Here is a look at the positive picture in the U.S. futures regular market trading set to begin a 33 minutes from now. You can see the U.S. futures are all also take a look at the price of crude oil. It over the past week or so as we'll see right there. Wti $0.11 to 76 76 currently. Let's check in on the canadian dollar as well. We had retail sales numbers which landed weaker than expected during the period of march. So that was not. It's down to, to be sure there you see that canadian dollar trading at 72.9, $0.3 us. And that is it for us on the street time to turn things over to jon erlichman. Have a great weekend. Wherever you are, as we go, here's a look at the tsx market site where tr (Mid-tempo music) Welcome to Own Your Sharewith RealShare. I'm Glenn Baxter with CompanyCEO Shaily Srivastava and President Adi Koparde. RealShare is a new onlineinvestment platform specializing in real estate. Can anybody join? Most individuals 18and up are eligible. RealShare is registered inOntario, British Columbia, Alberta and Manitoba and weare soon expanding into other provinces. And how do investorsget started? It's easy. Go to RealShare.ca, createan account and access your qualified deals. RealShare is a platform thatprovides investors with research, investments and alsomaintain and manage their portfolio. Once you've created youraccount, what's the next step? Simply select the suitable deal,click on invest now and complete the documentation. If there are any furtherquestions, our team of experts will reach out to you. What about making returnson your investment? Great question. Return is the most importantpart of investing. So when you invest withRealShare, everything is handled within the platform. So whether it is your returnof capital or it is your distribution, it comes to yourinvestor account and you can decide to withdraw or reinvestas per your preferences. Shaily , Adi,thank you so much. For more information,go to RealShare.ca. Announcer: Hone your sharewith RealShare. Private real estate investingcan be exclusive. But what you had a way in? RealShare provides online accessto a wide range of high quality private realestate opportunities. Expand your portfolio, diversifyfrom the volatile stock market. Whether you're looking forpassive income, a tax strategy or the option to invest in realestate development, private REITs or mortgage funds,RealShare is the answer. It's easy, fast, freeto join and secure. To find out how to own yourshare, go to RealShare.ca. (Funky hip hop music)

>> Good morning, welcome to the open here on bnn bloomberg and general, nice to have you with us on this friday morning. Let's take a live look at what's happened in the futures market. 30 minutes to go before the bills officially rain right now. There's a positive tone out there after a very busy week with a lot of interest in the tech sector will break down the market moves. We'll also assess the latest forcanada's economy. We did see some signs of spending rebound from canadian consumers in april. But is it enough to change sentiment on bay street around the likelihood of a rate cut on the horizon will get some expert perspective on that. Meantime, elon musk is denying reports space-x may. Make a tender offer with a 200 billion dollars. Valuation will dive into the details of that one as well. Let's get into some of the stories that we're tracking are bnn bloomberg newsroom. Go act wears entire board of directors and the ceo vince tyra have resigned, ending a 5 month battle with an activist investor over the future of the montreal-based clothing maker investment for branding west will take control board and reinstate mandy building's board says it made the decision after shareholders. Cole made their views clear ahead meeting scheduled for next week. We're going to have more details in just a few moments with bloomberg's derek decloet. The crypto industry meantime, is closer to another landmark after the U.S. securities exchange commission pave the way for the eventual launch of the first U.S. exchange traded funds investing directly in a the sec has signed off on a proposal for stock exchanges. Tullis products tied to the second biggest digital asset. But managers still need a separate approval from the agency before they can launch products. London drugs says cyber criminals who stole electronic files from its corporate head office last month have released some of the data after the company refused to pay a ransom. The retailer says the files may contain employee information, calling it a quote, deeply distressing situation. London drugs says it was unwilling and unable to pay ransom to hackers. Meanwhile, another troubling sign for the electric vehicle sector loose. Plans to cut about 400 jobs in the months ahead. The reductions would amount to roughly 6% of its workforce. Moos said planning to take a charge of up to 25 million dollars from the restructuring plan. These cuts come several weeks after the company revealed a wider than expected loss to start the year. In the markets this morning. The U.S. equities futures are edging higher after the previous day's losses were triggered by expectations. The fed's first interest rate cut will be delayed to december, remember, we had that blockbuster nvidia report this week and it does look like there's going to continue to be some interest in the tech sector today. The tsx is coming off back-to-back triple-digit declines. A total loss of just over one percent in those 2 sessions as we make our way to the week of may, the index remains up more than 2% for the month overall. Let's take a look what's happening with the price of oil, at this hour's slightly weaker hasn't been the easiest week for crude we have negative. Every session. Started. The weaker at 80 bucks a barrel. Let's take a look what's happening with gold as well. And we are seeing a little bit of buying in bullion, although it's had some choppy action of late as well. On the currency front as traders assistant latest retail sales data in canada right now, seeing the stronger loonie against the greenback at 70 to 94 and a bitcoin front tell you about notable development with fury of etf saw the horizon. We're looking at little bit about. A down day for bitcoin itself, it's off about 3 tenths of a percent. (Upbeat electronic music) well, it's great to have you with us this morning. And we want to kick things off with those big gildan activewear. The company's entire board of directors and its ceo, vince tyra, have abruptly resigned ahead of the company's upcoming annual meeting, essentially conceding defeat after a bruising 5

month battle with an activist investor over the future of the company. The mass resignation arguably a victory for a los angeles based investment firm grounding west, which owns about 5 percent guild and stock. It had been pushing for a board overhaul and the reinstatement of the former ceo, glenn chin mandy, who had been ousted from his role proud of west. Now gains control the board. It's reinstating should mandy as chief executive along with installing united rentals chairman michael newland as board chair. After all, the mudslinging between the now former board and some of the company's investors. The management certainly seems like an issue that's been resolved, but there are still plenty of questions about the road ahead for the company. And joining us in studio is derek decloet, managing editor for bloomberg in canada. And he had his team have been very busy with this story over the last few months as well. So we were getting ready for a key. Annual meeting, shareholder showdown. Whatever you want to describe it. What was coming next week? And here we are a friday morning before next week, talking about mass resignation from the board. What was your reaction to that? >> I mean, we had the sense that maybe it was going in this direction. And one of the one of the biggest signs that it was not going well for the board is what they did in late april, when whole bunch of directors said willie voluntarily, they brought in a new chair, tim hodgson to replace the old chair who had sparred with andy. Usually if things are going well in a proxy fight, half the board doesn't sort of leave on its own. And now to that new slate of directors, they've been in office 3 weeks, but the die was already cast because that shareholder group that browning west lead, but also had backing of big name firms like jarislowsky fraser. You know, they they, they, group that was opposed to some and believing they really cars stuck together and they weren't swayed throughout the whole throughout the whole argument. >> And speaking of sticking together, it did seem like there was a no double bass of investors say no. This is largely told through the lens of browning west, but investors, some who have been killed in shareholders for a long time, who are still trying to work through why the board in the first place. Now the former board had ousted lenchon mandy from his role. You know what the other corporate stories we've covered in recent months I remember, you know, very different story, but very small board ousts head of open ai and then sparks an outrage. They're so all along. There was a conversation around what led to the ouster in the first place. Well. >> Yeah, I would say what happened is that, you know, many of those shareholders came to not trust the board yeah, there were, there were various things that that went on. There was obviously an argument, it's ideal than over who should mandy successor would be in a what timeline. There were discussions about strategy, acquisitions, you know, that we've reported that have been, you know, been mauled, that perhaps, you know, the boad was, was opposed but at the end of the the directors probably underestimated glenn chin, mandy's sort of personal equity with with those group of big long-term shareholders and how come loyalty he had built up with them. And as a result, when he said he would, you know, come back if they could, you know, get any board you know, they they, they stood by. And then I think that this partly a story of bike personalities and and a clash of egos. I think in the boardroom many as one. >> Well, definitely caught our attention. Not that we don't want to talk about. And where company all day long. But you know, there was a, it was just, it was just a very unusual situation. Now I think for the other dynamic year is that along the way, seemed to invite a lot opinions and perspectives on what is the right strategy for the company. And you talked about the mna it was. Openly being discussed at the board level. You know, is there a possible sale as part of that? Some people thought that was more strategy than anything else. But I do wonder if now that has to get reflect into this change that. Likely is not going to be some kind of sales process. Clinch a man he wants come back once run this business the way wants ready as support from some notable do we have to kind of figure out? How that plant that's not going that's going get done overnight, but we have to sort of assess how that plan plays out versus what people thought might happen like, say a sale, the entire company. Yeah, I mean, I think it's west has been pretty clear. They're they're not interested you know, in a sale. And I mean, anything can happen in the future, but the. >> The stated strategy of what will be the new board and and the former. And now new ceo will drive down costs, try to gain margin and also to

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