BNN - Friday, May 24, 2024 - 09:00 a.m. (ET) - Segment #2

leverage up the balance sheet. And this is sort of the big difference between the way and iran it before and the way the proposing to run it now to take on debt to buy back stock. And you know, play that game a bit to, to try to lift the stock price. They have said a fairly aggressive target. A $60. U.S. stock price of the you know, a couple of years less than a couple of years, it was 35 and change yesterday on on the in the u.s.. They also have some proving to do that they can grow this business that they at the level that they say they can. I guess just a final takeaways for you on boardroom I don't behaviour, but just the way boards function in this there's been no shortage of examples of. >> Activist investors targeting companies and targeting boards. And in this case, clearly the board had its hands full as well. What are some of the big takeaways for you just in terms of the way boards think about these companies, these public companies in canada. I mean, I think it was a fascinating case, but I guess one big takeaway succession is really important. Succession is especially important. >> When the ceo has been running the business for decades, you know, was the case here. We heard from gildan executives who said nobody knows this business like glenn its event to bring in outside ceo, even though he was, worked for food delivery and all that kind of stuff. That's right. I mean, we're for the loom some, you know, some time ago and had some yeah, some credibility, but a succession is super important thing. And that seems to something the board really underestimated how the shareholders felt about it. Right? Derek, really appreciate the perspective as always. Thanks very much. We'll let you get back to reporting on this one dare to clued joining us, managing editor for bloomberg canada will continue to track the golden story through the stock today. We're also tracking the latest retail sales numbers in canada. And we did start to see a bit of a rebound in april, but is that going to change? The bank of canada's thinking on interest rates going forward. We'll dive into that story next. The Open is brought to you by Enterprise Mobility. We Find Roads that take your business new places (Traffic noises) ( ) The road to opportunity. Is often the road overlooked. ( ) At Enterprise Mobility, we guide companies to unique solutions, from our team of mobility experts. Because we believe the more ways we all have to move forward. The further we'll all go. Invest in the top performing Canadian bank etf, hcal from Hamilton ETFs. Hcal offers enhanced growth potential and higher monthly income for long term investors. Get more with hcal, the top performing Canadian Bank etf. What will you dowhen the power goes out?Power outagescan be unpredictable and inconvenient, but with a GeneracHome Standby generator, your life goeson uninterrupted because you'll have power when you need it the most. The number one thingto prepare for is extended power outages. Don't make itso hard on yourself. Have a Generac HomeStandby generator and if youcall now, you willreceive a free five yearwarranty. Call or go online now to request yourfree quote. Power your lifewith Generac. At Pet Valu, we treat your pet like our pet. Well, Georgie, it's time for adult food. And there's a lot of great options to choo... too choose from. They grow up so fast. I know... I do this like ten times a day. ( ) ( ) The infiniti qx60 exemplifies modern luxury. With powerful suv performance, three rows of comfort, and a sleek-yet-daring design. ( ) Lease a 2024 qx60 from 0.99% apr for up to 24 months. Visit INFINITI.ca. ( ) (Soft electronic music) >> Let's get back to that retail sales story spending by canadian consumers rebounded last month, early numbers from stats, canada indicating receipts for retailers rose 7 tenths of a percent in april. That would be the fastest pace since the. It's certainly one of the notable pace as we have seen of late on the surface. It would seem to indicate consumer resilience, but it comes after a lackluster month

in march. Really what was a challenge 1st quarter. So retail sales, many ways are still trending below levels. We saw cole it back in december. These numbers also came the same week we saw some encouraging inflation trends in canada, which boosted expectations. The bank of canada will cut interest rates as soon as its next meeting. In june, dawn desjardins, chief economist to wait. Canada and often joins us here in studio to talk about all things economy related. Nice to see you. >> A pickup I I was, I would love your reaction to the data. Well, you know, I think first of al, it's prelimary >> And so I'm going with and it does come on that. I'm back of that strong april jobs report that we got a couple weeks ago. But I think as you said, the inflation numbers are trending lower. And from the bank of canada's point of I think that is trump thing, perhaps some of these stronger economic readings because when we think about the employment number, even though that was it wasn't enough to the downward pressure on the unemployment rate. Yeah. >> And just looking at where some of the spending was taking place. It looked like people are spending on in discretionary categories like sporting even some building materials, but it's on the on the flip side of is it fair to say that we would not be seeing? Encouraging inflation trends if there wasn't evidence from some retailers that they were. Starting to feel a little bit stretched to their businesses like his isn't that the connective tissue? Actually? Yeah, I think it is. And I think the fact that, you know, yes, we've got some momentum and some areas, you know, we'll see a pop. >> As you said, auto sales for months. Is that going to persist going forward? And I think, you know, one of the big things that bank of canada recently osfi, you know, everyone is looking at what comes next for the consumer in terms of our debt on our mortgages. And I think what you know, what it's telling us is. Yeah, it's not all smooth as we go through the next couple years. And it is the group of mortgages that are going to be doing an, you know, kind of the peak difference compared to he took those on. So from my perspective, I think it's, it's, it's not. To me clear sailing for the consumer. And we also have to be very mindful of the volatility in those employment numbers. And are we actually going to be able to maintain the level of employment that we've been seeing? We will get a jobs report in early june, but it is going to come after bank of canada interest rate decision so. >> They have to start to get there. Ducks lined up here and I would imagine that if you're aiming for a so-called soft landing, if inflation trends are improving. And there is some resilience in the economy, that's not necessarily a. >> That thing know exactly, it's not. And will also get, of course, the 1st quarter gdp report on may, the 31st. So the men will have that in hand. And when we look at what they said when issued their last forecast, they growth may be about 2.8%. Well, I think maybe it's going to be a little bit softer that, but still we're getting something with the to handle that. That's pretty good. Now again, you look at the patterns january, big increase in economic activity, february, a little bit less in march, not so much so, you know, we also have to consider that warmer looking overall at these numbers. So at the end of the day because donna, everybody wants to know what's going to happen with interest what are your expectations currently? I feel like earlier this week based on the inflation numbers, we market expectations around a june rate cut did rise. But doesn't this mean everyone thinks that just larger percentage in some of the notes I saw this morning, some people short of winning more into the idea of july cut. Either way, a shift towards lower rates at some point this summer. What you're thinking? Yeah, I mean, that we agree with that. I'm still hanging on to the idea june 5th will be. >> Our first reaction but again, the bigger picture I think is whether it's june or july fine, but it's going to be slow. And I think that the bank of canada and that's going to be, I think the real challenge. How do you prevent markets from extrapolating a rapid decline in interest rates? You know, we saw them rise significantly. Now, how do you? Speak to the market say look yes, but it's not mission accomplished. So we're going to move slowly. And I think the fed's having that challenge and the bank of canada will have that challenge to largely just

because of sticky inflation. I think that, but also we don't pick paper ticket does not want has huge surge in spending as people say, well, you know, maybe my mortgage reset won't be quite as onerous. So spend. Then you start to reignite the economy growing to complete and that we accelerate on the price side. And just for people who are watching the broader market comments right now, it did feel in >> What will you had a lot of excitement around nvidia's quarterly outside of that, people felt like there was more evidence that the fed would have to push out its rate cut expectations. Just can you give us your updated view on when the fed might consider making a move by comparison to canada? Yeah, we a september rate reduction by the followed up by one in december. >> Now again, is going to be very contingent on inflation performance because, you know, they were making some good ground in now. >> We've seen some stalling and of course, this is great to the fed. And so that is our current but again, we'll be watching those inflation numbers, great perspective is always done. Thanks very much for joining us. Could see could see you don't injured. And joining us, chief economist for deloitte canada. When we come back. >> What is spacex worth? Well, there's a lot of talk about the valuation this morning and will dive deeper into that story next. The main focus of Urbana is asset growth. Building the assets of this company. We invest in public securities. Everybody does that, but we also combine it with private equity investments, which is very, very important. And that's where you can make some real money. And the beauty is you're buying it at a discount a discount from asset value. I think we do contain risk extremely well. We have a very, very experienced team and we've got results over a long term period of time. Hi, I'm Jessica Katrichak. Coming up on btv. Casino right now has a full feasibility on it. It was done in mid 2022. So quite current. We're taking the project through the permitting stage. It is a very important asset globally. That's what attracted me to the company. It's about 11 billion pounds of copper, a 20,000,000oz of gold. I think this is something that could really put Yukon on the map and would be a driving force of its economy and its prosperity for a very, very long time. Watch us online or here on bnn Bloomberg. In an ever changing market, invest in the essentials because there was always a need for multi residential, warehousing and logistics, essential retail, and renewable infrastructure assets. Build your client's portfolio with an investment strategy grounded in the needs of Canadians. Access tax efficient, institutional quality hard assets backed by a track record of steady performance and consistent distributions. Contact a Skyline Advisor today. Text on ScreenText on ScreenText on ScreenText on ScreenText on ScreenText o Closed captioning of this bnn Bloomberg Program is brought to you by Scotia iTRADE. Everything you need to direct invest. Scotia iTRADE. It's every investor's dream. Elon musk and his privately held spacex are back in the headlines today. Earlier bloomberg reported the company is considering selling shares in the business that would value it at around 200 billion dollars. Musk himself has dismissed the report. But either way, the valuation has people talking. As bloomberg's kriti gupta explains this sound bite. >> 200 billion dollars us not really chump change there, but it marks different than the 180 80 billion dollar valuation just 6 months ago in outlook. Elon musk, spacex. We do these tender offers every 6 months or so. If they're calling it liquidity rounds of for investors for employees as well, because that's really how you get some of of spacex to begin with. You have to be employees easiest way in. But elon musk coming out saying, look, this is not a capital raise at all. But what it does show is this becoming a company is getting only bigger and bigger as shown by liquidity rounds. Alright few

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