BNN - Friday, May 24, 2024 - 09:00 a.m. (ET) - Segment #5

level, that would just be another reminder that spacex already in the eyes of many, one of the most valuable companies in the world. >> It dominates the space industry globally from a launch perspective from a technology perspective from satellite perspective on elon musk's post on x, my interpretation of guys, he's basically completely verifying the story, you know, with very clear this is not a primary round, it is attend off a and it is a liquidity event. So I look at his placed on onex and that's the mayhem. Confirming the story. Spacex is no longer the world's most valuable stock topped by don, says bytedance, the parent of tiktok. But it far and away the most valuable U.S. staff top and he's probably not even said to cool to start anymore is the vast majority of payloads to a little bit intensive launch activity globally. And this just intent investor interest in this name, even though it's still a private company, the market for its private shares on the secondary market is quite liquid. >> And I guess just before we let you go at a time when there's been a lot of uncertainty around the electric vehicle market. We've been alrady talking about this morning. What is the what is the can I mean, how can there not be constant connective tissue between these 2 companies. But when the when the public company tesla is dealing with some uncertainty in the short term, has that tie back to the space x story or does it not at all? >> So there is a relationship between teston spacex. They're actually like some pretty senior executives to basically walk advice companies, one area that they have some commonalities in advance materials. But spacex has kind of been insulated from the volatility around tesla, simply because of mechanics of it being a private but in many ways, the space industry is kind of not all it's a little bit official right in that that spacex is making the industry with the n golf course getting us to yeah, that's something that investors continue to believe it. We'll watch closely head. Thanks very much, appreciate the time is always bloomberg's ed ludlow joining us from san francisco. When we come back, we'll talk about the real estate market because there's a lot of home sitting on the market right now. But in the luxury side. >> Sales have been picking up. Champion Iron offers a rare solution to decarbonize the steel industry. Which represents up to 10% of global emissions. The company recently doubled production capacity at its mine in eastern Canada. It is now investing to produce one of the world's purest iron ore. Enabling green steelmaking without the use of coal. Controlling a large portfolio of high purity iron ore resources. Champion is considering strategic partnerships to further develop the region. Champion Iron. Text on ScreenText on ScreenText on ScreenText on ScreenText on ScreenText o ( ) ( ) 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. ( ) Take advantage of historically high yields while reducing risk. Td Asset Management offers a large suite of active and passive fixed income investment solutions that can provide income and stability to your portfolio. Td Asset Management. Energy Fuels, a leading American uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. Energy Fuels. (Funky hip hop music) >> A bloomberg. I'm jon erlichman, nice to have you with us on this friday morning. Let's take a live look at what's happening in the markets at this hour. And after a topsy-turvy week, we could finish the friday session in the green if the gains hold will dive into the story of the markets. We'll

also get some perspective on the road ahead for canada's economy from canadian business legend frank stronach. He'll talk about his perspectives on the investment climate these days and cyber stress. We'll get the latest on the situation surrounding london drugs and the hacked data that's been released. Let's get to some of the stories we're tracking in our bnn bloomberg newsroom. Gildan activewear is entire board of directors. And the ceo vince tyra have resigned. That ends a 5 month battle with an activist shareholder over the future of montreal clothing maker investment for browning west will to control the board and read, said it's a former ceo glitch monday. Dylan's board says it made the decision after shareholders made their views clear ahead of a meeting scheduled for next week. Spending by canadian consumers rebounded last month. Some early numbers from stats canada indicate retail sales were up 7 tenths of a percent in april that be the fastest pace since last september. And if the numbers hold, it would be a reversal of a negative trend that we've been see. Retail sales fell for the 3rd straight month of march. They're still below the level seen in december. Crypto industry is closer to another landmark after the U.S. securities and exchange commission pave the way for the eventual launch of the first U.S. exchange traded funds investig directly a few area. The sec has signed off on a proposal for stock changes to list products tied to the second biggest digital asset fund managers still need a separate approval from the agency before they can launch products. Taking a look at what's happening in the markets on this friday. We are looking at a little bit of buying for the s&p 500, which has gotten a little bit of an extension after some data showed U.S. consumers tempered inflation expectations late may so that's one consideration for the market. There was also some reaction to comments from a fed governor. Christopher waller >> On that interest rate expectations >> And we've also got a number earning stories we're tracking including work day. Actually, that software company cut its forecast and those shares are pressure. So a lot of moving parts for the U.S. markets for the canadian market, this morning. The tsx currently up about a triple-digit advace 111 points. Half a percent overall. It helps that are materials and financial groups are higher. Actually, the tears and energy are all higher at this hour. There are 3 of the powerhouse sectors. The tsx is coming off back-to-back triple-digit declines and a total loss of just over one percent of those 2 sessions. So today will make up for that, but it will help to lessen the blow for last couple of days. And for the month overall, we're still up in the neighbourhod for 2 and a half percent on the oil front. A quick look at what's happening with the price of oil, which is higher today. But remember, it's been trending lower all week. So after. Trading around 80 bucks a barrel last friday around 77 and a half today. Let's also take a look at the story of gold, which earlier this week. Had plenty of troublesome sessions, 3 straight days of declines heading into today's advance, which is a modest $5. An ounce gain for the price of bullion on the currency front at this hour. A quick look at the loonie, which is stronger against the greenback that same old story right around $0.73 us and on bitcoin front, the cryptocurrency at this hour is weaker to the tune of about one percent. (Funky hip hop music) all right, time for a look at some of the movers in trading today. And paul bagnell joining us with more, including on lightspeed, which is a standout stock today. It is a standout stock on the upside, jon, here in toronto, lightspeed commerce. >> The payment solutions company based in montreal has received an upgrade at cibc. Todd copeland is a long time technology analyst at cibc. He's the rating at cibc on lightspeed to outperform from neutral. So that's the equivalent of going to buy from hold his price target. As

we look at the $20.78 price on the stock currently $33. So his price target is well, north of where the stock is now. My speed or reported earnings matched sales and profit estimates on the 16. So todd copeland that is bullish in a big way this company. The other that's gaining in toronto computer modelling group. This is an it services company in particular serves the oil and gas sector. There's that stock has risen by 73 set at 74%. Over the past year market cap on this one is about and cibc capital markets has initiated coverage on computer modelling group with the recommendation of outperform the price set that $13 and $0.50. And that's a 19% above where the stock was yesterday. So those 2 stocks, both in the technology sector getting a lift today on positive analyst commentary each show set of commentary coming from cibc. Okay, now moving from one tech stock that is delighting investors this morning. We mention that workday shares are under a notable that a pressure in new york workday is a software provider among other things, allows companies to manage their personnel. So head count is important. >> To work day as as a key backdrop. There you see the stock down nearly 12% workday cut its full-year forecast for subscription revenue. That's of crucial metric for software provider, which provides software and a subscription basis. The company says subscription sales will top out at 7.7, 3 billion dollars in the current fiscal year. That was down from 7.7, 8 billion as the earlier forecast. As you can see, investors reacting well to that news. The other one is in to add to this is the company that is behind some of most commonly used hawks preparation software and accounting software. That stock is down 8%. The company also provided a forecast that disappointed the that forecast was for a 4th quarter earnings. The company also said there was a decline in the number of people using turbotax for free analyst at bloomberg intelligence said the flat sales growth acceleration at quickbooks and limited upside in turbotax tax could be persistent overhangs on this stock. Paul, thanks very much of a breakdown on some of the movers and another move are watching today. >> Is gildan activewear. This stock gaining some ground after the boardroom battle has coming to a close will break down the latest details next. (Upbeat instumental music)Canadians are facing a newnormal with interest rat and investment options. The Capital Direct OneIncome Trust is in a growing asset class thatprovides stability and is income-generating forportfolios. Here from Capital Direct areEire Gorman and Aaron Narayan, great to see you again. Thank you for havingus back, Mark. Eire,how are interest rates impacting the Capital DirectOne Income Trust? It's really important tounderstand the timeline of the loans that make upthe income trust. These are fixed-term vehiclesthat don't have the volatilityof a variable product. That means we're less-vulnerable to interest rate changes for18-24 months. Aaron, what arethe pros and cons for the trust if interestrates go down? First off, we love stability. Looking forward, we believe interest rates willact in our favour. If rates go down then (Unclear)or now Cora drops which means the cost of capitalis actually cheaper. And what if interest ratesstay around these levels? Aaron: If interest ratescontinue to stay the same we continue to kick out similarreturns as we have been for our investors which makethem extremely happy. So the trust holdsresidential mortgages. Based on what you're seeinghow would you say Canadian homeowners are coping in thisnew interest rate environment? This is a good news story. Canadians arefinding ways to cope. Our mortgage investments andflexible lines of credit have allowed homeowners toconsolidate at a lower rate and continue todo the things they love while owning their own homes. As we said here, homeownershipis so important to Canadians and we've seen the choices thatthey have made to remain in this privileged category. And it's also important to notethat throughout this new normal we've kept our loaned valueat a very comfortable 52%. If advisors or investorsare interested how do they reach you? Yes, Portfolio Managers andFinancial Advisors can find us atincometrustone.com. And for direct investorsyou can call us anytime at 1-800-625-7747.

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