BNN - Friday, May 24, 2024 - 11:00 a.m. (ET) - Segment #1

there. Welcome to morning markets here on bnn bloomberg. I'm paul bagnell. Thanks for joining us. >> Here's a look at the key north americans >> This week about 200 points shy of that record high, the s&p 500 up also by 6 tenths of a percentage point and their strength as a has been the case earlier in the week after the nvidia results remains in the tech stocks. The nasdaq composite is up by a tense, almost 9 tenths of a percentage point. Weight loss drugs have been a huge theme in the stock market recently will speak to an economist who specializes in the healthcare sector about how industries like food and fitness are adopting to the stepped up the use of these drugs and women's professional basketball is coming to canada. Wnba says the team in toronto will hit the hardwood in 2026. We'll speak with an expert in the business of sports on this news. He thinks toronto will prove to be a strong market for women's basketball. Now, some stories that we're tracking for you here in the bnn bloomberg newsroom. Spending by canadian consumers rebounded last month. Early numbers from statscan indicate that retail sales rose 0.7% in april. That will be the fastest pace since last september. If the numbers hold, it will be a reversal of a negative trend. Retail sales fell for the 3rd consecutive month in march and are still below levels seen in december. The cryptocurrency industry is closer to another landmark event after the U.S. securities and exchange commission pave the way for the eventual launch of the first U.S. exchange traded funds etfs, investing directly in the the sec has signed off on a proposal for stock exchanges. Tullis products tied to the second largest digital currency fund. Managers still need to separate approval from the agency before they can launch products. London drugs says cyber criminal criminals who stole electronic falls from its corporate head office last month have now released some of the data after the company refused to pay a ransom. The retailer says the files could contain employee information, calling it a quote, deeply distressing situation. London drugs says it was unwilling andunable to pay a ransom to hackers. Once again. There are the north american market. You can see the s&p 500 now about 5300 points in the united states. The tsx composite and nasdaq composite have healthy gains going as well. (Upbeat electronic music) well, it looks like the long battle for control of gildan activewear is over. And the dissident shareholder that demanded changes at the company has one that shareholders browning west it and others. One of the company's founder brought back as ceo after he was dismissed late last year. And it wanted an overhaul of the guild inn board of directors. The fight was scheduled to culminate at a vote set for next tuesday. But preliminary voting data showed a heavy majority of votes would have been cast in favour of browning west position. So yesterday the entire gildan board of directors stepped, stepped down. So did vince tyra for insight. Let's go to jon sector jon, of course, is chairman and founder of j zechner associates will talk about this and other stories in the markets. Jon, great to see you as over your long career in the markets and managing money for clients you've proxy battles take place many, many times. What stands out here. >> Well, this as seemed like one of the old standard, sir paul. I mean it no really seem understand why clincial mandy was sort of in the first place last fall. Like the rogers story a few years, 2 years sometimes we're not privy to all the information of what's going on in the actual boardrooms, but clearly major institutional shareholders, a exerted their influence as well you know, particular group that obviously a step in and the initiative to remove directors and the personnel have been moved in. So going to be as it was and I think when and sort of was pitching a pretty good story along the way to using some of the leave arena, the cup a little bit doing more share buyback,

shifting some of their homicides and production you know, 2 shows a less geography. And in the end, that's probably get a bit of a rest of the stock today it's, it's really done nothing. That's been a sort of treading water in a trading range for of this has been going on. So it's, seems pretty well settled at this point the old cyle as opposed to the mean staff world so only retail investors take it all over. This was the old-style know the institutions who own big chunks of this behind you know, you know, the ousted chairman. Okay, let's talk about a couple a big sets of corporate earnings that landed this week, one in canada, one in the u.s.. >> In canada, td and the story on td is. >> Last. Its earnings performance and more. The regulatory challenges to use a of a mild word that is facing in the united states. And what those, what the regulatory outcome made maybe here on future earnings. What's, what's your take, jon on tv back. >> We didn't get a lot of questions answered their I know you've been reporting on this a lot. And clearly the, you know, the earnings were good, they were in line. Obviously, loan loss provisions are starting to rise. But the court businesses a net interest the ppp ordered the pretax pre-provision earnings were up year-over-year. And I mean, had strong capital markets, even you know, canadian companies are doing it many under it isn't a done in the past. So you know, that tailwinds for the banks and mean the bigger issue going down the road is, does this impact their ability to grow, particularly in the u.s.. You know, I think they might be in the penalty box for a little while in terms of the multiple on the staff always gotten a premium multiple. But I think you know, that the role did and it may stay that way. Well, as I back at the wells fargo shouldn't centre between 2016, 2019. The stock to underperform period of time. But to discover multiple things don't go away overnight. And we don't know what the ultimate implications going to be with the regulatory impacts are, I mean, I don't think the capital is, you know, that when the table 2 billion that's going and not disrupt what he does, but certainly the ability to grow, particularly in the U.S. has been key for them their homes, chance trauma you know, that's going impede the most over a longer term basis. >> Okay, and in the united states, it was, of course, nvidia. That was the set of earnings that defined at least the back half of this trading week. You've owned nvidia on behalf of clients for a while, you still own what did you think of those results? >> Yeah, it you know, I didn't see how they could possibly miss you know, not to kind of a beat in raise coming into this because really the core customers to hyperscalers all came out in their earnings report in the prior month. And basically off-leash, it was spending massively more tens of billion dollars on building out the data centres in order to be ready for the slang. The large language models of ai and the amount of data processing capability they need. And the only game in town right now is nvidia only slight risk in the middle of all of this is while they so migrating from the h 100 in the 200 architecture, the blackwell was are going to be a bit wall and maybe the order flow or something like that. But clearly, no, they such a shortage of product right now. And with these guys have probably about a 90% market share in this business. It's yeah, it's it's, it's no surprise said it was a beat in raise inc. And then we were hanging on to a still cousin in the grand scheme of technology stocks. Paul, I mean, the multiple is actually below the 10 year average on this stock because even though the stockeeps going higher, the earnings are much, you know, hired a much think about it, what he year ago year and utilizing the boat 5 to $6 in earnings on this stock. Now we're talking about $35 in annual rise earnings a year and a half out. So I mean, it's been absolutely massive, undeserved. I mean, I think it's what brees is sort of a bigger question for me. It would get a little bit more is, you know, what the hyperscaler seeing and they're clearly building out look at it. This is that, you know, if you build it, they will come kind of infrastructure. They clearly see it in these are smart companies and they're not spending this money, you know, without some. Key information about what the demand is for the and the applications layer. But I tell you from a user side call. I seen the applications yet that are going to change my life. We know what happened with the internet and how a change he did business and try to anything else with, you know, a cell phone to was smartphones. And with the migration to the cloud and all of that. I haven't seen yet demonstration of what is going to change in my daily life because the cause of the usage of, of ai and how most importantly are these companies can of monetize that software layer. And that is the next thing. And that you know, going forward won this part of our part of the battle

of the picks and shovels. They got it, they own continue to dominate what about the next level and who are the beneficiaries and the winners there. >> Okay, in completely different sector gold that you recently picked up shares of torex white horrocks. >> You know what tore exit, we've always thought is one of the cheapest stocks out there. They sort of it was always a worry, I guess is my grade when limon mine sort exhausted itself open pit and they moved underground with media luna, how transition that's a waste, a tough transition 8 and the tradition, a transition exceptionally well. They're well-funded, david, the capex to come in below expectations. They know the region, they delta there for years and more importantly, only cheap as a gold star going to be all gold stocks are you know, we're talking about 3 times forward. Operating cash will be discount to net asset value. Looks like over 30% of probably the production value coming out. A media luna is going to be copper you know what? The chase has been for copper stocks use of these guys are positioned well and a lot of ways an intersection is not kathy without its risks, but certainly they know the area. Well, their labour costs are lower. And you know, they they operated there for a long period of time. >> Jon, great to touch base with you on a range of different topics. Jon zechner, chairman and founder of j zechner and associates. Up next, eli lilly is investing 5 billion dollars us to boost its supply of weight loss. Drugs will have more with bloomberg's divya balji right after this break. Morning Markets is brought to you by Amur Capital. Discover Amur Capital a simpler approach to investing. Discover amur capital. Amur capital's track record of consistent performance has delivered industry leading returns since inception. Why play games with your financial future? Choose amur capital - a Simpler Approach to Investing. -Last quarter Capital Direct investors saw a return of over eight percent. -Find out why so many people have been trusting Capital Direct for over sixteen years. -Speak to your financial advisor today and ask for a copy of our offering memorandum. CapitalDirect.ca (Dynamic music)A will is just one of manylegal documents that help put in place your wishesshould something happen. But you want it to reflectyour current intentions. So, here are five times you maywant to take a second look. One: when you have a childwho turns 18, gets married, or who has theirown children. Two: when you get married,divorced, married again, or are in a commonlaw relationship. Three:when you retire, maybe you've receivedan inheritance, or sold asignificant asset. Four: if you move to adifferent province or country, or if laws change,or something major happens to someoneinvolved in your will, like your executor,trustee or beneficiaries. And five:simply time passing by. It's not a bad idea to checkyour will every 3 to 5 years to make sure your tax and estateplanning still works for you, and get some help workingwith a trusted advisor. Hi I'm Taylor Thoen. Coming up on btv. There's been over 11,000,000oz of additional resources found since 2020 by people working in the Tombstone Gold Belt in the Yukon. To date, we've only found that two deposits. But there's nine known gold bearing intrusions on our rc gold project. More potential outside of the discoveries that we've made already. Watch us online or here on bnn Bloomberg. She'll never bend the knee. The greens are coming for you, Rhaenyra, and for your children. (Dramatic music) Otto: It is your great privilege to witness this, a new day for our realm! (Cheering) (Roar) Rhaenyra: We don't choose our destiny. It chooses us. (Dramatic music) I am Paul Atreides! Duke of Arrakis! Let me fight beside you. I'll show you the way. To find a food star gordon faces his biggest rival ever. Who wants to be on team Vanderpump? It's team lisa vs team gordon She can Vanderpump off. We're done on ctv (Upbeat music)WELCOME

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