BNN - Monday, May 27, 2024 - 09:00 a.m. (ET) - Segment #1

analysts consensus is our soul of the boys, although the price targets are not too too far away from where the stocks are currently training after big big rallies in both cases. Thanks anita. Here comes an e-mail from william william writes as follows bank of nova scotia and cibc standout as laggards. What is it going to take to bring these 2 back to early post covid pricing, particularly bank of nova scotia, which is currently around 30% below that number. >> Indeed. And it's been a big I had is recommendations income investors. He hasn't disappointed. She is people that like its latin america exposure. As before civic alliance countries of peru, chile and colombia. And that's a very profitable crying ashley, the night's big acquisitions. And tonight khan is a bit of a problem subscale and with the new management at scotia, may possibly look to actually get rid of it. But any time you pay 6 off-center, whatever. It's been a big last c s action a lot operational performance as a group but scotia certainly is the one which what to us all to play catch-up, especially as they get more aggressive in terms of getting rid freshens, which in the regional capital. Okay, here comes an e-mail from skip. Could I have gavin slots on telus or does he prefer another telecom name? Well, it will be a dreadful have missed toes probably is one of the more interesting because they factions sitting things like telus international to tan most hidden value people, just all very pleased about you seen B.C. sort cussing so staff because they've government policy plan to which really annoyed the premise order them to get a pretty reasonable dividend and quite frankly, it's much much tennis pro be a better record of execution and is now open. This is where the province's, what want to get with. Gavin graham, thank you so much as always for being our featured guest today. Have a great dane county. >> And that's it for us in the street. Thank yoso much for watching. Time now to turn things over to jon erlichman and the open as we go, a quick look at the tsx market site where trading set to begin in just over 32 minutes from now. -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 The Super Save Group of companies is proudly Canadian owned and operated and we're ready to help support other businesses like yours. Book with Super Save Fence Rentals and fence inflation in with 50 percent off our fence rental rates! Built in Canada by hardworking Canadians. Yes, for new sites, you get 50 percent off your monthly fence rental rates. Look good from the outside in with our Super Save Blue Fence. Book today, this offer is only for a limited time. Get the Super Save team working for you, visit Super Save.CA This new Charmin Ultra Soft smooth tear has wavy edges. It's no ordinary square. New Charmin Ultra Soft smooth tear has wavy perforations that tear so much better with more cushiony softness. Enjoy the go with Charmin. ( )( ) ( ) ( ) ( ) ( ) This is not just another E-Class. Because it evolves with you. It adapts to you, the generic It is the first E-Class made just for you. For you, for you ( ) This is not just design. Because your E-Class: it adapts to you, recognizes you, understands you, empowers you, energizes you, feels you. It evolves with you. The new E-Class. ( ) (Upbeat electronic music)

>> Hey there. Good morning. Welcome to the open here on bnn bloomberg. I'm jon erlichman. Nice to have you with us on this monday morning. The tsx will be the low north american index in the spotlight with an american holiday. But the record run up that we've seen for the canadian market warrants discussion will have a good conversatin coming up with 2 canadian pros, laura lau brompton group will give us her insight analysis in the coming minutes. Martin pelletier will join us as part of our opening bell coverage on this one day. And volkswagen is a big business in this country, not just as a seller. But now as a builder, their building that new battery plant and they have a new head of operations in this country. We'll speak to the president coming up a little bit later this half hour. Let's get to some of the other stories that we're tracking at this hour in our bnn bloomberg newsroom. The g7 meetings of finance ministers and central bankers concluded. Concluding there gathering in the italian lakeside town of this weekend with the communique strongly criticizing china. The official statement took issue with the country's policies and accuse china of hurting the economies of its trade partners. Member nations also warned they will consider taking steps to ensure a level playing field for global trade. Shareholders of indigo are set to vote this morning on whether the retailer should accept a sweetened offer to take the bookstore chain private the $2 and $0.50 per share bid comes from 2 firms controlled by gerry schwartz, the husband of indigo chief henry spent the offer already has the support of a special committee of independent directors. Elon musk's artificial intelligence start-up x ai has re 6 billion dollars to speed up its challenge to. His former allies. It open ai, the financing round coming less than a year after exe eyes debut. Musk has been an early supporter. Of artificial intelligence. He was one of the original backers of open ai. He later withdrew his support from the venture and has advocated caution because the technology has potential dangers. Meantime, another trouble sign for us. Movie business really box office receipts showing it's set up now to be the weakest memorial day weekend in nearly 3 decades. That would include the 2020 covid shut down the latest mad max film underperformed expectations and a new garfield movie was also lackluster at the box office. Hollywood is now entering the crucial summer movie season. We'll talk with the film critic richard crouse about it coming up a little bit later in the hour. For the markets. Just a reminder that it is a they off in new york. As we look at the european story, it's also fairly quiet. Close day in the U.K. as well. And not a lot of traction the other markets. The german dax up about 2 tenths of a percent and ecb official warning policy makers may have to keep rates restrictive throughout the rest years. Something that investors are. Navigating right now for the tsx will be navigating a market that isn't too far from its all-time highs. We are coming off again on friday for the canadian market, but it was a weekly loss overall. Let's just take a look at what's happening in the oil market as we get ready for the training session. Basically holding steady, the opec+ meeting something that will increasingly get attention as we move into june right now, wti is up 7 tenths of a percent about $0.57 a barrel on the gold front. Quick look at what's happening with the price of bullion at this hour. It is higher by about half a percent. $13 an ounce again on the day 23 70's, the current quote on the currency front, a quick look at what's happening with the canadian dollar against the greenback. We're stronger against the U.S. currency. 73 27 is the current quote and from. Currencies to digital currencies. Lot of buzz over the last week about the as he see thumbs up exchanges. Moving towards listing the theory etfs. And we are seeing that cryptocurrency gain some ground. This morning's up about one percent bitcoin down marginally. (Funky hip hop music) I said you with looks like is going to be pretty quiet trading day, let's be honest. The U.S. markets are closed off, it's

memorial day long weekend. There. Great opportunity, though, to take stock what's happening in the canadian market, where we've been generally speaking, rocking and rolling. We're sitting pretty close to all-time highs. We did see a couple of stumbles last week. But for me oveall, we're still looking at advance. That's pretty close to 3%. And then when you look at the year overall, we've had a couple of notable trends emerging helping the canadian stock market. Now, obviously what began as a rally last year for technology stocks has continued to extend into some the bread and butter sectors that make up the canadian market materials and energy. These are 2 subgroups that are currently up double digits so far this year, we mentioned that oil prices and gold are currently poised to gain a little bit of ground this morning for a little bit more on the outlook for the can be in the market. Let's bring in laura lau, chief investment officer of brompton group or nice to see you. Good morning, jon. We get the market conversational to ourselves american long weekends and and we're having a bigger conversation around canada. Given the recent run-up what's been your take on market performance. >> So I think first of all, it's quite clear we are in a risk on market the are no secular bull market. So and the economies are chugging around the world, which tends to be good for qualities. We have a lot of commodities in market. And as a strategist, are you leaning into that? Are you saying by the tsx right now? >> Think the tsx is definitely very more value market and it's priced, you know, much lower than the U.S. market. So I think that's been very attractive. We've seen a lot of markets around the world that are cheaper, like europe in japan do well this year. Yeah. And so the canadian stock market can do that relatively well based on those trends, even if we're not quite sure where economy is going to go from here. I think so because, you know, if you want gold stocks, you come to canada. This really not really anywhere else in the world. And gold has done, you know, exceptionally well this year, partly because we've seen central banks continue to buy. And we've also seen consumers, especially china, like o a little concerned about the property market. Where do we put her body? So they've been buying a lot of physical gold there. And what about the inflation story? I mean, at the end of the day, I think like if we want to conclude inflation's been sticky, that probably be fair conclusion because week, you know, every day are trying to figure out when central banks will feel comfortable enough to maybe pivot away from higher rates. But that inflation story specifically does the tsx benefit from that as definitely, I think it's become more and more clear that inflation stickier than anybody had expected. Part of that story is actually because he commodities commodities feed into inflation, whether the energy costs, no medals costs. And you we're seeing that's harder and harder to extract anything out the ground like for instance, we're seeing bhp, they would copper rather I know the ground. The mining in the stock market. And so when you've got sectors like materials that make up at about 12% of the tsx, the energy subgroup makes up about 18%. There's 2 sectors right there that make up. >> Almost a 3rd of our entire index. What does that mean for the outlook for, in your opinion, the canadian stock market versus the U.S. stock market rolled through the year. >> I think this different drivers, I think they both do our us stephen barr on I the in canada is more like economies are doing well. And for this energy transition, we're going to need a lot of the metals in canada and it looks like energy transition will take longer than expected, which bodes well for the energy we think that oil's public and be kind of range-bound going in. And you know, you have a tug of war where you have biden trying to get elected. So he obviously wants lower gasoline prices. And then you have saudi arabia on the other side saying we actually what higher prices so we can building a new city, so I think that's a tug of war. But the natural gas side, I think we've seen the bottom. And that that will guest. Have very good visibility with these, the confide natural gas plants coming on in canada and the u.s.. And then for the companies themselves to feel like they are operating in a very investor-friendly way, kind of regardless of where pricing goes for energy. That's a great point where the energy companies have transitioned. >> To being a lot shareholder-friendly, whether it be you know, you know, capital projects, have to make money on them in the past. The group just for the sake of growing that excess money, they're giving back to shareholders. So some good food for thought their laura a hold that thought though, because we want to keep you for our next segment. After this short break, because we're about to get a flood canadian bank earnings this week and we'll see how laura. >> Feels about some of those big canadian financials. Stay with us. We'll be right back. The Open is brought to you by Enterprise Mobility. We Find Roads that take your business new places

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