BNN - Monday, May 27, 2024 - 11:00 a.m. (ET) - Segment #4

>> Actually what's happening both in the U.S. and in canada with respect to financial institutions as well entities that fintrac has taken a a much stricter approach over the last couple of years, like rash lite for doing that I think is is a wake-up call all sectors that to the supervisor fintrac he is is basically taking off the gloves think penalty should be higher in all cases given a new framework and I think should be revised by government. I think that is going to send a good message ensuring a high level of scrutiny all financial institutions are reporting inities in terms of there ain't regimes. I have to say no, that with banks with financial. Institutions, they have been cooperating over the last 20 years and providing a lot of financial intelligence to fintrac. So there's that side that you have to recognize that they have invested a lot of money over time protect the financial system. But at the same time, they always have to adapt to the threats that are coming forward. Whether crypto you know, changes june, political and money from russia or china or whatever, those are the kinds of things that they really need be. I'm aware continue so means more money to invest in their systems. We all know the consequences if you're not keeping. And today we have stepped protecting banning from being induced money launderers. >> Another industry that we're watching right now is the airline industry. Earlier this month, the competition bureau in this country had announced it would launch a market study into the airline sector to look into a range of issues, including competition this morning. The competition bureau sent out an email. Talking about consulting canadians as it prepares to more officially launch. That market study that it previously announced now after the consultant consultation period, the publish the final terms of reference and officially launched the market study. So we'll be watching that closely. Canadian bank earnings are also something we're watching closely with scotiabank set to report results tomorrow. We'll get a preview after this break. Gold is soaring and copper demand is at all time highs. American Pacific Mining is seizing the moment by partnering with world class miners to unlock America's next big copper gold strike, fully funded with a $14 million exploration blitz this summer and nominated for multiple industry awards, including six by s&p global. American Pacific Mining fueling America's mission for homegrown metals. Familiarity is comfort.But you can't tap into fixedincome's full potential, without exploringthe full landscape. ( ) Go beyond the obviouswith a global perspective. Agf. Invested in Discipline. -If you're looking for an investment with a strong, consistent track record, maybe it's time to look at a new approach. -Last quarter Capital Direct investors saw a return of over eight percent. That's impressive. It feels good to help Canadian homeowners accomplish their dreams. Find out why so many people have been trusting Capital Direct for over sixteen years. -If you'd like to invest along with us, visit us online or speak to your financial advisor today and ask for a copy of our offering memorandum. CapitalDirect.ca Harvest Healthcare leaders Enhanced Income etf. Maximize your monthly cash flow from Canada's leading healthcare etf. More income from Healthcare Leaders. Harvest ETFs, income happens here. If you are an entrepreneur, you know what it means to be always invested. Grabbing hold of an idea and seeing it through, meeting old challenges with fresh solutions and believing in the power of tomorrow. We know because we're the exchange for entrepreneurs and we're always investing in public markets, in business, in growth, in you. (Funky hip hop music) >> Making sense of business and the economy can be tough.

we dig through the details to tell you what you need to know with straight talk and expert analysis. So you can make informed decisions about your future. >> Taking stock fridays at 6:00pm on bnn bloomberg. >> Should be a big week for bank earnings in this country. And joining us with a preview of the first set of results to watch for tomorrow from scotiabank is bnn bloomberg's andy bell andy, which will be watching really looking for a guidelines on how they're going to continue cleaning up the portfolio, as you know, underperforming latin american operatns. For one thing dragging back scotiabank over the past few years. >> The have already started divesting some broadly, people are looking for under the previous ceo. >> Brian porter, excuse the perception was that he had the attitude move fast break a lot of executives left under under his tenure. A lot of people tried I lot of people thought on shore, so they last lost a lot of senior people, the new boss is in there now, scott thompson, the expectation is that scotiabank set profit was down in the latest quarter. That's not unusual among the banks. This is not a great earning season. The consensus about about 56 down from one 70 a year for those are familiar with the back story of scott thompson, somebody who you spoke with a on a number of occasions in his previous sure will use to run finning, which is that huge cat. >> A dealer, but he had sat on the scotiabank board of directors for a long time. So he was watching the previous tenure of brian porter, his approach one. I spoke to him recently was really about just getting beter bang for your invested better returns on capital. But as part of that, there is also not just that move away from latin american operations, but a deeper focus on getting better at some of the banking business here. And scotia's own backyard. Yeah, there were problems. One of the province according to the a while ago was that they just they, they've been okay with lending money and you make lots of money with that. >> But trying to get deposits from your source of capital. That's an area where improvement is needed. We just saw from the parish of chart there that scotia and td are still the dogs the sector. So investors ouch. The jury still out on bank of nova scotia on the consolation side, the dividend yield is fat 6.5% compared with less than 4% for royal bank. So jeffrey started coverage of them in february with a hold at and the a bunch of other banks were a hold rating to a come the at that stage on a come. The analysts said that we think the dividend safe. So 6.5% is a pretty generous yield to lock as long as they don't and bloomberg does based on past payouts and prediction tools, they project whether a dividend is going to rise or fall in the coming years. They project that scotia's is going to modestly increase. >> Over the next few years, you've also got a lot of focus on capital markets right now for a lot of the big banks. We did see even though td obviously is dealing with their headwinds talking about that the united states that there's the possibility the capital markets can be a helping hand for some of these banks during earning season. So we'll be watching that scene this week as well. That's right with stock markets near record highs. Sad, but we're not. I don't think we're not seeing a ton of ipos, obvious and kind issue. Yeah, I'm not a massive stock issues, although we got iamgold and hudbay and hudbay minerals coming to to mark. Yes, it does that theme. The idea of you've got commodity companies that are all the benefitting from, you know, higher prices of gold, higher prices of copper or that creates a little bit of activity on bay street. Got to be great based reset because we've got to have the copper price still near record highs in gold, not far off record highs as well. >> But investors, it seems that there's pushback on some of the stock issues member last week, the globe, but none on the key reports iamgold got a bit too greedy with its latest official at about 20%. I think at was the estimate was still in brokers hands. I couldn't find virus I mean, there's so much obsession around the biggest ipos and getting all the pricing right. A reality is you've got deals priced every day. And getting that math right always I don't know how easy it not it's a pretty tricky. Well, I mean,

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