BNN - Monday, May 27, 2024 - 01:00 p.m. (ET) - Segment #1

Join me, Thane Stenner,every month on Smart Wealth availableon iHeart. >> Hello. Welcome to trading day. I'm amber kanwar. Here is what is trending this hour. We know we've got the U.S. on holiday, but we've got a great show for you any of the ceo of nfi group. The stock has been a stellar performer over the past year up 65% ceo paul soubry will join us on the mission to bring electric vehicle buses to the roads. And in just a few minutes, dan ives, no rest for super of wedbush. She will be joining us. Coming up to talk about tech as everybody is often the U.S. we can take stock of our portfolio. And of course, we've got hot picks as usual. We've got 3 plays on 3 serial acquirers that you do want to buy. Ernest wong will be joining us. But first, here's a look as some of the top stories we're tracking for you right here in the bnn bloomberg newsroom. The competition bureau is beginning an investigation into canada's airline industry. The bureau says the domestic air travel mark, domestic air travel market is concentrated with only 2 major airlines. Airfare in canada appears to be relatively high. More complaints about air travel have been filed in recent years. And new airlines appear to face challenges entering the canadian market. The probe is starting with a call for feedback from the public. Shareholders of indigo books and music have voted to approve a deal that will see the retailer become a private company. The $2 and $0.50 per share bid came from 2 firms controlled by gerry schwartz is the husband of chief executive heather re spent indigo says it expects the transaction to close in june and its shares to be delisted from the toronto stock exchange soon after. Elon musk, a artificial intelligence start-up x ai has raised 6 billion dollars to accelerate its challenge to his former allies. It open ai. The financing round comes less than a year after exe eyes debut. Musk had been an early supporter of artificial intelligence and was one of the original backers of open ai. He later drew his support from the venture advocated caution because of the technology's potential dangers. Okay, with just the tsx to go it alone. Volumes are. A little light compared to a typical 100 day average. But moves are moves. We are seeing strength in the material and consumer tech is a pain point right now is we've got weakness, particularly in constellation down about 2 and a half percent. Thank you so much for joining us on trading day. While while our U.S. counterparts and rest for taking stock of the tech rally, which has, you know, maybe after that, taking a bit of a hit in the month of april, certainly has found a sea legs once again. The magnificent index at record highs. Ditto for the nasdaq and no rest ever for our next guest, dan ives, managing director and senior equity analyst at wedbush joins us dan, thanks so much for being with us. So so what's the sentiment right now on the street? I mean, how much conviction get sort of shaken in april and how much was it restored in may? Yeah, I think. >> Extremely restored in terms of the year I think that's ultimately what we saw was that the ai revolution based the godfather of ai jensen, nvidia. What we saw from microsoft, google and others. This party is just getting started. And I think that's sense that you are right now. Over the weekend, I saw a lot of barriers and hibernation mode. >> And and what are they saying? Let's talk about nvidia because it all kind of starts there. That's where all the demand is slowing. If I do hear bearish comments, it's not on. Nvidia what happens after the hyperscalers arden purchasing their chips, inventing their own chips or are making their own chips to do in france, basically run these large language models. What happens to business and nvidia. >> But that in my opinion, to that point, that won't be for another 2 to 3 years there.

the only game in town right now showing you a look at this. The man were tonight trillion dollars of incremental spend. With nvidia, of course, 10 for one split, just another sign of just broader strength. They're going to continue to seek celebration. And that's what we're seeing from our checks in asia, which is important, not just for nvidia, but for the second 3rd, 4003th derivatives of what's happening across software. 70's. This is 1995 moment, not a 99 and movement. >> Well, I want to pick up on that point safer. You know, this is not going to happen for the next 2 years. Should the long-term investor then be worried about taking a position in nvidia, if they want to hold? You know, you think about holding google for 10 years, microsoft, amazon, all the stocks, you know, they're, they're such they've been such score, buy and hold type of stocks. Does nvidia maybe not fit that bill because there is that cliff may be coming up in 2 years. >> To service only was it quits, ideas you others will be as we get overflow and the others and 70's. The godfather of ai, jensen nvidia. This is just the start of idea. There's more where apple was in 2007 launch the because we're going to be when you commit a I these chips to the new the new goal in terms of where this is fjord and the many investors that have just focus valuation pe over the next year. They've missed a transformational tack. Historic growth names from apple. 2 men are 2 tests and others over the last 20 years. Since you brought up apple, you know, people always look to innovation and this company and in a lot of ways, they come. >> After a product is already out and then just take it to the next level. That I think is am I right in the that's the expectation that developer conference in june, do you really think they're going to deliver? >> Well, I think nailed it a lot of time of indonesian, they're not first to market when you have 2.2 ios, but guys and you don't have to be first to market inc in a few weeks, it will be their debris. That was the scene june. That's where apple, that's where they're going down. The ai with this is going to be is, but the next generation of ai come to consumers. Moose consumers over the next 5.10, years, they will interact with generative ai through now will devise this is the start. I view it is kind of popped the champagne movement as cupertino onto houses. >> What it is just a licensing agreement, you know, if if it's with o whoever has with with microsoft or if it's with google, fits with open ai just to bring that technology to their existing series. Siri is, is that good enough? >> It all the work that we've done. I think there's better chance me play in nhl for the rangers in the playoffs and that it's an in-house solution. I think it's in-house, it's yellow and they're going introduce open ai is going to be a big part of it. That's why we will take for tuition, but they're going to have their technology. They're going to introduce as well as this is going to be a nice on 16 coming down. September. That's why it's so important. It's a pop. Get the popcorn ready as app on balances. You know. >> These companies and we know this are spending billions and to some extent, investors have been okay with that. I imagine that at some point they're going to want to see a return on net is huge investments, for example, in ai, do you have a timeline of when we start to see? I mean, growth should explode, right? I mean, should move significantly higher. When does that happen? >> I think middle 2025 cities, counties basically 9 to 12 months. To spend and then start to show the evidence of that thin started milch about and talk about for the enterprise that's right now. Front and centre mice often video google was in the cloud. Amazon servicenow work among others. The consumer peas, 2025. If I look at him zuckerberg continues to play chess, others playing checkers. That's the smart move when the foundation, which really going to be the next decade growth. >> And I know everybody says that and I know you say it and I use chatgpt and it's cool. I'm still using google for a lot of things. And it's been more than a year that the chatgpt has been out and google's market share virtually unchanged. When you know is, is that a problem? I'm expecting it to happen too >> Yet, I think from when it will cause to microsoft in open ai right now. The golden goose enterprise, really not

about trying copilot. It always use cases, they're being built on there as you're at and on that foundation stack, we do have a chatgpt. And what we're seeing going forward. That's where our boys inc unveil something that could be a game changer and many are going to be looking at that. And that's that's going to be a thing in next level in terms how consumers will interact from the chatgpt. Perspective. >> Dan, thanks as always for joining great to get your perspective. Enjoy the rest of your holiday. Dan ives joining us from wedbush securities. We're going to take a quick break. Well, we've got a bunch of while the rest of canadian banks that are set to report their quarterly results. We're going to read through from td tv was overshadowed by their aml issues. But we'll get perspective on what tv maybe foreshadowed for the banks. When we come back. 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. ( ) 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. ( ) If you're frustrated with occasional bloating or gas. Your body's giving you signs... it's time to try Align. Align Probiotic was designed by gastroenterologists to help relieve symptoms of irritable bowel syndrome. When you feel the signs... it's time to try Align/ phone plans with lots of data, Virgin Plus is the obvious choice. So, is it necessary to use the selling power of adorably fluffy kittens? Is getting discounts on food, fashion and entertainment more enticing when they're in tiny costumes? Or is it cuter from them? (Cat meowing) Do we need all this to convince you? ( ) We don't. Because when you're choosing an affordable phone plan, the obvious choice is Virgin Plus. Obviously. 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. >> Hello, welcome back to trading day. I'm amber kanwar. We are going to get rest of the canadian bank earnings kicking off with scotiabank tomorrow. Last week, of course, we had tv. And when you looked under the hood, td was not that bad earnings beating expectations, big gains in capital markets. Let's bring in andrew bell with a look at what the read through might be empty. And we've got rebecca on the for shareholder perspective anywhere we kick it off with you. >> The guys. Yeah. Mtv and scotia, really the black sheep of the banking group. Have we look at them over the past year, it's no secret down this money laundering investigation overhang. But bank of nova scotia's also underperformed the bank index. It has its new boss in their scott thompson came for offending international long term director of scotia been looks like investors still think that scotia is something of a repair job. Profit is seen dropping to about 56 a share out that seattle is consensus from a $1.70 last year. Of course, that's not unusual. And then this is the cue to fiscal q2 for the banks. Investors are looking for profit at declines. Have a lot of the big lenders, but scotia out of favour still. >> And yet like the other banks that are out of favour, the dividend yield is high. Sure is. I mean, this is the interesting thing I find to with these beaten-up stocks, 6.5% at scotia, obviously be very reluctant to cut dash jeffrey started coverage of them this year with a hold saying we think the dividends, it looks intact just to give you perspective riled back, which of course is a star is moved back up near to record highs is trading a offers a dividend yield of less than

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