BNN - Thursday, May 23, 2024 - 01:00 p.m. (ET) - Segment #1

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td Target Maturity Bond ETFs. >> Hello. Welcome to trading day. I'm amber kanwar. Here are your trending trade this hour. It starts with a td, a profit beat growth big time in its canadian markets and its capital markets business. Not enough to impress investors as anti-money laundering issues continue to hang over the company. In fact, national bank just downgraded the stock to underperform. We'll talk to a shareholder, though, who's hanging on. Let's take a look at shares of nvidia, south of the border. The best performing stock entering fresh record territory as earnings beat expectations. The forecast came in better than expected. This is a 2 trillion dollar company that just grew sales more than 240% and signal the good times are continuing to roll and that's creating a bit of a halo effect around a bunch of ai exposed names take celestica on the tsx when the best performing stocks right now. Supermicro also benefitting in asml holdings up more than 3%. On the flip side, we've got a pressure point in shares of boeing falling after warning of a significant cash burden, expecting it to continue. We'll tell you why all of this and more coming but first, here's a look at some of the top stories we're tracking for you right here in the bnn bloomberg newsroom. Shares of live nation entertainment under pressure. The U.S. justice department and a group of states are suing the company for antitrust violations related to control of concert ticket sales by live nation's ticketmaster. >> The lawsuits are seeking manatees, including breaking up the company. >> Our complaint makes clear what happens when a monopolist dedicates its resources. Entrenching its monopoly power and insulating itself from competition rather than investing in better products and services. We allege that live nation has a legally monopolize markets across the live concert industry in the united states for far too long. It is time to break it up. >> Maple leaf foods says that is closing its poultry plant in brantford, ontario, consolidating production within its existing network earlier this year. The company said the 100 year old facility would need significant ongoing investment to continue operating long term, they believe says the closure is going to happen in stages and affected employees will be given opportunities at other locations. Westjet announced that they have plans to launch new, cheaper fare categories for travellers willing to fly without a carry on bag ceo alexis von hoensbroech says the new ultra-low fare category will be introduced in the next few weeks. Travellers will not have the option to put the bag in the overhead bins, though they will still be permitted to store a knapsack, a purse or small item underneath the scene in front of them. All right, there's a look at the tsx. We are treading water here around all-time highs were down at 3rd of a percent here at these levels has seen. We see continued weakness in the materials for a second day in a row, but financials, we're not getting that courtesy of the bank stocks is td kicked off earnings season. We're going impact that in just a moment. As we take a look at the U.S. markets. It would probably be a great day across the board were not for the weakness in boeing shares boeing 6% decline, costing the dow about 73 points right now. Generally though, there is a lot of weakness to go around, even with nvidia's rocket to fresh all-time highs. All right, our we are starting the show focused on t d it kicked off bank earnings season in some ways, it is hard to extrapolate what's going on at td to the others because of this major anti-money laundering issue that continues to hang over the company. And while they managed to unexpectedly grow adjusted profit, investors seem concerned about how much these issues are going to cost

the company in the long run. In fact, he just got downgraded by national partly because of the concerns of cost overruns. Let's bring in christine dobby is bloomberg finance reporter and richard fogler is a shareholder at t and managing director king western company. Christine, why don't we start with you? I mean, maybe let's just go through the results and then we can we can deal with the aml issues. High amber, so that the results were strong at td. They beat analysts estimates and pretty much all fronts >> They especially strong results in their capital markets business. And this is about a year after. >> Closing their transaction to by the U.S. investment bank. Cowen. They also had results in their wealth management business and that in canadian retail banking, they had great expense control better than analysts had been expecting. You know, their provisions for loan losses were a little bit higher than what analysts had forecast, but nothing, nothing totally out of whack. So is it was a very strong beat from a results perspective. But the focus has really been on what one analyst called the elephant in the room. The U.S. anti-money laundering investigations. And we didn't get any new real substantive information today about the size and scope of what the penalties might be. There and whether the company might be constrained from growing in the u.s.. And so that's you know, investors are not kind of reacting more positively to to the strong on the conference call, there were several attempts to get that information, some collar about what's going on with anti-money laundering. And I felt like the analyst at bank of america, ibrahim poonawalla. >> Really push the asking questions about. So is this just a U.S. issue? Could it bleed abroad and what specifically with the failures, nhl? What we did get a little bit of colour there. That's true. We did get a little bit of colour. The chief risk officer talked about how he doesn't see this as an enterprise wide issue. He said there were procedural issues in the u.s.. >> And he also kind of pegged did a little bit on some bad actor employees saying some employees didn't follow the bank's code of ethics. So so that was interesting. That's a bit more than we've heard about what went and then we also heard from the the head of the tv's U.S. business, leo sell on. To talk to bear, whether they're, they're actually slowing down there. Expansion of retail branches in the U.S. because this is something they said that they would do after the first horizon deal had been scrapped and said that they are kind of proceeding more judiciously they might have been because they are investing so much in in improving their anti-money controls. >> All right, thanks so much, christine dobby for that high level view on what's going on with td. Let's get your holder perspective. Richard fogler. I came last year joining me on the desk. Thanks so much for being with me. It's your top holding in your fund. So every quarter, I think sort of matters, especially with respect to these aml issues. What's your, what's your take? >> Well, I think it's quite they have a serious a male issue. There's no question about that time by rick's exam. Pie are coming. Exactly is the elephant in the room. They report this morning was a bunch of mosquitoes flying around in matter was very good, but it doesn't really matter. Lsu has coming to a head. The big deal is getting it over. Once it's announced once it gets over, they're going to be a fun. It's going to be 2 billion dollars, maybe its 3 billion using big numbers, business. It doesn't matter why because they have a ton of excess capital that were 20 billion dollars excess capital. Who cares what the thing over from a staff perspective, not from a company perspective the company perspective. Obviously lower is better. But the important thing, the stock is get it over with when it's over. One of 2 things is going to kerr. They're going to pay a fine. There's going to be no consent order. They have, as I said, a 2020% of the of the. Market cap of the company may be a little more because stocks down is excess capital in it's an insignificant number. They are going to want buy something. I'm gonna give you a simple the simplest, probably the dumbest, but the simplest example they're going to go. We make an offer to buy first to rise again again. I don't think they will, use that is in first horizon's 5 bucks lower today than it was then. And no by 5 bucks cheaper. Isn't that big a but I don't think it's going to I don't think that's going to happen. I certainly don't think about first arising again, I'm just using that is the simplest the analyst illustration have come out. So if there's no consent order, they will go buy buy tomorrow. Know they'll be that it will

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