Young people and newcomers fuel runaway debt growth: report
The latest TransUnion debt report shows total debt continued to grow in the first quarter compared with the year before, driven mainly by young people and newcomers.
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The credit-tracking agency says gen Z consumers saw their outstanding balances grow 30.6 per cent from the prior year.
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The report says total outstanding debt grew 4.7 per cent to $2.5 trillion in the first quarter year-over-year.
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CTV News
29 minutes ago
- CTV News
Trump holding Pennsylvania rally to promote deal for Japan-based Nippon to ‘partner' with U.S. Steel
The United States Steel logo is pictured outside the headquarters building in downtown Pittsburgh, April 26, 2010. (AP Photo/Gene J. Puskar) HARRISBURG, Pa. — U.S. President Donald Trump is holding a rally in Pennsylvania on Friday to celebrate a details-to-come deal for Japan-based Nippon Steel to invest in U.S. Steel, which he says will keep the iconic American steelmaker under U.S.-control. Though Trump initially vowed to block the Japanese steelmaker's bid to buy Pittsburgh-based U.S. Steel, he changed course and announced an agreement last week for what he described as 'partial ownership' by Nippon. It's not clear, though, if the deal his administration helped broker has been finalized or how ownership would be structured. Trump stressed the deal would maintain American control of the storied company, which is seen as both a political symbol and an important matter for the country's supply chain, industries like auto manufacturing and national security. Trump, who has been eager to strike deals and announce new investments in the U.S. since retaking the White House, is also trying to satisfy voters, including blue-collar workers, who elected him as he called to protect U.S. manufacturing. U.S. Steel has not publicly communicated any details of a revamped deal to investors. Nippon Steel issued a statement approving of the proposed 'partnership' but also has not disclosed terms of the arrangement. State and federal lawmakers who have been briefed on the matter describe a deal in which Nippon will buy U.S. Steel and spend billions on U.S. Steel facilities in Pennsylvania, Indiana, Alabama, Arkansas and Minnesota. The company would be overseen by an executive suite and board made up mostly of Americans and protected by the U.S. government's veto power in the form of a 'golden share.' In the absence of clear details or affirmation from the companies involved, the United Steelworkers union, which has long opposed the deal, this week questioned whether the new arrangement makes 'any meaningful change' from the initial proposal. 'Nippon has maintained consistently that it would only invest in U.S. Steel's facilities if it owned the company outright,' the union said in a statement. 'We've seen nothing in the reporting over the past few days suggesting that Nippon has walked back from this position.' The White House did not offer any new details Thursday. U.S. Steel did not respond to messages seeking information. Nippon Steel also declined to comment. No matter the terms, the issue has outsized importance for Trump, who last year repeatedly said he would block the deal and foreign ownership of U.S. Steel, as did former President Joe Biden. Trump promised during the campaign to make the revitalization of American manufacturing a priority of his second term in office. And the fate of U.S. Steel, once the world's largest corporation, could become a political liability in the midterm elections for his Republican Party in the swing state of Pennsylvania and other battleground states dependent on industrial manufacturing. Trump said Sunday he wouldn't approve the deal if U.S. Steel did not remain under U.S. control and said it will keep its headquarters in Pittsburgh. In an interview on Fox News Channel on Wednesday, Pennsylvania Republican Rep. Dan Meuser called the arrangement 'strictly an investment, a strategic partnership where it's American-owned, American run and remains in America.' However, Meuser said he hadn't seen the deal and added that 'it's still being structured.' Pennsylvania Republican Sen. David McCormick came out in favor of the plan, calling it 'great' for the domestic steel industry, Pennsylvania, national security and U.S. Steel's employees. A bipartisan group of senators, joined by then-Senate candidate McCormick, had opposed Nippon Steel's initial proposed purchase of U.S. Steel for US$14.9 billion after it was announced in late 2023. In recent days, Trump and other American officials began touting Nippon Steel's new commitment to invest $14 billion on top of its $14.9 billion bid, including building a new electric arc furnace steel mill somewhere in the U.S. Pennsylvania's other senator, Democrat John Fetterman — who lives across the street from U.S. Steel's Edgar Thomson Steel Works blast furnace — didn't explicitly endorse the new proposal. But he said he had helped jam up Nippon Steel's original bid until 'Nippon coughed up an extra $14B.' The planned 'golden share' for the U.S. amounts to three board members approved by the U.S. government, which will essentially ensure that U.S. Steel can only make decisions that'll be in the best interests of the United States, McCormick said Tuesday on Fox News. Gov. Josh Shapiro, a Democrat who is seen as a potential presidential candidate, had largely refrained from publicly endorsing a deal but said at a news conference this week that he was 'cautiously optimistic' about the arrangement. In an interview published Thursday in the conservative Washington Examiner, Shapiro said: 'The deal has gotten better. The prospects for the future of steelmaking have gotten better.' Chris Kelly, the mayor of West Mifflin, Pennsylvania, where U.S. Steel's Irvin finishing plant is located, said he was 'ecstatic' about the deal, though he acknowledged some details were unknown. He said it will save thousands of jobs for his community. 'It's like a reprieve from taking steel out of Pittsburgh,' he said. ___ Michelle L. Price And Marc Levy, The Associated Press Price reported from Washington. AP writer Yuri Kageyama in Tokyo contributed to this report.
Globe and Mail
34 minutes ago
- Globe and Mail
Did Warren Buffett Make a Mistake Selling This High-Yield Dividend Stock? Wall Street Thinks So.
Warren Buffett became a legend for his investing prowess. These days, though, the 94-year-old billionaire is disinvesting more than he's investing. Buffett's Berkshire Hathaway has been a net seller of stocks for 10 consecutive quarters. In the first quarter of 2025, Buffett & team reduced Berkshire Hathaway's holdings in six stocks. They also completely exited the conglomerate's positions in two stocks. Citigroup (NYSE: C) was one of them. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » But did Buffett make a mistake selling this high-yield dividend stock? Wall Street thinks so. Buffett's about-face on a turnaround play Buffett first initiated a position in Citigroup in the first quarter of 2022, buying around 55.2 million shares. Although bank stocks seemed to have lost some of their luster in the eyes of the Oracle of Omaha, Citigroup probably looked like a good turnaround play to him. Shares of the financial services giant had fallen sharply in early 2022, and Citigroup was the only large U.S. bank that traded below its book value. CEO Jane Fraser faced a steep challenge to right the ship. But Buffett likes solid underlying businesses available at attractive valuations. He scooped up shares of Citigroup and waited for the comeback. At first, the decision to buy the struggling bank stock might have seemed unwise, as Citigroup's shares continued to decline throughout much of 2022 and 2023. Buffett didn't flinch, though. Berkshire even bought another 89,000 or so shares of Citigroup in the first quarter of 2023. Buffett's patience was rewarded beginning in late 2023. Citigroup, along with the overall stock market, gained momentum that lasted throughout 2024 and into early 2025. Buffett sold most of Berkshire's stake in the big bank in the fourth quarter of 2024 and fully exited the position in the following quarter. Why did he bail out on Citigroup? We don't know for sure. It could be that Buffett thought Citigroup's turnaround was complete. Whatever his reasoning, Buffett almost certainly locked in a tidy profit for Berkshire by selling the stock when he did. Analysts overwhelmingly disagree with Buffett's move However, Wall Street seems to think Buffett & team made a mistake by selling all of Berkshire Hathaway's Citigroup shares. Of the 22 analysts surveyed by LSEG in May, 16 rate the bank stock as a buy or strong buy. The others recommended holding Citigroup. This overwhelmingly bullish take on Citigroup isn't new, either. Throughout the first quarter of 2025, at least 75% of analysts surveyed by LSEG viewed the stock as a buy or a strong buy with no analysts recommending selling. Wall Street's consensus 12-month price target for Citigroup reflects an upside potential of nearly 12%. The most optimistic analyst surveyed by LSEG thinks the stock can soar almost 46% over the next 12 months. Even the most pessimist analyst only sees a downside of around 7%. Who's right about Citigroup: Buffett or Wall Street? Was Buffett right to sell Citigroup, or are the majority of Wall Street analysts right about buying the stock? My answer is... both are probably right. Let's first look at Wall Street's perspective. Analysts see a solid financial services company with rising revenue and profits. They see a stock that trades at only 10.3 times forward earnings estimates. They see a share price that's still more than 25% below book value. And analysts recognize how attractive Citigroup's forward dividend yield of nearly 3% is. When we take these factors into account, it's easy to understand why so many Wall Street analysts recommend buying Citigroup stock. The optimistic consensus 12-month price target also makes sense. However, let's try to see things from Buffett's eyes. The investing icon isn't as big a fan of bank stocks as he has been in the past. He's likely concerned about the impact of tariffs on the U.S. economy. As previously mentioned, Buffett probably made a nice profit for Berkshire on its Citigroup investment. It's not hard to appreciate why he and his team might have chosen to sell the stock when they did. The bottom line is that it can be the right move for one investor to buy a stock while simultaneously being the right move for another investor to sell the same stock. Should you buy Citigroup stock? Or should you sell it? It depends on your personal circumstances, investing goals, and risk tolerance. Should you invest $1,000 in Citigroup right now? Before you buy stock in Citigroup, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Citigroup wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Globe and Mail
34 minutes ago
- Globe and Mail
Warren Buffett Doubled His Position in These 2 Stocks Last Quarter. Should You Invest in Them?
Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently filed its latest 13F report, showing which stocks it has a position in. And by analyzing the filing, investors can see which stocks the company has been buying and selling. Berkshire hasn't been doing too much buying lately but there are a couple of stocks which it has dramatically increased its position in: Constellation Brands (NYSE: STZ) and Pool Corp (NASDAQ: POOL). Berkshire's share count in both of these stocks has more than doubled in just the past quarter. Are these stocks you should consider for your portfolio as well? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Constellation Brands Berkshire increased its position in beer maker Constellation Brands by 114% this past quarter, and it now owns more than 12 million shares. However, that's still modest in relation to Berkshire's overall portfolio as Constellation accounts for less than 1% of its total holdings. Why would Berkshire be bullish on Constellation Brands right now? What Buffett may like is that it has some strong, identifiable consumer brands in Corona and Modelo, which gives the company a competitive advantage over its peers. The company has also been steadily growing its revenue over the years and its operating income has also been strong. In the trailing 12 months, Constellation's operating income totaled $3.4 billion on revenue of $10.2 billion, for an impressive margin of 33%. What may have enticed Berkshire to add to the position was that in mid-February, the stock hit a new 52-week low, and bargain investor that Buffett is, decided to load up on the stock at the time. Constellation Brands may look appealing but there are risks to consider as well. The company makes its beers in Mexico and tariffs pose a risk for the foreseeable future. And there are also rising health concerns around alcohol as it has been linked to an increased risk of developing several types of cancers, which could impact demand in the long run as consumers become more health conscious. For those reasons, I wouldn't go out and buy the stock. But if you want a cheap dividend stock, Constellation could make for a compelling option as it pays 2.2%, which is better than the S&P 500 average of 1.3%. Pool Corp The stock that jumped the most (in terms of percentage points) in Berkshire's portfolio this past quarter was Pool Corp. Berkshire's position in that stock increased by 145%, but at around 1.5 million shares, it's a much smaller position overall for the company than Constellation. Pool Corp makes up just 0.2% of Berkshire's entire portfolio. As its name suggests, Pool Corp is in the business of pools; it refers to itself as "the world's leading wholesale distributor of swimming pool equipment, parts and supplies, and related outdoor living products." The company has a strong global presence with sales centers in North America, Europe, and Australia. Pool Corp's numbers are good but not as impressive as Constellation's. For one thing, the company's sales declined for the past two years, from $6.2 billion in 2022 to $5.5 billion the following year, and falling to $5.3 billion this past year. It is profitable, but its operating income of $617 million in 2024 was a more modest 12% of its top line. That's a decent margin, but it doesn't look terribly exciting. As with Constellation Brands, Pool Corp stock has also been falling in recent months, and that may have incentivized Buffett to add the stock to Berkshire's holdings. Overall, it's a simple business to understand, it makes decent profits, and it pays a dividend of 1.7%. It's a no-nonsense stock that fits well with other consumer stocks that Berkshire has in its portfolio. But here again, I'd pass on the stock simply because its numbers aren't all that compelling, and a time when consumers are scaling back on discretionary purchases, there may not be growing demand for swimming pools anytime soon. Should you invest $1,000 in Constellation Brands right now? Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
