Some Calgary businesses have mixed reactions to U.S. tariff boost
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Calgary Herald
an hour ago
- Calgary Herald
Despite raging wildfires, Canada's breadbasket expected to deliver plentiful crop
Smoke from wildfires has shrouded grain farming regions in Saskatchewan, but most fields have avoided drought-like conditions and received the moisture they need to grow a plentiful crop this season. Article content But variable weather, uncertain grain prices and a volatile trade environment have made farmers and industry watchers cautious about taking a victory lap just yet. Article content Article content 'For Saskatchewan and Western Canada, we are expecting yields to actually be above the five- and ten-year averages,' Anderson said. 'We use satellite imagery to predict yields and patterns, and what we see right now is looking like how 2020 was coming together. That year that was a pretty good yielding crop.' Article content Having said that, Anderson was cautious, adding that farmers are not through the growing season yet. Many areas have crops that look good but still need more rain. Article content Hot and dry conditions have turned northern Saskatchewan's boreal forest into a tinderbox this spring and summer, sparking a challenging wildfire season that has forced thousands of people to flee from their homes. Article content Many farms across the Prairies suffered a severe drought in 2021 after record-high temperatures and a lack of rain decimated crops. Article content Article content For growing regions in southern Saskatchewan, this season is turning out to be far better, but the industry expects some challenges. Prices for some commodities could be down, and higher input costs are expected to reduce farm incomes. Article content Article content Commodities not protected by Canada-United States-Mexico Agreement, or CUSMA, could be hit with tariffs at the Canada-U.S. border, and transportation delays could continue to hamper shipments to global markets. Article content Jake Leguee, who grows a variety of crops on his farm in south-east Saskatchewan, said this year is looking promising, but that's not the case for all regions of the province. Article content 'Conditions are pretty good for us,' said Leguee, the chair of SaskWheat, an organization dedicated to enhancing Saskatchewan's wheat production. 'We've had our dry periods, but we've been able to get timely enough rain to keep things going.'
Globe and Mail
an hour ago
- Globe and Mail
Trump's new tariffs go into effect as US economy shows signs of strain
WASHINGTON (AP) — President Donald Trump began imposing higher import taxes on dozens of countries Thursday just as the economic fallout of his monthslong tariff threats has begun to cause visible damage to the U.S. economy. Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States. 'I think the growth is going to be unprecedented,' Trump said Wednesday. He said the U.S. was 'taking in hundreds of billions of dollars in tariffs,' but did not provide a specific figure for revenues because 'we don't even know what the final number is' regarding the rates. Despite the uncertainty, the White House is confident that the onset of his tariffs will provide clarity about the path for the world's largest economy. Now that companies understand the direction the U.S. is headed, the Republican administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power. So far, however, there are signs of self-inflicted wounds to the U.S. as companies and consumers brace for the impact of the new taxes. Risk of economic erosion Hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after the initial tariff rollout in April, said John Silvia, CEO of Dynamic Economic Strategy. 'A less productive economy requires fewer workers,' Silvia said. 'But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.' Many economists say the risk is that the American economy is steadily eroded. 'It's going to be fine sand in the gears and slow things down," said Brad Jensen, a professor at Georgetown University. Trump has promoted the tariffs as a way to reduce America's persistent trade deficit. But importers tried to avoid the taxes by bringing in more goods before the tariffs took effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. Total construction spending has dropped 2.9% over the past year. The economic pain is not confined to the U.S. Germany, which sends 10% of its exports to the U.S. market, saw industrial production sag 1.9% in June as Trump's earlier rounds of tariffs took hold. 'The new tariffs will clearly weigh on economic growth,' said Carsten Brzeski, global chief of macro for ING bank. Dismay in India and Switzerland The lead-up to Thursday fit the slapdash nature of Trump's tariffs, which have been rolled out, walked back, delayed, increased, imposed by letter and renegotiated. Trump on Wednesday announced additional 25% tariffs to be imposed on India because of its purchases of Russian oil, bringing its total import taxes to 50%. A leading group of Indian exporters said that will affect nearly 55% of the country's outbound shipments to America and force exporters to lose long-standing clients. 'Absorbing this sudden cost escalation is simply not viable. Margins are already thin,' S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. The Swiss executive branch, the Federal Council, was expected to meet Thursday after President Karin Keller-Sutter and other Swiss officials returned from a hastily arranged trip to Washington in a failed bid to avert a 39% U.S. tariffs on Swiss goods. Import taxes are still coming on pharmaceutical drugs, and Trump announced 100% tariffs on computer chips. That could leave the U.S. economy in a place of suspended animation as it awaits the impact. Stock market remains solid The president's use of a 1977 law to declare an economic emergency to impose the tariffs is under a legal challenge. Even people who worked with Trump during his first term are skeptical, such as Paul Ryan, the Wisconsin Republican who was House speaker. 'There's no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions,' Ryan told CNBC on Wednesday. Trump is aware of the risk that courts could overturn his tariffs. In a Truth Social tweet, he said, "THE ONLY THING THAT CAN STOP AMERICA'S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!" The stock market has been solid during the tariff drama, with the S&P 500 index climbing more than 25% from its April low. The market's rebound and the income tax cuts in Trump's tax and spending measure signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. On the global financial markets, indexes rose across much of Europe and Asia, while stocks were slipping on Wall Street. But ING's Brzeski warned: 'While financial markets seem to have grown numb to tariff announcements, let's not forget that their adverse effects on economies will gradually unfold over time.' Trump foresees an economic boom. American voters and the rest of the world wait, nervously. 'There's one person who can afford to be cavalier about the uncertainty that he's creating, and that's Donald Trump,' said Rachel West, a senior fellow at The Century Foundation who worked in the Biden White House on labor policy. 'The rest of Americans are already paying the price for that uncertainty.'
Globe and Mail
2 hours ago
- Globe and Mail
HCI Group (HCI) Q2 EPS Jumps 22%
HCI Group (NYSE:HCI), a property and casualty insurance company with a heavy focus on the Florida market, reported earnings for the second quarter of 2025 on August 7, 2025. In the latest Q2 2025 results, HCI Group beat expectations on both headline earnings (GAAP EPS of $5.18 vs. estimate of $4.52) and revenue (GAAP revenue of $302.6 million vs. estimate of $218.98 million). EPS (GAAP) reached $5.18, compared to the analyst estimate of $4.52. Gross premiums earned (GAAP) were $302.6 million, up from $263.6 million in Q2 2024. These results highlight substantial improvement in underwriting profitability and operational performance. The company also reaffirmed the pending separation of its technology affiliate Exio and maintained its quarterly dividend. Overall, the period reflects strong growth, margin expansion, and continued strategic progress. Source: Analyst estimates for the quarter provided by FactSet. About the Business and Recent Focus Areas HCI Group operates as a diversified insurance and technology business, with most revenue coming from property insurance policies in Florida and other states. Its portfolio spans homeowners, condominium, and specialty insurance, plus a growing footprint in technology and select real estate investments. The company has a strong focus on underwriting discipline and the use of its proprietary claims processing and risk assessment technology. Recently, the company has prioritized growing its technology division (Exio), strengthening risk management, and expanding its core insurance segments. Key success factors include effective catastrophe risk management, regulatory compliance, and leveraging technology for underwriting and operational efficiencies. Strategic expansion has included launching new products and entering fresh geographic markets. Quarter Review: Financial and Operational Performance Pre-tax income (GAAP) increased to $94.4 million, up from $76.0 million in Q2 2024, while net income after noncontrolling interests rose to $66.2 million from $54.1 million in Q2 2024. Book value per share reached $58.55 at June 30, 2025, up from $42.72 at June 30, 2024. This growth in equity reflects both earnings retention and the benefit of lower-than-average catastrophe claims experience. Core insurance operations showed premium growth and improved profitability. Total gross written premiums reached $356.5 million, up from $306.9 million in Q2 2024. Major contributors included Homeowners Choice at $227.1 million (from $191.8 million) in gross written premiums. and TypTap Insurance, HCI's technology-driven homeowners insurance product, which grew to $110.4 million (from $79.1 million) in gross written premiums. Tailrow Reciprocal Exchange, a new home insurance entity launched in February 2025, contributed $5.2 million in gross written premiums as it began its rollout. The gross loss ratio improved to 21.3%, down from 29.7% in Q2 2024. The gross loss ratio measures insurance losses and claims expenses as a percentage of premiums earned; a lower figure suggests higher underwriting profitability. Management credited the improvement to lower claims and litigation frequency. However, they cautioned that gross loss ratios could move back up to the 24–25% range if claim volumes normalize. Across segments, TypTap and Tailrow helped drive premium and revenue growth. Premiums ceded to reinsurance rose, reflecting both higher overall premium volume and continued risk mitigation for hurricane exposures. Policy acquisition and underwriting expenses increased in line with growth, reaching $30.6 million (from $23.5 million), while general and administrative expenses (GAAP) were $20.0 million (from $17.5 million in Q2 2024). There was no adverse development in insurance reserves, and ongoing compliance reviews by regulators, including a financial examination by the Florida Department of Financial Services, were noted. The quarter also saw a substantial reduction in long-term debt as the company converted its 4.75% convertible notes, strengthening the balance sheet by reducing leverage and improving capital flexibility. A major strategic initiative in the quarter was progress on the planned separation of Exio, the technology division. Exio is a software platform used to enhance efficiency in HCI's underwriting functions, and it operates a transaction-based revenue model. Exio's reported stand-alone revenue in Q1 2025 was $52 million, with $24 million in pre-tax income. The spin-off, which is targeted for completion by year end, is expected to unlock new opportunities for Exio to partner with third-party insurance carriers outside the HCI umbrella. The quarterly dividend was maintained at $0.40 per share, unchanged from the same period last year. Looking Ahead Management did not provide detailed numerical guidance for the remainder of fiscal 2025. Leadership commented that the company expects to continue making progress on its key initiatives, especially the Exio spin-off, which is on track for late in the year and seen as a way to support further capital growth and technological expansion. In the near term, investors should watch for developments related to the Exio spin-off and further expansion of TypTap and Tailrow. Catastrophe loss experience and reinsurance costs will also affect results, particularly as hurricane season progresses. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
