Why Mark Carney must make a new USMCA deal a priority
Our government is to be commended for its efforts to secure tariff relief, and should work with impacted sectors, but the time's come for Canada to shift our strategy to preserving and extending the United States-Canada-Mexico Agreement (USMCA).
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Globe and Mail
17 minutes ago
- Globe and Mail
Utilities Witness Longest Win Streak Since 2009: ETFs to Play
The utility sector enjoyed its strongest winning streak in more than 15 years last month, emerging as the month's standout performer despite broader market attention being focused on AI and mega-cap tech stocks. The stocks in the sector logged a consecutive seventh-month gain, reflecting a rare period of sustained sector confidence, underpinned by both short-term demand and structural tailwinds. Reaves Utilities ETF UTES has emerged as the biggest winner, jumping 8.6% in July. It was followed by gains of 6.8% for I nvesco Dorsey Wright Utilities Momentum ETF PUI, 6% for Invesco S&P 500 Equal Weight Utilities ETF RSPU and 5.4% each for First Trust Utilities AlphaDEX Fund FXU and Fidelity MSCI Utilities Index ETF FUTY (see: all the Utilities ETFs here). What's Driving the Rally? Surging Power Demand: Extreme heat across the United States triggered a spike in residential power consumption (air conditioning and refrigeration lifted volumes for utility companies) during the month. Additionally, an unprecedented jump in electricity usage from AI training and data centers to electric vehicle charging is driving demand. Research forecasts electricity demand to grow by ~55% between 2020 and 2040, compared to just 9% over the previous two decades. AI Paving the Growth: Utilities serving data-center clients like Amazon AMZN, Microsoft MSFT and Meta META are negotiating infrastructure deals where those tech firms fund expansions. For example, American Electric Power AEP locks in infrastructure costs with data centers and foresees 28% earnings growth by 2028, while Entergy projects 13% annual industrial sales growth. Rate Requests on the Rise: Utilities have filed roughly $29 billion in rate increase requests through the first half of 2025, nearly double the prior year, driven by rising wholesale costs, aging grids and infrastructure investment needs. Defensive Investment: Investors are rotating into utilities as a defensive haven amid broader market uncertainty. Utilities are traditionally seen as a safe harbor due to their consistent and often generous dividend payouts, which appeal to income-focused investors. The sector benefits from a high degree of regulatory oversight, which provides clarity on rate adjustments and helps ensure a steady stream of revenue. These regulated returns, combined with the essential nature of utility services like electricity, gas and water, contribute to highly predictable earnings, even during economic slowdowns. As volatility rises in other areas of the market, utilities offer a compelling blend of lower risk, income generation and operational resilience (read: 5 Factors to Play Defensive Now: ETFs in Focus). Solid Industry Fundamentals: The sector continues to benefit from an ever-increasing population, which is pushing up demand for utility supplies like water, gas and electricity. The increased adoption of electric vehicles will also boost electricity demand for companies within the utilities sector. ETFs in Focus Reaves Utilities ETF (UTES) Reaves Utilities ETF is the only actively managed ETF that seeks to provide returns through a combination of capital appreciation and income, primarily through investments in utility stocks. It holds 22 stocks with a double-digit concentration on the top three firms. UTES has AUM of $740.7 million and trades in an average daily volume of 153,000 shares. It charges 49 bps in annual fees. Invesco Dorsey Wright Utilities Momentum ETF (PUI) Invesco Dorsey Wright Utilities Momentum ETF offers exposure to 34 companies that are showing relative strength (momentum) and tracks the Dorsey Wright Utilities Technical Leaders Index. Electric utilities and multi-utilities account for 42% and 25.2% of the assets, respectively, while gas utilities round off the next spot with a double-digit exposure. Invesco Dorsey Wright Utilities Momentum ETF charges 60 bps in annual fees and sees a light volume of around 5,000 shares on average. It has AUM of $75 million. Invesco S&P 500 Equal Weight Utilities ETF (RSPU) Invesco S&P 500 Equal Weight Utilities ETF offers exposure to 33 equal-weighted companies in the utilities sector of the S&P 500 Index and tracks the S&P 500 Equal Weight Utilities Plus Index. Electric utilities and multi-utilities account for 54.4% and 32.1% of the assets, respectively, while independent power and renewable electricity round off the next spot with 7.2% exposure. Invesco S&P 500 Equal Weight Utilities ETF charges 40 bps in annual fees. It has AUM of $447.7 million and trades in an average daily volume of 44,000 shares. First Trust Utilities AlphaDEX Fund (FXU) First Trust Utilities AlphaDEX Fund employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index. It follows the StrataQuant Utilities Index, holding 40 stocks in its basket. First Trust Utilities AlphaDEX Fund has amassed $1.7 billion and charges 63 bps in annual fees. Volume is good as it exchanges 277,000 shares in hand per day (read: 5 Sector ETFs Set to Power Q2 Earnings Growth). Fidelity MSCI Utilities Index ETF (FUTY) Fidelity MSCI Utilities Index ETF provides exposure to 67 utility stocks with AUM of $2 billion. This is done by tracking the MSCI USA IMI Utilities Index. Here too, electric utilities and multi utilities are the top two sectors with 60.8% and 24% share, respectively. Fidelity MSCI Utilities Index ETF has an expense ratio of 0.08%, while the average daily volume is good at 162,000 shares a day. Boost Your Portfolio with Our Top ETF Insights Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week. Don't miss out on this valuable resource. It's free! Get it now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report American Electric Power Company, Inc. (AEP): Free Stock Analysis Report Invesco Dorsey Wright Utilities Momentum ETF (PUI): ETF Research Reports First Trust Utilities AlphaDEX ETF (FXU): ETF Research Reports Fidelity MSCI Utilities Index ETF (FUTY): ETF Research Reports Virtus Reaves Utilities ETF (UTES): ETF Research Reports Meta Platforms, Inc. (META): Free Stock Analysis Report
CTV News
17 minutes ago
- CTV News
Texas governor threatens to remove Democrats who left the state over Trump-backed redistricting
Texas Gov. Greg Abbott speaks to reporters outside the West Wing of the White House, Feb. 5, 2025, in Washington. (AP Photo/Alex Brandon, File) Republican Texas Gov. Greg Abbott says he will begin trying to remove Democratic lawmakers from office Monday if they do not return after dozens of them left the state in an attempt to block the adoption of redrawn U.S. House maps sought by President Donald Trump. Some of the lawmakers, including those who left Sunday for Illinois or New York, clapped back, accusing Abbott of using 'smoke and mirrors' to make threats that go beyond his legal authority. The revolt by Democrats in the state House and Abbott's threat ratcheted up a widening fight over congressional maps that began in Texas but expanded to include Democratic governors who have floated the possibility of rushing to redraw their own state maps in retaliation. But their options are limited. The dispute also offers another example of Trump's aggressive view of presidential power and his grip on the Republican Party nationally, while testing the longstanding balance of powers between the federal government and individual states. 'We're not going to tolerate our democracy being stolen in a modern-day stagecoach heist by bunch of law breaking cowboys,' New York Gov. Kathy Hochul said Monday, flanked by several of the lawmakers who fled. 'If Republicans are willing to rewrite rules to give themselves an advantage, then they're leaving us with no choice: We must do the same. You have to fight fire with fire.' At the centre of the escalating impasse is Trump's hope of adding five more GOP-leaning congressional seats in Texas before the 2026 midterm elections. That would bolster his party's chances of preserving its slim U.S. House majority. Republicans currently hold 25 of the state's 38 seats. A vote on the proposed maps was set for Monday in the Texas House, but it cannot proceed if Democratic members deny a quorum by going to another state, which puts them beyond the reach of Texas law enforcement. After one group of Democrats landed Sunday in Chicago, they were welcomed by Illinois Gov. JB Pritzker, but declined to say how long they were prepared to stay away from Texas. 'We will do whatever it takes. What that looks like, we don't know,' said state Rep. Gene Wu, the Texas House Democratic Caucus leader. But legislative walkouts often only delay passage of a bill, including in 2021 when many of the same Texas House Democrats left the state for 38 days to protest new voting restrictions. Once they returned, Republicans still passed that measure. Four years later, Abbott is taking a far more aggressive stance and warning Democrats that he will seek to remove them from office if they are not back when the House reconvenes Monday. He cited a nonbinding 2021 legal opinion issued by Republican Attorney General Ken Paxton that suggested a court could determine that a legislator had forfeited their office. He also suggested the lawmakers may have committed felonies by raising money to help pay for fines they could face. 'This truancy ends now,' Abbott said. House Democrats issued a four-word statement: 'Come and take it.' And some lawmakers who relocated to other states taunted the governor in response. 'He has no legal mechanism,' said Texas Rep. Jolanda Jones, one of the lawmakers who was in New York. 'Subpoenas from Texas don't work in New York, so he can't come and get us. Subpoenas in Texas don't work in Chicago. ... He's putting up smoke and mirrors.' The state of the vote Lawmakers cannot pass bills in the 150-member Texas House without at least two-thirds of them present. Democrats hold 62 of the seats in the majority-Republican chamber, and at least 51 left the state, said Josh Rush Nisenson, spokesperson for the House Democratic Caucus. Republican House Speaker Dustin Burrows said the chamber would still meet as planned on Monday afternoon. 'If a quorum is not present then, to borrow the recent talking points from some of my Democrat colleagues, all options will be on the table,' he posted on X. Paxton, who is running for U.S. Senate, said on X that Democrats who 'try and run away like cowards should be found, arrested, and brought back to the Capitol immediately.' Fines for not showing up A refusal by Texas lawmakers to show up is a civil violation of legislative rules. The Texas Supreme Court held in 2021 that House leaders had the authority to 'physically compel the attendance' of missing members, but no Democrats were forcibly brought back to the state after warrants were served. Two years later, Republicans pushed through new rules that allow daily fines of US$500 for lawmakers who don't show up for work as punishment. The lack of a quorum will also delay votes on disaster assistance and new warning systems in the wake of last month's catastrophic floods in Texas that killed at least 136 people. Democrats had called for votes on the flooding response before taking up redistricting and have criticized Republicans for not doing so. Illinois hosts Texas lawmakers Pritzker, a potential 2028 presidential contender who has been one of Trump's most outspoken critics during his second term, had been in quiet talks with Texas Democrats for weeks about offering support if they chose to leave the state. Last week, the governor hosted several Texas Democrats in Illinois to publicly oppose the redistricting effort, and California Gov. Gavin Newsom held a similar event in his own state. Pritzker also met privately with Texas Democratic Chair Kendall Scudder in June to begin planning for the possibility that lawmakers would depart for Illinois if they decided to deny a quorum to block the map, according to a person with direct knowledge who requested anonymity to discuss private conversations. 'This is not just rigging the system in Texas, it's about rigging the system against the rights of all Americans for years to come,' Pritzker said Sunday night. Trump is looking to avoid a repeat of his first term, when Democrats flipped the House just two years into his presidency, and he hopes the new Texas map will aid that effort. Trump officials have also looked at redrawing lines in other states. ___ Joey Cappelletti And Andrew Demillo, The Associated Press Associated Press writers Bill Barrow in Atlanta and Nadia Lathan in Austin contributed to this report.
National Post
an hour ago
- National Post
Canada's economy is showing 'resilience' against U.S. tariffs. Why?
'Some resilience' — those were the two words Bank of Canada governor Tiff Macklem used last week to describe how the Canadian economy is holding up under the weight of U.S. tariffs. Article content Just a few days later, U.S. President Donald Trump added 35 per cent tariffs on Canadian goods to a running tally that includes hefty duties on steel, aluminum, automobiles and, more recently, semi-finished copper. Article content Article content With tariffs piling up over the past few months, economists say Canada's economy is starting to show cracks — but few signs of collapse. Article content Article content TD Bank economist Marc Ercolao conceded it's a 'bit of surprise' to see the economy holding up against a massive disruption from Canada's largest trading partner. Article content 'Many months ago, ourselves — as well as other economic forecasters — had an outlook for a much weaker Canadian economy. Obviously, that isn't manifesting now,' he said in an interview. On Thursday, Statistics Canada gave a glimpse at how the economy wrapped up the second quarter of the year when many of those tariffs came into full effect. Article content While the agency sees a couple of small contractions in real gross domestic product by industry in April and May, its flash estimates show the economy rebounding somewhat in June. Article content If those early readings pan out, StatCan said that would be good enough for flat growth overall on the quarter. Article content Article content Some of those results are distorted by volatility — businesses rushing to get ahead of tariffs boosted activity in the first quarter, and that's giving way to weakness in the second quarter, for example. Article content It's still hard to pinpoint exact impacts tied to tariffs, Ercolao said, but a broad trend is emerging. Article content 'What we can say over the last six months or so is that economic activity is somewhat flatlining,' he said. Article content Services sectors are holding up relatively well, but Ercolao said export-heavy industries such as manufacturing and transportation are bearing the brunt of the impact. Article content In an attempt to shore up some of that weakness, the federal government has announced various programs to support tariff-affected workers and broader plans to accelerate defence and infrastructure spending. Article content Macklem noted during his press conference Wednesday that business and consumer confidence are still low, but have improved according to the central bank's recent surveys.
