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Globe and Mail
38 minutes ago
- Business
- Globe and Mail
Market Analysis: July 16th, 2025
Global Markets Canadian Markets Canada's TSX index rose on Wednesday, lifted by gains in gold and oil prices, as investors sought safe-haven assets amid growing concerns over inflation linked to global tariff tensions. The commodity-heavy index benefited from rising resource prices, with gold rallying as inflationary fears pushed investors into traditional hedges. Housing starts in Canada unexpectedly rose by 0.4% in June, defying forecasts of a slowdown and signaling continued resilience in residential construction. Statistics Canada reported that the income gap between the highest- and lowest-earning households hit a record high in Q1, highlighting growing economic disparity. American Markets U.S. stocks edged moderately higher in afternoon trading, but the broader tone was subdued as investors weighed the implications of the government's escalating tariff policies, in which are contributing to inflation concerns. According to the Federal Reserve's Beige Book report, economic activity expanded slightly in recent weeks, but the outlook remained neutral to slightly pessimistic. Businesses cited that higher tariffs—are still exerting upward pressure on input costs, dampening optimism for the second half of the year. European Markets European equities fell, dragged down by a disappointing outlook from ASML Holding NV, the region's largest chipmaking equipment supplier. ASML warned of a potential stall in growth by 2026, citing delayed investment decisions by U.S.-based chipmakers due to tariff uncertainty. Renault shares plunged after the automaker issued a profit warning, adding further pressure to the region's auto sector. Broader sentiment in Europe was also weighed by ongoing trade negotiations and a mixed start to corporate earnings season. In the UK, stocks declined after data showed that annual inflation unexpectedly accelerated to 3.6% in June, up from 3.4% the previous month. The rise was attributed to higher food prices and a smaller-than-expected decline in fuel prices, compared to the same period last year. The core inflation rate, which excludes volatile food and energy prices, rose to 3.7% from 3.5%, exceeding economists' expectations. The surprise increase adds pressure on the Bank of England, which is already walking a tightrope between controlling inflation and supporting economic growth. Corporate News Airbnb Inc Jefferies raised its target price to $165 (from $155), citing expected revenue growth due to consumer preferences for alternative accommodations. ASML Holding NV Warned of potential flat growth in 2026, as U.S.-based chipmakers delay investment due to tariff uncertainties. Q2 net bookings totaled €5.54B, 25% above analysts' expectations of €4.44B. AstraZeneca PLC Its experimental therapy anselamimab failed to meet the main endpoint in a late-stage trial for treating heart-related AL amyloidosis. Aura Minerals Inc Plans to raise $196.4M via a U.S. IPO, with proceeds directed toward exploration and improving financial flexibility for growth. Barclays PLC Fined £42M by UK regulators for money laundering failings, notably tied to bullion business Stunt & Co and WealthTek. BHP Group Ltd Claimed it's too costly for Australia to build a green iron industry, even with policy support, citing cheaper production in the Middle East and China. BlackRock Inc TD Cowen cut its target price to $1,252 (from $1,261), reflecting slower-than-expected net organic growth and higher expenses. Citigroup Inc Plans to boost investment banking headcount in Japan by 10–15% and expand hiring in Australia to accelerate Asia-Pacific growth. Cognizant Technology Solutions The SEC dropped a civil bribery case against two former executives, following the DOJ's earlier decision to abandon related criminal charges. Duolingo Inc Jefferies cut its target price to $400 (from $500), citing concerns over slowing momentum and weak consumer engagement. Ford Motor Co Recalling 694,271 SUVs (Bronco Sport and Escape, 2020–2024 models) in the U.S. due to a fuel leak risk potentially leading to fires. J.B. Hunt Transport Services Inc Reported a Q2 revenue of $2.93B, slightly ahead of estimates. Intermodal volumes rose 5.6% YoY, while other segments (ICS and Final Mile) saw revenue declines of 3.7% and 10.5% respectively due to weaker demand. Johnson & Johnson Beat Q2 estimates, earning $2.77 per share (vs. $2.68 expected), with revenue of $23.74B. Raised FY sales forecast to $93.2–$93.6B, up from previous $91–$91.8B. JPMorgan Chase & Co Piper Sandler raised the target price to $320 (from $295) following strong Q2 results and upward guidance revision. Meta Platforms Inc Facing a $8B lawsuit over allegations that Facebook leadership violated a 2012 FTC agreement by harvesting user data. Nvidia Corp CEO Jensen Huang confirmed the company will ramp up supply of China-compliant H20 chips and aims to expand advanced semiconductor offerings in China. Bank of America raised its target price on Nvidia to $220 from $180, while Jefferies raised its target price to $200 from $185. Omnicom Group Inc Q2 revenue beat at $4.02B (vs. $3.96B expected), with 8.2% growth in advertising and media. Reported adjusted EPS of $2.05, and expects to finalize Interpublic Group acquisition later this year after antitrust approval. Reddit Inc Jefferies raised the target price to $175 (from $170), citing stronger ad impression potential and ad rate optimization. Stellantis NV Discontinued its hydrogen vehicle program, citing lack of mid-term economic viability and instead focusing on EVs and hybrids. TMX Group Ltd TD Cowen raised the target price to C$57 (from C$54), citing strong Q2 performance, especially in trading and capital markets activity. TotalEnergies SE Q2 earnings expected to decline due to a 20% drop in Brent crude prices, despite a 2.5% increase in hydrocarbon production. UBS Group AG Rehired Masazumi Toriyama to lead its Japanese global banking division, part of a broader push to increase headcount by 50% in that division.
CTV News
an hour ago
- Business
- CTV News
The income gap reached a record high in the first quarter of 2025
OTTAWA -- The income gap between the country's highest and lowest income households reached a record high in the first quarter of 2025, Statistics Canada said Wednesday. The agency said the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. 'It's not a surprise with the economic uncertainty we've been experiencing and the stress in the labour market. Unemployment is rising, and it's really rising in particular for young people -- young graduates coming out of school, they're not finding their first job,' said Katherine Scott, a senior researcher focused on gender equality and public policy at the Canadian Centre for Policy Alternatives. 'This is all contributing to a lot of economic distress, and it is turning up in the data.' Statistics Canada said the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it said the increase came as the highest income households gained from investments, while the lowest income households saw wages decline. Scott said many individuals at the higher end of the income scale didn't see their incomes decline during the pandemic, with many staying in their jobs. 'But more importantly, they were in a position to take advantage of the huge run-up of the investment markets that happened at that time and have continued to increase ever since,' Scott said. Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago as their average wages edged down 0.7 per cent. 'I think it's generally related to poor income growth by lower-income earners, people earning less than the average income. They're having a harder time making ends meet. Whereas the income growth is being pretty positive for people above average,' said David Soberman, a professor at Rotman School of Management. 'When that happens, you get an increasing wealth gap, and I think it creates a lot of frustration in society.' The lowest income households also saw the largest drop in net investment income as their investment earnings fell 35.3 per cent, while net transfers received, including increased government support measures, rose 31.2 per cent. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group in the first quarter of 2025 as they benefited from a 7.7 per cent increase compared with a year earlier. The highest income households saw a 4.7 per cent increase in average wages and a 7.4 per cent gain in investment income. Statistics Canada said the wealth gap also increased as the top 20 per cent of the wealth distribution accounted for 64.7 per cent of Canada's total net worth in the first quarter, averaging $3.3 million per household. The bottom 40 per cent of the wealth distribution accounted for 3.3 per cent of net worth, averaging $85,700 per household. Scott highlighted that following the 2008-09 recession, there was a 'real discussion' regarding rising income inequality, which doesn't appear to be taking place currently. 'This kind of information, the largest gap ever, it's a wake-up call. We can't sustain it, we have to pay attention to the structure of our economy and the distribution of that,' she said. 'We have to grow the pie, but we have to talk about the distribution of the pie. It matters that people are able to live a decent quality of life with dignity. I think that's a really important public policy goal, which seems to be lost in the current conversation.' --- Daniel Johnson, The Canadian Press This report by The Canadian Press was first published July 16, 2025.
Yahoo
5 hours ago
- Business
- Yahoo
Loblaw CEO says tariffs driving shifts in grocery shopping, with sales of some U.S. goods down as much as 50%
Loblaw says tariffs are pushing Canadian shoppers to swap out U.S. goods, with some sales plunging 50%. In a LinkedIn post Tuesday, Loblaw president and CEO Per Bank said sales volumes on products marked with a 'T' — indicating that they're directly sourced from the U.S. — declined 15 to 20 per cent, demonstrating that there is a 'strong desire by consumers to continue supporting Canadian products and brands.' Some declines are nearer to 50 per cent, where stronger alternative options are available, he adds. The update follows U.S. President Donald Trump's Thursday announcement that he'll impose 35 per cent tariffs on Canadian imports from Aug. 1, and Statistics Canada's latest inflation numbers published last week. 'June grocery prices increased at a slower pace than May,' Bank said. 'Hidden within that positive news though, is the fact that tariffs continue to place inflationary pressures on grocery costs. This shows that retailers are generally doing a good job at managing the impacts of these tariffs for Canadians.' This year, around 30 per cent of the inflationary cost increases Loblaw is facing are directly tied to tariffs, he adds. A few months ago, Bank said he expected to put a 'T' symbol on about 6,000 products directly sourced from the U.S. Now, he expects that number will move closer to 7,500 as the full effects of countermeasures are felt. Meanwhile, Loblaw is in search of new non-tariff impacted suppliers, and added another 70 new suppliers in its second quarter, adding up to 100 new Canadian vendors this year, he says. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Toronto Sun
6 hours ago
- Business
- Toronto Sun
Statistics Canada says income gap hit record high in first quarter
Published Jul 16, 2025 • Last updated 5 minutes ago • 1 minute read Statistics Canada's offices at Tunny's Pasture in Ottawa are shown on Friday, March 8, 2019. Photo by Justin Tang / THE CANADIAN PRESS OTTAWA — The income gap between the country's highest and lowest income households reached a record high in the first quarter of 2025, Statistics Canada said Wednesday. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The agency said the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. Statistics Canada said the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it said the increase came as the highest income households gained from investments, while the lowest income households saw wages decline. Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago as their average wages edged down 0.7 per cent. The lowest income households also saw the largest drop in net investment income as their investment earnings fell 35.3 per cent, while net transfers received, including increased government support measures, rose 31.2 per cent. This advertisement has not loaded yet, but your article continues below. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group in the first quarter of 2025 as they benefited from a 7.7 per cent increase compared with a year earlier. The highest income households saw a 4.7 per cent increase in average wages and a 7.4 per cent gain in investment income. Statistics Canada said the wealth gap also increased as the top 20 per cent of the wealth distribution accounted for 64.7 per cent of Canada's total net worth in the first quarter, averaging $3.3 million per household. The bottom 40 per cent of the wealth distribution accounted for 3.3 per cent of net worth, averaging $85,700 per household. Crime Sunshine Girls Entertainment NFL Toronto & GTA
Global News
6 hours ago
- Business
- Global News
Canada's income gap reaches record high, Statistics Canada finds
Statistics Canada says the income gap between the country's highest and lowest income households reached a record high in the first quarter of 2025. The agency says the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Statistics Canada says the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it says the increase came as the highest income households gained from investments, while the lowest income households saw wages decline. Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago as their average wages edged down 0.7 per cent. Story continues below advertisement The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group in the first quarter of 2025 as they benefited from a 7.7 per cent increase compared with a year earlier.
