Latest news with #Stonehaven
Reuters
27-05-2025
- Business
- Reuters
TSX's gains set to slow as trade war hits Canada's economy
TORONTO, May 27 (Reuters) - Canada's main stock index is set to largely consolidate its recent gains through the rest of 2025 and could be at risk of another correction as the domestic economy shows signs of a slowdown due to U.S. tariffs, a Reuters poll found. The S&P/TSX Composite index (.GSPTSE), opens new tab has rebounded nearly 16% from its lowest closing level in April to post a record closing high on Monday at 26,073.13. Since the start of the year, the index has gained 5.4%, outperforming major U.S. indexes such as the S&P 500. It has been helped by a heavy weighting in metal mining shares as safe-haven demand lifted the price of gold to record highs. "We still believe that peak uncertainty is behind us but the Canadian economy is starting to show the impact from tariffs," said Angelo Kourkafas, a senior global investment strategist at Edward Jones. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit by hefty U.S. duties, while Canada's unemployment rate was at 6.9% in April, its highest level since November. The median prediction of 21 equity strategists and portfolio managers in the May 15-27 poll was for the S&P/TSX Composite index to edge 0.7% higher to 26,250 by year-end, slightly less than the 26,500 mark expected in a February poll. "As companies continue to grapple with the implications of tariffs and recalibrate their inventory strategies, alongside the inclination to delay capital expenditures, profit margins will likely face pressure," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel. Seven out of 13 analysts who answered a separate question said corporate earnings would be lower in 2025 compared with 2024 while eight out of 13 said a correction was likely or highly likely over the coming three months. A correction, or a drop of 10% or more from the peak, was confirmed in April before the market rebounded. "We are focusing more on dividend payers as it will protect one's portfolio better during a market correction," said Ben Jang, a portfolio manager at Nicola Wealth. "Over time, falling interest rates are expected to drive outflows from money market instruments." The Bank of Canada has cut its benchmark interest rate by 2-1/4 percentage points since last June, to 2.75%, to support the economy. Lower borrowing costs and the potential for trade deals could eventually see the market take another leg higher, analysts say. The index was expected to reach 27,750 by the end of next year, a gain of 6.4%. "Once there is more clarity on trade and lower interest rates start filtering through the economy in 2026, we see a reacceleration in earnings," Kourkafas, from Edward Jones, said. (Other stories from the Reuters Q2 global stock markets poll package)
Yahoo
27-05-2025
- Business
- Yahoo
TSX's gains set to slow as trade war hits Canada's economy:Reuters poll
By Fergal Smith TORONTO (Reuters) - Canada's main stock index is set to largely consolidate its recent gains through the rest of 2025 and could be at risk of another correction as the domestic economy shows signs of a slowdown due to U.S. tariffs, a Reuters poll found. The S&P/TSX Composite index has rebounded nearly 16% from its lowest closing level in April to post a record closing high on Monday at 26,073.13. Since the start of the year, the index has gained 5.4%, outperforming major U.S. indexes such as the S&P 500. It has been helped by a heavy weighting in metal mining shares as safe-haven demand lifted the price of gold to record highs. "We still believe that peak uncertainty is behind us but the Canadian economy is starting to show the impact from tariffs," said Angelo Kourkafas, a senior global investment strategist at Edward Jones. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit by hefty U.S. duties, while Canada's unemployment rate was at 6.9% in April, its highest level since November. The median prediction of 21 equity strategists and portfolio managers in the May 15-27 poll was for the S&P/TSX Composite index to edge 0.7% higher to 26,250 by year-end, slightly less than the 26,500 mark expected in a February poll. "As companies continue to grapple with the implications of tariffs and recalibrate their inventory strategies, alongside the inclination to delay capital expenditures, profit margins will likely face pressure," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel. CORRECTION? Seven out of 13 analysts who answered a separate question said corporate earnings would be lower in 2025 compared with 2024 while eight out of 13 said a correction was likely or highly likely over the coming three months. A correction, or a drop of 10% or more from the peak, was confirmed in April before the market rebounded. "We are focusing more on dividend payers as it will protect one's portfolio better during a market correction," said Ben Jang, a portfolio manager at Nicola Wealth. "Over time, falling interest rates are expected to drive outflows from money market instruments." The Bank of Canada has cut its benchmark interest rate by 2-1/4 percentage points since last June, to 2.75%, to support the economy. Lower borrowing costs and the potential for trade deals could eventually see the market take another leg higher, analysts say. The index was expected to reach 27,750 by the end of next year, a gain of 6.4%. "Once there is more clarity on trade and lower interest rates start filtering through the economy in 2026, we see a reacceleration in earnings," Kourkafas, from Edward Jones, said. (Other stories from the Reuters Q2 global stock markets poll package)
Yahoo
27-05-2025
- Automotive
- Yahoo
Don't let London slip a gear in its electric vehicle uptake
London has, literally, led the charge on conversion to electric vehicles (EVs). There are more EVs per head in the capital than elsewhere in the UK, and indeed most other major cities around the world, and the infrastructure to support them is being rapidly rolled out. This historic shift, currently running at about 3,000 EV registrations a month, is playing a vital role in cleaning up London's once unpleasantly polluted air and will help the capital make progress towards, and hopefully hit, the Mayor's 2030 net zero target. By last year, EVs accounted for more than a third of new cars being registered in the capital, and more than 5.4 per cent of cars on the road. London also hosts 30 per cent of the UK's public charging points, while 61 per cent of its drivers own or are considering an EV for their next car — compared to a UK average of 38 per cent. But despite all these successes, there are reasons to worry. And it is not just that the pace of EV uptake in London has started to slow. There are also signs that many Londoners are being left behind in the EV revolution, with ownership concentrated in the wealthier communities of the capital. A report this month from analysts and policy consultants Stonehaven looks at the reasons why the uptake of EV might be slowing, particularly among less affluent drivers. It also makes three key recommendations — measures it hopes can re-energise London's enthusiasm for private electric transport. Crucially the report, authored by a team led by former Department for Transport official Michael Dnes, urges Transport for London (TfL) to extend what it describes as 'a uniquely powerful incentive for EV adoption in London, the Cleaner Vehicle Discount (CVD)'. The CVD allows drivers of fully electric cars and vans, and the much smaller number of hydrogen cell powered vehicles, to enter the central London congestion charge zone (CCZ) for free, once they have paid a £10 registration fee. All other drivers must pay the daily charge of £15, which is set to rise to £18 in the New Year. But the full CVD concession ends on Christmas Day this year — an unwelcome present for thousands of London drivers. According to a TfL consultation published this week it will replaced by a 50% discount for van drivers and a 25% discount to car drivers. That will still leaving them paying £9 and £13.50 a day respectively to enter the CCZ area. TfL argues that as the numbers of EVs on London's roads grows, ever more drivers are entitled to enter central London for free. That in turn is undermining one of the very purposes of the congestion charge, namely reducing congestion. But as the report puts it: 'In 2025, London faces a choice about its electric future. It needs to keep up the momentum of electrification to secure its position as an EV world leader. 'Decisions made over the coming months — some as soon as this summer — will determine the future of electrification and London's environmental progress, and whether Londoners are included in that transition or not.' Although the CVD has been particularly successful in persuading private hire vehicle drivers to switch to EV options, there is still a long way to go when it comes to the vans that keep the West End and the City supplied with deliveries. Latest TfL data shows that 89 per cent of van miles in the CCZ are still diesel. As well as keeping the CVD going into next year and beyond, the report makes two other major policy recommendations. It says TfL needs to ensure all of London enjoys equal access to affordable EV charging. As things stand the 'haves' — London residents able to charge an EV at home — can access rates as low as 7p/KWh. But the majority of 'have nots' — unable to charge at home and reliant on public charging points — can face rates seven times higher at around 52p/KWh for slow charging and as much as 80p/KWh for rapid charging, costing them hundreds of pounds more a year as a result. The 'EV inequality gap' is particularly pronounced between home owners and renters who are far less likely to have access to a charge point. To counter this, Stonehaven suggests London boroughs should prioritise planning applications for gully charging and charging arms, to make cross-pavement charging accessible to more residents. It also urges City Hall to lead on developing 'social leasing' schemes targeting key workers and low-income families to help them spread costs and switch to cheaper EV models earlier. In France, a similar scheme has made subsidised leases available to households in the bottom half of incomes who drive substantial distances or live more than 15km from their workplace. Stonehaven believes these measures together can cut air pollution in central London by eight per cent for particulates, and 11 per cent for nitrogen oxides; save families without driveways an average of £600 a year, and professional drivers as much as £5,000 annually; and 'make EVs the norm for London's roads, regardless of borough or bank balance'. It warns some EV drivers are even considering switching back to petrol or diesel-fuelled internal combustion engine vehicles because of the extra costs. Private hire vehicle drivers who face the biggest increase in annual congestion charge bills — perhaps up to £5,000 or so — may be particularly prone to 'EV remorse', according to the report. Stonehaven's modelling suggests the EV share of mileage among private hire vehicles in central London could drop by as much as 27 per cent if the CVD is scrapped. One driver who participated in a focus group used to help draw up the report's findings said, 'They waived the congestion charge for EVs before, and now they're saying we'll have to pay. They can change their mind whenever they want.' Another said, 'I saved £32,000 in six years driving an electric vehicle.' A small business owner also participating in one of the focus groups put it even more starkly: 'If you take away all the financial benefits, it's just about ethics — and a lot of people will choose to feed their kids over saving the planet.' The Stonehaven report argues that the stakes for TfL, and for London as a whole, are high — and time is pressing. It is just seven months until the CVD is turned off, still long enough for a U-turn. But perhaps only just. As the report concludes and this paper agrees: 'If London acts now, it won't just meet its climate commitments — it will set the pace for cities across the UK and beyond, showing that the future of driving is electric.' Leading The Charge is supported by commercial partners which share the project's aims but our journalism remains editorially independent
Gulf Insider
11-04-2025
- Business
- Gulf Insider
Trump Tariffs to Drive Up UAE, Saudi Arabia Construction Costs up to 7%: Report
The construction industry across the Middle East is bracing for hefty cost increases in the wake of sweeping new trade tariffs announced by Donald Trump this week, an industry report said. Construction cost increases in the UAE are forecast to be in the range of 2.7 to 3.3 per cent, while those in Saudi Arabia are expected to be higher, ranging from 3.4 to 7 per cent, according to Stonehaven's newly released 2025 UAE and Saudi Arabia Construction Cost Benchmarking Report. Stonehaven, however, cautioned that its projected cost hike figures may be conservative as markets react to global stock losses and supply chain disruptions, which are forecast to increase the prices for imported materials in the region. UAE, Saudi construction cost forecasts 'With over $2.3 trillion in active projects across both countries, the GCC region is heavily exposed to international commodity pricing. As key materials such as steel, concrete, and aluminum become more expensive to source, the cost of construction is expected to surge over the next 18–24 months,' the report said. Gordon Rodger, Managing Director at Stonehaven, described the forecast as a stark wake-up call for the entire industry. 'We're facing a perfect storm – labour shortages, outdated processes, and increasing external pressures like global trade tariffs. Developers need to act fast to lock in construction costs that align with their feasibility studies, or they risk serious impacts to their bottom line,' he said. The report said its projected cost inflation figures for the GCC, including the 2–5 per cent for the UAE and 3.4–7 per cent for Saudi Arabia, may rise further due to global trade disruptions. Stonehaven said the region is also facing serious labour challenges – labour accounts for up to 40 per cent of project costs – and called for automation and AI adoption to mitigate the challenges. Modular construction, AI-powered planning, and BIM technologies are key to managing project costs and risk, it said. According to the report, while Dubai is estimated to add 19,700 villas in 2025, giga-projects like NEOM and The Red Sea Project are reshaping the Saudi landscape.
Arabian Business
11-04-2025
- Business
- Arabian Business
Trump tariffs to drive up UAE, Saudi Arabia construction costs up to 7%: Report
The construction industry across the Middle East is bracing for hefty cost increases in the wake of sweeping new trade tariffs announced by Donald Trump this week, an industry report said. Construction cost increases in the UAE are forecast to be in the range of 2.7 to 3.3 per cent, while those in Saudi Arabia are expected to be higher, ranging from 3.4 to 7 per cent, according to Stonehaven's newly released 2025 UAE and Saudi Arabia Construction Cost Benchmarking Report. Stonehaven, however, cautioned that its projected cost hike figures may be conservative as markets react to global stock losses and supply chain disruptions, which are forecast to increase the prices for imported materials in the region. UAE, Saudi construction cost forecasts 'With over $2.3 trillion in active projects across both countries, the GCC region is heavily exposed to international commodity pricing. As key materials such as steel, concrete, and aluminum become more expensive to source, the cost of construction is expected to surge over the next 18–24 months,' the report said. Gordon Rodger, Managing Director at Stonehaven, described the forecast as a stark wake-up call for the entire industry. 'We're facing a perfect storm – labour shortages, outdated processes, and increasing external pressures like global trade tariffs. Developers need to act fast to lock in construction costs that align with their feasibility studies, or they risk serious impacts to their bottom line,' he said. The report said its projected cost inflation figures for the GCC, including the 2–5 per cent for the UAE and 3.4–7 per cent for Saudi Arabia, may rise further due to global trade disruptions. Stonehaven said the region is also facing serious labour challenges – labour accounts for up to 40 per cent of project costs – and called for automation and AI adoption to mitigate the challenges. Modular construction, AI-powered planning, and BIM technologies are key to managing project costs and risk, it said.
