Latest news with #exports
Globe and Mail
2 hours ago
- Business
- Globe and Mail
RY, BCE, CSU: Canadian Stocks Get a Lift as Economy Grows More than Expected
Leading Canadian stocks such as Royal Bank (RY), BCE (BCE), and Constellation Software (CSU) are getting a lift after data showed the country's economy grew more than expected in the first quarter. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Canada's gross domestic product (GDP) increased 0.5% in the year's first quarter, the same rate of growth as in the previous fourth quarter of 2024. GDP in Q1 grew by 2.2% on an annualized basis. Analysts polled by Reuters (TRI) had expected first-quarter GDP to expand by 1.7% year-over-year. Statistics Canada said that exports of goods were largely responsible for the Q1 growth, followed by accumulations of business non-farm inventories. Higher imports and weak residential home sales were a drag on Canada's economic growth between January and the end of March. Preparing for Tariffs Canada's total exports rose 1.6% in the first quarter of 2025 after increasing 1.7% in the fourth and final quarter of 2024. Exports got a big boost from looming U.S. tariffs, said Statistics Canada, with exports of motor vehicles rising nearly 17% and industrial machinery and equipment jumping 12% higher. At the same time, imports increased 1.1% in the quarter, following a 0.6% rise in the previous quarter. Among Canadian households, spending slowed to 0.3% in the year's first three months after rising 1.2% in the fourth quarter of 2024. The household savings rate slowed to 5.7%, the lowest rate of growth since the first quarter of 2024. Investment income received declined 1.7% in Q1. Is BCE Stock a Buy? The stock of BCE has a consensus Hold rating among nine Wall Street analysts. That rating is based on one Buy, five Hold, and three Sell recommendations issued in the last three months. The average BCE price target of $33.22 implies 10.88% upside from current levels. Disclaimer & Disclosure Report an Issue
Globe and Mail
20 hours ago
- Business
- Globe and Mail
Long-Term Prosperity: Investing in America's Economic Pillars
If you believe in the U.S.'s long-term future, investing in sectors where the country has leadership, particularly the companies that lead the way, makes sense. In that vein, here's why Cheniere Energy (NYSE: LNG), GE Aerospace (NYSE: GE), and Tesla (NASDAQ: TSLA) are companies with a significant role in America's future. The United States is the largest liquefied natural gas exporter in the world From being a distant third behind Qatar and Australia in 2019, the U.S. has become the clear leader in liquefied natural gas (LNG) exports. According to the U.S. Energy Information Administration (EIA), the U.S. exported 11.9 billion cubic feet per day (Bcf/d) of LNG in 2024, while Qatar and Australia have exported no more than 10.7 Bcf/d annually during the past five years. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » That's in no small part due to Cheniere Energy, which exported 2,33 trillion British thermal units (TBtu) in 2024 -- a figure that equates to 6.37 Bcf/d. It has a 100% interest in the Corpus Christi LNG Terminal which has a current production capacity of 15 million tonnes per annum (mtpa), and a majority stake in Sabine Pass LNG Terminal, which has a current production capacity of 30 mtpa. The total 45 mtpa equals a nominal capacity of 5.92 Bcf/d, with Cheniere outperforming its nominal capacity in 2024. With the current administration strongly supportive of LNG (as opposed to the Biden administration, which froze new permits for LNG exports), Chief Executive Officer Jack Fusco believes "we have an opportunity and a strategic imperative to secure permits for significant growth at both Sabine and Corpus in order to derisk the permitting requirements of future project development with line of sight to a total capacity of over 90 million tonnes per annum." With expansion activity already set for 2025 (Corpus Christi) and a favorable administration in the White House, Cheniere's future looks bright. The U.S. dominates aerospace and defense While recognizing that Boeing has had its issues in recent years, and Airbus is a formidable competitor, there's little doubt that GE Aerospace is the clear market leader in commercial aerospace and defense engines. For example, its joint venture with France's Safran, CFM International, produces the LEAP engine -- the sole engine option on the Boeing 737 MAX, and one of only two options for the Airbus A320neo family. Incidentally, another American company, RTX, produces another option for the Airbus A320neo family. Moreover, GE's own GE9X is the only engine option on the new Boeing 777X, and its GEnx dominates orders on the Boeing 787. For example, the recent International Airlines Group order of 32 Boeing 787s for British Airways will be powered by the GEnx rather than a rival engine by the U.K.'s Rolls-Royce. Moreover, management believes its next generation of engines, RISE, will achieve a 20% improvement in fuel efficiency over the LEAP. Given that engines can have a 40-year life cycle and generate lucrative aftermarket revenue over that period, the combination of LEAP (entered service in 2016) and RISE (expected mid-2030s) could lead to a half-century of GE leadership in commercial aerospace engines. The Tesla Model Y is the best-selling car in the world Not only is Tesla's Model Y the best-selling electric vehicle (EV), but it is also the best-selling car in the world. Moreover, with all its production lines shifted to producing the refreshed version in 2025, and the legacy Model Y sold out in the U.S. and China, Tesla is ready to start improving Model Y sales again. In addition, Tesla has several positive catalysts in store, not least the launch of its robotaxi in Austin, Texas, in June (unsupervised autonomy on a Model Y); the mass production of its dedicated robotaxi vehicle, Cybercab, in 2026; and lower-cost models in 2025. Given Tesla's checkered history of delivering on its aims on time and the disappointing sales of Cybertruck, it's fair to doubt the timing of these events. However, there is no doubt about Tesla's ability to lower its cost of goods per vehicle. It fell below $35,000 at the end of 2024, compared to $84,000 in 2017, and more than $38,000 at the start of 2023. This is a key point because it enables Tesla to generate higher profit margins, release lower-cost models, and stay ahead of the competition. It also helps ensure Tesla can get robotaxis (where the company's real value lies) on the road (whether modified existing Teslas or dedicated Cybercabs), which will be highly competitive with Waymo's offering. CEO Elon Musk may well be a divisive figure, but the reality is that he's driven Tesla to a leadership position in the key sports utility vehicle (SUV) market with the Y (and to a lesser extent, in the sedan market with the Model 3) in the U.S. when otherwise, American cars were also-rans in the categories before. If America leads the way in EVs and robotaxis, it's highly likely that Tesla will be out in front. Should you invest $1,000 in Cheniere Energy right now? Before you buy stock in Cheniere Energy, 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 Cheniere Energy 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%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
Reuters
a day ago
- Business
- Reuters
US ethanol output eases off record pace as summer travels heat up: Braun
NAPERVILLE, Illinois, May 30 (Reuters) - Record volumes of U.S. ethanol have been churned out since late last year, largely due to an uptick in exports and steady domestic demand. But output has slipped from those record levels over the last couple of weeks, coinciding with the ramp-up of the summer driving season. Luckily, large stockpiles of the corn-based fuel additive can offset some of the easing in output for now. However, both exports and domestic travel trends will need to be monitored in the coming weeks and months since this is when U.S. motor gasoline demand typically peaks. Over the four weeks ended May 23, U.S. ethanol production averaged roughly 1.026 million barrels per day. That is the best for the period in six years but behind the levels of six and seven years ago. Ethanol production typically dips at this time of year and output had been running at record rates from late last year through early spring, causing supplies to approach the 2020 records in March. U.S. ethanol stocks have since experienced a seasonal drawdown but remain at record levels for the date, with strong rates of both production and use somewhat offsetting each other. Huge exports have contributed to the elevated use levels in recent months. On the other hand, implied U.S. motor gasoline demand has not necessarily been impressive. Over the last couple of months, rates have been similar to the year-ago levels but well off the volumes before the pandemic, which was when demand for U.S. gasoline is thought is thought to have peaked. Increased fuel efficiency and post-pandemic changes in driving patterns – particularly remote working – have reduced U.S. gasoline consumption, an inherent threat to the U.S. ethanol industry. But the push for cleaner fuels abroad has been a bright spot. Although exports accounted for just 11% of U.S. ethanol produced in the 2023-24 marketing year, shipments reached record levels, supported by Canadian, British and Indian demand. Although exports have been the cornerstone of the U.S. ethanol industry this year, they have largely slowed below the year-ago levels in the last month or so, hitting an eight-week low last week. Exporters do have a cushion, as September-March shipments were easily a record for the period, up 26% on the year. However, this recent easing in ethanol exports could potentially be offset by a bump in U.S. gasoline demand this summer. As of April 2025, some 53% of Americans planned to take leisure vacations this summer versus 48% a year earlier, according to Deloitte's annual travel survey. This is despite a decline in their sense of financial well-being over the last year. The more frugal approach means that Americans plan to increasingly favor driving trips versus the previous few summers, including a higher frequency of trips as many are adding multiple short getaways. Gas prices are largely friendly for that effort, with the national average price for unleaded fuel sitting about 11% lower than a year ago. But consumer habits can abruptly shift whenever economic uncertainty spikes, and 2025 has been particularly rife with those risks. Karen Braun is a market analyst for Reuters. Views expressed above are her own.
Zawya
a day ago
- Business
- Zawya
US goods trade deficit narrows sharply in April as imports plunge
The U.S. trade deficit in goods narrowed sharply in April as the boost from the front-running of imports ahead of tariffs faded. The goods trade gap contracted 46.0% to $87.6 billion last month, the Commerce Department's Census Bureau said on Friday. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. A rush to beat import duties pushed the goods trade deficit to a record high in March. The front-running of imports is probably not over. Higher duties for most countries have been postponed until July, while those for Chinese goods have been delayed until mid-August amid negotiations between President Donald Trump's administration and trade partners. Economists said that could see some businesses trying to bring in more imports given the lack of clarity about what happens after the 90-day pauses. Adding to the uncertainty, a U.S. trade court on Wednesday blocked most of Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday. A record trade gap accounted for a large part of the 0.2% annualized rate of decline in gross domestic product in the first quarter. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
Globe and Mail
a day ago
- Business
- Globe and Mail
Canada's first quarter GDP expands by 2.2% annualized rate beating estimates
Canada's economy in the first quarter grew faster than expected, data showed on Friday, primarily driven by exports as companies in the United States rushed to stockpile before tariffs by President Donald Trump. But an increase in imports that led to inventory build-up, lower household spending and weaker final domestic demand indicate that the economy was battling on the domestic front. Economists have warned that as tariffs continue on Canada, this trend will persist. The gross domestic product in the first quarter grew by 2.2% on an annualized basis as compared with the downwardly revised 2.1% growth posted in the previous quarter, Statistics Canada said. This is the final economic indicator before the Bank of Canada's rates decision on Wednesday and will help determine whether the central bank will cut or stay pat on rates. Currency swap markets were expecting around 75% chance the bank would hold its rates at the current level of 2.75%, before the GDP data was released. Trump's repeated threats and flip-flops on tariffs since the beginning of the year led to an increase in exports and imports to and from the U.S. Trump imposed tariffs on Canada in March, first on a slew of products and later specifically on steel and aluminum. The GDP grew by 0.1% in March after a contraction of 0.2% in February. The economy is likely expected to expand by 0.1% in April, the statistics agency said referring to a flash estimate. The March growth was primarily driven by a rebound in the mining, quarrying, and oil and gas extraction and construction sectors. Analysts polled by Reuters had expected the first quarter GDP to expand by 1.7% and by 0.1% in March. The quarterly GDP figure is calculated based on income and expenditure while the monthly GDP is derived from industrial output. The tariffs and the uncertainty around them started showing early signs of impact as the final domestic demand, which represents total final consumption expenditures and investment in fixed capital, did not increase for the first time since the end of 2023, Statscan said. Growth in household spending also slowed to 0.3% in the first quarter, after rising 1.2% in the prior quarter. The first quarter growth was led by a rise in exports, which jumped by 1.6% after increasing by 1.7% in the fourth quarter of 2024. Business investment in machinery and equipment also increased by 5.3% which pushed the quarterly GDP higher.
