2023-05-25 14:22:07
(Illustration: Camille Charbonneau)
NEWS ESSENTIALS
• RBC and CIBC suffer a drop in their profits with the increase in provisions. RBC and CIBC posted lower profits in the second quarter as tough economic conditions prompted banks to build larger provisions to prepare for delays in repayments.
• US: Washington and Republicans want debt ceiling deal. The White House and congressional Republicans are expected to resume negotiations on a deal to raise the public debt ceiling to US$31.4 trillion within a week of a possible default. which would be economically catastrophic.
• US: First auction of drilling rights since the Climate Act. The United States will hold its first sale of oil and gas drilling rights on federal lands since the passage of President Joe Biden’s historic climate change law, with more than 10,000 acres (40.5 square kilometers) in New Mexico and Kansas.
• Nvidia soon to be the first trillion-dollar chip company?. The chipmaker’s stock continues its ascent this year, soaring following bumper forecasts showed Wall Street has yet to assess the AI potential of the company, which has already doubled in value in 2023 .
• Slowdown in China: Bank of America reassigns 40 people elsewhere in Asia. Bank of America has asked regarding 40 bankers in Asia to seek new roles within the organization, according to a person familiar with the matter, as it strives to control costs globally and reduce its workforce in a context of slowing transactions in China.
TRENDS BEFORE OPENING
Futures for Canada’s main stock index fell on weak oil and mixed earnings reports from banks. Nasdaq futures surged, dragged higher by Nvidia’s advance following the announcement of a bumper forecast, while talks on raising the US debt ceiling point to some progress. However, credit rating agency Fitch on Wednesday placed the US AAA credit rating on review for a possible downgrade. The STOXX 600 edged higher following two days of decline. In Asia, the Japanese Nikkei made up for previously lost ground, while the Hang Seng fell on Sino-US tensions. Oil prices fell following Russian Deputy Prime Minister Alexander Novak downplayed the prospect of further production cuts from OPEC and its allies at its meeting next week. Spot gold prices are slightly ahead, while the US dollar is near a two-month high.
(Re)read all market news
TITLES TO FOLLOW
• CIBC: The bank suffered a fall in its profit in the second quarter, when it had to set up higher provisions to prepare for bad debts due to a difficult economy. CIBC’s provision for credit losses was $438 million in the second quarter, up $135 million from a year earlier. The bank’s adjusted net income fell from $1.65 billion to $1.63 billion from a year ago, but the amount of $1.7 per share was higher than the average analyst forecast of $1.63. $ per share.
• Royal Bank: the bank suffered a drop in profit in the second quarter, as difficult economic conditions prompted banks to build up larger provisions to prepare for delays in repayments. RBC said it had made provisions for bad debts of $600 million, while a reversal of the provision had been made a year ago. RBC’s net income fell 14% to $3.65 billion for the quarter ending April 30, or $2.58 per share.
Click on next to see the recommendations.
1685026903
#Market #news #LesAffaires.com
