2026-07-30
[Bnn Bloomberg Canada]: In the bond market, longer-term Treasury yields held a bit steadier following their sharp accelerations Wednesday. They had jumped after the chairman of the Federal Reserve, Kevin Warsh, gave few clues about what the central bank will do with interest rates to combat the painfully high inflation that continues to hurt the country.
Higher rates could keep a lid on inflation, but they can also slow the economy and undercut prices for stocks and other investments.
The yield on the 10-year Treasury eased to 4.66 per cent from 4.67 per cent late Wednesday. The 30-year Treasury yield held steady at 5.20 per cent, a day after it shot up from 5.09 per cent. They move with investors’ expectations for inflation and economic growth in upcoming years.
Warsh reaffirmed on Wednesday the Fed wants to get inflation back down to 2 per cent, even though the central bank decided not to raise interest rates despite its remaining higher than that. He also implied the bond market may already be doing some of the Fed’s work to restrain inflation, and he pointed to how yields have climbed since the central bank’s last meeting six weeks earlier.
That leaves investors questioning whether the Fed is prepared to act if inflation worsens, or whether it is relying on financial markets to achieve the same outcome, according to Seema Shah, chief global strategist at Principal Asset Management.
“If investors conclude that the latter is true, the credibility of the Fed’s inflation-fighting commitment could come under increasing scrutiny. Arguably, it already is.”
President Donald Trump, who nominated Warsh to lead the Fed, has argued for lower interest rates even though they could cause inflation to accelerate.
Reports released Thursday suggested the U.S. economy’s growth slowed by more during the spring than economists expected. A measure of Inflation, meanwhile, remained worse last month than the Federal Reserve’s target, but it slowed from May.
In the oil market, prices eased back.
Brent crude, the international standard, fell 1.2 per cent to US$87.01 per barrel. It had swung as low as US$72 early this month and as high as US$102 last week on uncertainty about whether the United States and Iran could reach a deal to allow oil tankers to move freely again from the Middle East to customers worldwide.
In stock markets worldwide, indexes rose in Europe following a mixed finish in Asia. South Korea’s Kospi fell 1.2 per cent, and France’s CAC 40 rose 0.9 per cent for two of the world’s bigger moves.
Seoul’s market has been at the center of the huge recent moves for AI stocks because it’s dominated by two tech titans, Samsung Electronics and SK Hynix. After more than doubling through this year’s first six months, the Kospi has plunged 34 per cent so far in July.
Its drop on Thursday came as Samsung Electronics dipped 0.7 per cent. The tech giant reported a record profit for the spring and said demand for its chips continues to outpace supply, but its earnings nevertheless fell shy of analysts’ high expectations.
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Stan Choe, The Associated Press. AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
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2026-07-27
[Bnn Bloomberg Canada]: Top picks: ExxonMobil, iShares MSCI South Korea ETF, Stryker
MARKET OUTLOOK:
Lyle Stein, president of Forvest Global Wealth Management, shares his outlook on North American & Global Stocks.
Markets are off to a shaky start to Q3. The reclosing of Strait of Hormuz (and now, the Red Sea) has not only dislocated the global economy (oil prices), but even worse, rekindled financial stability concerns as debt levels (both government and corporate) continue to rise at the same time interest rates rise due to oil-price-driven inflationary concerns.
Markets are into Q2 earnings season and while earnings growth has been relatively satisfactory, the sustainability of high expectations is being tested. In Q2, strong equity performance essentially paid for a financial economy that is proving to be increasingly elusive.
The crystal ball is anything but clear. We do not see quick resolution to the global conflicts, we do not see inflation rates easing in the near-term, and we are skeptical that increasingly expensive AI will lead to the much-touted productivity gains many call for.
In our view, markets are coming to realize that we are in a low-return world, one where protecting the above-average gains of the past few years is increasingly more important than one more trip around the AI-driven growth expectation track.
In this environment, we hold more-than-average cash, less-than-average debt, and dividend-paying equities with a bias towards Hard Assets. Short-term debt, particularly U.S. pay with 4 per cent plus yields, is attractive as a silo to protect assets. Dividends pay us while we wait. Growth remains expensive.
Diversification is more important than ever. Our preference is for hard assets (energy, pipelines) that provide income as well as inflation protection. Themes/factors more important than sector/geography in current environment.
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2026-07-21
[Bnn Bloomberg Canada]: U.S. vows 50% tariff on Canadian goods
U.S. President Donald Trump is vowing to impose a fresh 50 per cent tariff on a range of Canadian goods. The surprise move is over what the Trump administration calls unfair treatment of American alcohol, cars, and dairy. The items expected to be hit include milk, beer, hockey equipment, and plywood. Energy, potash, and critical minerals will be spared, as well as autos and steel. Prime Minister Mark Carney says Canada has already made a series of detailed and comprehensive proposals to resolve the trade war as well as modernize CUSMA. Carney says Ottawa stands ready to intensify discussions in the coming weeks. It is estimated about $20 billion worth of Canadian imports would get hit by the new tariffs.
Mediation begins to attempt to end U.S.-Iran war
Iran’s Interior Minister has begun meetings with mediators in Pakistan as attacks continue for the tenth consecutive day. Diplomats are seeking to salvage the collapsed interim deal between Iran and the U.S. Earlier today, Iran attacked a tanker in the Strait of Hormuz, while the U.S. conducted yet another round of air strikes targeting the Islamic Republic. The Houthi militant group in Yemen have threatened shipping in the Red Sea by saying it would impose a maritime blockade on Saudi Arabia. That move would put the flow of millions of barrels of oil at risk.
Empire to stop use of property controls
Empire will stop using a measure that can limit competing businesses from operating at specific locations. The parent company of Sobeys outlined its approach in a new policy document, nearly a month after the Competition Bureau broadened its investigation into the grocer’s use of property controls. Empire says it will no longer use or enforce the measures and will also limit the size, product scope, and time frame of exclusivity provisions in future grocery store leases. Other major grocers, including Walmart Canada and Loblaw, have already pledged to get rid of property controls relating to retail competition.
Sleep Country Canada buying Sleep Number
Sleep Country Canada is expanding into the United States. The sleep retailer has announced it is buying U.S.-based Sleep Number for US$702 million following a court-supervised sale process. The deal comes after Sleep Number announced last month that it entered into an agreement to combine with Sleep Country and initiated a voluntary bankruptcy sale process. Once the transaction closes, Sleep Country will become the second largest sleep retailer in the world, with more than 800 store locations.
GM raises full-year profit outlook
General Motors has raised its full-year profit forecast after beating expectations for second quarter earnings. The automaker also posted revenue that topped estimates at more than US$48 billion, driven by robust sales of its gas-powered cars and SUVs. On the downside, GM says its results will continue to be weighed down by tariff pressures and rising supply costs. It also anticipates softness internationally due to the middle east conflict.
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2026-07-20
[Bnn Bloomberg] David Driscoll’s Top Picks: Franco-Nevada Corporation, Halma PLC, Jardine Matheson
MARKET OUTLOOK:
There are plenty of lessons to be learned from this current market. In the past six months, we’ve seen parabolic stock movements, higher-than-average leverage, inflation, geopolitical events that can wreak havoc on supply chains, massive sector rotations and the need to be focused on portfolio construction, not speculation. I believe Warren Buffett said something recently to this effect, “People aren’t investing or even speculating. They’re outright gambling”.
High leverage levels (currently $1.4 trillion in margin debt), means investors are borrowing to invest, pushing stock prices higher.
Inflation creep is beginning to take shape as companies are beginning to raise prices to cover input costs and as the war in Iran is hurting supply chains.
Parabolic rises in stocks, especially tech names, require prudent re-balancing of portfolios. We’ve been doing that for the past three months. For example, we made our first purchase of Comfort Systems, a heating, ventilation, and air conditioning (HVAC) industrial, in April 2025 at US$330 a share. On May 14, 2026, it hit a price peak of US$2,073, an increase of 528 per cent in less than a year. Since stocks historically only grow 10 per cent to 15 per cent a year on average, investors enjoyed 30 to 50 years of growth in just 12 months.
To Liberty, this growth occurred too far, too fast and the prudent thing was to re-balance the position back to a neutral weight. By the time of this writing on July 8, the stock had fallen to $1,675, a 20 per cent drop.
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[Bnn Bloomberg Canada]: Cherise Smellie
Canada inflation slows to 2.8% Y/Y
Canada’s inflation slowed more than expected last month. Data from Statistics Canada shows the annual rate of inflation eased to 2.8 per cent in June, lower than the 2.9 per cent rate economists were expecting. Gasoline prices eased, and the Bank of Canada’s preferred median and trim measures of core inflation dropped below 2 per cent for the first time in nearly six years. Grocery prices saw an increase annually, while shelter prices fell. Meanwhile, traveler accommodation surged more than 10 per cent on a yearly basis as the FIFA World Cup kicked off.
U.S., Iran engage in retaliatory attacks
The U.S. and Iran engaged in retaliatory attacks after three American military personnel were killed over the weekend. The latest attacks are inching toward an all-out war as last month’s interim deal meant to permanently end the conflict collapsed. The renewed fighting in the region has continued for nine straight days as the U.S. aims to stop Iran from targeting commercial and civilian vessels crossing the strait of Hormuz.
Brookfield signs two deals
Brookfield Asset Management has announced a few deals today. The asset manager and CPP Investments have agreed to buy LXP Industrial Trust. The all-cash deal is valued US$5.2 billion at US$61.20 per share. It is set to close later this year. Brookfield is also getting a 49 per cent stake in Healthpeak Properties portfolio of outpatient medical buildings in the U.S., in a US$2.1 billion joint venture.
Domino’s Q2 results mixed
Domino’s Pizza reported revenue in its second quarter that beat analysts’ expectations, while profit missed the mark. Sales at its U.S. stores fell to the slowest pace in five quarters, suggesting consumers are continuing to pull back on dining out. International sales also saw a decline. The fast-food chain is ramping up its growth, however, opening 209 new stores.
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July 17, 2027
[Bnn Bloomberg Canada]; U.S., Iran increase attacks
The U.S. and Iran have intensified their attacks beyond military targets, increasing fears of a return to full war. The attacks mark a sixth straight day of hostilities with no agreement reached over the Strait of Hormuz. China and Pakistan have expressed concern over the developments, calling on both sides to cease hostilities and resume dialogue. Iran has been insisting all ships seek its permission before sailing through the strait. The U.S. says its strikes are designed to end Iran’s stranglehold over Hormuz and ease the transit of tankers and other ships critical to the global economy.
Ottawa signs $2B armoured vehicle deal
The federal government is partnering with General Dynamics Land Systems to build armoured combat vehicles. Ottawa is earmarking $2 billion dollars over four years to build 190 vehicles, in a bid to boost defence and expand the country’s fleet. The vehicles will be built in London, Ontario. General Dynamics is the first company to be designated as a strategic partner under Canada’s defence industrial strategy.
Northern Ontario wildfires continue disruption
Wildfires continue to devastate swaths of Northern Ontario, prompting evacuations in at least 15 communities, blocking rail traffic and halting forestry operations. Ontario’s Ministry of Natural Resources has reported a total of more than 180 active fires across the province, and more than 600 across the country. Canadian National Railway’s freight network continues to be disrupted, and Canadian Pacific Kansas City says it is keeping a close watch on conditions. Via Rail, which operates mainly on CN tracks, has cancelled service between Toronto and Winnipeg, and Domtar, one of Canada’s largest lumber companies, suspended all harvesting and road building in northwestern Ontario.
Teranet: Canada June home prices fall 0.7% m/m
Home prices across Canada continued to decline last month. Data from The Teranet-National Bank Composite House Price Index shows prices fell 0.7 per cent month-over-month in June, marking the seventh consecutive monthly decline. Vancouver, Brantford and Moncton saw the largest declines, while Hamilton, Sudbury and Barrie saw the largest increases.
Netflix forecasts slowing sales growth
Netflix is forecasting a second consecutive quarter of slower sales growth, fueling investor anxiety over the streaming giant’s future. Netflix also posted revenue in its latest quarter that came in shy of expectations, despite growing 13 per cent compared to the same period the year before. Netflix says it is investing in new kinds of programming, such as live sports and video podcasts, and will add $6 billion in sales this year.
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