Daily Pulse
One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.
Michel Doucet
Vice-President and
Portfolio Manager
November 20, 2024
Canada
Inflation in Canada rose by more than forecast and underlying price pressures reaccelerated, hiccups that may dissuade policymakers from a second straight 50 basis-point cut to interest rates next month. The consumer price index rose 2% in October on a yearly basis, up from a 1.6% increase a month earlier, Statistics Canada reported Tuesday in Ottawa. That’s slightly faster than the median estimate of 1.9% in a Bloomberg survey of economists. The central bank’s two preferred core inflation measures also quickened, averaging a 2.55% yearly pace, faster than expectations and up from 2.35% a month earlier. A three-month moving average of those measures rose to an annualized pace of 2.8%, from 2.1% in September.
United States
Nvidia reports after the bell. Analysts’ fiscal 4Q revenue estimates are notably wide ranging, reflecting uncertainty over whether it can ramp up supplies of its latest chip lineup.
President-elect Donald Trump is tapping Cantor Fitzgerald LP chief executive officer Howard Lutnick to lead the Commerce Department, a central pick in an administration that will likely be shaped by sweeping tariff hike proposals. The Commerce Department, which serves as liaison between the federal government and the private sector, will play a key role in facilitating Trump’s policies. The agency’s main objective is to promote domestic jobs and economic growth.
Europe
Several shareholders of Northvolt AB have left the negotiations aimed at securing emergency funding for the beleaguered battery maker, broadcaster Swedish Radio reported, citing people familiar with the matter. The owners were not identified but are “relatively large,” according to the report. Nor did the broadcaster specify how many stakeholders had walked away from the talks. One person told the broadcaster the investors who walked out do not find it defensible to invest more money in the firm, with another saying it is looking increasingly likely Northvolt will file to restructure in the US. In recent days the company has been attempting to pull together short-term financing after a previous plan to lock in $300 million fell apart, Bloomberg News reported last week. The complexity of negotiations between numerous debt and equity investors have slowed progress toward an agreement, as well as uncertainty in the EV market that Northvolt supplies.
Asia
Shares of Seven & i Holdings Co. jumped as much as 10% in early Tokyo trading after Japanese broadcaster NHK reported the founding family of the retail giant is looking to complete a deal to take the company private by the end of this year. A special-purpose company established by the founding family and other parties is working on a plan to conduct a takeover bid for the entire firm, and is looking to raise more than ¥8 trillion ($51.7 billion) from megabanks and US financial institutions.
Japan’s exports gained 3.1% year on year in October, beating estimates. Imports posted a surprise gain and trade deficit widened.