|Bid||0.00 x 900|
|Ask||0.00 x 3100|
|Day's range||57.25 - 57.59|
|52-week range||48.34 - 57.72|
|Beta (3Y monthly)||0.96|
|PE ratio (TTM)||11.20|
|Earnings date||6 Feb 2017 - 10 Feb 2017|
|Forward dividend & yield||2.72 (4.76%)|
|1y target est||72.27|
Brian Porter has been the CEO of The Bank of Nova Scotia (TSE:BNS) since 2013. This report will, first, examine the...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Prime Minister Justin Trudeau, fighting for his political life three weeks away from an election, is seeking a second mandate from voters to increase the nation’s debt to deliver tax cuts and spending.In a costed platform released Sunday, the incumbent Liberals detailed a C$57 billion ($43 billion) plan over four years -- worth about half a percent of annual gross domestic product -- and pledged to pay for it with fresh borrowing, should they retain power.The plan represents a doubling down by Trudeau on deficit spending his team says is needed to stoke growth and provide struggling households, many of them with high levels of personal debt, with help. The prime minister’s critics, however, say the Liberals have been spending too much in good times and aren’t setting enough fiscal ammunition aside for when a recession hits.Under the Liberal plan, Canada’s deficit would peak at C$27.4 billion next year, bringing it above 1% of GDP for the first time since 2012, before dropping to C$21 billion by 2023. That far exceeds the C$14 billion deficit recorded in 2018. In total, the plan would add an additional C$31.5 billion in deficits and bring the cumulative budget gap over the next four years to C$93 billion.Politically, the Liberals hope the higher deficits will give them a potential wedge issue in a campaign where the two major parties have rolled out similar policy objectives -– from tax cuts to helping first time home buyers and seniors. Conservative Leader Andrew Scheer has yet to release his full fiscal projection but has promised to eventually return the budget to balance, though only over five years.Rate ImplicationsIn fact, given Scheer’s reluctance for a quick return to balance, both the Liberal and Conservative plans are poised to deliver a boost to the economy next year, no matter who wins. It’s perhaps even enough to prompt the Bank of Canada to reconsider cutting interest rates, according to Jean-Francois Perrault, chief economist at Bank of Nova Scotia in Toronto.“It seems clear whoever is in power, you are looking at a bigger deficit than had there not been an election,” Perrault said in a telephone interview.Opinion polls show the Liberals are running neck and neck with the Conservatives, despite Trudeau’s campaign being jolted by revelations he wore black and brownface makeup numerous times as a younger man. Seat projections tabulated by the Canadian Broadcasting Corp. show neither party holding enough support to win a majority.Deficits matter in Canada, with a collective aversion to debt that was cemented in the mid-1990s amid ratings agency downgrades, a falling currency and a national unity crisis. It remains an explosive issue, even though Trudeau’s deficits have hovered at less than 1% of GDP, far below many other western nations. The U.S. budget deficit is close to 5% of GDP.In the 2015 election campaign, Trudeau pledged to run deficits but for only three years and no more than a cumulative C$25 billion. By 2019, Canada’s budget would be back in balance.Since taking power however, his budget gaps have escalated and Trudeau has abandoned any willingness to balance the budget. In fact, he’s using his deficits as a lever to attack the opposition Conservatives, claiming they plan to bring austerity measures that will slow the economy and eliminate government services.“I will let the Conservatives explain why cuts and austerity -- if they really think so -- are going to help Canadians,” Trudeau told reporters at a Toronto-area campaign stop Sunday.Deficit TrackTrudeau’s first three budgets were in the negative by a cumulative C$52 billion. His last budget in March projected a deficit for the current fiscal year of about C$20 billion.The Liberals would retain their existing fiscal anchor, which is to keep the nation’s debt as a share of GDP on a downward trajectory -- but just barely. The debt-to-GDP ratio would fall to 30.2% by 2023, from 30.9% last year. That’s well above the 28.6% the government had projected in four years’ time in its last budget in March. They also pledged to preserve Canada’s AAA credit rating.There are new revenue raising measures, totaling C$25.4 billion over four years, in the Liberal platform.The tax measures announced Sunday are short on details, but will be focused on corporations and wealthier Canadians, according to the documents. The Liberals believe they can raise an additional C$2 billion as early as next year by undertaking “a new comprehensive review of government spending and tax expenditures, to ensure that wealthy Canadians do not benefit from unfair tax breaks.”They also expect to raise C$1.7 billion in 2020 by cracking down on corporate tax loopholes that allow companies to deduct debt. Other new measures include a 3% value-added-tax on digital companies with worldwide revenue of more than C$1 billion. It would take effect April 1 and be expected to raise more than C$500 million next year. The Liberals also plan to impose a 10% luxury tax on cars and boats worth more than C$100,000.(Updates with details throughout.)\--With assistance from Erik Hertzberg, David Scanlan and Eric Lam.To contact the reporter on this story: Theophilos Argitis in Ottawa at email@example.comTo contact the editors responsible for this story: Theophilos Argitis at firstname.lastname@example.org, Stephen Wicary, Chris FournierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Higher revenues, and decent loan and deposit growth support Bank of Montreal's (BMO) fiscal Q3 earnings. However, increase in credit costs is a headwind.
The Bank of Nova Scotia's (BNS) third-quarter fiscal 2019 (ended Jul 31) earnings reflect higher revenues, its solid capital levels and elevated expenses.
Scotiabank's shares rose 1.7% to C$68.90 in morning trading in Toronto, while BMO dropped 3.3% to C$89.33, its lowest since Jan. 7. Banks in Canada are seeing increased credit provisions on elevated household debt-to-income ratios and struggles in the oil and gas sector, while margins and capital markets businesses face pressure from a global economic slowdown and trade uncertainties. BMO reported a 64.5% jump in loan-loss provisions of during the quarter from a year ago.
Swiss Universal Bank, a unit of Credit Suisse (CS) will transform its branch to a digital branch with the creation of direct banking unit, effective Sep 1.
Bank of Nova Scotia (BNS) delivered earnings and revenue surprises of 2.92% and -0.80%, respectively, for the quarter ended July 2019. Do the numbers hold clues to what lies ahead for the stock?
Rising operating expenses are likely to affect Golar LNG's (GLNG) Q2 performance. However, strength in the shipping market is expected to aid quarterly results.
Marvell's (MRVL) fiscal second-quarter results are likely to be hurt by a weak storage and networking business. However, the Cavium business is likely to be a key growth driver.
StealthGas' (GASS) second-quarter 2019 results are likely to be aided by lower costs. However, the company may suffer on the top-line front.
Bank of Nova Scotia (BNS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Canadian banks are expected to report decent earnings growth, driven by slight rise in interest income. However, dismal non-interest income performance and higher expenses may act as dampeners.
The Bank of Nova Scotia's (BNS) second-quarter fiscal 2019 (ended Apr 30) earnings reflect higher revenues, its solid capital levels and elevated expenses.