|Bid||67.34 x 800|
|Ask||68.65 x 1100|
|Day's range||66.33 - 67.47|
|52-week range||46.45 - 87.62|
|Beta (5Y monthly)||0.96|
|PE ratio (TTM)||7.69|
|Forward dividend & yield||4.28 (6.45%)|
|Ex-dividend date||26 Jun 2020|
|1y target est||98.31|
There is great comfort to be found in regular, reliable dividend payouts, especially in times of economic uncertainty. But finding shares that can pay them isn...
(Bloomberg) -- Canadian business sentiment has fallen to its lowest level since the 2008-2009 recession as sales slow and uncertainty about future growth remains elevated, according to a survey of executives released Monday by the Bank of Canada.The Ottawa-based central bank polled businesses between May 12 and June 5 to gauge sentiment during the pandemic. The results show that even as provinces begin to reopen their economies, many businesses are still struggling with weak demand.The plunge in sentiment is hardly a surprise, given the nation fell into its deepest recession last quarter since the Great Depression. While there are some positive notes with the central bank highlighting that many businesses expect a fairly quick rebound, the overall gist of the data paints a business sector that has suffered a major shock.Results “suggest that business sentiment is strongly negative in all regions and sectors due to impacts from the Covid-19 pandemic and the drop in oil prices,” the Bank of Canada said in a summary of its findings.The composite gauge of sentiment declined to -7, the lowest reading since the financial crisis. Companies reported growing slack in capacity, easing price pressures and collapsing forward-sales expectations. Firms also signaled a significant decrease in capital spending plans, along with weakening hiring intentions despite the massive increase in job losses in recent months.The survey “was extraordinarily weak, but that comes as no surprise given the survey was taken when swathes of the economy were still shut,” Benjamin Reitzes, Canadian rates and macro strategist at Bank of Montreal, said in a report.Almost half of all executives surveyed reported a decline in sales in the past 12 months because of the impact from Covid-19, lower energy prices and heightened uncertainty. Businesses continue to expect weak demand in the future with more firms expecting lower future sales growth in the next year. Indicators of future sales -- like orders and sales inquiries -- fell to record lows.“Firms reported that, while capacity could resume quickly as the economy reopens and containment measures are lifted, the recovery in demand is expected to be more gradual,” the report said.Government AidStill, business seems to be less pessimistic than they were during the financial crisis -- with more than half of firms expecting their sales and employment levels to be near pre-pandemic levels within a year.Government support seems to be buffering the economic fallout, with some firms citing the federal government’s wage subsidy program as helping reduce the need for layoffs. The survey was also taken in May when lockdowns were being lifted, mitigating the impact on the numbers.“The headline reading probably could have been even worse if the survey had been conducted a month earlier,” Andrew Grantham and Katherine Judge, economists at Canadian Imperial Bank of Commerce, said in a report.While millions of jobs were lost in March and April due to the pandemic-induced shutdowns, jobs have started to come back and the results of the survey reinforce the view that employers are looking to rehire. A majority of firms that recently let go workers have plans to refill at least some of the positions in the next 12 months, the survey found.Still, the era of tight labor markets in Canada is over. The share of businesses reporting major labor shortages has declined significantly, suggesting a “broad-based increase in labor market slack”.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Fitch Ratings stripped Canada of its AAA status amid a spike in emergency spending for Covid-19, making it the first top-rated country to be downgraded by the ratings agency during the pandemic.The country is expected to run a bigger government deficit this year and emerge from the recession with much higher public debt ratios, Fitch said Wednesday. It cut the country’s rating one notch to AA+.Canada still has a AAA rating with S&P Global Ratings, making it only one of two countries left in the Group of Seven to hold that status; Germany is the other. Moody’s Investors Service also gives Canada its highest rating.“The question is what took so long. Canada’s excessively leveraged national balance sheet has looked a lot like China, Italy and Greece for quite a while,” said David Rosenberg, founder of Rosenberg Research and Associates and former chief North American economist at Merrill Lynch & Co. “This won’t be the last ratings cut, I can assure you.” He had predicted the downgrade in an April research note that said the “Great Canadian Debt Surge has come home to roost.”Canada’s national government is on track to post its largest deficit on record in the 2020-2021 fiscal year. The shortfall may reach about 12% of gross domestic product compared with 1.1% last year, according to the Parliamentary Budget Officer.“Canada continues to be in a stronger financial position than many other countries in the G-7 and G-20,” Finance Minister Bill Morneau said in a statement. “We will continue to be fiscally responsible while acting to protect our country and its economy.”Fitch expects the coronavirus response to raise Canada’s consolidated gross general government debt to 115.1% of GDP in 2020, up from 88.3% last year. “The higher deficit is largely driven by public spending to counteract a sharp fall in output as parts of the economy were shuttered to contain the spread of the coronavirus,” the company said in the report.IndifferentThe Canadian dollar briefly weakened to a session low, hitting C$1.36 per U.S. dollar, before rebounding.Bank of Montreal’s Chief Executive Officer Darryl White shrugged off the news.“The Government of Canada will still have a AAA credit rating by other agencies, I think one of only two G-7 countries that can say that, and there’s plenty of access to capital and the cost of capital relative to other countries and relative to history is very, very low,” he said in an interview on BNN Bloomberg.Derek Holt concurs. “Markets don’t seem to care, rightly so in my view,” said the economist at Bank of Nova Scotia. “Every sovereign is under the same pressure. Ratings are a relative game and even at that there is a long list of more dominant market factors. It’s one agency that stripped Canada of some political bragging rights, but the tangible impact is scant to non-existent.”For Bipan Rai, head of foreign exchange strategy at Canadian Imperial Bank of Commerce, things may get volatile for the loonie if another agency follows. “The question is who’s next to downgrade? If it’s Moody’s, then there is a risk of portfolio outflows,” he added, noting that Canada’s current account deficit is financed heavily by foreign fund inflows.The North American economy is set to contract 7.1% in 2020 compared to 1.6% growth last year, according to median consensus of analysts compiled by Bloomberg. Canada’s government is rolling out a plan of more than C$230 billion ($169 billion) of subsidies, grants and tax deferrals in a bid to offset the impact of the pandemic.Gradually improving global trade, commerce and domestic labor market conditions may allow Canada’s economy to grow 3.9% in 2021, according to Fitch projections. Nonetheless, Canada’s medium-term growth prospects “are limited by structural investment challenges and are below many developed markets peers,” the ratings company said.Who’s Next?“It will take Canada approximately 6-12 months longer to return to 2019 GDP levels than the U.S. or several other developed markets,” said Alexandra Gorewicz, portfolio manager and head of rates at CI Investment. “Fitch partly alluded to this structural issue in their release by highlighting that prior to the pandemic.”The downgrade raises concerns that other top-rated countries such as Australia, which was put on negative outlook by Fitch, may follow suit. After today’s rating action, Fitch has kept its AAA rating for ten countries, of which the U.S. and Germany are part of the Group of Seven economies.“Covid-19 impact on G-7 economies has been quite similar to each other while monetary and fiscal stimulus have also been quite similar and proportionate,” said Imran Chaudhry, a senior portfolio manager at Fiera Capital Corp. “It’ll be interesting to see what Fitch does for other sovereign names such as Australia, Germany and most importantly the U.S.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Canada’s economy will take a long time to fully recover from the Covid-19 lockdowns, requiring the central bank to continue purchases of government bonds to keep interest rates at historical lows indefinitely, according to Tiff Macklem.In his first public speech as governor, Macklem said Canada’s economy should resume growth in the third quarter as containment measures are lifted. He cautioned, however, that any recovery will be “prolonged and bumpy” and the central bank will be “laser-focused” on supporting the rebound with stimulus.“It will be a very long period before we start discussions about removing stimulus,” Macklem said in response to questions after his speech, which he gave via video-conference to Canadian Clubs and Cercles canadiens. “It’s not a discussion we’re engaged in right now.”The economy will get an immediate boost as containment measures are lifted, people are called back to work, and households resume some of their normal activities,” Macklem said. “But it will be important not to assume that these growth rates will continue beyond the reopening phase.”The Bank of Canada, under Macklem’s predecessor Stephen Poloz, took unprecedented actions to make sure businesses, institutions and consumers had access to credit. The bank cut interest rates by 175 basis points to 0.25% and launched a series of programs to inject hundreds of billions of cash into the economy. That includes its first ever large scale asset purchase program to buy government debt -- known as quantitative easing.The central bank will continue to buy government bonds until a rebound is “well underway,” Macklem said, adding that policy makers are worried that demand will be slow in recovering, which could put downward pressure on inflation without the stimulus.Long and GradualMacklem’s comments echo those of Deputy Governor Lawrence Schembri, who said last week the second phase of the recovery will be long and gradual because of the lingering uncertainty around the virus. The bank sees the economy rebounding quickly during the first phase after governments allow normal activities to resume. But after that, the growth trajectory may be uneven and slow, since not all industries will be able to operate until a vaccine is created.“The expected long road back indicates that the Bank will need to provide more stimulus, likely in the form of a more aggressive quantitative easing program,” Royce Mendes, an economist at CIBC World Markets, said in a report to investors.The Bank of Canada has bought almost C$400 billion ($296 billion) in assets since the crisis began to inject liquidity into financial markets. Macklem highlighted on Monday how the purpose of that cash injection has been changing, with the focus now on keeping interest rates low rather than ensuring markets are functioning properly. That’s meant more of the liquidity is targeted at buying up government debt, rather than short-term money market instruments held by banks.Macklem reiterated the bank will continue to purchase at least C$5 billion of Canadian government bonds a week to help lower long-term borrowing costs for households and businesses and signal that rates will remain low for a long period.The bank continues to express concern around the potential for lower inflation. Although businesses are reopening, millions of Canadians remain out of work and spending has dropped. The bank expects supply to be restored faster than demand, which could put downward pressure on prices.“Our main concern is to avoid a persistent drop in inflation by helping Canadians get back to work,” Macklem said.Macklem isn’t a fan of negative rates. The governor made sure to highlight in his speech that low rates could lead to distortions in the behavior or financial institutions, while reiterating policy makers will using asset purchases until a recovery is underway. He didn’t specify when he expects that will happen.Next month, the bank will deliver its July Monetary Policy Report which will contain a central planning scenario for output and inflation. Still, the bank says the pandemic has created a ‘fog of uncertainty’ which has made it difficult to give a clear outlook.“The course of the coronavirus is the biggest source of uncertainty,” Macklem said. “Beyond that, we don’t know how global trade and supply chains will evolve, or what will happen with domestic supply and demand,” or even how spending habits will change or confidence rebounds.Yet, the economy is showing signs of stabilization and as the data comes in, the bank feels more comfortable in its ability to answer some of those questions.(Updates with Macklem’s comments throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Most of Canada's biggest banks are ending their extra payments to employees who continued working in public during COVID-19 pandemic lockdowns, as the country's daily infection tallies decline. The banks' moves follow grocery chains Metro Inc <MRU.TO>, Loblaw Companies <L.TO> and Sobeys Inc in ending the additional work incentives, which were put in place when many other Canadian workers began working from home to limit their risk. The rollback of extra temporary pay for grocery store employees prompted a Canadian parliamentary committee on Thursday to summon major retailers to explain their decisions.
CIBC Innovation Banking is pleased to announce a US$6 million revolving credit facility for Virginia-based Vbrick Systems Inc. ("Vbrick"), an industry-leading provider of video platform solutions. With operations in North America, Europe and Australia, the credit facility will be used to accelerate its rapid growth trajectory with investments in new customer acquisition and product innovation.
Canadian Imperial's (CM) second-quarter fiscal 2020 results indicate rise in provisions, expenses and lower non-interest income, partly offset by improved net interest income.
Canadian Imperial Bank (CM) delivered earnings and revenue surprises of -41.88% and -0.18%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
CIBC Innovation Banking is pleased to announce a $5 million growth capital financing with Toronto-based Sensibill Inc. ("Sensibill"), a provider of everyday tools such as digital receipt management and SKU-level data that help institutions better know and serve customers. Backed by Radical Ventures, Information Venture Partners, First Ascent Ventures and Impression Ventures, the company will use the funds to support its plans for strategic growth.
For income investors watching volatile market conditions, the comfort of a regular, reliable dividend is hard to overstate. But finding these kinds of shares i8230;
CIBC Innovation Banking is pleased to announce a $25 million credit facility for Q4 Inc. (Q4), a Toronto based leading global provider of cloud-based investor relations and capital markets solutions. Q4 will use this latest growth financing to support continued scaling of its team, deepening of its best-in-class technology platform, and the continued pursuit of inorganic growth opportunities.
CIBC Innovation Banking is pleased to announce a $2 million growth capital financing for Toronto-based Blue J Legal ("Blue J"), a machine learning and AI-powered predictive legal software platform that specializes in North American tax law and Canadian employment law. The growth capital will be used to support Blue J’s continued product diversification and geographic expansion efforts.
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CIBC Innovation Banking is pleased to announce a $25 million growth capital financing with Vancouver-based SemiosBio Technologies Inc., a leader in developing technology solutions for the precision crop management industry. The capital will be used by the company to support growth into new crops and new geographies, and for strategic acquisitions.
CIBC Innovation Banking is pleased to announce a $1.5 million growth capital financing with smart factory analytics provider Worximity Technology Inc. The debt capital will be used to support the Montreal-based company’s product diversification and expansion into international markets.
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Victor Dodig, chief executive of Canada's fifth-largest bank, told staff on Thursday that CIBC needs to challenge itself to be "a more efficient bank by focusing on continuous improvement and keeping a careful eye on costs," according to a memo seen by Reuters. A CIBC spokesman declined to comment. CIBC has improved its efficiency ratio, which measures non-interest expenses as a percentage of revenue, to 55.5% in 2019 from 60.4% in 2015.
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Toronto-Dominion (TD) and Canadian Imperial Bank of Commerce (CM) will likely incur restructuring charges in fiscal 2020 to drive earnings growth, while other Canadian banks might not.
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