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☆ BoC to keep up pace with 50 basis point December rate hike -economists
▼ + stars: | 2022-12-01 | by ( Indradip Ghosh | ) www.reuters.com time to read: +4 min

Fourteen said the BoC would dial down its pace to 25 basis points. Of the large Canadian banks, Scotiabank, CIBC and National Bank expected a 50 basis point move with no further hikes afterward. RBC forecasts a 25 basis point hike and then a pause, while BMO expects 50 and then another 25 in early 2023. The Fed, by contrast, is expected to raise its federal funds rate to a minimum of 4.75%-5.00% early next year, with the risks around forecasts skewed toward a higher rate. "The latest BoC research on household vulnerability and flexible mortgage rates support the idea that the BoC terminal rate will end at least 50 basis points below the U.S. Federal Reserve," said Sebastien Lavoie, economist at Laurentian Bank.

☆ TD Bank quarterly profit jumps on higher rates boost
▼ + stars: | 2022-12-01 | by ( ) www.reuters.com time to read: +1 min

Dec 1 (Reuters) - Canada's TD Bank (TD.TO) posted a surge in fourth-quarter profit on Thursday as gains from higher interest rates boosted its personal and commercial business and helped offset weakness in underwriting and capital markets. The lender set aside C$617 million in loan loss provisions, compared to a release of C$123 million a year earlier. TD Bank joined peers Royal Bank of Canada (RY.TO), Bank of Nova Scotia and National Bank of Canada (NA.TO) to mark higher funds this year to prepare for potential loan losses as worries of an economic downturn grow. read moreThe bank's personal and commercial business posted an 11% increase in net income, reflecting higher margins and strong volume growth. Overall net profit was C$6.67 billion, or C$3.62 per share, compared with C$3.78 billion, or C$2.04 per share.

The global job cuts at the London-headquartered bank will fall across several business units and geographical locations and result in the loss of at least 200 positions, mostly with the title of Chief Operating Officer (COO), the sources said. HSBC, which used to position itself as the world's local bank, employs many COOs because country and business lines have their own separate COO, the sources said. The lender has been shrinking its sprawling global business for several years, downsizing in many regions and exiting some countries entirely as it tries to improve shareholder returns. The initiative, codenamed Project Banyan, follows HSBC's last major redundancy plan in 2020, which targeted up to 35,000 job cuts globally across all staffing levels. Three separate sources confirmed job cuts were underway, as HSBC joins a chorus of other western banks axing staff as a bleak global economic outlook weighs on business, consumer and investment banking revenues.

☆ C$ dips against greenback; falls harder vs other G10 currencies
▼ + stars: | 2022-12-01 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

It was the only G10 currency to lose ground against the U.S. dollar . The greenback fell 1.1% against a basket of major currencies. "In a weak U.S. dollar environment, the Canadian dollar often lags," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. Chances that the BoC would hike by 50 basis points rather than 25 basis points at a policy decision next Wednesday have fallen to roughly 10% from 30% since Powell's comments, money market data showed. The Canadian 10-year yield fell 9.3 basis points to 2.842%, its lowest level since Aug. 18.

☆ Top Canada banks post fall in profits as deals drought offsets rate boost
▼ + stars: | 2022-11-30 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

(Reuters) -Royal Bank of Canada (RBC) and National Bank of Canada, two of the biggest banks in the country, posted a drop in profits as their market-focused businesses took a hit from the central bank’s hawkish monetary tightening campaign. FILE PHOTO: FILE PHOTO: A Royal Bank of Canada (RBC) logo is seen on Bay Street in the heart of the financial district in Toronto, January 22, 2015. To cushion the hit from markets, banks have turned to their lending business that got a boost from the central bank’s rate hikes. While National Bank posted an adjusted profit of C$2.08, below analysts’ expectation of C$2.24. RBC reported a modest drop in profit to C$3.88 billion, while National Bank’s earnings dropped 4% to C$738 million.

☆ National Bank of Canada quarterly profit falls on higher expenses, provisions
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +1 min

Nov 30 (Reuters) - National Bank of Canada (NA.TO) posted a lower fourth-quarter profit on Wednesday, as the Canadian lender set aside higher provisions in the face of an economic downturn. The company recorded $87 million in provisions for the three months ended Oct 31, compared to $41 million a year ago. The Canadian lender's personal and commercial unit saw net income jump 13% on strong lending as the central bank pumps up interest rates to combat decades-high inflation. The Canadian lender joined Bank of Nova Scotia in reporting a lower profit as fees from advisory and deals tank due to escalating worries of an economic downturn. ($1 = 1.3526 Canadian dollars)Reporting by Mehnaz Yasmin in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Russian oil is still flowing in huge volumes even as EU sanctions and a price cap are less than a week away.
▼ + stars: | 2022-11-30 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

European governments still can't agree on a price cap for Russian oil even as the December 5 deadline is less than a week away. Poland, for example, is committed to a $30 price cap. Even with a price cap of, say, $65, it's unclear whether that can really make an impact, given that Russia's flagship crude oil — Urals grade crude — is trading 20% below that level already. Despite the West's repeated condemnation of Russia and President Vladimir Putin, Russia remains Europe's largest single refined oil products supplier. A) The West agrees to a price cap above $40B) The West agrees to a price cap below $40C) The West does not agree to any price capLet me know on Twitter (@philrosenn) or email me (prosen@insider.com).

☆ Top Canada banks RBC, National Bank's profits dip as bad debt provisions mount
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

Profit from personal and commercial banking for RBC and National Bank in the quarter grew 5% and 13%, respectively. RBC earmarked C$381 million in provisions for credit losses (PCL), compared with a C$227 million release last year. National Bank reported C$87 million versus a C$41 million release a year ago. Shares of RBC, which agreed to buy HSBC's (HSBA.L) Canadian business on Tuesday, were down 1.4%, while National Bank fell nearly 4%. National Bank, on the other hand, posted an adjusted profit of C$2.08 per share, below analysts' expectation of C$2.24.

TORONTO, Nov 29 (Reuters) - Canadian regulators will review the sale of HSBC's (HSBA.L) business in Canada to Royal Bank of Canada (RY.TO) for C$13.5 billion ($10 billion) in cash, the Canadian government's finance ministry said on Tuesday. The Competition Bureau, under the Competition Act, will also review the transaction," the finance ministry said in a statement. RBC's purchase price reflects a 30% premium to the value some analysts had attributed to HSBC's Canada business. Analysts had valued HSBC's Canada business in the range of C$8 billion to C$10 billion. "The Minister of Finance's decision will be informed by all required regulatory review processes," it added.

☆ Royal Bank of Canada Set to Buy HSBC Bank Canada for $10 Billion
▼ + stars: | 2022-11-29 | by ( Adriano Marchese | ) www.wsj.com time to read: 1 min

All of HSBC Canada’s earnings from June 30 of this year through the close will accrue to Royal Bank of Canada. Royal Bank of Canada has agreed to buy the Canadian unit of the British banking and financial-services giant HSBC Holdings PLC for 13.5 billion Canadian dollars, equivalent to US$10 billion. The Canadian financial institution said it has entered into an agreement to acquire all of the common shares of HSBC Bank Canada, which will see C$134 billion in assets and around 130 branches transfer over to Royal Bank.

☆ Toronto market seen higher if economic downturn not too severe: Reuters poll
▼ + stars: | 2022-11-29 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

"If the downturn doesn't prove to be severe, equity markets could stabilize even as economic data and earnings underwhelm," said Angelo Kourkafas, an investment strategist at Edward Jones in St. Louis, Missouri. Canada's economy is likely to be particularly sensitive to higher rates after households borrowed heavily during the pandemic to participate in a red-hot housing market. "While corporate earnings will likely continue to decline for many industries, we see continued growth in earnings across most commodities," said Arthur Salzer, chief executive officer of Northland Wealth Management. Adding to investor enthusiasm, the TSX last Wednesday closed above the 200-day moving average for the first time since May 4. (Other stories from the Reuters global stock markets poll package:)Reporting by Fergal Smith; polling by Susobhan Sarkar and Sarupya GangulyOur Standards: The Thomson Reuters Trust Principles.

☆ HSBC Set to Sell Canadian Arm to Royal Bank of Canada for $10 Billion
▼ + stars: | 2022-11-29 | by ( Adriano Marchese | ) www.wsj.com time to read: 1 min

All of HSBC Canada’s earnings from June 30 of this year through the close will accrue to Royal Bank of Canada. Royal Bank of Canada has agreed to buy the Canadian unit of the British banking and financial-services giant HSBC Holdings PLC for 13.5 billion Canadian dollars, equivalent to US$10 billion. The Canadian financial institution said it has entered into an agreement to acquire all of the common shares of HSBC Bank Canada, which will see C$134 billion, or roughly US$99.6 billion, in assets and around 130 branches transfer over to Royal Bank.

☆ RBC Bets on Immigration in $10.1 Billion HSBC Canada Deal
▼ + stars: | 2022-11-29 | by ( Vipal Monga | Josh Mitchell | ) www.wsj.com time to read: 1 min

Royal Bank of Canada said it would pay US$10.1 billion for HSBC Holdings PLC’s Canadian operations, a move meant to position Canada’s biggest bank to expand during an expected immigration surge. HSBC, a London-based bank with a huge Hong Kong presence, serves more than 780,000 customers through 130 branches in Canada. As part of the deal, it will refer clients who are moving to Canada to RBC, said Dave McKay , RBC’s chief executive.

[1/2] HSBC logo is seen on a branch bank in the financial district in New York, U.S., Aug. 7, 2019. REUTERS/Brendan McDermid/File PhotoLONDON, Nov 29 (Reuters) - HSBC (HSBA.L) has agreed to sell its business in Canada to Royal Bank of Canada (RY.TO) for $13.5 billion Canadian dollars ($10.04 billion) in cash. Chinese insurance company Ping An Insurance Group has been pushing HSBC to split off its Asian business to boost returns. "We decided to sell following a thorough review of the business, which assessed its relative market position within the Canadian market and its strategic fit within the HSBC portfolio," Chief Executive Noel Quinn said. Analysts had valued HSBC's Canada business in the range of C$8 billion to C$10 billion.

☆ HSBC to sell Canada business to RBC for $10 billion
▼ + stars: | 2022-11-29 | by ( ) www.cnbc.com time to read: 1 min

HSBC bank logo on the wall is seen in Valletta , Malta on 21 September 2022. British bank HSBC said on Tuesday it had agreed to sell its business in Canada to Royal Bank of Canada for $13.5 billion Canadian dollars ($10.04 billion) in cash. The transaction is expected to complete in late 2023 and will result in a pre-tax gain of $5.7 billion for HSBC, the bank said in a statement. The sale comes as HSBC pursues a strategy of focusing its resources on its core markets, amid pressure from its biggest shareholder Ping An to improve its performance. The deal enables RBC to grab further market share in its home market, adding 130 branches and more than 780,000 retail and commercial customers.

☆ Stocks making the biggest moves in the premarket: Hibbett, Silvergate Capital, Chemours and more
▼ + stars: | 2022-11-29 | by ( Peter Schacknow | ) www.cnbc.com time to read: +2 min

Silvergate Capital (SI) – The digital assets bank's shares fell another 2.4% in the premarket, extending yesterday's 11.1% loss. Chemours (CC) – Chemours tumbled 6.1% in premarket trading after the chemical maker said its full-year earnings were tracking slightly below the low end of its prior guidance range. United Parcel Service (UPS) – UPS gained 1.4% in the premarket after Deutsche Bank upgraded the delivery service's stock to "buy" from "hold." HSBC (HSBC) – HSBC struck a deal to sell its Canadian unit to the Royal Bank of Canada for $10.1 billion in cash. Roku (ROKU) – Roku shares fell 2.9% in premarket action after KeyBanc downgraded the video streaming device company's stock to "sector weight" from "overweight," saying several facets of its bullish thesis on Roku failed to play out.

☆ Stocks making the biggest moves midday: Apple, Chevron, Bilibili, Hibbett & more
▼ + stars: | 2022-11-29 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Hibbett — Shares of Hibbett dropped more than 9% after the company posted a disappointing profit for the third quarter. Chevron — The energy stock rose more than 1% as oil prices rebounded from Monday's sell-off. Wynn Resorts , Las Vegas Sands — Shares of casino operators Wynn Resorts and Las Vegas Sands jumped 2.6% and 1.8% respectively on news that China has given new licenses to operators in Macao so that they can keep operating amid the government's zero Covid policy. Darden Restaurants — Shares of Olive Garden's parent company slipped roughly 1% following a downgrade to neutral from Baird. The firm said the "risk/reward looks more balanced" for Darden Restaurants following the stock's recent outperformance.

The transaction is also fraught with regulatory risks, analysts said, though RBC argues that HSBC's Canada business accounts for just 2% of Canadian banking market share. The finance minister has the authority to impose any terms and conditions, the finance department said in a statement. "This regulatory assessment isn't likely to be completed for some time," Calvin Goldman, former commissioner of Canada's competition bureau, told Reuters, referring to the latest deal. QUICK MOVEDespite the expected regulatory risks, RBC was keen to move quickly. RBC is paying 9.4 times HSBC's 2024 adjusted earnings, which KBW analysts said was a steep price, though offset by savings potentials.

☆ NZ faces 'shallow' recession as rates need to rise more - senior central banker
▼ + stars: | 2022-11-28 | by ( Stella Qiu | ) www.reuters.com time to read: +3 min

SYDNEY, Nov 28 (Reuters) - New Zealand is likely facing a "shallow" recession as interest rates need to rise further to tame inflation, a top central banker said on Monday, suggesting that a pause in the policy tightening streak was still a distant prospect. The recession during the global financial crisis lasted six quarters and led to a total fall in GDP of around 4 percentage points. Silk said higher rates were justified by rising inflation expectations in New Zealand and the strength of the labour market which is driving wages higher. "If you look at some of the peak indicators of peak rates, for the Fed for example, that's very similar to our latest OCR track as well. Fed members have generally projected rates could rise as far as 5.0 to 5.25%, with some even expecting a higher peak.

Nov 27 (Reuters) - Top Canadian banks are expected to post a decline in fourth-quarter profits as choppy markets hurt wealth management and a slow deal pipeline dents income from investment banking, offsetting expected gains from business loans. On average, profit for the Big Six banks are expected to drop 4% from last year, hurt by lower investment banking activity. Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO), which have the largest capital markets businesses, are expected to see the biggest hit to profits. "Business lending was particularly strong and aided by strength in balances outside of Canada," KBW analysts Mike Rizvanovic and Abhilash Shashidharan said. National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO), also among the Big Six, will report earnings on Wednesday and Friday, respectively.

☆ Stocks finish higher as the Street awaits key inflation data next week
▼ + stars: | 2022-11-25 | by ( Zev Fima | ) www.cnbc.com time to read: +4 min

Stocks finished higher on this holiday-shortened trading week, with all the major U.S. averages posting gains. Under the hood, all sectors closed higher for the week, led by utilities, materials and financials. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. The U.S. Federal Reserve, alongside global central banks, has been trying to get a handle on soaring inflation.

☆ The November jobs report and the Fed matter most to markets in the week ahead
▼ + stars: | 2022-11-25 | by ( Patti Domm | In | ) www.cnbc.com time to read: +8 min

November's jobs report is the big event for markets in the week ahead, and it could provide important insight into the path of Federal Reserve interest rate hikes. The labor market has cooled only slightly, as other parts of the economy have slowed. But the labor market has been more resilient than expected, challenging the Fed's efforts to tame inflation by slowing economic activity. Besides the jobs report, there is the Job Openings and Labor Turnover Survey (JOLTS) report Wednesday, as well as the Fed's beige book on economic activity. "Holding above 4,000, as we await the jobs report and those other economic reports would be constructive for one more move before Christmas," he said.

☆ Canada house prices to tumble 17.5% peak to trough, say analysts: Reuters Poll
▼ + stars: | 2022-11-24 | by ( Indradip Ghosh | ) www.reuters.com time to read: +4 min

House prices need to fall 25% from peak to trough in order to make them affordable, according to the median response to an additional question. (Reuters Poll - Canada housing market outlook: )That was in line with BoC Senior Deputy Governor Carolyn Rogers who said this week house prices needed to fall to restore balance to the housing market. A majority of property market experts said the risk of a crash in house prices was low. During the financial crisis, U.S. house prices crashed as much as around 40% but the Canadian market fell only 9% then. “In more ‘normal’ times before the pandemic, a 30% drop in house prices would be considered a crash.

Nov 24 (Reuters) - Manulife Financial Corp (MFC.TO) will outsource its property operations in Canada to focus on its entrepreneurial investment management unit, Canada's biggest life insurer said Thursday. The change to a new structure will result in Manulife Investment Management, which overseas the real estate portfolio, shedding 50 jobs, two sources familiar with the matter told Reuters on Thursday. Among other financial services companies, Canada's biggest lender, Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) have recently cut jobs in the United States. Manulife Investment Management's real estate arm uses a pool of capital to invest in real estate in 29 cities across the United States, Asia and Canada. According to its annual report, the insurer had about C$13.2 billion ($9.90 billion) worth of real estate investments in 2021.

☆ Canada house prices to tumble 17.5% peak to trough, say analysts
▼ + stars: | 2022-11-24 | by ( Indradip Ghosh | Gabriel Araujo | ) www.reuters.com time to read: +4 min

House prices need to fall 25% from peak to trough in order to make them affordable, according to the median response to an additional question. Reuters Poll - Canada housing market outlookThat was in line with BoC Senior Deputy Governor Carolyn Rogers who said this week house prices needed to fall to restore balance to the housing market. A majority of property market experts said the risk of a crash in house prices was low. During the financial crisis, U.S. house prices crashed as much as around 40% but the Canadian market fell only 9% then. "In more 'normal' times before the pandemic, a 30% drop in house prices would be considered a crash.

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