BNS - The Bank of Nova Scotia

NYSE - NYSE Delayed price. Currency in USD
40.02
-1.58 (-3.80%)
At close: 4:00PM EDT
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Previous close41.60
Open41.12
Bid40.05 x 1200
Ask41.10 x 1000
Day's range39.68 - 41.12
52-week range31.94 - 58.22
Volume1,537,044
Avg. volume2,135,138
Market cap48.581B
Beta (5Y monthly)0.87
PE ratio (TTM)7.81
EPS (TTM)5.12
Earnings date06 Feb 2017 - 10 Feb 2017
Forward dividend & yield2.58 (6.19%)
Ex-dividend date06 Jul 2020
1y target est72.27
  • Bank of Nova Scotia (BNS) Q2 2020 Earnings Call Transcript
    Motley Fool

    Bank of Nova Scotia (BNS) Q2 2020 Earnings Call Transcript

    My name is Philip Smith, Senior Vice President of Investor Relations. Presenting to you this morning is Brian Porter, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Daniel Moore, our Chief Risk Officer.

  • Bloomberg

    Scotiabank Earmarks $1.33 Billion for Bad Loans in Pandemic

    (Bloomberg) -- Bank of Nova Scotia’s quarterly earnings plunged 41% after the lender set aside a record amount for loan losses, giving investors their first indication of how the coronavirus pandemic will affect fiscal second-quarter results at Canadian banks.Scotiabank earmarked C$1.85 billion ($1.33 billion) for soured loans, less than analysts predicted. Canada’s six biggest banks are expected to set aside C$8.9 billion for loan losses in the three months through April 30, triple the first-quarter total. At Scotiabank, earnings beat analysts’ estimates even with the increase in provisions and charges tied to its shuttered metals-trading business.“Credit was largely better than expected,” Barclays Plc analyst John Aiken said in a note to clients Tuesday. Still, “the market was obviously expecting more reserves to be taken” and it’s likely “additional reserves will need to be taken in future quarters as the true impact of the pandemic will be felt.”The lender’s shares rose 4.3% to C$54.21 at 9:51 a.m. in Toronto. They’ve fallen 26% this year, compared with a 22% decline for Canada’s eight-company S&P/TSX Commercial Banks Index.Scotiabank is the first large Canadian lender to report second-quarter results. The country’s six biggest banks are expected to post a 44% profit decline in the quarter, the median of estimates compiled by Bloomberg Intelligence. That would be the biggest drop since 2009.Chief Executive Officer Brian Porter told analysts Tuesday that he expects economic declines in the bank’s core markets for the balance of the year, followed by a return to growth in 2021 on a “gradual abatement of the pandemic” and reopening of economies. Loan losses will remain elevated for the rest of the year, with the third quarter resembling the second, though he expects all main businesses to remain profitable, he said.‘Broken Eggshells’“Parts of the economy will snap back pretty quickly -- the pent-up demand, the impact of the relief programs the government has provided will have its intended impact, but we’ve never been through this before,” Porter said. “This is not a one-quarter or two-quarter event. The banking sector will be picking up broken eggshells for a number of quarters here.”Despite the surge in provisions, loans aren’t showing signs of deteriorating. Net impaired loans accounted for 0.53% of overall customer loans, down from 0.61% a year earlier, and net write-offs as a percentage of average loans totaled 0.47%, less than 0.5% a year ago.Scotiabank’s international banking business had the steepest profit decline in the quarter, falling 74% on higher provisions and lower contributions after selling some of its overseas operations as it sharpened its focus in Latin America and the Caribbean. Earnings from Canadian banking plunged 42% as provisions rose, while the bank’s global wealth management and capital markets divisions posted higher income.Trading JumpsThe Toronto-based company had a 56% jump in trading revenue in the quarter, fueled by fixed-income, echoing the trend seen by Wall Street trading desks last month when they reported their best three-month period in eight years thanks to surging client activity during the most volatile period on record. That, along with higher investment-banking fees, helped boost earnings in Scotiabank’s capital-markets division by 25% to C$523 million.Scotiabank also said it set aside C$232 million this year for U.S. regulatory probes into the bank’s metals-trading practices and costs tied to the wind-down of that business.Net income for the three months ended April 30 fell to C$1.32 billion, or C$1 a share, from C$2.26 billion, or C$1.73, a year earlier. Adjusted earnings totaled C$1.04 a share, beating the 96-cent average estimate of 13 analysts in a Bloomberg survey.(Updates with shares, CEO comments starting in fourth paragraph.)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

    Scotiabank Takes $168 Million Hit as It Shuts Historic Gold Unit

    (Bloomberg) -- Bank of Nova Scotia has set aside C$232 million ($168 million) to cover the cost of winding down its historic precious-metals unit as well as a potential settlement of U.S. investigations into the unit’s trading activities.The charges this year, which the bank disclosed in its quarterly earnings report on Tuesday, mark an ignominious end to what was once one of the world’s top gold-trading businesses, with a history dating back to the 17th century.Scotiabank announced it was closing down its metals business last month. The bank had already significantly reduced its activity in bullion markets, where it was once a leading player alongside banks such as JPMorgan Chase & Co. and HSBC Holdings Plc. Last year it dropped the “Mocatta” name, a fixture of the gold market ever since Moses Mocatta opened an account to trade precious metals in 1671.The bank has been caught up in regulatory scrutiny of banks’ precious-metals trading and one of its former traders last year pleaded guilty to trying to manipulate prices through spoofing.Scotiabank, which had previously disclosed that it was being investigated, on Tuesday said it was “engaging in settlement discussions with the applicable authorities” in relation to probes from the Commodity Futures Trading Commission and the U.S. Department of Justice into its activities in the metals markets.The C$232 million that Scotiabank set aside in the fiscal year to date was related to both the investigations and the “costs related to the wind-down of the metals business,” the bank said.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.

  • Analysts Estimate Bank of Nova Scotia (BNS) to Report a Decline in Earnings: What to Look Out for
    Zacks

    Analysts Estimate Bank of Nova Scotia (BNS) to Report a Decline in Earnings: What to Look Out for

    Bank of Nova Scotia (BNS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • Investing.com

    RBC Capital Sticks to Their Hold Rating for Bank Of Nova Scotia

    RBC Capital analyst Darko Mihelic maintained a Hold rating on Bank Of Nova Scotia (NYSE:BNS) on Wednesday, setting a price target of C$59, which is approximately 54.94% above the present share price of $38.08.

  • Is The Bank of Nova Scotia's (TSE:BNS) CEO Being Overpaid?
    Simply Wall St.

    Is The Bank of Nova Scotia's (TSE:BNS) CEO Being Overpaid?

    In 2013 Brian Porter was appointed CEO of The Bank of Nova Scotia (TSE:BNS). This report will, first, examine the CEO...

  • Bloomberg

    Scotiabank’s $10.7 Billion Tech Spend Is Paying Off in Pandemic

    (Bloomberg) -- Bank of Nova Scotia’s C$15 billion ($10.7 billion) of technology spending over the past five years is paying off during the coronavirus pandemic.The investment has allowed 60% of Scotiabank’s roughly 100,000 employees to work from home, Chief Executive Officer Brian Porter said Tuesday at the bank’s annual investors meeting. That mobilization, along with what Porter has called “great stability” in the lender’s operating systems, has let Scotiabank continue serving customers around the world through the disruptions.“To date, tens of thousands of employees have been mobilized to work from home and provide seamless operations almost overnight,” Porter said at the meeting.Such capabilities have allowed the Toronto-based bank to reach people via their phones or at home quickly and easily, Porter said. “We are using our digital capabilities to rapidly develop solutions for our customers, particularly credit relief.”Banks have been adjusting their operations for weeks amid coronavirus shutdowns around the world, expanding work-from-home policies, enforcing social distancing within offices, reducing branch hours and ramping up digital banking efforts.For Scotiabank, whose operations span about 30 countries in regions including Latin America and the Caribbean, this is not business as usual.“We have reconfigured work spaces including installing plexiglass screens at our branches,” Porter, 62, said. “We are regularly updating our employees with relevant communications on all aspects of Covid-19. We are also hosting employee calls with nurses and our chief medical officer, so they can have their questions addressed.”The bank has offered additional paid leave, emergency paid leave and special payments to employees still working at branches or offices.Porter also highlighted the “impressive” collaboration within Canada between government, policymakers and the banking regulator, the Office of the Superintendent of Financial Institutions, to help protect the economy from the worst impacts of the pandemic.“Canada is unique in that our leading banks, regulators, and government officials can work quickly and collaboratively to develop solutions,” he said. “The cooperation and coordination we have seen with the federal Ministry of Finance and other ministries, as well as provincial governments, the Bank of Canada, and OSFI has been impressive.”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.

  • The Sky’s the Limit for Stimulus in Canada’s Bid to Salvage Economy
    Bloomberg

    The Sky’s the Limit for Stimulus in Canada’s Bid to Salvage Economy

    (Bloomberg) -- Canada’s policy makers unleashed the full power of the state on Friday, pledging open-ended support that could result in the largest government intervention in the economy since World War II.In a coordinated response to an increasingly bleak outlook, Prime Minister Justin Trudeau’s government doubled its existing stimulus package, while the Bank of Canada cut interest rates to a record low and began a massive asset purchase program to flood markets with cash.More significantly, authorities committed to providing limitless aid if needed to revive an economy that could be on track for the sharpest one-year contraction since the Great Depression. It was a dramatic escalation after weeks of incremental steps that could take the total size of new stimulus and liquidity measures to near C$1 trillion ($715 billion) by the time the crisis is over.“This economic hit is unlike anything we have seen before, but the policy response is also unlike anything we have seen before, and with impressive pace,” Doug Porter, chief economist at Bank of Montreal, said in a note to investors.Canada’s economy is suffering twin shocks. The unemployment rate likely doubled in the past two weeks after the pandemic forced widespread business closures. And tanking oil prices are devastating an energy sector that once accounted for about a 10th of output, with crude so cheap companies are virtually giving it away.Bank of Nova Scotia estimates gross domestic product will contract by 4.1% in 2020. That would be the biggest one-year contraction since 1933.Until last week, Trudeau and Bank of Canada Governor Stephen Poloz had taken a more cautious approach than elsewhere, focusing less on massive stimulus and more on designing policies that could be scaled up if needed.But a surge in jobless claims jolted policy makers into more forceful action.The government’s fiscal stimulus package now totals C$202 billion, and includes direct spending to individuals along with tax deferrals, government-backed credit and wage subsidies for business. More is coming, with the next move likely to be relief measures for the oil sector and airlines.“There’s not a cap” to stimulus measures, Finance Minister Bill Morneau told reporters at a press conference Friday. “We’re going to do whatever it takes to support people.”The government also intends to buy as much as C$150 billion worth of mortgages, while the country’s banking regulator is loosening capital requirements to free up at least C$300 billion of lending capacity.The Bank of Canada, which had been the only Group of Seven central bank to avoid quantitative easing after the financial crisis, has seen its balance sheet jump by C$90 billion as it cranks up asset purchases, and some economists predict that amount could triple.“Some may suggest this is using a lot of firepower,” Poloz said Friday at a press conference in Ottawa. “But I think a firefighter has never been criticized for using too much water.”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.

  • Metals Buckle Under Virus Double Whammy
    Bloomberg

    Metals Buckle Under Virus Double Whammy

    (Bloomberg Opinion) -- Lockdowns imposed to control the coronavirus have battered China’s appetite for everything from coal to copper, pushing stockpiles of raw materials higher and global prices lower. The next crunch could come from supply. The risk of an outbreak is growing in ill-prepared producer countries, with mandatory quarantines and border shutdowns threatening to choke off production.Prices of bulk commodities are already seeing some support from such disruptions, as ports and mines close. Coking coal in particular has outperformed owing in part to Mongolia’s decision in late January to seal its border with China, which cut off a key source of supply. The impact may be only short term. With factory shutdowns spreading through the U.S. and Europe, the reduction in wider metals supply would need to be dramatic to offset crumbling global demand. Upheaval could provide some price support regardless.Appetite for virtually all commodities has slumped since January, when the extent of damage from the novel coronavirus became clear. Even where mills, smelters and factories stayed open, that largely translated into crammed warehouses. China’s industrial production, investment and retail sales for the first two months of the year plunged across the board, with construction particularly weak. China’s economy is now all but certain to contract in the first quarter from a year earlier.With European automakers and other manufacturers shuttering operations, the drop in commodity demand in the first three months is likely to be even worse than during the global financial crisis. Steel demand will fall more than a fifth, copper will slide 14% and aluminum almost a third, analysts at BMO Capital Markets estimate.It hasn’t helped futures prices that the latest wave of closures is coming as we head into the second quarter, usually a peak period for demand. China, by contrast, was worse hit during the quieter Lunar New Year. Copper, a bellwether of confidence in global manufacturing, has tumbled to four-year lows of around $4,800 per metric ton on the London Metal Exchange.Travel and quarantine restrictions have already damaged supply, making it harder for miners to fly employees in and out and impeding projects under construction. Peru’s quarantine has already prompted Anglo American Plc to stop all nonessential work at its $5 billion Quellaveco project and withdraw most of the site’s 10,000 staff and contractors. Canada’s Teck Resources Ltd. has suspended work at its Quebrada Blanca Phase 2 in Chile, while Rio Tinto Group says work has slowed on its underground mine at Oyu Tolgoi in Mongolia.Lockdowns may be even more severe. Copper mines are among the worst affected as Chile and Peru, the world’s top two producers, scramble to contain the virus, prompting Anglo American, Antofagasta and others to send staff home. Chilean state behemoth Codelco will work at reduced capacity for two weeks, while workers at BHP Group’s Escondida, the world’s largest copper mine, threatened action to compel the company to take more preventative steps. The miner said Saturday it would reduce the number of contractors onsite. Analysts at Bank of Nova Scotia estimate a two-week halt in operations in those two countries would amount to 325,000 tons of lost production — roughly 4% of their combined annual output. This serves to underline the geographical concentration of a handful of key materials. Lithium is produced mainly in Chile and Australia, while iron-ore exports are dominated by Australia and Brazil. The price surge after last year’s Vale SA dam disaster shows what a port closure could do to the iron-ore market, though such a move appears unlikely given the huge budget contribution that the material makes to Brazil and Australia.Many producer countries are developing economies and ill-equipped to handle an epidemic that has floored even the world’s richest nations. In Brazil, the response has been patchy at best, with some states taking measures that are increasingly at odds with the federal government. Poorly implemented lockdowns, as seen in the Philippines, could push thousands of casual workers out of cities in search of work in more remote areas — potentially extending the spread.If more drawbridges are raised, expect supplies from explosives and tires to heavy equipment to get blocked, hampering even mining operations that could otherwise keep going. In the meantime, low prices will hurt some higher-cost projects, though rock-bottom prices for oil, a significant input, will cushion the blow. This will affect smaller producers first, given the healthy balance sheets of big miners. Still, operations like Rio’s Pacific Aluminium, or pricey U.S. copper mines, look vulnerable.Demand was the first part of an unprecedented crunch for the global commodities industry. The second act is only beginning. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Trudeau Unveils Fiscal Jolt Worth 3% of Canada’s Economy

    (Bloomberg) -- Prime Minister Justin Trudeau announced plans to roll out a fiscal package worth 3% of Canada’s economy as it grapples with fallout from the coronavirus pandemic.The measures will be worth a combined C$82 billion ($56.7 billion), Trudeau said Wednesday in Ottawa. This includes C$27 billion in direct support for individuals and companies and C$55 billion in temporary tax deferrals for both households and businesses.It’s a significant escalation in Canada’s stimulus package, and the urgency appears to be ramping up by the hour. Late Tuesday night, government officials were only talking about the direct stimulus aspect of the plan.The outlook, however, seems to be deteriorating quickly. The price of Canadian heavy crude slumped Wednesday below $10 a barrel for the first time after oil-sands producers were forced to delay maintenance, pushing more oil into the market at the worst possible time.“Right now we are focused on making sure that people who are not getting an income or revenue because of this Covid-19 challenge have the money to be able to pay for groceries, pay their rent, and support their families through this difficult time,” Trudeau said.At a separate press conference, Finance Minister Bill Morneau called Wednesday’s measures the “first phase” of the response and said the government is prepared to do more if needed.“I will do whatever it takes,” he said. “There will be more to come.”More on Canada’s Virus ResponseTrump Says U.S., Canada Close Their Border After Virus SpreadsSearching For a Bottom, Canada Stock Managers Eye 2016 SupportOntario Premier Declares State of Emergency to Fight CoronavirusCanada to Buy Mortgages in Latest Step to Ease Market StrainGlobal financial markets are continuing to slide as the economic fallout from the pandemic outpaces even the massive response from governments and central banks.Trudeau also confirmed an announcement earlier by President Donald Trump that Canada and the U.S. have agreed to close the world’s longest undefended border to all non-essential traffic.The measures announced Wednesday include steps to bolster child benefit payments, a C$10 billion emergency care program to workers who stay home and don’t have access to paid sick leave, and a 10% wage subsidy to eligible small businesses for the next 90 days. The bulk of the support is a plan to allow taxpayers to defer filing until after Aug. 31 -- a temporary liquidity support.Wednesday’s package brings the support offered to businesses and individuals to more than C$500 billion during the crisis, the prime minister’s office said in a statement. The country’s banking regulator is loosening capital requirements to free up C$300 billion of lending capacity, while the country’s housing agency is buying up to C$50 billions in mortgages to provide liquidity.Bank of Canada Governor Stephen Poloz, who was also at the Morneau press conference, has cut interest rates by a full percentage over the past two weeks and moved aggressively to keep money flowing through credit markets. Investors are anticipating another half percentage point cut in coming weeks.Asked why he hasn’t moved since the Federal Reserve slashed interest rates on Sunday, Poloz said he would like the “benefit of analysis” of the recent fiscal steps and other measures taken by the central bank before deciding on the next steps. The next rate decision is scheduled for April 15.(Updates with comments from finance minister and Bank of Canada governor 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.

  • Trudeau Plans to Unveil Fiscal Stimulus Package on Wednesday
    Bloomberg

    Trudeau Plans to Unveil Fiscal Stimulus Package on Wednesday

    (Bloomberg) -- Prime Minister Justin Trudeau said his government will roll out a “significant” fiscal stimulus package Wednesday in a bid to shield Canada’s economy from tumbling into a recession.In his second televised address from outside his residence in as many days, Trudeau said the plan will include economic support for individual Canadians and businesses affected by the coronavirus pandemic. He added that lawmakers could be recalled briefly to enact changes to unemployment benefits.“We have the ability to invest right away to help Canadians but there are legislative measures that will need to be agreed to by parliament in order to move forward,” Trudeau said Tuesday in Ottawa.The Bank of Nova Scotia recommended last week the federal government would need to produce at least a C$20 billion ($14.1 billion) stimulus package this year in order to stave off a recession, and things have deteriorated since. On Monday, Trudeau closed the border to all non-residents except Americans.President Donald Trump’s administration is discussing a plan that could amount to as much as $1.2 trillion in spending on coronavirus-related economic stimulus. An equivalent package for Canada would be well above C$100 billion. A report from the Canadian Broadcasting Corp. said the Trudeau package will be more than C$25 billion. More on Canada’s Virus ResponseOntario Premier Declares State of Emergency to Fight CoronavirusCanada to Buy Mortgages in Latest Step to Ease Market StrainTrudeau Closes Borders to Foreigners, With U.S. ExemptedBank of Canada Cuts Rates in Coordinated Stimulus PackageCanada’s planned fiscal stimulus program will likely inject cash into businesses to keep employees on the payroll even if they aren’t working, as well as bolstering government benefits and unemployment programs, Trudeau said earlier Tuesday in a telephone interview with 680 News radio.At his press conference, he also said to expect another announcement later this week regarding leniency in filing and paying income taxes. Tax files are usually due at the end of April, but Quebec announced Tuesday it would delay provincial deadlines and payments.So far, the Canadian government has announced C$1 billion in funding, along with C$10 billion in new credit to backstop businesses. It also announced plans to purchase up to C$50 billion in mortgages to free up banks to continue lending. But the country has yet to deliver a major stimulus plan that would soften the blow of a swift drop in demand.Rate CutsRobust measures from Finance Minister Bill Morneau would be the latest step by officials trying to get ahead of the Covid-19 pandemic. The Bank of Canada has cut interest rates by a full percentage over the past two weeks. The country’s banking regulator also said it would loosen capital requirements to free up C$300 billion of lending capacity.Trudeau continues to govern from home after going into self isolation last Thursday, when his wife Sophie Gregoire Trudeau tested positive for the coronavirus following a trip abroad. He said he is “feeling fine” during the morning radio interview.As of Tuesday morning, there were 424 confirmed cases of Covid-19 and four deaths, according to Health Canada. A fifth death -- the first in Ontario -- has since been confirmed by officials in Canada’s most-populous province, which has declared a state of emergency.(Updates with CBC report on C$25 billion package in fifth paragraph.)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.

  • Ball Is In Trudeau’s Court After Bank of Canada Rate Cut
    Bloomberg

    Ball Is In Trudeau’s Court After Bank of Canada Rate Cut

    (Bloomberg) -- Bank of Canada Governor Stephen Poloz is doing his part to cushion the nation’s economy from the fallout of the coronavirus. Now it’s Prime Minister Justin Trudeau’s turn.The central bank slashed interest rates by half a percentage point Wednesday and said it is prepared to go further if necessary. However, economists say there are limits to what monetary policy can achieve, and the situation is dire enough to warrant additional help from Trudeau’s government.“We need a little bit of fiscal stimulus as well to at least support the economy through what is likely to be a bit of a rough patch through the spring,” Doug Porter, chief economist at Bank of Montreal, said by phone from Toronto. “It does make it more powerful if you’ve got both oars pulling at the same time. That can reinforce the message and help support the economy.”The virus has driven economic activity down sharply in some countries, disrupted supply chains, pulled down commodity prices and prompted a repricing of risk that has tightened financial conditions, the Bank of Canada said, warning the situation could worsen. Trudeau and his finance minister, Bill Morneau, say they’re prepared to help but have stopped short of firm commitments.“We are very mindful of the fact that an economic impact is certainly being felt in the global economy and is beginning to be felt in Canada, and that’s one of the things we need to turn our attention to and turn our attention to quickly,” Deputy Prime Minister Chrystia Freeland told reporters Wednesday in Ottawa. “I would just say on that, watch this space.”Earlier Wednesday, Freeland chaired a meeting of a newly formed “cabinet committee on the federal response to the coronavirus disease,” which she said hasn’t yet made any decisions on potential responses.Fiscal ToolsEconomists are speculating about what measures the government could take.The federal government appears to be taking the risk seriously, setting up a committee of ministers specifically focused on coronavirus, according to Rebekah Young, an economist at Bank of Nova Scotia. “The big question now is how well they target it,” she said in a telephone interview.Potential temporary and targeted tools include more generous sick leave benefits, ramping up child care payments or simply increasing transfers to provinces hardest hit by the crisis, she said.Government should focus on major urban areas where the impact could be magnified if the virus spreads, according to Stefane Marion, chief economist at National Bank of Canada. He recommended programs to help subsidize service-based industries that may need to temporarily shut down or send workers home.“We need to keep activity going in the large metropolitan areas in Canada -- that’s key at this time,” Marion said from Montreal.But the biggest challenge for Trudeau is political: His government is already projecting a budget gap near C$30 billion ($22.4 billion) this year, even before any new spending measures he promised during last fall’s election.The Liberals, who are due to release a budget in coming weeks, have also pledged to keep the debt-to-GDP ratio on a downward trajectory. Rolling out an aggressive fiscal stimulus package would mean casting that anchor aside, and wouldn’t come without political cost for Trudeau.Much will depend on the extent of the slowdown. The base case among most economists is a temporary one, to just over 1% growth this year. In a C$2.3 trillion economy, a stimulus package of about C$5 billion could boost growth by a couple tenths of a percentage point. Along with the large dose of monetary stimulus just delivered by Poloz, that could be enough if the downturn is temporary.But if the world economy is headed to a recession, the federal government will need to take the response over from the central bank. Relying solely on lower rates could fuel financial stability risks in Canada, where household debt levels are among the world’s highest. Aggressive cuts could also exhaust whatever ammunition the Bank of Canada has left.Fiscal stimulus targeted directly at individuals and companies is seen as a more precise tool. And it has the added benefit of boosting confidence, based on the perception the government is prepared to deploy its resources to support the economy.(Updates with Freeland comments in fifth and sixth paragraphs.)\--With assistance from Kait Bolongaro.To contact the reporters on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net;Erik Hertzberg in Ottawa at eschmitzhert@bloomberg.net;Shelly Hagan in ottawa at shagan9@bloomberg.netTo contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Chris Fournier, Stephen WicaryFor 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.

  • Bank of Nova Scotia (BNS) Tops Q1 Earnings Estimates
    Zacks

    Bank of Nova Scotia (BNS) Tops Q1 Earnings Estimates

    Bank of Nova Scotia (BNS) delivered earnings and revenue surprises of 2.99% and -1.48%, respectively, for the quarter ended January 2020. Do the numbers hold clues to what lies ahead for the stock?

  • Shopify’s Sweetheart Week Has It Encroaching on Market Stalwarts
    Bloomberg

    Shopify’s Sweetheart Week Has It Encroaching on Market Stalwarts

    (Bloomberg) -- Canada’s homegrown tech company Shopify Inc. is on a tear.After surging annually since its 2015 initial public offering, it has rallied 36% to a market value of almost C$82 billion ($62 billion) in 2020, making it the seventh largest company on the S&P/TSX Composite Index. That puts it about C$8 billion away from usurping Bank of Nova Scotia -- the fifth biggest company. Canadian National Railway Co. -- is No. 6 on the benchmark.Shopify’s value has climbed about C$7.9 billion just this week as fourth-quarter revenue topped analysts’ estimates and the provider of online shopping tools gave an optimistic forecast for the year.Shares of Shopify have skyrocketed to fresh records amid a dearth of quality tech companies on the S&P/TSX Composite Index. The benchmark tech gauge has a mere 10 members compared with over 71 on the S&P 500’s tech index, which includes FAANG giants such as Facebook Inc., Amazon.com Inc., Apple Inc., Netflix Inc. and Google parent Alphabet Inc.Still, Shopify’s meteoric rise has some analysts calling for caution. Credit Suisse analyst Brad Zelnick downgraded the stock to the equivalent of a hold on its “lofty valuation” but raised his share price target for the U.S.-listed stock to $575 from $450. He did, however, contend that company has a “great business.” The stock is currently sitting at about $527.Markets -- Just The NumbersChart of The WeekPoliticsPrime Minister Justin Trudeau said the government will do everything it can to resolve protests that have crippled parts of the country’s railways, leading to disruptions in passenger travel and the shipment of key goods. RBC Capital Markets said the demonstrations are another reason the Bank of Canada will be “biased to ease.”Get the latest news on the pipeline protests hereThe coronavirus continues to spread within China. Finance Minister Bill Morneau said that the epidemic will take a “real” toll on Canada’s economy given it’s global knock-on effects. Reduced tourism from China and lower commodity prices will also impact Canada’s growth.EconomyA new survey showed that Canadians are growing increasingly confident of getting a job with better pay were they to leave their current workplace, another indication of the health of the nation’s labor market as the unemployment rate sits at historic lows and wages climb near the fastest pace since the recession.The housing market in major Canadian cities continued to tighten as home sales fell and prices rose in January. A combination of steady population growth, low unemployment and cheap borrowing costs have brought buyers into the market but shrinking supply is damping transactions and driving bids for homes higher in places like Toronto.Up next, economists will be watching manufacturing sales figures on Feb. 18, inflation data due Feb. 19 and retail sales expected on Feb. 21. The stock market is closed on Monday for a holiday in Ontario and some other provinces.TrendingInCanada1\. Former Mississauga Mayor Hazel McCallion, also known as “Hurricane Hazel” turned 99 with NHL’s Maple Leafs team celebrating her birthday. She was in office for 12 terms before stepping back in 2014.2\. An extreme cold warning alert was issued for the city of Toronto Friday as temperatures dip below 30 degrees Celsius (that’s -22 degrees Farenheit).\--With assistance from Shelly Hagan.To contact the reporter on this story: Divya Balji in Toronto at dbalji1@bloomberg.netTo contact the editors responsible for this story: Kyung Bok Cho at kcho7@bloomberg.net, Jacqueline Thorpe, Danielle BochoveFor 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

    Scotiabank CEO Seeks Help for Troubled Venezuela in Op-Ed

    (Bloomberg) -- Calling Venezuela one of “the most corrupt nations on Earth,” Bank of Nova Scotia Chief Executive Officer Brian Porter urged governments around the world to seize assets tied to wrongdoing and use them to support democracy in the troubled South American country.The CEO of Canada’s third-largest lender, which has significant operations in Latin America, took the unusual step of weighing in on Venezuela’s political and humanitarian crisis through an op-ed piece published in the National Post on Tuesday.“Once the richest and most stable democracy in Latin America, Venezuela’s democracy, economy and society have collapsed in recent years, in that order,” Porter wrote. “The time has come for governments around the world to take strong action by naming and shaming the perpetrators of the crimes committed against the Venezuelan people and by standing with Venezuela’s beleaguered democratic movement.”Porter’s op-ed comes as Venezuelan opposition leader Juan Guaido seeks international support for the ouster of President Nicolas Maduro, whose government is facing painful sanctions and economic collapse. In his piece, Porter referred to Guaido as “Venezuela’s legitimate president” who “has shown tremendous courage” in asking for help from other nations.“Now we must heed that call and stand with the Venezuelan people,” Porter wrote.Asset SeizuresPorter urged governments throughout the Americas and Europe to both support Venezuelan refugees and initiate a coordinated effort to identify and seize assets from corrupt regime officials. The proceeds, along with additional aid, should be used to provide financial support to the democratic movement in Venezuela, he wrote.Scotiabank, based in Toronto, does business in more than 30 countries, with significant operations in Latin America and the Caribbean, and a focus on on the Pacific Alliance countries of Mexico, Chile, Colombia and Peru.The bank also has a history in Venezuela. In 1997, it opened a representative office in Caracas and agreed to spend $88 million for a 25% stake in Venezuelan lender Banco del Caribe. In 2014, Scotiabank took a C$129 million ($98 million) writedown on the Venezuelan investment as the country suffered hyper-inflation and economic turmoil, which led to government restrictions that limited the bank’s ability to repatriate cash and dividends from the country.In its annual report last year, Scotiabank disclosed C$670 million in cross-border exposure to Venezuela and Uruguay, without breaking the countries out separately. The total was described as mostly an “investment in subsidiaries and affiliates,” with C$127 million of the amount in loans tied to those countries.In his op-ed Tuesday, Porter cited the European Union for having “strongly condemned” Maduro’s regime and supporting Guaido. Closer to home, he praised Canadian Deputy Prime Minister Chrystia Freeland and Foreign Minister Francois-Philippe Champagne for showing “tremendous courage and leadership” for “unambiguously condemning the Maduro regime’s abuses.”(Updates with Scotiabank’s past Venezuela business starting in eighth paragraph.)To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.netTo contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net, ;Michael J. Moore at mmoore55@bloomberg.net, Daniel TaubFor 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.

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