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U.S. central bank hikes interest rate again, up to 3.25% – CBC News

Published

2 years ago

September 21, 2022

The U.S. Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point in its latest move to get ahead of runaway inflation.

The decision by the central bank was in line with what economists were expecting, although there was some thought that the Fed might hike by even more — a full percentage point.

Instead the Fed raised its trendsetting rate by 75 basis points for the third time in a row. The Fed’s rate is now at its highest point since 2008, and policy-makers are signalling they aren’t done yet: officials forecasted that they will boost their benchmark rate to roughly 4.4 per cent by year’s end, a full percentage point higher than they had forecast in June.

That aggressive path for rates speaks to just how big a problem policy-makers think inflation is. Inflation rates have roared to multi-decade highs around the world in recent years, prompting a range of actions by central banks to get it under control.

All things being equal, central banks raise their rates when they want to cool down an overheated economy, and they cut their rates when they want to stimulate borrowing to grow the economy.

At a news conference following the decision, Fed chair Jerome Powell made it clear that the U.S. central bank is not afraid to keep rates where they are, or go higher, for as long as it takes to rein in inflation.

They “want to be very confident that inflation is moving back down,” before contemplating cutting rates again, he said.

Barry Schwartz, chief investment officer at the Toronto-based Baskin Wealth Management, says it’s going to be hard for the Fed to do its job of bringing down inflation without causing pain in the broader economy.

“The big danger is that the Fed will overshoot … by raising interest rates too fast, too high, leading to a worsening economy,” he told CBC News in an interview on Wednesday.

The Fed’s move will make it costlier to take out a mortgage or other forms of loans — and will no doubt cool consumer spending in the process. The average 30-year mortgage rate in the U.S. topped 6.4 per cent last week, its highest level in 14 years.

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Cineplex reports $24.7M Q3 loss on Competition Tribunal penalty

Published

17 hours ago

November 6, 2024

Anne Joseph

TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.

The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.

The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.

The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.

Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.

Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.

This report by The Canadian Press was first published Nov. 6, 2024.

Companies in this story: (TSX:CGX)

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Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

Published

2 days ago

November 5, 2024

Anne Joseph

TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

Published

2 days ago

November 5, 2024

Anne Joseph

ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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