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BMO CEO expects economy to rebound by end of year after 'sharp' decline – BNNBloomberg.ca

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4 years ago

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Bank of Montreal chief executive officer Darryl White expects the COVID-19 pandemic to cause the economy to have a ‘sharp, difficult decline’ but will see a rebound of growth next year. 

In an interview with BNN Bloomberg on Tuesday, White said that the current economic malaise will likely “persist for some period of time” as quarantine restrictions extend for another month as policymakers and health officials attempt to contain the coronavirus pandemic. 

“You don’t have many environments in the history of the study of recessions where you see a certain segment of the economy not slow down, but virtually go to zero,” White said. “That’s what we’re seeing across many small businesses right now.”

White added that the bank is prepared to assist small businesses that are seeing a material impact to their cash flow as a result of the COVID-19 pandemic. 

“There’ll be a percentage of [small businesses] which will have trouble when they go through this,” White said. “If you look at the balance sheet of the business and the cash flow as they go through [a downturn], that’s when we step in.”

“My hope is that the result is better than that forecast, but it’s early days.” 

White said he believes that growth should resume in both the U.S. and Canada at the “back end” of the year, in line with some health care officials estimates on when the COVID-19 pandemic is expected to be contained. He added that there’s a “high probability” that economies will continue to grow in 2021.

He added that the bank is not looking to reduce its dividend during the pandemic, echoing a similar statement made by CIBC CEO Victor Dodig earlier in the day in an interview with BNN Bloomberg. 

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S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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2 days ago

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September 13, 2024

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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September 13, 2024

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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3 days ago

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September 12, 2024

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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