Business

Gold price drops below $1850 as flash PMI data rises more than expected in February

Published

2 years ago

February 21, 2023

(Kitco News) – The gold market is struggling to hold its ground in neutral territory as both the U.S. service and manufacturing sectors improved more than expected, highlighting further resilience in economic activity.

Tuesday, the S&P Global Flash U.S. manufacturing PMI data rose to 47.8, up from January’s reading of 46.9. According to consensus estimates, economists were looking for a reading around 47.4. The report said that activity in the manufacturing sector reached a four-month high.

Meanwhile, activity in the service sector was also stronger than expected, rising into expansion territory to 50.5., up from January’s reading of 46.8. Economists were looking for a print around 47.3. Activity in the service sector is at its highest level in eight months, the report said.

Gold prices dropped below $1,850 an ounce in initial reaction to positive economic data. April gold futures last traded at $1,845.40 an ounce, down 0.26% on the day.

Readings above 50 in such diffusion indexes are seen as a sign of economic growth and vice-versa. The farther an indicator is above or below 50, the greater or smaller the rate of change.

“February is seeing a welcome steadying of business activity after seven months of decline. Despite headwinds from higher interest rates and the cost of living squeeze, the business mood has brightened amid signs that inflation has peaked and recession risks have faded,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

However, while the data came in better than expected, Williamson noted that the manufacturing sector remains in contraction territory. He added that unseasonably warm weather could also have contributed to activity growth in the service sector.

Williamson also noted that inflation remains a significant concern.

“The improved supply situation has taken price pressures out of manufacturing supply chains, but the survey data underscore how the upward driving force on inflation has now shifted to wages amid the tight labor market.,” he said. “By potentially stoking concerns over a wageprice spiral, accelerating service sector price growth will add to calls for higher interest rates, which could in turn subdue the nascent expansion.

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Chorus shareholders vote to approve sale of aircraft leasing business

Published

17 hours ago

September 25, 2024

Anne Joseph

HALIFAX – Chorus Aviation Inc. says its shareholders have voted to approve the sale of the company’s regional aircraft leasing business to HPS Investment Partners.

The Halifax-based company says the $1.9-billion deal was greenlighted by 98.1 per cent of votes cast by shareholders at a special meeting. The transaction needed approval by a two-thirds majority vote.

Chorus also says the waiting period mandated under U.S. legislation has expired and that it has received approval from Ireland’s Competition and Consumer Protection Commission.

Chorus announced the sale of its plane leasing business to New York City-based HPS in July for $814 million in cash and $1.1 billion in aircraft debt to be assumed or prepaid by the buyers at closing.

The deal marked a one-eighty for Chorus, which bet big on aircraft leasing just two years earlier by buying London-based plane-leasing outfit Falko Regional Aircraft Ltd.

Chorus, which also provides regional service for Air Canada via Chorus subsidiary Jazz Aviation, says the sale remains subject to the other regulatory approvals and customary conditions.

This report by The Canadian Press was first published Sept. 25, 2024.

Companies in this story: (TSX:CHR)

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AGF Management reports Q3 profit down from year ago, revenue higher

Published

22 hours ago

September 25, 2024

Anne Joseph

TORONTO – AGF Management Ltd. says its net income attributable to equity owners totalled $20.3 million in its latest quarter, down from $23.0 million in the same quarter last year.

The investment manager says the profit amounted to 30 cents per diluted share for the quarter which ended on Aug. 31, down from 34 cents per diluted share a year earlier.

Total net revenue for the quarter amounted to $102.0 million, up from $84.0 million in the same quarter last year.

On an adjusted basis, AGF says it earned 37 cents per diluted share in its latest quarter, up from an adjusted profit of 34 cents per diluted share a year ago.

The company says its total assets under management and fee-earning assets totalled $49.7 billion at Aug. 31, up from $42.3 billion a year earlier.

Kevin McCreadie, AGF’s chief executive and chief investment officer, says the company was pleased to see early signs of improvement with positive retail net flows complementing its solid investment performance amid an uncertain economic backdrop and significant market volatility.

This report by The Canadian Press was first published Sept. 25, 2024.

Companies in this story: (TSX:AGF.B)

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Business

Cannabis Retail Blues: To much Stock, to Few Customers

Published

1 day ago

September 24, 2024

Steven Kaszab

As of January 2024, Canada is home to more than 3,600 recreational cannabis retail shops and this number is increasing annually with a single store to every 10,000 Canadians. The retail sector has been facing multiple challenges and one is surely overabundance of stores within smaller communities. Too many retailers compared to users of cannabis. The use of cannabis has remained relatively the same, while multiple retailers and online sales forces are competing for this marketplace.

Failures within the retail field are not a surprise, as Tokyo Smoke closes its multiple stores, and most shops’ profit margins remain small and diminishing over time. Mass closures may happen within certain provinces such as Ontario where situations of multiple retailers are situated right beside a competitor. Massive amounts of revenue have been collected by provincial governments while these stores remain open to every possible financial flux possible.

The black market remains healthy and profitable. An excuse to legalize pot was to challenge illegal pot sales and make it difficult to sell this pot outside of legal means. 22% of Canadian pot smokers get their supply from the black market. They say the pot tastes better and is slightly less costly. Legal pot management is costly and this cost is passed onto the customer. With gummy sales growing, the cost of management by legal means is difficult and costly too.

It seems the government may need to rethink its policy regarding cannabis and the possibility of legalizing further types of illicit drugs in the future. A total ack of imagination exists within the policy network where old-fashioned prejudice towards addiction and the use of narcotics is seen as criminal and threatening to society. All the while the number of traffic stops due to drivers under the influence of narcotics continues to grow, and the use of drugs by the youthful generation continues to be a problem. A solution to our society’s problems will never come from present-day authorities.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca