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U.S. bank troubles hammer stocks, boost treasuries

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Stocks tumbled and Treasuries rallied amid mounting concerns about the health of the U.S. banking system. Nasdaq futures pared losses in early trading.

Europe’s Stoxx 600 equity gauge dropped 1.7 per cent, with an index of bank stocks sliding the most since June, led by a seven per cent plunge for Deutsche Bank AG. Credit Suisse Group AG shares tumbled to a record low, and HSBC Holdings Plc was down more than five per cent.

Contracts on the S&P 500 index lost 0.4 per cent. Shares in SVB Financial, which sparked the turmoil with a share sale to shore up losses, extended a slump in US premarket trading, tumbling as much as 22 per cent. Shares of larger banks including JPMorgan Chase & Co, Wells Fargo & Co. and Bank of America Corp. slipped more than one per cent. Contracts on the Nasdaq 100 were little changed.

As investors dashed for safety, Treasury yields fell, with the two-year segment slipping to 4.75 per cent and heading for its biggest two-day slide since last June. Ten-year benchmark yields were down about eight basis points. Still to come on Friday is the key U.S. monthly payrolls number, which may re-chart the path of Federal Reserve rate increases.

“The events around SVB highlight some of the additional risks of financial stress,” said Sarah Hewin, senior economist at Standard Chartered Bank in London. “There is a sense now of the bigger risks to the economy the more the Fed raises interest rates. At the margins it is raising the question of whether the Fed will indeed be able to do a 50 basis-point rate hike this month.”

The rout came after Silvergate Capital Corp. collapsed as the crypto industry’s meltdown sapped its financial strength, while SVB’s troubles prompted Peter Thiel’s Founders Fund and other prominent venture capitalists to advise portfolio businesses to withdraw their money, Their woes highlight the impact of relentless Fed policy tightening on the financial sector as soaring rates erode balance sheets.

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Money markets have already scaled back bets the Fed would opt for a half-point hike at its March 21-22 meeting to about an even chance, having earlier priced a 75 per cent likelihood. Data on Thursday showed the number of Americans filing for unemployment benefits unexpectedly swelled to the highest this year.

That set the stage for Friday’s monthly jobs report. Economists project a 225,000 increase in February payrolls, about half January’s blockbuster pace, and a softer number could further tilt expectations back to a quarter-point hike.

However, the Fed will have to position to “potentially raise by a half a percentage point very quickly” if the payrolls data come in hotter than expected, Danielle DiMartino Booth, chief executive officer and chief strategist at Quill Intelligence, said on Bloomberg Television.

In currency markets, the dollar stayed flat against a basket of currencies, while the yen retreated after the Bank of Japan kept monetary settings unchanged at Governor Haruhiko Kuroda’s final policy meeting. The pound firmed after data showing the U.K. economy had bounced back in January.

The switch-off in risk sentiment and the wind-down of crypto-friendly Silvergate put bitcoin on track for its worst week since November. A Bloomberg commodity index has lost more than four per cent this week, while oil is headed for its biggest weekly loss since early February.

Key events this week:

  • U.S. nonfarm payrolls, unemployment rate, monthly budget statement, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures fell 0.4 per cent as of 4:25 a.m. New York time
  • Nasdaq 100 futures fell 0.1 per cent
  • Futures on the Dow Jones Industrial Average fell 0.6 per cent
  • The Stoxx Europe 600 fell 1.6 per cent
  • The MSCI World index fell 0.6 per cent
  • S&P 500 futures fell 0.4 per cent
  • Nasdaq 100 futures fell 0.1 per cent
  • The MSCI Asia Pacific Index fell two per cent
  • The MSCI Emerging Markets Index fell 1.4 per cent

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at US$1.0586
  • The British pound rose 0.2 per cent to US$1.1948
  • The Japanese yen fell 0.4 per cent to 136.75 per dollar
  • The offshore yuan was little changed at 6.9701 per dollar

Cryptocurrencies

  • Bitcoin fell 1.6 per cent to US$19,911.73
  • Ether fell 1.9 per cent to US$1,405.35

Bonds

  • The yield on 10-year Treasuries declined seven basis points to 3.83 per cent
  • Germany’s 10-year yield declined 12 basis points to 2.53 per cent
  • Britain’s 10-year yield declined 11 basis points to 3.69 per cent

Commodities

  • West Texas Intermediate crude fell 0.7 per cent to US$75.20 a barrel
  • Gold futures rose 0.3 per cent to US$1,839.70 an ounce
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Stop Asking Your Interviewer Cliché Questions

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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Canadian Natural Resources reports $2.27-billion third-quarter profit

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CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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