A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
Credit Suisse analysts have released their top stock picks for Canadian markets. Selections include plenty of rate-sensitive dividend payers like TransCanada, Enbridge, and Emera. Enerplus, Suncor and Agnico Eagle Mines are also there,
“CREDIT SUISSE: Here are 9 Canadian stocks set to pop by at least 15%” – Business Insider (click early, BI has a habit of putting stories behind their paywall after I link to them).
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Global crude prices continue higher but economists don’t expect this to be much help to the domestic economy,
“The Bank of Canada’s latest quarterly forecasts were based on the assumption of West Texas Intermediate oil prices at US$60 a barrel, which is about US$10 dollars less than its current value. According to Royal Bank of Canada economist Mark Chandler, a $10-a-barrel difference implies under normal conditions a reduction in slack by about 0.25 per cent of gross domestic product. But some of these channels between oil prices and investment have been “compromised,” he said. “It helps incomes,” Chandler said. “It doesn’t really help GDP directly.”
“Rising global oil prices won’t put much wind in Canada’s sails, say economists” – BNN Bloomberg
“Oil set for biggest weekly rise in a month as Iran sanctions loom” – Report on Business
“ Oil boost helps world stocks turn positive for 2018” – Reuters
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Private companies are trying to address Canada’s housing affordability problem on a significant scale,
“With land handouts and tax incentives provided by the city and provinces, one group hopes to bring 50,000 affordable apartments to Toronto and Vancouver in just 10 years.
The project, to cost at least C$10 billion ($7.8 billion), is at a scale never before seen in Canada, both in its size and speed. And it’s raising questions about whether or not the country will be able to address its affordability problem before it’s too late.”
“Free Land Is Now Up for Grabs in Toronto and Vancouver” – Bloomberg (10 free articles monthly, then paywall)
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Tesla Inc.’s creditors are getting more nervous about getting their money back,
“Analysts wrote they “suspect that the Fremont collateral addition was demanded by the banks to enhance the borrowing base though not necessarily to expand the facility size”. Tesla has $543m of available credit left under its $1.8bn agreement maturing in 2020, they said… the company is burning through cash, approaching the maturity date of $230m of convertible debt in November, and continuing to insist it will not need to raise capital this year”
“Raise eyebrows one day, and liquidity buffers the next” – FT Alphaville (free with registration)
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Tweet of the Day:
Diversion: “The 50 best sports movies of all time, according to critics” – Business Insider
Scott Barlow