Hello,
We kick off our top ten with a headline that particularly catches my eye. While our domestic market has been lackluster for some time, whenever news articles like these grace the front page of the business section, it often signals an upturn in our domestic market’s performance. And as we’ve witnessed this past week, that’s precisely the case. Brian Belski’s insights, particularly in the ‘YARP’ domain, couldn’t be timelier.
Housing remains a primary concern for many, and TD has released a report shedding light on the significant role shelter costs play in Canadian inflation. Steve Saretsky adds to this discussion, underscoring that nearly 60% of Canadian mortgage holders are yet to experience an increase in mortgage payments, but change is on the horizon.
Meanwhile, two former senior Liberals have engaged in discussions about the economic landscape. They realize how bad it is.
The Federal Clean Electricity Regulations (CER) are facing scrutiny from various quarters, with NBF’s report emphasizing the challenges ahead. While we’ve made strides in adopting cleaner energy sources, it appears we’re now confronted with more stringent mandates and building regulations.
In another optimistic turn, Adam Rozencwaig’s podcast offers bullish insights.
Lots of discussion of the big move with the Nvidia sock this week, but the team at Mauldin reminds how much energy is needed for these data centres.
Vaughn Palmer looks at the BC Budget and I also attached a summary from NBF.
Lastly, Les Leyne’s analysis of the Throne Speech hints at an intriguing year ahead for British Columbia. Who would have anticipated that individuals earning $130,000 or less would qualify for housing subsidies?
Indeed, times have evolved.
Best regards,
David
Number 2- Belski’s YARP stocks.
Mr. Belski has chosen BCE, Telus, Restaurant Brands International, Enbridge, TC Energy Corp., Brookfield Corp., Manulife Financial, National Bank Power Corp., Royal Bank, TD, Canadian National Railway, Capital Power Corp and Emera in his model portfolios.
Number 4- Banking on Rate Cuts-Steve Saretsky
There a lot of Canadians holding their breath for rate cuts this year. Nearly 60% of Canadian mortgage holders haven’t endured a mortgage payment increase yet, but its coming. It’s a race against time to get inflation, bond yields, and the Bank of Canada’s overnight rate lower
http://Banking on Rate Cuts – by Steve Saretsky (substack.com)
Number 5- Is The Canadian Economy About To Get Worse Thanks To Justin Trudeau?
https://www.youtube.com/watch?v=4_LOZcOYtYY
Is the Canadian economy in trouble thanks to out- of- control spending? Or are we part of a larger global phenomenon? Our Minister of Finance Chrystia Freeland will tell Canadians that things are hunky dory… Former Liberal MP Dan McTeague says this is ‘turd polishing’. He unpacks this issue for Three Minutes.
Number 6- Why has the Clean Electricity Regulation (CER) been proposed in the first place?
The Federal Government released details on a number of proposed considerations for the CER. The government states these considerations are the result of months’ worth of consultations and feedback (you can check them out here if interested starting at the bottom of pg. 2).
Recall, Canada is in a relatively robust position as ~85% of the electricity generated is derived from low and non-emitting electricity sources; for comparison, the U.S. derives 40% of its electricity generation via renewable sources. Zooming further out and comparing Canada globally, the country is already a big standout in terms of the OECD (see chart below). Canada’s electricity generation is 50% less carbon intensive in comparison to the peer group average of the OECD.
Number 7- Energy Demand is Massively Misunderstood, Here's Why We're Bullish
Wouldn’t a recession and continued economic weakness reduce energy demand and thus be bearish for oil and gas prices?”
Number 10- Les Leyne: Throne speech has people programs to help NDP stay atop polls.
Premier David (I’m a people person) Eby set out the NDP government’s itinerary to get from where they are now (top of the polls) to where they want to become voting day this fall (exactly the same spot)
http://Les Leyne: People programs to help NDP stay atop polls – Victoria Times Colonist
The NDP can’t quite claim B.C. is turning the corner on the more intractable problems. The best they can do is suggest the curve sign might be just ahead.
We hope you found the Top Ten interesting this week, and are looking forward to another selection of articles, stories, and commentary next week. If you know of anyone else who would be interested in receiving our weekly note, please let me know.
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