Welcome to Bay Street Edition, our weekly newsletter devoted to what’s happening in Canadian finance, covering strategy, deals, people moves and economics. I’m Christine Dobby , Bloomberg’s Toronto-based banking reporter, and you’ll find me in your inbox every Friday. This week, we’re talking about bank earnings, 2025’s private equity party and the US Supreme Court ruling on Trump’s tariffs. Plus:...
Welcome to Bay Street Edition, our weekly newsletter devoted to what’s happening in Canadian finance, covering strategy, deals, people moves and economics. I’m Christine Dobby , Bloomberg’s Toronto-based banking reporter, and you’ll find me in your inbox every Friday. This week, we’re talking about bank earnings, 2025’s private equity party and the US Supreme Court ruling on Trump’s tariffs. Plus: how to invest in Gen Alpha. Please share this newsletter with your friends and colleagues, and if it was forwarded to you, sign up here to receive it every week. ROE Is Me Canada’s big banks head into earnings season trading near the top of their historical valuation range, raising the question of whether their results can continue to justify lofty share prices. Bank stocks underperformed the broader Canadian market to start the year, but that follows a banner 2025. The S&P/TSX banks index is trading at roughly 13 times next year’s expected earnings, according to Bloomberg data. Flip through recent analyst reports and variations of the phrase “fully valued” appear repeatedly. On a trailing basis, the group trades closer to 14.5 times earnings — well above its five-year average of about 11.8 times. They’ve also managed to defy concerns about overvaluation in recent quarters. To keep that momentum going, investors are looking for meaningful improvements in return on equity, or ROE — the measure of how much profit a bank generates for every dollar of shareholders’ capital. “ROE expansion is a key driver of upside for the banks,” Canadian Imperial Bank of Commerce analysts led by Paul Holden wrote in an earnings preview report. “Relative stock performance will largely be dictated by the speed and scale of ROE expansion.” On the plus side, the lenders’ credit books remain stable — and may even improve this year — and their capital markets and fee-generating wealth management businesses have been strong, often helping to deliver earnings beats. But loan growth has been slow amid...
Jonathan Kitchen/DigitalVision via Getty Images Introduction Every time I revisit a stock after I’ve already written an article about it, I am very excited to compare what has changed, not only with the business of the company but also with how I view and interpret their numbers and results. So that my judgment is not clouded by previous thoughts or opinions of other investors and analysts and my ...
Jonathan Kitchen/DigitalVision via Getty Images Introduction Every time I revisit a stock after I’ve already written an article about it, I am very excited to compare what has changed, not only with the business of the company but also with how I view and interpret their numbers and results. So that my judgment is not clouded by previous thoughts or opinions of other investors and analysts and my previous thoughts, I first like to open the latest results, come up with a thesis, and only after opening and comparing what I said about the stock in the past. This is exactly how I worked today with Nu Holdings Ltd. ( NU ), and the result is fascinating! It turns out not only did all the metrics that made me bullish about NU stay resilient, but the company has actually managed to accelerate in growth. I am a shareholder of the stock myself, and I have actually entertained the idea of trimming my position after the rally you see on the graph below. The stock is up by more than 30%, while the S&P 500 ( SP500 ) has gained only about 11% in the same timeframe. The best part of this growth is the fact that NU isn’t a U.S.-based company, and this was one of the reasons I found this stock appealing. Not only did the business impress me, but its full exposure to Latin America gave me the diversification from the U.S. I wanted to add to my portfolio. At the same time, it’s fairly rare for a non-U.S.-based company to perform as well as the U.S. companies, simply because investor sentiment gets stronger for the latter, but in this case, Nu has managed to surprise me once again. Previous Coverage Since my coverage in June, many developments have occurred, and the company reports its earnings results on February 25th . Today, I’ll take a look at those developments, talk about the most important metrics, and discuss what to look out for on earnings. Q3 2025 Writing my previous piece, I was really impressed by the 99 million active customers, with an activity rate of 83%. If you stop an...
When Meta CEO Mark Zuckerberg arrived at a Los Angeles courthouse on Wednesday, he did so with a team that appeared to be wearing Meta's camera-equipped Ray-Ban smart glasses. Judge Carolyn Kuhl was concerned. According to CNBC , Kuhl warned anyone recording with the glasses, "If you have done that, you must delete that, or you will be held in contempt of the court." Kuhl also ordered everyone wea...
When Meta CEO Mark Zuckerberg arrived at a Los Angeles courthouse on Wednesday, he did so with a team that appeared to be wearing Meta's camera-equipped Ray-Ban smart glasses. Judge Carolyn Kuhl was concerned. According to CNBC , Kuhl warned anyone recording with the glasses, "If you have done that, you must delete that, or you will be held in contempt of the court." Kuhl also ordered everyone wearing AI smart glasses to remove them. Even after the warning, at least one person was seen wearing the glasses around jurors in a courthouse hallway, although plaintiff attorney Rachel Lanier was told the glasses weren't recording at the time. Glas … Read the full story at The Verge.
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares Ultra CRCL, which added 12,920,000 units, or a 30.7% increase week over week. And on a percentage change basis, the ETF with the bigge
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares Ultra CRCL, which added 12,920,000 units, or a 30.7% increase week over week. And on a percentage change basis, the ETF with the bigge
The S&P 500 Index ($SPX ) (SPY ) today is up +0.43%, the Dow Jones Industrial Average ($DOWI ) (DIA ) is up +0.33%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is up +0.60%. U.S. equities climbed on Friday morning as investors reacted to a landmark 6-3 Supreme...
The S&P 500 Index ($SPX ) (SPY ) today is up +0.43%, the Dow Jones Industrial Average ($DOWI ) (DIA ) is up +0.33%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is up +0.60%. U.S. equities climbed on Friday morning as investors reacted to a landmark 6-3 Supreme...
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ERShares Private-Public Crossover ETF, where 22,075,000 units were destroyed, or a 22.2% decrease week over week. And on a percentage cha
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ERShares Private-Public Crossover ETF, where 22,075,000 units were destroyed, or a 22.2% decrease week over week. And on a percentage cha
Trevor Meunier/iStock Editorial via Getty Images Artificial intelligence-related stocks, along with the broader market, trended up during Friday trading after the U.S. Supreme Court's decision to strike down President Donald Trump's tariffs. Several networking stocks, particularly those focused on optical products, were showing the strongest gains. Lumentum ( LITE ) and Ciena ( CIEN ) had both inc...
Trevor Meunier/iStock Editorial via Getty Images Artificial intelligence-related stocks, along with the broader market, trended up during Friday trading after the U.S. Supreme Court's decision to strike down President Donald Trump's tariffs. Several networking stocks, particularly those focused on optical products, were showing the strongest gains. Lumentum ( LITE ) and Ciena ( CIEN ) had both increased by 6%. Corning ( GLW ) and Coherent ( COHR ) had both jumped 7%. Applied Optoelectronics ( AAOI ) had popped 11%. Applied Optoelectronics is in the process of building a 210,000-square-foot manufacturing facility in Sugar Land, Texas. CoreWeave drags down hyperscalers Several of the most popular hyperscaler stocks were not responding positively during Friday trading. Oracle ( ORCL ), Nebius ( NBIS ), and Applied Digital ( APLD ) had all declined by about 4%. IREN ( IREN ) had inched down 0.6%. CoreWeave ( CRWV ) had plunged 9%. CoreWeave is facing a class action lawsuit over alleged data center delays and concealed infrastructure risks. The suit is being led by the law firm Hagens Berman, which specializes in shareholder rights. "We are investigating the alleged gap between the company's assurances of its growth trajectory and the alleged reality of systemic construction delays at its primary data center sites," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation. Chipmakers show mixed action The most significant names among chipmakers were demonstrating mixed action. AMD ( AMD ) was down 0.6%, Taiwan Semiconductor Manufacturing ( TSM ) perked up 2%, Intel ( INTC ) dipped 3%, and Nvidia ( NVDA ) inched up 0.4%. The Philadelphia Semiconductor Index ( SOX ) had increased 1%, surpassing the larger indices in daily gains. The S&P 500 Index ( SP500 ) had ticked up 0.5%, the NASDAQ Composite Index ( COMP:IND ) edged up 0.8%, and the Dow Jones Industrial Average Index ( DJI ) was up 0.2%. Meanwhile, Rackspace ( RXT ) continued the surge it started...
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Materials Select Sector SPDR ETF (Symbol: XLB) where we have detected an approximate $285.3 million dollar inflow -- that's a 4.2% incre
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Materials Select Sector SPDR ETF (Symbol: XLB) where we have detected an approximate $285.3 million dollar inflow -- that's a 4.2% incre