Below is a summary of some of the relevant news items from the Capital Markets and the Economy from the past week extracted from RBC Global Insights and FactSet Research.

You can catch up on the past four weeks’ Weekly Update in the link to my Blog.

My newest (2025 Q2) Smart Investor newsletter will be published this week – please watch for it in your Inbox. See the past four issues on my website.

Markets

Market scorecard as of close on Friday May 9, 2025.

Country	Equity Indices	Level	1 week	YTD
Canada	S&P/TSX Composite	25,358	1.3%	2.5%
U.S.	S&P 500	5,660	-0.5%	-3.8%
U.S.	NASDAQ	17,929	-0.3%	-7.2%
Europe/Asia	MSCI EAFE	2,530	-0.2%	11.9%

Source: FactSet

• TSX finished higher in Friday afternoon trading, near best levels. Sectors mixed. Materials the best performers. Canadian equities recorded a 1.3% weekly gain.
• US equities were narrowly mixed in uneventful Friday trading. S&P 500 and Nasdaq finished lower for the week, both down after two-straight weeks of gains.
• U.S. equities are virtually flat on the week as investors attempt to balance the news of a U.S. trade agreement with the UK against the Federal Reserve’s messaging that interest rates may remain higher for longer.

Economy

Canada

• Prime Minister Mark Carney met with U.S. President Donald Trump last week for the first time since winning the election on April 28. Carney spoke about the opportunities for partnership between the two nations and reiterated a commitment to increase defence spending.
• The Canadian Liberal Party’s election platform featured a raft of new spending measures (including defence) and tax cuts. If enacted as planned, these measures would likely lead to wider budget deficits than previously forecast. This fiscal stimulus could encourage the Bank of Canada (BoC) to keep interest rates on pause for longer.

U.S.

• After a weekend of trade talks in Geneva, the U.S and China have agreed to lower tariffs for 90 days while they work toward a deal. The global economy has been on edge since the Trump administration slapped 145% tariffs on Chinese goods entering the U.S., prompting retaliatory rates of 125% from China. As part of the agreement, the U.S. will lower tariffs on Chinese imports to 30% and China will cut its import duty to 10%. Markets spiked Monday following the announcement.
• In last week’s Federal Reserve meeting, Fed Chair Jerome Powell noted multiple times during his press conference, the prospects of both higher inflation and higher unemployment create “tension” with respect to achieving the Fed’s dual mandate of price stability and maximum employment, and how it manages its monetary policy tools in doing so.

                                                

• On Thursday, President Trump and UK Prime Minister Keir Starmer held a news conference announcing that the U.S. and UK had struck a new bilateral trade agreement focused on lowering tariffs on key industries, offering modest but tangible benefits for exporters while signaling a potentially more pragmatic approach to trade policy. Under the deal, the U.S. will cut tariffs on UK-made cars to 10.0% from 27.5% and remove duties on British steel and aluminum.

Further Afield

• In line with the market’s and our expectations, the Bank of England (BoE) lowered the Bank Rate by 25 basis points (bps) to 4.25% from 4.5%.

Notes About Companies in Model Portfolio

• Fortis Inc. (FTS) released on Wednesday Q1 2025 results. Q1 net earnings of $499 million or $1.00 per common share, up from $459 million or $0.93 per common share in 2024.
• Intact Financial Corporation (IFC) reported on Tuesday Q1-2025 results. Net operating income per share increased 10% to $4.01 driven by solid underwriting results, as well as investment and distribution income increasing 9% and 17%, respectively.
• Pembina Pipeline Corporation (PPL) announced Thursday its financial and operating results for the first quarter of 2025. PPL reported first quarter earnings of $502 million, up 15% from same period last year. Adjusted cash flow from operating activities was $1.34 per share, down from $1.42.

 

Feel free to contact me with any questions and/or to discuss investment ideas.

Regards,

Shiuman

 

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