The reason: After Ampac defaulted, the loan was sent to collections where the company was assessed a 30% fee. That percentage is on the high end of what private lenders typically charge customers who fail to make loan payments; Ampac's loan was issued by a federal agency.
OECD Sees Room for Rate Cuts as Inflation Cools, But Warns of Oil-Price Threat
The global economy is likely to avoid an anticipated slowdown this year, but could yet suffer a significant setback if an escalation of conflict in the Middle East were to push oil prices sharply higher, the Organisation for Economic Co-operation and Development said Thursday.
In its quarterly report on the outlook for the world economy, the Paris-based research body raised its forecasts for growth this year and next. It now expects the global output of goods and services to increase by 3.1% in 2024, having previously forecast an expansion of 2.9%, which would have marked a slowdown from 2023. It sees a pickup in growth to 3.2% in 2025.
Europe Takes Radical Steps to Boost Production; 'There Is No Other Option'
FLAMANVILLE, France-Early this year, a top European Union official made an eye-catching proposal: A EUR100 billion public fund that would curb Europe's reliance on U.S. defense manufacturers, who make nearly two-thirds of Europe's military hardware.
The cash could subsidize European companies to develop and manufacture more weapons at home at a time when the continent faces a growing threat from Russia.
Asia's Manufacturing Recovery Remains Patchy
Asia's factory activity weakened slightly in April, with output growth cooling and employment dropping in a sign of fragile confidence among manufacturers.
Data from S&P Global indicates that Southeast Asia's manufacturing economy continued to grow at the start of the second quarter, but signals about the sector's health were mixed.
U.S. Financial Markets Regulator Names First Chief Artificial Intelligence Officer
The Commodity Futures Trading Commission has named its first chief artificial intelligence officer, responding to the Biden administration's push to govern the use of AI across the federal government.
The derivatives markets regulator has named Ted Kaouk, who currently serves as its chief data officer and director of its data division, to the role. Kaouk will help develop the agency's strategy to oversee and enforce the financial markets.
Insurer to Make $350 Million Payout in Baltimore Bridge Collapse
Chubb, the insurer of the collapsed Francis Scott Key Bridge in Baltimore, is preparing to make a $350 million payout to Maryland, paying the full amount of the coverage quickly rather than waiting for the rebuilding to begin.
The check, which is the upper limit of the state's coverage for the structure, would be the first large payout in what will likely be a yearslong wrangle over who bears the $1 billion-plus estimated cost of the bridge's collapse. The collision, when a giant cargo ship plowed into and destroyed the bridge in the early hours of March 26, killed six people and effectively shut down Baltimore's busy port.
As Ukraine Loses Ground, Baltic Countries Ask: Are We Next?
NARVA, Estonia-The city council of Narva sits just a few steps from the border crossing with Russia, on a square named after Russian Emperor Peter the Great. Almost everyone here in Estonia's third-largest city speaks Russian as a mother tongue, and one out of three residents hold Russian rather than Estonian citizenship.
Back in 1993, before the Baltic country joined the European Union and the North Atlantic Treaty Organization, Moscow-backed Narva council members organized a referendum on regional "autonomy," a byword for alignment with Russia. Estonia rejected the vote, in which residents backed the proposal with a turnout of 54%, as a grave threat to its independence and territorial integrity.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings [1Q Unless Stated]:
Air Canada
AltaGas
Altius Renewable
Altus Group Limited
Andlauer Healthcare
Argonaut Gold
Aritzia
ATCO
AutoCanada
Bausch Health
BCE
Black Diamond
Canadian Natural Resources
Canadian Utilities
Capstone Copper
Colliers Intl
Endeavour Mining
Fairfax Financial
Galiano Gold
IGM Finacial
Maple Leaf Foods
MARTINREA International
NexGen Energy
NFI Group
Open Text
Osisko Mining
Pason Systems
Polaris Renewable
Sandstorm Gold
Thomson Reuters
TMX
Trisura
Wajax
Economic Calendar [ET]:
0830 Mar Trade Balance
0845 Bank of Canada Governor Tiff Macklem appears before the House of Commons Standing Committee on Finance
Stocks to Watch:
Exco Technologies 2Q Sales C$163.8M; 2Q EPS C$0.21; By Fiscal 2026, Exco Is Targeting to Produce Approximately C$750M Annual Rev
Franco-Nevada 1Q EPS 75c; 1Q Rev $256.8M
Gran Tierra Energy 1Q Loss $78,000; 1Q EPS 0c
Lundin Mining 1Q EPS 2c; 1Q Adj EPS 6c; 1Q Net $58.6M; 1Q Rev $937M; 1Q Consolidated Copper Production 88,013 Tons; Backs 2024 Copper Production 366,000 Tons-400,000 Tons
North Amer Construction 1Q Rev C$345.7M; North Amer Construction 1Q EPS C$0.39
Parkland 1Q Adj EPS C$0.25; 1Q Loss/Shr C$0.03
RF Capital Group 1Q Rev C$89.4M; 1Q Cont Ops Loss/Shr C$0.14; 1Q Adj EPS C$0.01
Russel Metals 1Q Rev C$1.06B; 1Q EPS C$0.82
Supremex Buys Forest Envelope Group for About $1.8M
Taseko Mines 1Q EPS C$0.03; 1Q Rev C$146.9M
Toromont 1Q Rev C$1B; 1Q EPS C$1.01
Tourmaline Oil 1Q EPS C$0.69; Raises Dividend to C$0.32; Declares Special Dividend of C$0.50 per Share
Wajax 1Q EPS C$0.68; 1Q Rev C$482.3M; 1Q Adj EPS C$0.59
Economy:
Bank of Canada Gov. Tiff Macklem said Wednesday officials are confident that inflation will continue to decelerate, and the central bank is "getting closer" to a point where it is able to cut interest rates.
Macklem, in testimony before senators Wednesday, said data since January have increased officials' confidence that inflation will continue to come down gradually, even amid stronger-than-expected growth.
Expected Major Events for Thursday
05:00/JPN: Apr Consumer Confidence Survey
06:00/RUS: Apr Russian Manufacturing PMI
07:45/ITA: Apr Italy Manufacturing PMI
07:50/FRA: Apr France Manufacturing PMI
07:55/GER: Apr Germany Manufacturing PMI
08:00/ITA: Mar PPI
11:30/US: Apr Challenger Job-Cut Report
12:30/CAN: Mar International merchandise trade
12:30/US: Mar U.S. International Trade in Goods & Services
12:30/US: 04/27 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: 1Q Preliminary Productivity and Costs
12:30/US: U.S. Weekly Export Sales
14:00/US: Mar Manufacturers' Shipments, Inventories & Orders (M3)
14:30/US: 04/26 EIA Weekly Natural Gas Storage Report
15:00/US: Apr Global Manufacturing PMI
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:01/UK: Apr BRC-Sensormatic IQ Footfall Monitor
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Thursday
AGCO Corp (AGCO) is expected to report $2.26 for 1Q.
AMETEK (AME) is expected to report $1.38 for 1Q.
AltaGas Ltd (ALA.T) is expected to report $1.07 for 1Q.
Ares Management Corp (ARES) is expected to report $0.94 for 1Q.
Atco Ltd (ACO.X.T) is expected to report $0.99 for 1Q.
Baxter International Inc (BAX) is expected to report $0.54 for 1Q.
Bellerophon Therapeutics Inc (BLPH) is expected to report for 4Q.
Bogota Financial Corp (BSBK) is expected to report for 1Q.
Canadian Utilities Ltd - Class A (CDUAF,CU.T) is expected to report $0.66 for 1Q.
Church & Dwight Inc (CHD) is expected to report $0.86 for 1Q.
Colliers International Group Inc (CIGI,CIGI.T) is expected to report $-0.19 for 1Q.
Cummins Inc (CMI) is expected to report $5.18 for 1Q.
Driven Brands Holdings Inc (DRVN) is expected to report $0.15 for 1Q.
Evelo Biosciences Inc (EVLO) is expected to report for 4Q.
ExlService Holdings Inc (EXLS) is expected to report $0.28 for 1Q.
First Financial Northwest Inc (FFNW) is expected to report $0.07 for 1Q.
Granite Construction Inc (GVA) is expected to report $-0.40 for 1Q.
Howmet Aerospace Inc (HWM) is expected to report $0.52 for 1Q.
IQVIA Holdings Inc (IQV) is expected to report $1.48 for 1Q.
Insight Enterprises (NSIT) is expected to report $1.55 for 1Q.
Kimco Realty Corp (KIM) is expected to report $0.15 for 1Q.
Lazydays Holdings Inc (GORV) is expected to report for 1Q.
Lightning eMotors Inc (ZEVY) is expected to report for 4Q.
Mammoth Energy Services Inc (TUSK) is expected to report $-0.03 for 1Q.
Moody's Corp (MCO) is expected to report $2.77 for 1Q.
NexPoint Real Estate Finance Inc (NREF) is expected to report $-0.50 for 1Q.
Omnicell (OMCL) is expected to report $-0.49 for 1Q.
Oxford Square Capital Corp (OXSQ) is expected to report $0.13 for 1Q.
PJT Partners Inc (PJT) is expected to report $0.31 for 1Q.
Patrick Industries Inc (PATK) is expected to report $1.32 for 1Q.
Patterson-UTI Energy Inc (PTEN) is expected to report $0.13 for 1Q.
Peabody Energy Corp (BTU) is expected to report $0.31 for 1Q.
Schneider National Inc (SNDR) is expected to report $0.12 for 1Q.
Sealed Air Corp (SEE) is expected to report $0.50 for 1Q.
Shutterstock (SSTK) is expected to report $0.53 for 1Q.
SolarWinds Corp (SWI) is expected to report $0.07 for 1Q.
Southern Co (SO) is expected to report $0.91 for 1Q.
Spirit Airlines Inc (SAVE) is expected to report $-1.47 for 1Q.
Thomson Reuters Corp (TRI,TRI.T) is expected to report $0.90 for 1Q.
Zimmer Biomet Holdings (ZBH) is expected to report $1.17 for 1Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
10x Genomics Cut to Hold From Buy by TD Cowen
3M Raised to Overweight From Neutral by JP Morgan
American Tower REIT Raised to Strong Buy From Outperform by Raymond James
Autodesk Cut to Hold From Buy by Berenberg
(MORE TO FOLLOW) Dow Jones Newswires
05-02-24 0607ET
