Dollar Retreats on Economic Uncertainty
The dollar on Monday initially moved higher on comments from US Treasury Secretary Bessent, who said the US is working on bilateral trade deals with 17 key trading partners, not including China.
The US Apr Dallas Fed manufacturing survey of general business activity index fell -19.5 points to a 5-year low of -35.8, weaker than expectations of -17.0.
The markets are discounting the chances at 9% for a -25 bp rate cut after the May 6-7 FOMC meeting, down from a 30% chance last week.
EUR/USD (^EURUSD) Monday rose by +0.49%. The euro on Monday recovered from early losses and moved higher after the dollar weakened. The euro initially moved lower Monday on some dovish ECB comments. ECB Governing Council member Villeroy de Galhau said the ECB has room to cut interest rates, and ECB Governing Council member Rehn said he sees downside risks in the ECB's March inflation forecasts.
ECB Governing Council member Villeroy de Galhau said the ECB has room to lower interest rates as the trade war triggered by US tariffs will weigh on the global economy but won't affect the inflation trend in Europe.
ECB Governing Council member Rehn said that due to the fallout from US tariffs, 'I find it reasonable to assume that there are downside risks to the inflation outlook in the ECB's March projections.'
Swaps are discounting the chances at 100% for a -25 bp rate cut by the ECB at the June 5 policy meeting.
USD/JPY (^USDJPY) Monday fell by -1.11%. The yen rallied on Monday due to short covering ahead of Thursday's BOJ policy meeting. Also, lower T-note yields on Monday were supportive of the yen. On the negative side, Monday's rally in the Nikkei Stock Index to a 4-week high reduced safe-haven demand for the yen. In addition, Monday's statement from the BOJ that it will purchase government bonds in May at the same pace as April was bearish for the yen as it damped speculation the BOJ, in a hawkish move, would cut its bond purchases.
June gold (GCM2 5) Monday closed up +49.30 (+1.49%), and May silver (SIK2 5) closed down -0.005 (-0.02%). Precious metals prices on Monday settled mixed. Monday's weaker dollar and lower T-note yields supported precious metals prices. Gold also rallied Monday on dovish ECB comments. ECB Governing Council member Villeroy de Galhau said the ECB has room to lower interest rates, and ECB Governing Council member Rehn said there are downside risks to the ECB's March inflation outlook. Concern the US-China trade war will persist and undercut global economic growth is boosting safe-haven demand for gold and undercutting silver after President Trump said the US would not lower tariffs on China unless 'they give us something substantial.' Geopolitical risks in the Middle East are boosting safe-haven demand for precious metals as the Israel-Hamas and the US-Houthi conflicts continue.
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Cision Canada
5 minutes ago
- Cision Canada
ALIMENTATION COUCHE-TARD REINITIATES SHARE REPURCHASE PROGRAM USA - English USA - English USA
LAVAL, QC, July 21, 2025 /CNW/ - Alimentation Couche-Tard Inc. (" Couche‑Tard") (TSX: ATD) announced today that the Toronto Stock Exchange (" TSX") has approved the share repurchase program (the " Program"), authorizing Couche‑Tard to repurchase up to 77,115,921 Common Shares (the " Shares"), representing 10% of the 771,159,210 Shares comprising Couche-Tard's "public float" (as such term is defined in the TSX Company Manual) as at July 14, 2025. Based on the current share price the completion of the Program in full would represent a total investment of approximately US $4.2 billion or CDN $5.8 billion. As at July 14, 2025, there were 948,064,405 Shares issued and outstanding. The average daily trading volume for the six-month period preceding June 30, 2025 represents 1,316,554 Shares. In accordance with TSX requirements, Couche-Tard is entitled to purchase, on any trading day, up to a total of 329,138 Shares representing 25% of this average daily trading volume. Couche-Tard believes that the purchase of up to 77,115,921 Shares under the Program is an appropriate use of its funds and a desirable investment for Couche-Tard and, therefore, would be in the best interests of Couche-Tard. By making such repurchases, the number of Shares in circulation will be reduced and the proportionate interest of all remaining shareholders in the share capital of Couche-Tard will be increased on a pro rata basis. "With a strong balance sheet and confidence in our long-term strategy, we believe this program represents an efficient way to create long-term shareholder value," said Filipe Da Silva, Chief Financial Officer. Under the terms of the Program, Couche-Tard may repurchase up to 77,115,921 Shares on the open market through the facilities of the TSX and through alternative trading systems in Canada, as well as outside the facilities of the TSX pursuant to exemption orders issued by securities regulators, over the course of twelve months commencing July 23, 2025 and ending at the latest on July 22, 2026. All Shares will be purchased at their market price at the time of acquisition, except for purchases effected outside the facilities of the TSX pursuant to exemption orders issued by securities regulators which will be at a discount to the market price as provided in such exemption orders. The actual number of Shares purchased under the Program, the timing of purchases and the price at which the Shares are bought will depend upon management discretion based on factors such as market conditions. All Shares repurchased under the Program will be cancelled upon their repurchase. Under Couche-Tard's previous Program which commenced on May 1, 2024 and expired on April 30, 2025, Couche-Tard obtained approval from the TSX to repurchase for cancellation up to 78,083,521 Shares. During the past 12 months, Couche-Tard repurchased 8,695,652 Shares outside the facilities of TSX by way of private agreement in reliance upon a decision obtained from the Autorité des marchés financiers to exempt the issuer from issuer bid requirements under applicable securities legislation, and such Shares were acquired at a price of CAD $80.50 per Share. In connection with the Program, Couche-Tard has established an automatic share purchase plan ("ASPP") with a designated broker whereby Shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the ASPP, before entering a self-imposed blackout period, Couche-Tard may, but is not required to, ask the designated broker to make purchases under the Program. Such purchases will be made at the discretion of the designated broker, within parameters established by Couche-Tard prior to the blackout periods. Outside the blackout periods, purchases will be made at the discretion of Couche-Tard's management. The ASPP will constitute an "automatic plan" for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX. About Alimentation Couche-Tard Inc. Couche-Tard is a global leader in convenience and mobility, operating in 29 countries and territories, with close to 17,000 stores, of which approximately 13,000 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland. It also has an important presence in Luxembourg, Germany, the Netherlands, Poland, as well as in Hong Kong Special Administrative Region of the People's Republic of China. Approximately 146,000 people are employed throughout its network. For more information on Alimentation Couche-Tard Inc., or to consult its audited annual Consolidated Financial Statements, and Management Discussion and Analysis, please visit: Forward-Looking Statements This press release may include certain statements that are "forward-looking information" within the meaning of the securities laws of Canada, including statements relating to the Program. Any statement in this press release that is not a statement of historical fact may be deemed to be forward-looking information. When used on this press release, the words "believe", "could", "should", "intend", "expect", "estimate", "assume", "aim", "align", "maintain", "continue", "effect", "growth", "position", "seek", "strategy", "strive", "will", "may", "might" and other similar expressions or the negative of these terms are generally intended to identify forward-looking information, although not all forward-looking statements include such words. These statements are based on management's current expectations, assumptions and estimates, which it believes are reasonable, but which are subject to a number of risks and uncertainties that could cause actual results and outcomes to differ materially, including risks associated with market and economic conditions, future plans and projections, and regulatory trends and changes, and such other risks as described in detail from time to time in documents filed by Couche-Tard with securities regulatory authorities in Canada. All forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement and speak as of the date of this news release. Couche-Tard undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. SOURCE Alimentation Couche-Tard Inc.
CTV News
35 minutes ago
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Domino's beats quarterly sales estimate on strong U.S. demand
Domino's Pizza surpassed analysts' expectations for second-quarter U.S. same-store sales on Monday, driven by new items on the menu and promotions, amid persisting macroeconomic uncertainties, sending shares up nearly five per cent in premarket trade. The world's largest pizza chain introduced items such as the parmesan-stuffed crust pizza to its list, and attracted value-conscious consumers through deals under its rewards program. These efforts helped offset the impact from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions. Consumer spending has declined in recent months due to rising inflation and uncertainty surrounding Trump's policies, prompting customers to seek value offerings rather than expensive dine-out options, which has benefited pizza chains like Domino's. 'In the U.S., both delivery and carry out grew, driving meaningful market share gains,' Domino's CEO Russell Weiner said. Domino's posted a 3.4 per cent rise in same-store sales in the U.S. for the quarter ended June 15, exceeding analysts' average estimate of a 2.21 per cent rise, according to data compiled by LSEG. That marked its first beat in five quarters. The company's online sales also grew, helped by discounts and from the success of its partnership with DoorDash, which doubled its share of sales made through third-party delivery channels to roughly five per cent, according to Matt Goodman, analyst at research firm M Science. International same-store sales grew 2.4 per cent, also ahead of the estimate of 1.71 per cent growth, while quarterly revenue rose 4.3 per cent to US$1.15 billion, in line with estimates. Domino's posted quarterly earnings per share of $3.81, compared with the estimate of $3.95. The company said price hikes on the ingredient packs supplied to outlets reduced the gross margin for its U.S. company-owned stores by 2%. (Reporting by Neil J Kanatt in Bengaluru and Waylon Cunningham in New York; Editing by Shilpi Majumdar and Tasim Zahid)
CTV News
35 minutes ago
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Chinese investors snap up stocks on hopes for an end to price wars and overcapacity
New cars wait for shipment in a parking lot partially covered by solar panels at the distribution center of Changan Auto, in southwest China's Chongqing Municipality on July 6, 2025. (Chinatopix via AP) BEIJING — China's stock market is buzzing over government promises to tackle price wars that have hurt profits and worsened global trade tensions. The prevailing catchphrase is 'anti-involution,' and it reflects efforts to curb intense competition and overcapacity in industries like solar panels, steel, and electric vehicles. With rising trade barriers such as U.S. President Donald Trump's higher tariffs, and relatively weak domestic demand, manufacturers have been slashing prices, undermining their bottom lines and driving some out of business. The producer price index, which measures the price that factories receive for their goods, has fallen steadily for nearly three years in China in a prolonged bout of deflation. The long-running issue spilled over into global markets as low-priced Chinese exports worsen trade friction with key trading partners including the United States and Europe. Solar panel glass makers agree to cut output by 30 per cent. In a series of recent statements, the Chinese government and industry associations have signaled they're getting serious about reining in cut-throat competition, known as invollution or 'neijuan' in Chinese. The top 10 makers of glass for solar panels agreed on June 30 to shut kilns and cut production by 30 per cent, an industry association said. The government has launched an auto safety inspection campaign, addressing concerns that automakers were skimping on quality to cut costs. It's unclear whether these efforts will succeed, but the sense that China may finally be tackling this chronic problem was enough to spark a rally in stocks in some of those under-pressure sectors. Shares of Liuzhou Iron & Steel Co. gained 10 per cent on Friday and have risen more than 70 per cent since June 30. Solar panel glass producer Changzhou Almaden Co. fell at the end of last week but is still up about 50 per cent. More broadly, two exchange traded funds in solar panels and steel have risen about 10 per cent, outpacing a 3.2 per cent rise in the Shanghai Composite, China's leading market index. The performance of EV-maker stocks has been mixed, with Li Auto and Nio recording double-digit percentage gains while market leader BYD declined. Foreigners can't buy Chinese stocks directly but they are able to invest in about 2,700 stocks and 250 exchange traded funds through the Hong Kong exchange. Government calls intense price wars 'disorderly' The gains follow high-level government pronouncements against disorderly price wars. On June 29, the People's Daily newspaper, the mouthpiece of the ruling Communist Party, ran a lengthy page one article on involution, saying they run counter to the party's goal of high quality economic development. Chinese leader Xi Jinping weighed in at a closed-door economic meeting, calling for better regulating competition and incentives by local governments to attract factory investments that are blamed for overinvestment in affected industries. The tougher talk began with a focus on automakers in late May, specifically around electric vehicle price wars that began more than three years ago. Analysts at investment bank UBS said the shift is good news for auto industry profits and company stocks. 'Though it's difficult to imagine a sudden U-turn of the industry from fierce competition to orderly consolidation, it's indeed possible to have near-term ceasefire of the price war,' they wrote. Weak demand and overcapacity bring a fight for survival After BYD launched another round of price cuts on May 23, some competitors, the main industry association and government all called for fair and sustainable competition. The EV battery industry, the cement association and major construction companies have issued statements echoing calls for an end to excess competition. The term involution, which suggests a spiraling inward and shrinking, was initially applied in China to students and young workers, who felt they were caught up in meaningless competition that led nowhere as the job market weakened and wages stagnated in recent years. At the industry level, it has come to mean sectors that have too many companies competing for a slice of the pie, leading to fierce price cutting to try to gain market share. The mismatch between production capacity — how much an industry can make — and actual demand for the product, reflects overcapacity that forces companies to compete for survival in a limited market space, said a recent article in the Communist Party magazine Qiushi. Obstacles to fixing the problem Some Chinese industries, especially steel and cement, have long suffered from overcapacity. A government push to promote green industries has fostered similar problems in that sector, including solar panels, wind turbines and electric vehicles. A flood of Chinese exports is leading to more trade barriers in Europe and the U.S. and in some emerging markets such as Mexico, Indonesia and India. Ultimately, economists say industries need to consolidate through company mergers and bankruptcies. But the process will take time. A major obstacle is provincial governments that want to protect local companies and jobs. Alicia García-Herrero, the chief economist for Asia-Pacific at the Natixis investment bank, said that recent comments by top Chinese economic officials suggest they realize something needs to be done. 'How much is action versus words, I don't know,' she said. 'But I do think it's a big problem for China.' Associated Press researcher Yu Bing contributed. Ken Moritsugu, The Associated Press
