BMO Equity Research IN Tune: Recent Episodes
BMO Capital Markets Equity Research
IN Tune is a podcast series featuring Equity Research analysts from BMO Capital Markets. Our shows explore key emerging themes, trends, and issues which are important to our institutional clients globally. Visit our website at https://researchglobal0.bmocapitalmarkets.com/
Fadi Chamoun and John Stephenson join this edition of our IN Tune podcast to discuss their recent report on FedEx and its well-received cost reduction plan. Although the plan is sizeable and recent results are favorable, they argue that the program needs to be deeper and bolder and see the risk/reward in the stock as more balanced despite the encouraging steps FDX has taken to improve efficiency. BMO clients can view our report, “FDX/UPS Comparative Analysis: Deeper & Bolder DRIVE Needed”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/8e109870-0fcb-4e7a-841a-c26227a2c822/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/SFROWlVDM1RJRWUvNXFEaWxGekoyMjFITVpFdUtsTGFJYVZLU2JTbjQxaGplbXVHd1hJT3Z3VEZuQkJpUEQ4RkhlaDlXcmxSc2RZSkYxYll1SmJQMEE9PQ2.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this edition of our IN Tune podcast, we sit down with Doug Morrow and Juan Sanabria from BMO’s equity research team to discuss the key findings from their recent note on climate change impacts on US real estate companies. Doug and Juan have analyzed the exposure of 70 US REITs to physical climate risk for their US assets in the "new normal" with ever-increasing billion-dollar climate and weather disasters. They believe that REITs will increasingly have to execute strategies in an environment that is likely to be warmer, and punctuated by more extreme weather events with insurance costs likely to further increase, and in some cases, insurance coverage availability questionable. For investors, given the increased frequency of climate events, associated costs may no longer be treated as one-time, but instead be viewed as part of doing business with significant variance by REITs, but not necessarily across sub-sectors. BMO clients can view our report, “It's Getting Hot in Here... So Let's Analyze Climate Change Risk for US REITs”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/5f4337fe-5f43-444f-b1ed-b9ab66ba423b/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A37BB256-6348-4CD9-B0A3-665564235E1B.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Recorded on October 31st, Sohrab Movahedi and Etienne Ricard join our IN Tune podcast to discuss their recent report "Spin Mechanics", covering Brookfield Asset Management and the anticipated transaction to spin out a 25% interest in its asset management franchise as a 'pure-play', as well as the drivers of value at BAM and BN, and the value proposition of alternative investment strategies in a higher interest rate environment. BMO clients can view our report, “Spin Mechanics”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/84eef555-31d0-4c99-b081-6ef194889177/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/03991578-A48F-48D6-A740-74D970BDD942.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this episode of our IN Tune podcast we sit down with Doug Morrow, BMO’s Director of ESG Strategy, to go over the key findings from the department’s recent launch of ESG coverage for the base metals and diversified mining industries in a report entitled, “Beneath the Surface: Exploring ESG Trends and Progress in the Base Metal and Diversified Mining Industries”. We talk everything from minerals traceability to diversity, equity & inclusion, and review how investors can apply the findings in their investment process. We also preview the latest report, “It’s Getting Hot in Here… So Let’s Analyze Climate Change Risk on US REITs”, a collaborative effort covering how climate change effects US REITs. Where BMO’s Research team worked together with the BMO Climate Institute and other parties to run a first of its kind analysis on how US real estate companies are exposed to wind, wildfire, and flooding risks that are being exacerbated by climate change. BMO clients can view our report, “Beneath the Surface: Exploring ESG Trends and Progress in the Base Metal and Diversified Mining Industries, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/81336ca0-481e-4920-804d-b3b177cb3c7e/ And our report "It’s Getting Hot in Here…So Let’s Analyze Climate Change Risk on US REITs" by visiting: https://researchglobal0.bmocapitalmarkets.com/research/5f4337fe-5f43-444f-b1ed-b9ab66ba423b/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/0CBB1ED1-7A73-4F84-A834-CA8602602B16.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
There has been a lot of buzz around the voluntary carbon market over the past few years given increased interest in corporate carbon offsetting to help facilitate the explosion in net-zero and emissions reduction targets. We believe this market is currently in its “carpe diem” moment and that it has arrived at an important crossroad, with a need to meet increasing demand for offsets while still maintaining market integrity through products that reflect actual impact. While we believe this market is slated for impressive growth, its potential is predicated on an ability to deliver high-integrity products. In this short podcast, we touch on certain nuanced aspects of the market, including differences with compliance and voluntary markets, credit-quality criteria, and the implication of Article 6 of the Paris Agreement. BMO clients can view our report, “The Voluntary Carbon Market: International Market of Mystery”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/938af63e-12dc-4b6c-8d1f-26fd4b2fa340/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/1306A54B-83F2-403B-9DA9-E2E00B7AEAA3.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (16 min) podcast, we discuss the key recent changes we have made to our EV sales forecasts and battery assumptions, and the resulting impacts on various upstream battery metals including lithium, nickel, cobalt, graphite, and others. BMO clients can view our reports, "Raise EV Targets Higher and Update Key Assumptions to Varying Upstream Effect", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/abe03309-3d6b-432e-8507-3ebf507894eb/ and "Changing Some EV and Lithium Assumptions, Though Conclusions Remain Same" by visiting: https://researchglobal0.bmocapitalmarkets.com/research/65f1a666-1549-4b11-9c93-009328f5f574/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/0E975775-C5A2-487E-9B85-98EBA70158BA.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
BMO clients can view our report, “Best of BMO Q322” by visiting: https://researchglobal0.bmocapitalmarkets.com/research/e165cee3-dced-46c4-942a-df8e116962ae/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/DD9845C9-AE86-457A-93FE-7D24B4201212.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
With agricultural related GHG emissions accounting for about quarter of global emissions, conversations around the role of farming in carbon and emissions management are intensifying. This includes the capacity of soil to sequester carbon by growers transitioning to farming practices such as no-till and cover cropping. Governments are starting to incentivize such transitions, and numerous food and crop input producer pilot programs to track on-farm sustainability practices have emerged. In this podcast, Joel Jackson, Chemicals and Fertilizer Analyst at BMO Capital Markets, discusses the key findings from his recent research report, which concludes that while many hope no-till farming and cover cropping could prove a benefit to growers to monetize sustainability practices and lower emissions, they may prove to be a burden unless government and food industry incentives materially increase and broaden. Even with government incentives and promises of CPG industry incentives, BMO estimates a 5- to 10- year payback for a farmer transitioning to no-till and cover cropping. Upfront equipment switching costs are sizable, there are yield penalties in initial years, and material annual cover crop seed costs. Plus, future outcomes are blurry - carbon monitoring is imprecise, carbon sequestration seems lower than projected and variable year to year, there’s carbon re-emissions potential from natural occurrences or if practices are abandoned, carbon marketplaces are immature, and government policies are unclear. Episode transcript: xxx To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
BMO Capital Markets’ Group Head, Dan Barclay, moderates a discussion on the takeaways from BMO’s 17th Annual Farm to Market Conference across the food and agriculture value chain. Joel Jackson, Chemicals and Fertilizer Analyst, discusses his views on where we are in the ag cycle, the supply constraints on fertilizers, and the impacts of the invasion in Ukraine on his coverage of fertilizer companies. Ken Zaslow, Food and Agribusiness Analyst, takes the listener on a deep dive into how inflation is impacting his covered companies and the sector. Doug Morrow, Head of ESG Strategy, delves into the corporate value proposition of ESG, the implications of food insecurity, and how ag and food production contributes to climate change. Together, Dan and the three analysts take a deep dive into the core themes of BMO’s 17th Annual Farm to Market Conference. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/4533B7E0-00AC-44FD-9DFC-DA01F656F0D9.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Oil & Gas Thematic Analyst Jared Dziuba discusses the BMO Energy Research Team’s latest IN Front report: “Outer Limits: Exploring the Cost (Opportunity) of Canada’s Net Zero Pathways.’” We engage in a comprehensive discussion about the potential cost of the Canadian oil industry’s net zero ambitions as it relates to carbon abatement technology deployment, and its implications on the financial health of producers and shareholders. Jared emphasizes that Canada’s oil sands producers are uniquely positioned to execute on net zero ambitions given global leadership in R&D and deployment of technology including Carbon Capture, Use, and/or Sequestration (CCUS), and that while the costs are high, they are well within the free cash flow generating capacity of producers without impeding on planned growth in cash returns to shareholders. Despite this, he also explains why industry critics are irresponsible to suggest that the industry bear the full burden of costs associated with these large-scale, capital-intensive net-zero technologies aimed at achieving collective social goals despite ongoing consumer demand for oil products, given the consequence of severe erosion of shareholder returns, as well as deterioration of investor confidence and competitiveness in global energy markets. Finally, Jared points out that the ‘Pathways’ alliance among the top six oil sands producers is actively fortifying action plans, and that a pending announcement of government CCUS tax incentives may provide a catalyst to finally convert ambition to action. BMO clients can view our report, “The Outer Limits: Exploring the Cost (Opportunity) of Canada’s Net Zero Pathways”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/a9cb3724-ad43-43ee-989f-d0fa90dc2345/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/2248C879-B470-4BCC-BDD6-2EC77CAA6FC1.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
The Best of BMO is our quarterly compilation of our broad macro views, as well as our best stock ideas for the next 12 months. Essentially, it is an equity idea book. In this episode, we are joined by six of our analysts to delve into the details of their Best of BMO stock pick. Joining the podcast are Randy Ollenberger, Oil and Gas analyst; Jackie Przybylowski, Metals and Mining analyst; Fadi Chamoun, Transportation analyst; Peter Sklar, Consumer analyst; Tom MacKinnon, Insurance analyst; and Thanos Moschopoulos, Technology analyst. BMO clients can view our report, “Best of BMO Q1/22”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/00aecbce-aee1-4393-aad0-98005f4d7a8a/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/C13527E3-9954-43C7-9EB6-7357049918E9.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (10 min) Metal Matters podcast, we discuss feedback from BMO’s Global Metals & Mining Conference, how supply disruptions can result in demand destruction and the turbulence in the LME nickel market. Episode transcript: research-ca.bmocapitalmarkets.com/documents/CC8ED4F0-7D47-4B21-82BE-A766225F7AEB.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Plant-based meat was taking off and becoming a part of the consumer's diet. Then, COVID-19 hit and changed the growth trajectory. In this episode, we address 1) what happened?; 2) will plant-based meat have the same success as plant-based milk?; 3) what does the plant-based meat industry need to do to regain its footing and growth; and 4) what key adjustments and strategies are required to adapt to the new normal? Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/4AAC6D9E-536E-40FB-871E-F3FED3FFD378.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
2021 turned out to be a great year for oil and gas investors. Randy Ollenberger and Ray Kwan think that 2022 has the potential to be equally good as a multi-year bull market for energy takes hold. This podcast covers their outlooks for oil and gas prices, heavy oil differentials as well as the impact inflation and M&A can have on the associated equities. In short, Randy and Ray believe that the recent European energy crisis’ impact on commodity prices and current concerns about the potential lack of spare oil production capacity may provide a glimpse of things to come following years of underinvestment, tightening environmental expectations and shifting shareholder demands. The North American oil and gas group is in its strongest financial position in the last 15-years and poised to generate record levels of free cash flow that we believe will be largely distributed to shareholders. Randy and Ray do not believe these factors are adequately reflected in market valuations. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/FDE37153-0F60-4992-97F2-205936F892EB.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
As we get ready for IFRS 17, effective January 1, 2023, for Canadian, European, and Asian insurers, investors need to understand how it will reflect drivers of value, and, most importantly, what further analysis and perhaps potential adjustments to reported items are relevant in an IFRS 17 world. This podcast discusses the key differences between IFRS 17 and the current IFRS 4, and, more importantly, highlights the need to look beyond just IFRS 17 reported earnings, BV, and ROE in assessing shareholder value and shareholder value creation. BMO clients can view our report, “Analyzing Drivers of Value in an IFRS 17 World”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/27a9e2c7-ecda-4cad-be42-3042fd29b651/ Episode transcript: research-ca.bmocapitalmarkets.com/documents/CE188984-9604-43C1-A1AE-3722C6EDC740.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Carbon, Capture, Usage and Storage (CCUS) represents one of the best near-term opportunities to reduce C02 emissions, particularly as Canada looks to meet its 2030 and 2050 reduction targets, and we expect the Canadian Energy industry to play a large role over the next several years. Overall, we estimate CCUS represents a +$10 billion opportunity in the pipeline infrastructure alone, and much more when including the carbon capture facility itself, ancillary infrastructure, and energy services required. BMO clients can view our report, “CCUS Breathes New Life Into Cdn. Pipe Infrastructure With $10B-Plus Opportunity”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/7b3801b6-1387-40a4-89cc-c039bdcdf984/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/22763714-AECB-45C2-9C0A-DDD73170650B.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week on IN Tune we are sharing another episode from BMO Smarter Investing, titled "What does the economy look like for Canada, the US, and Europe in 2022?" Interest rates and the global economy in general has been quite volatile since 2020 due to uncertainties of the pandemic. We've seen businesses open back up to the public and life slowly resemble normalcy. Now with the new COVID-19 variant, Omicron, it looks that more uncertainty is on the horizon for 2022. BMO economists Sal Guatieri, Douglas Porter, Jennifer Lee, and special guest Benjamin Reitzes discuss what the economies of Canada, the US, and Europe might look like, and what to expect with interest rates for the new year. Visit BMO.com/onlineinvesting for more information and to learn how you can start investing today. For more episodes of BMO Smarter Investing, please visit: smarterinvesting.influicity.net Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/128EE74A-7E4A-4932-844A-8D31A0D9FDFF.PDF
The rail industry is innovating on several fronts with pilot projects to assess alternative fuels for locomotion, automated track and railcar inspection as well as digital initiatives throughout the enterprise. We expect these innovations, along with the possible transition to a single-person crew, to meaningfully bend the cost curve and deliver strong growth in earnings over the next several years. Over the longer-term horizon, we see increased competitive intensity as autonomous trucking becomes commercially viable and could represent a meaningful challenge for the railroads, particularly on short- and medium-haul intermodal freight. BMO clients can view our report, “On Track: Railroads Innovating for the Long Haul”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/3a36401d-cd7e-4452-8481-b385ddb81267/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/FE0A58E1-97A0-4962-8055-0C4253213745.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Are cryptocurrencies a scam or a new form of digital gold? Are they investments or speculative assets? We speak with BMO Technology Analyst, Deepak Kaushal, to discuss the first principles of blockchain technology, how cryptocurrencies capture value, and what the industry landscape looks like today. We also touch on the growing number of opportunities in public equity markets, important risks, and a framework for investors to consider, when they are ready to take the plunge. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/5DDBEB17-25BD-4289-B9D7-2B8A15FDABF9.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week on IN Tune we are sharing the first episode of a new BMO podcast, BMO Smarter Investing, titled The Rise of Inflation: Who wins and who gets hurt the most. Inflation is at an all-time high right now since the 1990s: Over 6% in the US and over 4% in Canada. BMO economists Douglas Porter and Sal Guatieri discuss what this means for interest rates, who wins and who gets hurt the most from high inflation, and where they believe inflation will be going within the years to come. Visit BMO.com/onlineinvesting for more information and to learn how you can start investing today. For more episodes of BMO Smarter Investing, please visit: smarterinvesting.influicity.net Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/FE41B26C-1FA9-4C3C-8DF6-8E61F15C3554.PDF
With the acceleration during COVID-19, online grocery is here to stay. How are the Canadian Grocers addressing this growing segment of the grocery market? How is online grocery impacting the economics of the grocery business? What will the grocers need to do to win in the future? In this episode of our podcast, BMO Consumer Analysts, Peter Sklar and Tamy Chen will dive into these topics. This episode is an extension of our recently published IN Front report and BMO Expert Event.
BMO clients can view our research: Who Will Win in Canadian Online Grocery: In-Store vs. Central Fulfillment?: https://researchglobal0.bmocapitalmarkets.com/research/a776ffa1-9901-4b19-b222-34afc87258b4/ Online Grocery Fees, Profits & Outlook: Takeaways From BMO's UK Experts Event: https://researchglobal0.bmocapitalmarkets.com/research/fc8f6a70-dbf7-44b2-891e-434b0bacdef2/ In-Store vs. Central Fulfillment: The U.K. Grocery Experience and Readthroughs for Canada: Online Engagement Metrics for Empire's Highly Anticipated Voilà.ca Launch: https://researchglobal0.bmocapitalmarkets.com/research/71a1f568-318e-49b6-bdca-6076ca801899/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/39785BD2-5E0B-4F6B-B243-7ABF0D283FCA.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (8 min) podcast we discuss what caused the sharp move in copper last week, China’s current property situation, and how the magnesium situation will bring more focus to critical metals. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/9C77E7C6-514C-4684-91E2-9A9388CC4404.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
With just over two months left in 2021, equity markets in both Canada and the US have managed to exhibit positive returns—despite continued fears and rhetoric regarding inflation, rising interest rates, and supply chain disruptions, to name a few. In this podcast we discuss our views on stock market performance during rising interest rates environments, energy sector dynamics, and growth versus value positioning. In addition, we highlight our favorite ideas and themes on a sector-by-sector basis in both Canada and the US. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A6564C65-EAAB-4609-A86B-16386B4E2435.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (8 min) Metal Matters podcast we discuss feedback from LME Week, the knock-on implications from the global energy crisis, and the key conclusions from our recently published copper report. BMO clients can view our report, "Rethinking the Long-Term Copper Challenge", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/52b25693-0a56-46d0-8987-30a4359d1f4f/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/C7A70448-B3ED-4CFA-A004-E8CB1725FD59.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this episode of our podcast, we reconnect with Doug Morrow, Director, ESG Strategy, and get his view on today’s big ESG themes and an update on the research team’s ESG initiative. We cover the upcoming COP 26 and concerns about greenwashing, and review key findings from some of our latest ESG research, including the GHG intensity of the S&P/TSX 60 companies, as well as the launch of our ESG Tear Sheet product for the Canadian packaging industry. BMO clients can view our reports: "ESG Matters - Assessing the GHG Intensity of S&P/TSX Companies": https://researchglobal0.bmocapitalmarkets.com/research/0c4580e9-fc69-4edb-b0cf-e64f080f54ff "Unpacking ESG in the Canadian Packaging Industry": https://researchglobal0.bmocapitalmarkets.com/research/c18a7768-a642-4ce6-97e2-2d0b84541b51 Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/D6C54755-584F-4A4B-94A5-6D5700C079BB.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (8 min) Metal Matters podcast, we discuss the knock-on effects of China’s power rationing, central bank policy, and what we expect from the forthcoming LME Week discussions. BMO clients can view our report, "Q4 2021 Commodity Price Update - Surprises Shift From Demand to Supply", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/8d79e3cb-c27a-4083-97ec-52ec01ce62df/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/31BE112F-B079-47C1-80E7-A9DCED12AE1C.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (9 min) Metal Matters podcast we discuss the challenges facing China on both the policy and property fronts, aluminium’s recent price gains, and drivers of price divergence in iron ore and met coal. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/2E2C86DA-1933-4B6B-A50C-77EB6CE08F59.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
BMO Capital Markets recently increased its electric vehicle (EV) penetration forecasts to 7% this year, and 15% by 2025, with important spillover impacts into lithium, nickel, and cobalt. This podcast highlights the work of our analysts, Joel Jackson, Robin Fiedler, and Colin Hamilton, and is a deep dive into our EV forecast, the supply and demand dynamics in lithium and other raw materials, and the impact on related equities, as well as the supply complexity that the industry faces. BMO clients can view our report, “Recalibrating EV Sales, and Lithium / Nickel / Cobalt Demand Estimates Higher”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/c03825ba-8af5-4803-a7fe-c37b3b4be4a9/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/56739524-749B-4FC8-9AD2-D4ADB9FC0F37.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (8 min) Metal Matters podcast we discuss the upcoming World Nuclear Association and Denver Gold conferences, the electric vehicle upgrade cycle and the impact logistical constraints may have on the wider metals cycle. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/F3F967B9-82F6-4CC6-A57C-F973D8D5D164.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
The Canadian Investment Funds Industry is a mature and saturated marketplace. The wealth management operations of the Canadian banks, with a leading and growing market share in Canadian investment funds, an inherent distribution advantage, as well as a pricing advantage, continue to outperform the independent fund companies. In a mature and saturated marketplace where it’s increasingly difficult to compete against the wealth management operations of the Canadian banks, we see challenges for the Canadian independent fund companies. We explore strategic options for the Canadian independent fund companies. For the well-positioned wealth management segments of the Canadian banks, it’s most likely business as usual. BMO clients can view our IN Front report, “Canadian Wealth & Asset Management – Banks vs. Independents”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/4eafbcda-5e48-42e0-9622-9212e3ead30d/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A171269F-A2DF-4AFB-A70E-66937B67AB12.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this 7 min Metal Matters podcast, we discuss 1) why strong free cash flow hasn’t yielded many new project approvals, 2) China’s steel production cuts and capacity offshoring, and 3) why the countdown to the COP26 Summit will keep the focus on metals involved with the global energy transition over the next three months. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/B52119E4-D910-43C8-9A5F-72FD7F2107FA.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
The mining industry doesn’t always have a reputation for being an early adopter of leading-edge technology. But innovations will be increasingly important to offset cost inflation and improve mining efficiency and safety in the future, as new mines will generally be increasingly lower grade and higher cost. Ore sorting is one technology that is likely to make a meaningful impact on the mining industry. Pre-concentration can eliminate low grade or otherwise uneconomic material before the expensive and energy-intensive downstream processes. Metals & Mining analyst Jackie Przybylowski is joined by Anthea Bath, chief operating officer at Ero Copper, and Marie-Claude Halle, CEO and principal consultant at Unearthed Consulting Inc., to discuss the opportunities and risks of ore sorting technology. BMO clients can view our IN Front report, “Ore Sorting: Not a Quick Fix, but a Long-Term Solution”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/c3b805f4-968f-4b7c-b88c-16459ac4da58/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/F67EB2AA-18A1-4D5E-A69F-F3B66A8CFB8D.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
We recently invited Will Hess and Song Gao from PRC Macro to discuss with us their outlook for the Chinese economy in the second half of the year, and the potential implications for commodity markets as the economic growth rate starts to slow.
Presentation slides: https://research-ca.bmocapitalmarkets.com/documents/752B6C7D-C872-4233-80BC-B40E12DDF1E8.PDF Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/4D76577A-BC69-4CA6-BBB2-7145C2C3AECB.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (6 min) Metal Markets podcast, we discuss what metals and mining producers are doing with strong free cash flow, the potential for copper supply disruptions amid Chilean labour negotiations and what would happen to commodities in the event of another China lockdown as Delta-variant cases spread. BMO clients can view our report, "Dialing up DRI Developments", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/9082e43b-76e1-4d5c-9973-ddc6da064a6d/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/544C860D-9B96-4350-AF4A-317B777C8D05.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Members of the Canadian and US REIT research teams discuss their recent IN Front report which addresses the rapid growth of property technology (PropTech). The team also discusses the state of the REIT landscape as we emerge from the COVID-19 pandemic and, lastly, the team offers their respective top picks in the US. BMO clients can view our report, "PropTech: The Next Frontier in Commercial Real Estate", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/6414940b-1b38-4739-a131-af9d48c1b8a5/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/BD9F2140-7003-4446-9DF2-BB23302C4025.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this short (7 min) Metal Matters podcast, we discuss whether the recent RRR cut signals a Chinese policy change which could influence commodity markets, moving forward the first Fed hike, steel production cuts in China and why Europe’s carbon border adjustment mechanism is just a stepping stone. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/132C274D-CDFC-4E2F-B7DE-4B1BF484D9D0.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
As equity markets head into the second half of 2021, the following podcast provides an update on our forecasts for both the US and Canadian stock markets, with particular attention on the secular bull market in the US, Canada’s consistent performance, and the transition to more fundamentally driven portfolio management. Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/8E7041BD-9C39-4CEB-83A4-030509E14121.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In our inaugural Metal Matters podcast, we consider China’s SRB base metal sales, met coal market tightness, cost inflation and our latest commodities outlook. BMO clients can view our report, "Q3 2021 Commodity Price Update - Beyond the Inflationary Bottleneck Bonanza", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/b115acb0-9b85-452b-b1c2-197536e25703/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/132C274D-CDFC-4E2F-B7DE-4B1BF484D9D0.PDF To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Oil & Gas Thematic Analyst Jared Dziuba discusses the BMO Energy Research Team’s latest IN Front report: “Survivor Canada: The Unparalleled Position of Canadian Oil in a Transition Challenge.” Against commonly held views, we engage in a thought-provoking discussion about why the Canada’s oil sands business is poised to maintain long-term production, and potentially gain market share in a net zero, energy transition world. Jared points out that Canada and its oil companies have practiced ESG since before it was even a “thing,” and why they are poised to maintain a faster pace of improvement than industry. He further explains how oil sands bitumen is distinctly unique in both its extraction and makeup, which provides transition opportunities not available to other sources of oil and supports its longevity in the global supply chain. Finally, Jared suggests that there is meaningful investment opportunity in the “underdog,” as the stocks of Canadian producers have been disproportionately affected by sustainability concerns, despite our findings to the contrary. BMO clients can view our report, "Survivor Canada: The Unparalleled Position of Canadian Oil in a Transition Challenge", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/0da735b3-5b1c-4496-a91b-4e15583f2ff8/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A02B1E8C-0334-46FD-8AC7-AC74AE1D3083.PDF
In this podcast, Sohrab reviews the Canadian banks’ second quarter results, makes the case why Canadian banks should be outperformers in the next year or so, and draws investors’ attention to Outperform-rated BNS, CM, and NA. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
BMO Capital Markets’ Group Head, Dan Barclay, moderates a discussion on the takeaways from BMO’s 16th Annual Farm to Market Conference across the food and agriculture value chain. Joel Jackson, Chemicals and Fertilizer Analyst, explores how farmers and crop input producers are handling higher commodity prices, how on-farm carbon management and sustainability are becoming increasingly relevant, how digital agriculture analytics tools have become table stakes, and how technology may become the solution to a host of farming stresses, including sustainability, labour shortages, and an aging farmer demographic. Kelly Bania, Food Retail Analyst, discusses the critical importance of supply chains in the food industry, the outlook for food inflation, and how membership fatigue could push more partnerships across the consumer landscape so that retailers can offer benefits beyond the basics. Ken Zaslow, Food and Agribusiness Analyst, dives into how many of the companies across the food supply chain are positioned to benefit from the current environment. In addition, he suggests that the inflation we are seeing is both broad based and demand driven, and exacerbated by supply constraints, implying it is unlikely to ease in the near term. Ken also digs into the learnings from his recent report “Mission Impossible: Assessing ESG Risks and Opportunities in the US Packaged Food Industry.” Together, Dan and the three analysts take a deep dive into trends of the future, inflation, and ESG in a 20-minute podcast that covers the core themes of BMO’s 16th Annual Farm to Market Conference. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/5615AAA7-A560-455F-AD1C-2189F65F2C57.PDF
Congested urban landscapes and overburdened ground infrastructures are about to be transformed with a new form of transportation, a scheduled or on-demand air taxi service that can whisk passengers along faster, safer, and less expensively than the alternatives. Improvements in battery technology and distributed electric propulsion and leaps in aerospace technology have given rise to electric vertical takeoff and landing (eVTOL) aircraft. We expect that the first commercial flights of these innovative new aircraft should begin in late 2023 and that the likely first use case is as a scheduled airport shuttle. The leading startups have already attracted $3.2 billion in venture capital, and major brands such as Airbus, Boeing, Hyundai, and Porsche are pursuing their own urban air mobility solutions. We estimate that the total addressable market for eVTOLs could be more than $1.25 trillion by 2035. We believe that eVTOLs can be more than competitive with cars or even pooled car services. At annual production volumes of 5,000 units or more, we estimate that a given eVTOL type can be about 390% and 190% cheaper on a per passenger mile basis than UberX and UberPool, respectively. We anticipate that eVTOL aircraft will be operated by commercial pilots meeting high safety and recurring training standards. We project eVTOL could require 66,000 additional pilots over the coming decade, expanding the current addressable market by 25%. We believe that Outperform-rated CAE will be a key beneficiary of this new dimension of transportation —urban air mobility. BMO clients can view our report, "Ready for Takeoff: Urban Air Mobility Takes Flight", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/e5011038-0b74-470e-b064-1ac1bfa4f06f/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/3A2B8424-475A-4683-93A6-10D523235EEC.PDF
Oil and Gas Analyst Randy Ollenberger discusses the notion of peak oil demand and what it really means. Randy explains why oil demand is likely to continue to grow over the balance of this decade before beginning a slow decline. He also examines the global supply outlook and discusses why there could be a supply shortage in the next five years. And finally, Randy provides his views on how the Canadian oil sands companies are positioned to outperform in this environment. BMO clients can view our report, "Oil Demand to 2040: Beyond the Hype", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/cac7fe4e-e703-4841-8b72-473ba5b343be/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/CCB5AB8B-DE9F-40E5-AD39-5F0EDA34A4BF.PDF
Chemicals and Fertilizer Analyst Joel Jackson discusses the latest in ag chemicals, fertilizer, and lithium, and also summarizes his recent in-depth report on digital agriculture. With lower-than-expected crop production last year in different regions and China rebuilding its animal herds, crop prices have risen materially and raised the possibility of an ag super cycle. Joel explains why he thinks the seeds and crop chemicals producers could be best positioned to profit from this. He also lays out the bullish trajectory of the EV revolution, and how this is benefitting lithium suppliers. Finally, Joel presents why it has been difficult to get farmers to pay up for digital ag software analytics tools. BMO clients can view our report, "Digital Ag – Powerful Analytics Tools but So Far Only Table Stakes", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/091a11b3-a6c3-4258-9981-69493a22147a/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A8E1F017-5F17-4F35-9FAB-9A5831F0375B.PDF
We review the implications of the announcements made at China’s recent NPC meeting, which saw the release of the 14th Five-Year Plan for economic development, for global metals and bulk commodity markets. Into H2 2021, China’s aim for more balanced growth after an investment-heavy 2020 may see a retracing of some year-to-date gains across industrial metals. Longer term, however, the country’s push for decarbonisation and rural revitalisation will help to underpin demand. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/78DA76D6-10C0-4D12-BDF3-448B97A2B327.PDF
BMO Capital Markets ESG Strategist, Doug Morrow and Real Estate Analyst, Jenny Ma, run through the highlights of their most recent report: Building Momentum: ESG Performance in the Canadian Real Estate Industry, as well as BMO’s integrated approach for assessing ESG in fundamental equity research. BMO clients can view our report by visiting: https://researchglobal0.bmocapitalmarkets.com/research/cdb3bdf9-37df-498d-9f7b-65dfd5fbb78a/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/09137A70-BD47-4C70-B4C7-E232B7B98156.PDF
With Joe Biden sworn in as the 46th U.S. President, and on the day Canada marked the one-year anniversary of its first confirmed COVID-19 case, BMO hosted a live panel with internal and external experts to discuss the battle against the pandemic, from a health, markets, and macroeconomic perspective, including where it will finally plateau. Moderated by Chief Investment Strategist Brian Belski, the call featured medical commentary from Dr. John Whyte, Chief Medical Officer, WebMD, and Dr. Howard Ovens, Emergency Physician and Chief Medical Strategy Officer of Sinai Health. BMO experts, Deputy Chief Economist Michael Gregory and Margaret Kerins, Head of FICC Macro Strategy, discussed the economic and fixed income and equity market outlooks for Canada and the United States. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/C988773E-DB74-45EC-9583-4C599211758D.PDF
Cannabis Analyst Tamy Chen discusses recent developments in U.S. cannabis. The U.S. will have a new Democratic President and the Democratic Party will take control of the U.S. Senate. Concurrently with the election, ballot initiatives in five states voted for some form of cannabis legalization. In this podcast, Tamy explains the current U.S. cannabis regulatory landscape, the potential pathways forward for regulatory reform, and what timing could look like. In addition, she provides her views on how the Canadian companies, which currently cannot enter the U.S., could position themselves when they are permitted to enter. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/ Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/01D484F4-118A-4556-A66F-A1C1A1C38EC7.PDF
As Canada and the United States begin the roll-out of a game-changing vaccine against COVID-19, BMO hosted a panel with in-house and external experts to discuss the implications from a health, markets and macroeconomic perspective, including where we are now, when a new normal might begin and what it will look like. The panel was moderated by Chief Investment Strategist Brian Belski, and featured medical commentary from Dr. John Whyte, Chief Medical Officer, WebMD, and Dr. Allison McGeer, Senior Clinician-Scientist, Lunenfeld-Tanenbaum Research Institute, Sinai Health. BMO experts, Deputy Chief Economist Michael Gregory and Margaret Kerins, Head of FICC Macro Strategy, discussed the economic and fixed income and equity market outlook for Canada and the United States.
To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
COVID-19 has caused an abrupt channel shift from in-store to grocery e-commerce as consumers act to minimize risk at a minimal incremental fee. As a result, online grocery sales during the pandemic have reportedly doubled in the U.K. and China, tripled in Canada, and grown 5x to 6x in the U.S. BMO has conducted a proprietary survey of 1,000 Canadians to find out how their grocery shopping habits have shifted as a result of COVID-19 and, more importantly, how they intend to grocery shop going forward. Join our Consumer Analyst, Peter Sklar, for key findings from our survey and its implications for the Canadian grocers. Some questions we explored in our recent reports “Outlook for Canadian Grocery E-Commerce and COVID-19 Impacts,” “Online Engagement Metrics for Empire's Highly Anticipated Voilà.ca Launch,” and this podcast include: - How many Canadians shop for groceries online? - How much of the online shift will “stick” post-COVID-19? - Click-or-collect or delivery? - Brand switching during COVID-19? - Reasons for changes in consumer grocery shopping during COVID-19? - How are Loblaw, Empire, and Metro positioned for changes as a result of COVID-19? Please see our reports here: Outlook for Canadian Grocery E-Commerce and COVID-19 Impacts: https://researchglobal0.bmocapitalmarkets.com/research/153372ff-9ce8-4e45-9d09-1aa36df8f762/ Online Engagement Metrics for Empire's Highly Anticipated Voilà.ca Launch: https://researchglobal0.bmocapitalmarkets.com/research/874a03a0-3b6b-4e68-85f8-32ae9fda63e7/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Unprecedented, unrivaled, unparalleled, and incomparable are all adjectives that can be used to described life in 2020, let alone equity markets in the U.S. and Canada. In the following podcast, we provide our outlook for both markets – how 2021 represents another year of the unprecedented bull in the U.S. and how Canada remains an undiscovered value proposition. Please view our report "2021 Market Outlook: The Year Ahead for the US and Canada" here: https://researchglobal0.bmocapitalmarkets.com/research/1ae2d469-f6fc-44c0-ba5a-619f56ec26c8/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
The COVID-19 pandemic is a catalyst for innovations in the retail sector, and we believe that landlords can play a significant role in the new normal. Retailers have raced to refine and rejig their stores and distribution facilities, with the spotlight moving to a new category of functional spaces: dark stores and ghost kitchens. Our discussion today takes a deep dive into these potential uses for retail space and follows the release of our recent thematic report, “Trick or Treat: Dark Stores and Ghost Kitchens,” and a related interview on BNN Bloomberg. BMO clients can view our thematic report by visiting: https://researchglobal0.bmocapitalmarkets.com/research/6545e0b0-b93a-4a27-ac31-2affa42611db/ Watch the BNN Bloomberg interview by visiting: https://www.bnnbloomberg.ca/video/we-are-still-fairly-cautious-of-retail-sector-bmo-capital-markets-analyst~2067021 To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
With the votes all but counted, Joe Biden has been named the next president-elect of the United States, but it will be some time before we know the final shape of Congress. BMO Capital Markets hosted a client call on Nov. 9 to discuss the likely outlook for investment under the new government and in the face of a worsening pandemic. What will a new stimulus package look like and what will it mean for the economy and the bond and equity markets? Speaking to the economy was our Deputy Chief Economist and Head of U.S. Economics Michael Gregory, while Margaret Kerins, Managing Director and Head of FICC Macro Strategy, discussed the outlook for rates and the bond market. BMOCM Chief Investment Strategist Brian Belski hosted the call and discussed the outlook for stock markets in the U.S. and Canada. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
With the U.S. Presidential election results still hanging in the balance, BMO Capital Markets hosted a client call to discuss investment strategy based on what we know so far. The call, hosted by BMO Capital Markets Chief Investment Strategist Brian Belski, also featured expert commentary from Margaret Kerins, Managing Director and Head of FICC Macro Strategy, and Michael Gregory, Deputy Chief Economist and Head of U.S. Economics. Our experts urged caution around premature investment decisions ahead of the final results, and instead focused on what we do know, like the likelihood of a gridlocked Congress and what that will mean for stimulus, future leadership of the Fed, and the importance of equity markets to overall portfolios. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Special Situations Analyst Stephen MacLeod and his Associate, Nevan Yochim, discuss recent developments in e-commerce. E-commerce growth has been, and is expected to continue, outpacing traditional bricks and mortar retail sales growth. While the shift towards e-commerce has been happening over many years, COVID-19 has accelerated the pace of adoption for companies and consumers alike. Stephen and Nevan discuss the role of physical stores in light of e-commerce adoption, identify three important characteristics that define “winning” retailers, outline potential risks, and touch on earnings implications for their retail and consumer product coverage universe. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
BMO Capital Markets' Telco, Cable, and Media analyst Tim Casey discusses the implications and status of 5G deployment, the path to use cases, and milestones for investors to benchmark from a Canadian perspective. BMO clients can view our two reports, “5G: It's a Marathon, but Still a Race”, and "5G’s Field of Dreams: If You Build It, Will They Come?" by visiting: https://researchglobal0.bmocapitalmarkets.com/research/42269e7b-5730-4529-9a37-2cb67e6b65f3/ and https://researchglobal0.bmocapitalmarkets.com/research/ebd5bd4f-f5d2-45d4-bc4f-b7b164e2eef6/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
For the first time in recent history, retailers are choosing how many stores to open, not how many to close. In this podcast, we delve into our counter-intuitive claim that the pandemic created a (hopefully) once in a lifetime ”opportunity” for companies to focus on health, rather than growth - re-fashioning businesses for the future and using a “COVID-19 Cover” to ponder whether stronger is better achieved via smaller. At the risk of oversimplifying, we see two options: 1) store closures to cut costs and 2) reducing promotions to elevate the brand. Here, we dive deep to assess and quantify the impact from both, analyzing the nuance in pursuit of an optimal combination. BMO Clients can view our report, "Did COVID Actually Save Retail? Deep Dive Into a Post Pandemic Path to Profits", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/93ca27c5-1dcd-432b-b226-8ee9b7bf1638/
In this podcast, two senior BMO analysts – Colin Hamilton and Brian Quast – examine the new price environment for gold and how companies have responded. After an introduction to our current gold price outlook, we dive into a discussion of how companies can behave differently, both on an operational level, and on a corporate level. Leverage to higher gold prices is discussed along with capital discipline and capital returns to shareholders. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Education analyst Jeff Silber discusses the impact of the pandemic on the education sector. While loath to call any sector a "winner" during the current crisis, education would fit as more schools go online and need assistance from the many companies in this space that have been doing this successfully for years. In addition, he believes the pandemic has accelerated the acceptance of online learning as a modality, which should continue to spur growth even when the pandemic ends. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Over the next 12-24 months, parcel and courier companies are expected to benefit from several demand drivers. A cyclical recovery is expected to support improving B2B shipments while the COVID-19 virus has accelerated the adoption of e-commerce, supporting secular growth in B2C volumes. The pandemic has also grounded the global passenger aircraft fleet, which is expected to return into service at a slower rate than the recovery in freight demand; this could result in a multi-year positive supply/demand balance in air freight. We see durable competitive advantages for Canadian air cargo carrier Cargojet, which focuses on the more profitable “middle mile” service rather than the lower-margin “last mile.” The company’s dominant market share is also protected by cabotage laws that prevent big couriers such as Amazon, UPS, and FedEx from taking the middle mile in house. BMO clients can view our Cargojet initiation report, “Initiating at Outperform: Moving Up in the New World”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/1200cd1d-e74c-4fe8-be31-c9f54084eb60/ Our last mile logistics report, “Delivery Dilemma: How E-Commerce is Disrupting Last Mile Logistics” can be accessed by visiting: https://researchglobal0.bmocapitalmarkets.com/research/d42a28f4-66c1-48fc-a1f2-4fc55ca335a7/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
BMO’s industry-leading Materials team explores key takeaways from this year’s record-breaking Chemicals & Packaging Conference, for both corporate and investor attendance. The event, highlighted by fireside chats with 32 of the Chemical and Packaging Industries’ leading executives, provided detailed thoughts around near-term fundamentals and challenges in the current COVID-19 landscape ranging from demand trends to employee safety to updated thoughts on capital allocation. Equally important were some of the longer-term trends and opportunities identified by these industry leaders regarding growth in the new normal. On today’s podcast Mark “Dr. Paper” Wilde and John McNulty provide thoughts, context, and color on these trends and opportunities, as well as their insights as to how investors should be positioned for alpha generation over the next 12-18 months in the Chemical and Packaging Sectors. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Almost overnight, the COVID-19 pandemic has given us a glimpse into the future of work, and introduced a new and potentially material risk to the office market ecosystem. Its impact will be hotly discussed but challenging to measure and forecast for a long time. As companies rethink their office space requirements, the jury is still out on the adoption of the work-from-home (WFH) theme over the long term. For office REITs, valuation is at levels not seen in several years and can be considered attractive even with prevailing uncertainty on the office outlook. However, we believe office REITs are likely to be range-bound until there are more definitive indications of where office demand will settle out. BMO clients can view our report, “The Jury Is Still Out on the Office Sector”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/6545e0b0-b93a-4a27-ac31-2affa42611db/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Five host analysts from BMO’s 5th Annual Prescriptions for Success Healthcare Conference explore their key takeaways related to multiple value drivers across the healthcare industry along with evolving dynamics from COVID-19, which they gleaned from fireside chats and presentations, as well as moderated panels with several thought leaders. This year, the conference was held in a virtual setting, and similar to prior years, it was highlighted by discussions with senior executives from almost 60 leading companies across the pharmaceutical, biotechnology, and healthcare services sectors. The companies spanned the globe and market capitalization spectrum. The conference also featured a keynote discussion with Dr. Eric Feigl-Ding, a leading epidemiologist and health economist, a physician panel on atopic dermatitis and psoriasis, and a conversation with an expert on health insurance trends. In addition to discussing industry- and company-specific themes and broader sector insights, Gary Nachman (Specialty Pharmaceuticals analyst), Matt Luchini/George Farmer/ Do Kim (Biotechnology analysts), and Matt Borsch (Managed Care & Healthcare Services analyst) also discuss companies within their respective coverage universes that may be best positioned to outperform over the longer term based on these insights. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the 11th in a series highlighting insights on COVID-19 with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on June 29, 2020, at 11:00 a.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, and Jon Hill, CFA, Vice President, US Rates Strategy, as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Equity research analysts Ben Pham, James Thalacker, and Danilo Juvane discuss key emerging trends in the North American pipeline, utility, and renewable sectors, as countries re-engage post COVID-19 restrictions. The podcast explores how the North American energy infrastructure companies prepare to re-think their operations, business models, and competitive position in another round of energy transition. Other key themes discussed include ESG investing, long-term industry growth rates, and valuation trends in a post COVID-19 world. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Four host analysts from BMO’s 15th Annual Farm to Market Conference explore their takeaways related to the food and agriculture value chain, which they gleaned from presentations, moderated panels, and meetings during the event. This year, the conference was held in a virtual setting, and similar to prior years, it was highlighted by discussions with and presentations by senior executives from more than 100 leading companies across the fertilizer, seed/chemical, agribusiness, protein, packaged food, food retail/distribution, and restaurant sectors. The companies spanned the globe and market capitalization spectrum and included private companies. In addition to discussing industry- and company-specific themes and broader sector insights, Joel Jackson (Fertilizers/Chemicals Analyst), Ken Zaslow (Ag/Protein & Packaged Food Analyst), Kelly Bania (Food Retail & Distribution Analyst), and Andrew Strelzik (Restaurants Analyst) also discuss companies within their respective coverage universes that may be best positioned to outperform over the longer term based on these insights. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Software analyst Keith Bachman and Semiconductors analyst Ambrish Srivastava discuss what drives longer-term valuations under their respective coverage. While there are common themes such as free cash flow growth in both sectors, there are certain specific factors as well. Overall, both analysts show how their respective frameworks help shape their longer-term thinking, as well as react tactically when they see a meaningful dislocation occur, as it did earlier in the year. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the tenth in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on May 26, 2020, at 11:00 a.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, and George Farmer, Ph.D., Biotechnology Analyst; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
In this episode, Canadian Real Estate analyst Troy MacLean focuses on the long-term implications of the COVID-19 pandemic for the Canadian seniors housing sector. He discusses how the pandemic affects the LTC and retirement home markets differently. He also discusses how demand for seniors housing is impacted by the housing market, and what regulatory changes are likely in response to the pandemic. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the ninth in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on May 19, 2020, at 11:00 a.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, and Ben Jeffrey, US Rates Strategist; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the eighth in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on May 11, 2020, at 11:00 a.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, and Janelle E. Woodward, CFA, Head of Fixed Income, BMO Global Asset Management; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Equity research analysts Sohrab Movahedi, Devin Dodge, and Ben Pham discuss Brookfield Asset Management and its related entities - Brookfield Infrastructure Partners, Brookfield Renewable Partners (Restricted), and Brookfield Business Partners - in a COVID-19 world. Their conclusion is that the Brookfield complex looks to be well positioned to take advantage of investment opportunities arising from the dislocations brought about by the coronavirus pandemic thanks in large part to strong liquidity, global scale, operational know-how, and product offerings. Bottom line: The analysts believe Brookfield's eco-system remains in an advantageous position to be a long-term winner especially in a prolonged low-rate environment.
This week's special podcast is the seventh in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on April 27, 2020, at 12:00 p.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist; George Farmer, Ph.D., Biotechnology Analyst; and Margaret Kerins, CFA, Head of FICC Macro Strategy; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Business & Industrial Services analyst Jeff Silber and Industrial Products analyst Devin Dodge discuss the impact from COVID-19 on the waste services sector. Though not immune to the current market challenges, solid waste businesses are well positioned to navigate the slowdown and have better visibility into near-term earnings and cash flow than nearly all other industrial companies. Specialized waste companies should also fare reasonably well, but are less insulated to evolving economic conditions than their peers in solid waste. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the sixth in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on April 20, 2020, at 12:00 p.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, and Steven Bell, Portfolio Manager & Chief Economist, Multi Asset Solutions; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the fifth in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on April 14, 2020, at 10:00 a.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, and Jon Hill, CFA, Vice President, U.S. Rates Strategy; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Financial Services analysts Tom MacKinnon and Sohrab Movahedi compare the financial positioning of banks and lifecos amid the current coronavirus pandemic to the recent global financial crisis. While their downside scenario analyses suggest earnings will be down materially in 2020, they believe the balance sheet strength/quality and business diversification of the banks and lifecos should help them weather the pandemic storm. Tom and Sohrab also discuss some of the potential credit implications arising from the current economic situation and touch on earnings implications.
This week's special podcast is the fourth in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on April 6, 2020, at 12:00 p.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts George Farmer, Ph.D., Biotechnology Analyst, and Michael Gregory, CFA, Deputy Chief Economist; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
As the number of confirmed coronavirus cases and deaths due to COVID-19 jumps across North America, there is reason to believe the rate of increase in fatalities is slowing, Dr. John Whyte, Chief Medical Officer for WebMD, told a BMO Capital Markets conference call this week. This week's special podcast is the third in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on March 30, 2020, at 2:00 p.m. ET, moderated by BMO Capital Markets Chief Investment Strategist Brian Belski, along with BMO experts Michael Gregory, CFA, Deputy Chief Economist, BMO Capital Markets; Greg Anderson, Global Head of FX Strategy, BMO Capital Markets; and Lesley Marks, CFA, Chief Investment Strategist, BMO Private Wealth Canada; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Brian G. Belski, Chief Investment Strategist. There is no denying that a cyclical bear market has begun. Only two primary questions remain: duration and depth of the pain. At this point, another 10-20% downside is not out of the question, especially considering the growing number of disparaging forecasts and the crisis in confidence of governments. As such, we caution investors against seeking support levels, fiscal or monetary policies let alone symbolic events or gestures (e.g., corporate buyouts) to foretell or solidify a traditional bottom or capitulation. Given the irrational and fear-laden nature of the current stock market, historical precedence and traditional bottoming signals carry little to no weight in our view. Instead, markets and society likely need to see less negative (second derivative) headlines and actualities surrounding coronavirus (COVID-19 virus) to become reality before a bottoming process is likely to ensue. BMO clients can view recent Strategy reports by visiting: https://researchglobal0.bmocapitalmarkets.com/strategy/reports/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week's special podcast is the second in a series highlighting insights on coronavirus (COVID-19 virus) with Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on March 23, 2020 at 12:00 p.m. ET, moderated by BMO Chief Investment Strategist Brian Belski, along with BMO experts Margaret Kerins, CFA, Head of FICC Macro Strategy; and Michael Gregory, CFA, Deputy Chief Economist; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
This week’s special podcast highlights insights on coronavirus (COVID-19 virus) shared by Dr. John Whyte, MD and Chief Medical Officer of WebMD. This is an excerpt from an institutional conference call originally hosted on March 16, 2020 at 2:00 p.m. ET, moderated by BMO Chief Investment Strategist Brian Belski, along with BMO experts Doug Porter, Chief Economist BMO Financial Group; Michael Stritch, CFA, Chief Investment Officer BMO Wealth Management – US; and Ian Lyngen, CFA, Head of U.S. Rates Strategy BMO Capital Markets; as well as Dr. John Whyte, MD and Chief Medical Officer of WebMD. To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Brian G. Belski, Chief Investment Strategist. There is no denying that headlines, fear and rhetoric surrounding the coronavirus (COVID-19 virus) have become the primary driver of investment performance the past several weeks. While the duration and volume of COVID-19 virus-related news is yet to be determined, we continue to counsel investors to control what they can control. Investors should be mindful that perspective matters, to remain poised and patient in their decision making, and to trust their investment process. BMO clients can view recent Strategy reports by visiting: https://researchglobal0.bmocapitalmarkets.com/strategy/reports/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Jenny Ma, Canadian Real Estate Analyst, and Gaurav Mathur, Real Estate/REITs Special Projects Analyst. Development and intensification activities have become increasingly important for Canadian retail REITs as they look for new avenues to drive growth amid ongoing challenges facing bricks-and-mortar retail. Development is a relatively new component of REIT strategies, however, with a number of projects at or near completion, combined with improved disclosures on individual projects, costs, and returns, it’s time to start giving credit for development activities. We created a proprietary framework which allows us to use a consistent methodology to value individual REIT development projects, which in many cases is incremental to NAV. We expect the development theme to remain topical as many Canadian REITs look for value-add opportunities to unlock growth. BMO clients can view our report, “Time to Value Development”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/910777bc-8f02-4af0-8029-4d777977242f/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/
Fadi Chamoun, Transportation Analyst & John Stephenson, Special Projects Contributor. Rising e-commerce volumes are increasingly becoming the dominant share of small package delivery volumes, pressuring operating margins and ROICs for related companies. The biggest driver of profitability for the industry is drop density, which is significantly lower for residential deliveries than for business deliveries, and we see no reasonable path toward improving B2C (business-to-consumer) drop density. Incumbent delivery companies are further challenged by Amazon, as its strong buying power and logistics capabilities have allowed it to set service standards and pricing for B2C deliveries. BMO clients can view our report, “Delivery Dilemma: How E-Commerce Is Disrupting Last Mile Logistics”, by visiting: https://researchglobal0.bmocapitalmarkets.com/research/d42a28f4-66c1-48fc-a1f2-4fc55ca335a7/ To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/