The TXPR Price Index set a new 52-week high today of 685.28, well above the prior mark of 683.66 set yesterday.
US inflation was not as bad as feared:
- • The September CPI inflation report showed that prices rose at a slower-than-expected rate of 0.3% last month, but annual price hikes for a range of consumer goods rose to the fastest pace so far this year.
- • Wall Street responded positively to the data, since it likely does not derail the Federal Reserve’s plans to continue cutting interest rates.
- • This is the first and only piece of official economic data the federal government has released this month, due to the shutdown. Some employees at the Bureau of Labor Statistics returned to work in order to produce the report, since it is needed to assess key cost-of-living adjustments for Social Security recipients.
- • Economists predicted the data would show that annual inflation ticked up in September to 3.1% from 2.9% in August and rose 0.4% on a month-to-month basis.
Meanwhile, it seems that the big US automakers do not believe there should be tariffs on their products:
Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, which represents GM, Stellantis and Ford Motor Co. in Canada, called Canada’s retaliation “an unforced error at the worst possible time.”
…
In an interview, Mr. Kingston said manufacturers facing remissions rules would rather export cars to Canada than build them here and risk being hit with tariffs.“This is completely eroding our competitiveness right now for manufacturing,” Mr. Kingston said. “The tariff regime plus the EV mandate, now we have legal threats being levied to companies. It is virtually impossible to imagine a scenario where someone is looking at new investments in Canada under this framework.”
Suck it up, boys! We’ll be happy to buy cars made domestically, in Mexico, or imported from countries who practice freer trade – the US is welcome to go back to the 1960s and early 1970s, when import restrictions meant the Big 3 could get away with making crap cars for a long time, only to have their lunch eaten when a relaxation of those restrictions allowed the Japanese to take over the trade.
The dollar got hit on trade worries:
The Canadian dollar weakened against its U.S. counterpart on Friday as trade negotiations between Ottawa and Washington broke down and markets looked ahead to an expected Bank of Canada interest rate cut next week.
The loonie was trading 0.2% lower at 1.4015 per U.S. dollar, or 71.35 U.S. cents, after moving in a range of 1.3975 to 1.4039. For the week, the currency was nearly unchanged.
U.S. President Donald Trump is frustrated with Canada over trade negotiations that have not been going well, White House economic adviser Kevin Hassett said after Trump cut off trade talks between the two countries.
Well … that’s the official line. Walking out in a huff is an integral part of Trump’s dealmaking, so I’d say the latest kerfuffle has been long-planned, only awaiting a plausible trigger.
This time the plausible trigger was an Ontario ad quoting Reagan:
U.S. President Donald Trump has ended trade talks with Canada over an Ontario government anti-tariff advertising campaign running in the United States, prompting Premier Doug Ford to pull the ad at the request of Prime Minister Mark Carney.
The abrupt break in negotiations follows mounting White House frustration with Ottawa, which so far hasn’t agreed to the sort of punitive trade deal that other U.S. trading partners have accepted.
Mr. Trump became annoyed Thursday night at the ad, which features archival footage of late former U.S. president Ronald Reagan, a revered figure among Mr. Trump’s Republicans, warning that tariffs are economically disastrous.
In Truth Social posts Thursday and Friday, the U.S. President declared that “ALL TRADE NEGOTIATIONS ARE HEREBY TERMINATED,” incorrectly claimed that Mr. Reagan “LOVED TARIFFS,” and accused Canada of “trying to illegally influence the United States Supreme Court” on a coming case over Mr. Trump’s levies.
In a statement Friday afternoon, Mr. Ford said the ad would run as planned over the weekend – including during the first two games of baseball’s World Series between the Toronto Blue Jays and the Los Angeles Dodgers – but would no longer air as of Monday.
We can thank Trump, though, for making sure everybody knows about the ad and its contents. A variation of the Streisand Effect?
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 6.54 % | 7.00 % | 19,153 | 13.48 | 1 | 0.0000 % | 2,450.8 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3317 % | 4,567.0 |
| Floater | 6.32 % | 6.58 % | 54,808 | 13.07 | 3 | -0.3317 % | 2,632.0 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0864 % | 3,670.8 |
| SplitShare | 4.76 % | 4.53 % | 67,675 | 3.29 | 5 | -0.0864 % | 4,383.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0864 % | 3,420.3 |
| Perpetual-Premium | 5.47 % | 2.19 % | 73,678 | 0.09 | 7 | -0.0451 % | 3,103.9 |
| Perpetual-Discount | 5.54 % | 5.54 % | 44,359 | 14.56 | 26 | 0.0356 % | 3,406.9 |
| FixedReset Disc | 5.96 % | 5.89 % | 105,221 | 13.85 | 30 | 0.1442 % | 3,064.8 |
| Insurance Straight | 5.42 % | 5.46 % | 55,929 | 14.62 | 22 | 0.7352 % | 3,359.3 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1442 % | 3,645.9 |
| FixedReset Prem | 5.63 % | 4.67 % | 120,578 | 2.37 | 22 | 0.0725 % | 2,634.2 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.1442 % | 3,132.8 |
| FixedReset Ins Non | 5.23 % | 5.27 % | 60,486 | 14.62 | 15 | 0.1861 % | 3,066.5 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| CU.PR.G | Perpetual-Discount | -12.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 6.37 % |
| BN.PR.Z | FixedReset Disc | -2.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 23.21 Evaluated at bid price : 24.20 Bid-YTW : 5.86 % |
| GWO.PR.N | FixedReset Ins Non | -1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 17.45 Evaluated at bid price : 17.45 Bid-YTW : 5.63 % |
| CU.PR.C | FixedReset Disc | -1.30 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 23.19 Evaluated at bid price : 23.60 Bid-YTW : 5.40 % |
| PWF.PR.H | Perpetual-Premium | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 24.64 Evaluated at bid price : 24.89 Bid-YTW : 5.80 % |
| NA.PR.K | FixedReset Prem | 1.05 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2029-05-01 Maturity Price : 25.00 Evaluated at bid price : 28.15 Bid-YTW : 3.79 % |
| PWF.PR.A | Floater | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 13.80 Evaluated at bid price : 13.80 Bid-YTW : 5.98 % |
| BN.PF.E | FixedReset Disc | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 21.59 Evaluated at bid price : 21.90 Bid-YTW : 5.96 % |
| MFC.PR.M | FixedReset Ins Non | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 22.97 Evaluated at bid price : 24.30 Bid-YTW : 5.26 % |
| IFC.PR.E | Insurance Straight | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 24.00 Evaluated at bid price : 24.28 Bid-YTW : 5.40 % |
| POW.PR.B | Perpetual-Discount | 1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 24.06 Evaluated at bid price : 24.32 Bid-YTW : 5.53 % |
| ENB.PR.T | FixedReset Disc | 1.50 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 22.36 Evaluated at bid price : 22.97 Bid-YTW : 5.95 % |
| BN.PR.M | Perpetual-Discount | 1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 5.75 % |
| ENB.PR.F | FixedReset Disc | 1.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 21.42 Evaluated at bid price : 21.42 Bid-YTW : 6.19 % |
| GWO.PR.L | Insurance Straight | 2.13 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-11-23 Maturity Price : 25.00 Evaluated at bid price : 25.43 Bid-YTW : -10.36 % |
| CCS.PR.C | Insurance Straight | 3.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 22.66 Evaluated at bid price : 22.90 Bid-YTW : 5.51 % |
| GWO.PR.R | Insurance Straight | 3.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 21.91 Evaluated at bid price : 22.15 Bid-YTW : 5.46 % |
| MFC.PR.C | Insurance Straight | 4.71 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 22.01 Evaluated at bid price : 22.25 Bid-YTW : 5.10 % |
| CU.PR.H | Perpetual-Discount | 5.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 23.84 Evaluated at bid price : 24.09 Bid-YTW : 5.53 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.G | FixedReset Ins Non | 259,832 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 18.77 Evaluated at bid price : 18.77 Bid-YTW : 5.50 % |
| RY.PR.M | FixedReset Prem | 216,700 | YTW SCENARIO Maturity Type : Call Maturity Date : 2025-11-24 Maturity Price : 25.00 Evaluated at bid price : 25.12 Bid-YTW : 3.19 % |
| FTS.PR.H | FixedReset Disc | 66,458 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 18.65 Evaluated at bid price : 18.65 Bid-YTW : 5.59 % |
| FTS.PR.M | FixedReset Disc | 56,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 22.93 Evaluated at bid price : 24.20 Bid-YTW : 5.39 % |
| POW.PR.H | Perpetual-Premium | 26,300 | YTW SCENARIO Maturity Type : Call Maturity Date : 2034-10-15 Maturity Price : 25.00 Evaluated at bid price : 25.74 Bid-YTW : 5.44 % |
| ENB.PR.J | FixedReset Disc | 25,800 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2055-10-24 Maturity Price : 21.91 Evaluated at bid price : 22.25 Bid-YTW : 6.13 % |
| There were 9 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| CU.PR.G | Perpetual-Discount | Quote: 18.00 – 21.24 Spot Rate : 3.2400 Average : 1.9387 YTW SCENARIO |
| NA.PR.K | FixedReset Prem | Quote: 28.15 – 31.09 Spot Rate : 2.9400 Average : 1.8357 YTW SCENARIO |
| BIP.PR.E | FixedReset Prem | Quote: 25.25 – 26.25 Spot Rate : 1.0000 Average : 0.6750 YTW SCENARIO |
| CU.PR.F | Perpetual-Discount | Quote: 20.81 – 21.75 Spot Rate : 0.9400 Average : 0.6579 YTW SCENARIO |
| BN.PR.Z | FixedReset Disc | Quote: 24.20 – 25.00 Spot Rate : 0.8000 Average : 0.5394 YTW SCENARIO |
| NA.PR.I | FixedReset Prem | Quote: 26.02 – 26.90 Spot Rate : 0.8800 Average : 0.6540 YTW SCENARIO |