The Canadian Investor

Mixed Results from Two Iconic Canadian Brands

Feb 20, 2025

Discover the latest Canadian Consumer Price Index hitting 1.9%, with insights on inflation trends and their potential impacts. Delve into how rising U.S. inflation could influence Federal Reserve strategies. Goeasy showcases strong growth amid economic challenges, while Canadian Tire hints at a resurgence, despite risks in credit services. Explore Telus's impressive performance within a struggling telecom sector, highlighting resilience against competitive pressures. Tune in for a deep dive into the world of Canadian brands and market dynamics!

44:10

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Quick takeaways

The Canadian CPI's increase to 1.9% is influenced by rising energy prices and tax breaks affecting consumer costs.

GoEasy's strong growth highlights consumer reliance on subprime loans, raising concerns about financial stability in a slowing economy.

Deep dives

Current Canadian CPI Insights

The Canadian Consumer Price Index (CPI) for January 2025 shows a headline increase of 1.9% year over year, slightly above expectations, while experiencing a month-over-month rise of 0.1%. Key drivers of this inflation include rising energy prices, particularly gasoline, which saw an increase of 8.6% year over year, contributing to overall cost pressures. Meanwhile, the GST and HST tax breaks played a significant role in decreasing prices on certain items, such as restaurant food, which declined by 5.1%. Observations regarding energy prices post-tax break indicate these fluctuations may lead to future inflation trends, raising questions about the sustainability of current CPI levels.

Intro

3min

Navigating Inflation Trends

9min

Interest Rate Projections and Market Reactions

2min

Inflation, Interest Rates, and GoEasy's Performance

13min

Canadian Tire's Financial Landscape

11min

Telecom Trials: Navigating Challenges

7min

In this episode, we talk about the latest Canadian CPI print that came in at 1.9%. We break down the key components and discuss where CPI could potentially head in the coming months. Meanwhile, U.S. inflation came in hotter than expected at 3%, raising big questions about the Fed’s next move.

On the earnings front, Goeasy continues to post strong growth but with some increased risks as a slowing economy could be problematic for the Canadian subprime lender. We then discuss Canadian Tire’s latest result which might be an indication that things are turning around for the iconic Canadian brand. We finish the episode by talking about Telus outperforming its telecom peers despite industry-wide struggles.

Tickets of stocks/ETFs discussed: GSY.TO, CTC-A.TO, T.TO.

Check out our portfolio by going to Jointci.com