Wealth Management
American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U) announced financial results for the three months ended June 30, 2024.
RevPAR increased 5.1% to $103, compared to $98 for the same period of 2023.
ADR increased 3.0% to $137, compared to $133 for the same period of 2023.
Occupancy was 75.4%, an increase of 160 bps compared to 73.8% for the same period of 2023.
NOI and normalized NOI were $24.2 million, decreases of 4.3% and 11%, respectively, compared to $25.3 million and $27.2 million for the same period in 2023.
Diluted FFO per unit and normalized diluted FFO per unit were $0.12 and $0.10, respectively, compared to $0.19 and $0.14 for the same period of 2023.
AHIP had $26.7 million in available liquidity as at June 30, 2024, compared to $27.8 million as at December 31, 2023.
BSR REIT (TSX: HOM.U) (TSX: HOM.UN) announced financial results for the three months ended June 30, 2024.
Same Community revenue increased 0.4% over Q2/23 and 0.6% over Q1/24.
Weighted average occupancy was 95.3% as of June 30, 2024.
Same Community NOI increased 4.6% over Q2/23.
FFO per Unit of $0.26 increased 13% over Q2/23.
AFFO per Unit of $0.24 increased 20% over Q2/23.
AFFO payout ratio was 54.5% compared to 63.9% during Q2/23.
Debt to Gross Book Value, excluding the convertible unsecured subordinated debentures outstanding, as of June 30, 2024 was 44.4%.
Rental rates for new leases and renewals changed -2.6% and 3.1%, respectively, resulting in a 0.3% blended increase over the prior leases.
Dexterra Group Inc. (TSX: DXT) announced results.
The IFM and WAFES business units generated strong results for Q2/24 with consolidated revenue of $253.6 million, an increase of 18.1% compared to Q2 2023 and an increase of 9.5% compared to Q1 2024.
Adjusted EBITDA, which excludes the impact of discontinued operations, was $29.3 million compared to $25.2 million and $19.6 million for Q2/23 and Q1/24, respectively.
Consolidated net earnings was $9.1 million compared to $8.5 million.
Earnings per share from continuing operations was $0.19 in Q2/24 and increased from $0.14.
FCF improved compared to the same quarter in 2023.
Dream Impact Trust (TSX: MPCT.UN) reported financial results for the three months ended June 30, 2024.
Net loss of $4.8 million compared to $8.7 million in the prior year.
Total liquidity of $21.8 million, comprised of cash-on-hand and funds available under the Trust’s credit facility.
European Residential REIT (TSX: ERE.UN) announced results for the three months ended June 30, 2024.
Same property portfolio Occupied Average Monthly Rents increased by 6.3%, from €1,018 as at June 30, 2023, to €1,082 as at June 30, 2024.
Turnover was 1.9%, with rental uplift on turnover of 17.3%, compared to rental uplift of 19.9% on turnover of 2.9% for the same quarter last year.
Occupancy for the residential properties remained strong at 97.7% as at June 30, 2024, compared to 98.6% as at June 30, 2023.
Occupancy for commercial properties decreased to 92.1% as at June 30, 2024, from 99.5% as at June 30, 2023.
NOI increased by 4.3% and 5.7% for the three months ended June 30, 2024, respectively, compared to the same periods last year.
FFO per Unit decreased by 4.9% and 3.7% for the three months ended June 30, 2024, respectively, compared to the same periods last year.
AFFO per Unit decreased by 5.1% and 3.9% for the three months ended June 30, 2024, respectively, compared to the same periods last year.
Liquidity improved significantly from prior year end by €25,811, because of proceeds from property and suite dispositions being used to partially repay the Revolving Credit Facility.
Fiera Capital Corporation (TSX: FSZ) announced financial results for the second quarter ended June 30, 2024.
Firm Capital Property Trust (TSX: FCD.UN) reported results for the three months ended June 30, 2024.
Net income was approximately $8.9 million, compared to $5.6 million net income recorded for the same period in 2023.
$7.71 NAV per Unit, a 1.2% increase over Q1/24.
NOI was approximately $9.7 million, a 6% increase from the same period in 2023.
Same Property NOI increased 10% over Q2/23.
AFFO was approximately $4.6 million, 22% higher than the same period in 2023.
AFFO per Unit for Q2/2024 increased by 22% to $0.124 over Q2/23.
AFFO Payout ratio decreased to 105% for Q2/24 from 128% over the same period in 2023.
Commercial occupancy was 95.8%, Multi-Residential occupancy was 99.7% while Manufactured Homes Communities occupancy was 100.0%;
Conservative leverage profile with Debt / Gross Book Value at 51.7%.
Great-West Lifeco Inc. (TSX: GWO) announced second quarter 2024 results.
Base earnings of $1,038 million, or $1.11 per share, up 13% from Q2/23.
Net earnings from continuing operations of $1,005 million or $1.08 per share, up 77% from a year ago.
Base ROE of 17.2% and ROE from continuing operations of 16.2%.
LICAT Ratio of 130%.
Book value per share of $25.36, up 9% year over year.
iA Financial Corporation Inc. (TSX: IAG) announced results.
Canadian Insurance core earnings were $106 million, up 16%.
Wealth management core earnings of $98 million compared to $76 million a year earlier.
US earnings of $26 million, compared to $19 million.
Investment core earnings of $91 million, compared to $86 million.
CSM increased $108 million.
Core EPS of $2.75, up 15% YoY, and trailing-12-month core ROE of 15.0%, meeting the medium-term target of 15%+.
Strong sales momentum, reflected by solid 15% YoY increase in premiums and deposits and 12% YoY increase in assets (AUM and AUA).
Robust solvency ratio of 141%, supported by strong organic capital generation of $175 million.
High level of capital deployment, including through acquisitions and $287 million in share buybacks, leading to ROE expansion.
Book value per common share reaching $69.92 at June 30, 2024 , up 9% over 12 months (excluding share buyback impact).
InterRent REIT (TSX: IIP.UN) reported financial results for the second quarter ended June 30, 2024.
Same-property and total portfolio occupancy rates of 96.2% in June 2024, a year-over-year increase of 70 bps and 80 bps, respectively, from June 2023.
Executed 640 new leases during the quarter, an increase of 9.6% from Q2/23.
Average gain-on-lease of 16.1% compared to expiring rents, achieving annualized proportionate revenue growth of approximately $2.0 million, or 0.8% of annualized Q2 proportionate revenue.
Driven by rental increases on new leases and renewals, achieved an Average Monthly Rent growth of 6.8% for the same property portfolio for June 2024, as compared to the same period in 2023.
Same-property proportionate NOI of $40.6 million, an increase of $3.6 million, or 9.7% YoY. Total-portfolio proportionate NOI of $41.7 million, an increase of 6.8% YoY.
Same-property NOI margin increased by 130 basis points compared to Q2/23, to reach 67.7%. Total-portfolio NOI margin increased by 120 basis points to 67.5%.
FFO of $23.1 million, an increase of 17.9% YoY. FFO per unit (diluted) of $0.157, an increase of 17.2% from the same period last year.
AFFO of $20.4 million, reflecting an improvement of 20.9%.
AFFO per unit (diluted) of $0.138, up 19.0% YoY.
Generated total net proceeds of $95.3 million from two dispositions completed during the quarter, including one community with four properties totaling 497 suites in Aylmer, Quebec for $92 million, and one community in Ottawa with 27 suites for $5.5 million.
Both transactions achieved prices above their IFRS values.
After the quarter, purchased 405,300 units under the NCIB for $5 million, for an average price of $12.33 per unit. All units were purchased for cancellation.
K-Bro Linen Inc. (TSX: KBL) announced Q2/24 results.
Consolidated revenue increased 15.8% compared to Q2/23, with healthcare revenue having increased by 5.5% and hospitality revenue by 28.9%.
Adjusted EBITDA, Adjusted EBITDA Margin & Adjusted Net Earnings.
Adjusted EBITDA increased by $3.6 million to $18.2 million compared to $14.6 million over the comparable 2023 period, a 25.2% increase.
Adjusting items include costs of $1.7 million in the quarter related to non-recurring transaction, transition and syndication/structural financing costs.
Adjusted EBITDA margin increased to 19.5% from 18.1% in the comparable period.
Adjusted net earnings in the second quarter increased by $1.4 million to $6.2 million compared to $4.8 million in the comparative period of 2023.
EBITDA, EBITDA Margin & Net Earnings.
EBITDA increased by $2.1 million to $16.6 million compared to $14.5 million over the comparable 2023 period, a 14.3% increase.
EBITDA margin decreased to 17.7% from 18% in the comparable period as the result of the adjusting items discussed above.
Net earnings in the second quarter of 2024 decreased by $0.2 million to $4.5 million compared to $4.7 million in the comparative period of 2023.
Labrador Iron Ore Royalty Corporation (TSX: LIF) presented the second quarter report for the period ended June 30, 2024.
Osisko Gold Royalties Ltd (TSX: OR) announced results for the second quarter of 2024.
20,068 gold equivalent ounces earned (24,645 GEOs in Q2/23).
Revenues from royalties and streams of $64.8 million ($60.5 million in Q2/23).
Net loss of $21.1 million, $0.11 per basic share (net earnings of $18.0 million, $0.10 per basic share in Q2/23).
Record adjusted earnings of $33.2 million, $0.18 per basic share ($27.2 million, $0.15 per basic share in Q2/23).
Record cash flows generated by operating activities of $52.3 million ($47.4 million in Q2/23).
Repayment of $44.2 million under the revolving credit facility and extension of the maturity date from September 29, 2026 to April 30, 2028.
Cash balance of $65.7 million and debt outstanding of $109.0 million as at June 30, 2024.
PHX Energy Services Corp (TSX: PHX) announced results.
Generated consolidated revenue of $154.2 million, only 1% lower than the record second quarter consolidated revenue of $155.6 million generated in 2023.
US division generated revenue of $116 million, 7% lower.
Canadian division reported $38.2 million of quarterly revenue, 25% higher.
Adjusted EBITDA was $30 million, 19% of consolidated revenue, as compared to $34.8 million, 22% of consolidated revenue, in the same 2023-quarter.
Earnings were $12.9 million, $0.26 per share, as compared to $18.1 million, $0.35 per share.
Sprott Inc. (TSX: SII) announced results for the three months ended June 30, 2024.
Suncor Energy Inc. (TSX: SU) announced results.
Strong upstream production of 771,000 bbls/d and refinery throughput of 431,000 bbls/d.
Generated $3.4 billion in adjusted funds from operations and $1.4 billion in free funds flow.
Stella-Jones Inc. (TSX: SJ) announced financial results for their second quarter ended June 30, 2024.
Sales increased 8% compared to prior year, to $1,049 million.
Infrastructure products sales grew 17%, building upon an 18% growth in Q2/23.
Operating income increased 13% to $ 168 million, representing a margin of 16%.
EBITDA increased 14% to $200 million, representing an EBITDA margin of 19.1%.
Net income increased to $110 million or $1.94 per share, up 13% from Q2/23 EPS.
Stingray Group Inc. (TSX: RAY.A; RAY.B) announced results for the first quarter of fiscal 2025 ended June 30, 2024.
Revenues increased 12.8% to $89.1 million from $79.0 million in Q1/24.
Adjusted EBITDA improved 9.9% to $31.1 million from $28.3 million.
Adjusted EBITDA by segment was $23 million or 40.4% of revenues for Broadcasting and Commercial Music, $9.9 million or 30.8% of revenues for Radio, and $(1.8) million for Corporate.
Net income totaled $7.3 million, or $0.11 per share, compared to $14.1 million, or $0.20 per share.
Adjusted net income increased 17.2% to $13.9 million, or $0.20 per share, from $11.9 million, or $0.17 per share.
Cash flow from operating activities amounted to $10.8 million, or $0.16 per share, to $24.3 million, or $0.35 per share.
Adjusted free cash flow reached $15.5 million, or $0.22 per share, compared to $18.5 million, or $0.27 per share.
Net debt to Pro Forma Adjusted EBITDA ratio attained 2.77x compared to 3.28x.
TMX Group Limited (TSX: X) announced today it has acquired Newsfile Corp. (Private), the largest Canadian-owned news dissemination and regulatory filing provider.
Established in 1997, Newsfile services over 2,500 public and private clients and is a one-stop source for disclosure requirements, including news release distribution and SEDAR+, EDGAR, and XBRL filing solutions.
Speculative Investment
Anaergia Inc. (TSX: ANRG) announced that their subsidiary, Anaergia Technologies, LLC, has entered a technology supply contract with the City of Riverside, California, to upgrade anaerobic digestion wastewater infrastructure at the Riverside Water Quality Control Plant (RWQCP) with Anaergia technology that will produce RNG from organic waste and sewage sludge.
The technology supply contract, valued at approximately C$13 million over its term, is intended to support the development of an RNG facility by another Anaergia subsidiary under an existing long-term lease with the City.
Funding by the City is expected to be supported, in part, by grants from the California Department of Resources Recycling and Recovery (Calrecycle) and federal incentives under the Inflation Reduction Act.
Air Canada (TSX: AC) reported second quarter 2024 financial results.
Second quarter operating revenues of $5.5 billion, increased 2% year over year.
Operating income of $466 million, decreased $336 million year over year.
Adjusted EBITDA of $914 million, decreased $306 million year over year.
Net income of $410 million or $1.04 diluted earnings per share, compared to $838 million or $2.34 respectively.
Adjusted net income of $369 million or $0.98 adjusted earnings per diluted share, compared to $664 million or $1.85 respectively.
Leverage ratio of 1.0x as at June 30, 2024, compared to 1.1x at end of 2023.
Adjusted CASM of 13.53 cents increased 1.7% year-over-year, driven by labour, maintenance and information technology expenses increasing at a higher rate than capacity.
Net cash flows from operating activities of $924 million, decreased $566 million.
Free cash flow of $451 million, decreased $514 million.
Net debt-to-adjusted EBITDA ratio was 1.0 at June 30, 2024, compared to 1.1 at December 31, 2023.
Aurora Cannabis Inc. (TSX: ACB) announced results for the first quarter fiscal 2025.
Total net revenue was $83.4 million, as compared to $74.7 million in the prior year period.
Medical cannabis net revenue was $47.2 million, a 13% increase from the prior year quarter.
Aurora's consumer cannabis net revenue was $11.5 million, a 10% decrease compared to $12.8 million.
Plant propagation net revenue was wholly comprised of the Bevo business, and contributed $23.1 million of net revenue, a 16% increase compared to $19.9 million in the prior year quarter.
Adjusted EBITDA increased 87% to $4.9 million compared to $2.6 million for the prior year quarter.
Net income from continuing operations was $4.8 million compared to net loss of $20.2 million for the prior year period.
Azimut Exploration Inc. (TSXV: AZM) reported encouraging initial results from multiple spodumene pegmatite outcrops discovered during the recently completed surface sampling program on the Pilipas Property in the Eeyou Istchee James Bay region of Quebec, Canada. Plans for a 2,000 m drilling program have been finalized, and a rig is expected to be mobilized in August.
Validation of the Highway showing, with 16 spodumene pegmatite grab samples grading up to 3.47% Li 2 O.
15 samples returned values higher than 1.0% Li 2 O over a 150 m exposed strike length and 30 m width.
HW1 remains open to the northwest.
Spodumene mineralization was also identified 500 m south of HW1.
This area, the HW2 showing, returned grades up to 1.98% Li2O from 6 grab samples with grades higher than 0.5% Li2O.
Outcrop samples collected 1.7 to 7.5 km east of HW1 yielded assays between 348 ppm and 604 ppm Ta 2O5 .
Tantalum is recognized as an excellent pathfinder element for lithium in pegmatites.
A total of 494 rock samples were collected during the 2024 prospecting and mapping program. Assay results for 138 samples remain to be received.
Filo Corp. (TSX: FIL) has closed their previously announced private placement of 3,484,848 common shares issued at a price of $33.00 per share for gross proceeds of $114,999,984.00.
The Private Placement was made pursuant to subscription agreements entered into between Filo and each of BHP (NYSE: BHP) and Lundin Mining Corporation (TSX: LUN).
Upon completion of the Private Placement, each of BHP's and Lundin's equity interest in the Company has increased by approximately 1.3%, resulting in each of them now owning, directly or indirectly, approximately 7.1% and 1.7%, respectively, and the Company now has 134,685,648 Filo Shares issued and outstanding.
The Private Placement entails a dilution of approximately 2.6% of the number of shares and votes in the Company (calculated as the number of newly issued Filo Shares divided by the total number of Filo Shares after the Private Placement).
Gold Basin Resources Corporation (TSXV: GXX) announced additional reverse-circulation drill assay results from the ongoing resource expansion and delineation drill program at the 100%-owned Gold Basin oxide gold project in northwestern Arizona.
Drill hole ST24-031 returned a broad, near-surface, high-grade oxide gold intercept at the Stealth Deposit:
51.8 m @ 1.31 g/t Au from 82.3 m (~43 m vertical depth)
incl. 38.0 m @ 1.69 g/t Au from 94.5 m
ST24-031 aimed to test for down-dip extensions of gold mineralization from a collar location 75 m to the north of hole ST22-023 (drilled in 2022: 29.0 m @ 1.40 g/t Au from 45.7 m).
The high-grade gold intercept indicates that mineralization continues and remains open at depth, and additional drilling is warranted to further extend the mineralized envelope.
Assays results for drill hole ST24-029 indicate that the hole was terminated at the onset of a mineralized zone, with the final three samples (~4.6 m) grading 0.44 g/t Au at the terminus of a 53.3 m interval of anomalous gold (averaging 0.01 g/t Au).
Two additional broad, near-surface intercepts were released July 10, 2024:
138.7 m @ 0.93 g/t Au from 30.5 m (~25 m vertical depth) in hole ST24-026.
82.3 m @ 0.94 g/t Au from 36.6 m (~22 m vertical depth) in hole ST24-027.
Reportable oxide gold intercepts to date are shallow and broad, with an average vertical depth of ~38 m to the top of mineralized zones, and an average drill interval thickness of ~90 m.
Fourteen holes totaling 2,470 m have been drilled, with results expected for two more holes this week, and eight additional holes in the lab, with results anticipated in four weeks.
Lithium Chile Inc. (TSXV: LITH) provided an update on the proposed “spin-out transactions” involving two newly formed subsidiaries: Lithium Chile 2.0 Inc. and Kairos Gold Inc.
It is intended that Lithium Chile will continue to hold their advanced Salar de Arizaro lithium project while the remaining lithium salar properties will be transferred to Lithium Chile 2.0 Inc. and the properties that are prospective for gold, copper and silver will be transferred to Kairos Gold Inc.
The shares of both Lithium Chile 2.0 Inc. and Kairos Gold Inc. are intended to be “spun-out” to the Company’s shareholders after a special meeting of shareholders to approve the proposed transaction.
Northfield Capital Corporation (TSXV: NFD.A) has entered into a binding share purchase agreement with Hemlo Explorers Inc. (CSE: HMLO) dated as of the date hereof pursuant to which Hemlo has agreed to acquire all the common shares of Rocky Shore Metals Ltd.
Hemlo has also entered into corresponding purchase agreements with each of the other Rocky Share shareholders for the acquisition of all of the issued and outstanding Rocky Shore Shares.
Pursuant to the terms of the purchase agreements, each Rocky Shore Share will be exchanged for 2.832 common shares in the capital of Hemlo.
Pursuant to the Purchase Agreement, the Company will acquire ownership and control of 15,151,200 Hemlo Shares.
The Hemlo Shares will be acquired for aggregate consideration of 5,350,000 Rocky Shore Shares, having a deemed value of $0.15 per Rocky Shore Share or $802,500 in the aggregate.
Optimi Health Corp. (CSE: OPTI) intends to complete a non-brokered private placement of up to 16,666,666 units at $0.30 per Unit for gross proceeds of up to $5,000,000.
Each Unit comprised of 1 common share and one-half of one transferable Common Share purchase warrant.
Each Warrant entitles the holder to acquire 1 Common Share at $0.40 for 2 years from the date of issuance.
They intend to use the net proceeds from the Offering to further commercialize business development opportunities in Australia and around the world, commissioning recently purchased equipment for its GMP production and analytical laboratory, and general working capital.
Seabridge Gold (TSX: SEA) announced that this year's core drilling program is expanding known mineralized zones in the Central Core Area (CCA) and identifying new target opportunities.
A second helicopter-portable reverse circulation drill has begun evaluating historical prospects on the 357 km2 3 Aces property outside the CCA that show similar characteristics to the CCA.
The new 3 Aces exploration model predicts continuity of mineralization, including high-grade gold, localized along the limbs of second-order folds (F2).
Mineralized zones are best expressed on these fold limbs at the contacts between phyllite units and coarse interbedded sandstone and conglomerate.
Brittle fracturing and arsenopyrite-bearing quartz veins and breccias at these contacts are the preferred host to gold on the zones that crop-out in the CCA.
The exploration model predicts continuity of these gold traps under cover in the CCA.
In the CCA, extensions of several F2 folds are being investigated with early drilling and we have encountered several zones of favourable arsenopyrite-bearing veins and breccias on these projected fold limbs as expected in the model. These zones are likely to expand the size of previously recognized gold-bearing zones in the CCA.
Assay results are expected to be available shortly. Drilling and modeling work continue.
Regionally, surface mapping and sampling are finding evidence of F2 folds in unexplored areas of the property.
Initial work on several regional targets has pinpointed arsenopyrite-bearing quartz veins and breccias along fold limbs that mimic the gold zones in the CCA. Exploration continues at these regional targets to better evaluate conformity to the model and drilling is now underway. Additionally, several new conceptual targets are being developed that may better explain some large gold-in-soil anomalies and other historical exploration results. This ongoing regional work is providing Seabridge with strong evidence of a potential district scale opportunity at 3 Aces.
resumed previously initiated reclamation activities at the site, concentrating on exploration roads. Environmental monitoring activities, focusing on wildlife management, water sampling and understanding environmental baseline conditions, continue in support of our exploration activities and in compliance with our permit.
3 Aces was acquired by Seabridge in March 2020. It consists of 1,734 claims covering 357 km² (35,700 ha) located in a road accessible part of southeastern Yukon. Historical work developed broad areas of gold-in-soil extending more than 20 kilometers and past drilling encountered extensive gold. We believe the characteristics of the 3 Aces project are indicative of an orogenic gold project consistent in formation with other orogenic gold deposits in the vicinity and around the world.
Shopify Inc. (TSX: SHOP) announced results for the quarter ended June 30, 2024.
Gross Merchandise Volume increased 22% to $67.2 billion
Revenue increased 21% to $2 billion.
Merchant Solutions revenue increased 19% to $1.5 billion.
Gross Payments Volume grew to $41.1 billion, representing 61% of GMV processed in the quarter, versus $31.7 billion, or 58%
Subscription Solutions revenue increased 27% to $563 million, driven by growth in the number of merchants and pricing increases on our subscription plans
Monthly Recurring Revenue as of June 30, 2024 increased 25% to $169 million.
Gross profit dollars grew 25% to $1 billion.
Gross margin for the quarter was 51.1% compared to 49.3%.
Free cash flow was $333 million compared to free cash flow of $97 million
Free cash flow margin for the quarter was 16% compared to free cash flow margin of 6%
Cash and marketable securities were $5 billion as of June 30, 2024, and we had a net cash position of $4.1 billion after consideration of our outstanding convertible notes
Snowline Gold Corp (TSXV: SGD) announced analytical results from additional early-season drill holes on its 2024 exploration campaign and to provide an exploration update from its ongoing 5-drill program in Canada's Yukon Territory.
Holes V-24-075 and V-24-073 are the third and fourth highest ranking holes in terms of contained gold from the Valley deposit to date, with V-24-075 exceeding projections based on the initial MRE by 9% within the resource-limiting pit shell and by 140% outside of it (18% overall).
Hole V-24-075, drilled at 180 degrees to recent highlight hole V-24-072, returned 471.6 m averaging 2.38 g/t Au, including 302.1 m of 3.20 g/t Au from surface, surpassing initial Valley deposit MRE block model grade predictions by +9.
Hole V-24-073 returned 325.0 m averaging 2.57 /t Au, including 136.0 m averaging 4.84 g/t Au from surface, slightly outperforming the model near surface.
At the Rogue Project's Aurelius target, widespread alteration with oxide and sulphide mineralization is present in volcanic and sedimentary rocks, with granodiorite dikes intersected in two holes in the first ever drill testing of the target.
Drilling is ongoing at Valley and on other targets, with assays pending for an additional 15,600 m drilled to date.
Charts of the Day
Markets
Venture Capital funding for July
Venture funding reached over $23 billion in July 2024, slightly down month over month and up more than 20% year over year, based on an analysis of Crunchbase data.
The leading sector for investment was healthcare and biotech companies which raised $6 billion. AI companies were close on its heels, and raised around $5.8 billion. Each of these leading sectors represent around 25% of all funding in July 2024.
Funding to AI companies doubled in Q2 — the highest quarter for funding to this sector since the launch of ChatGPT. AI-related companies in July continued to garner a significant proportion of funding.
The next largest sectors for funding in July were hardware companies, raising $3.3 billion, and financial services at $2.6 billion. Financial services, the second-largest sector after healthcare and biotech in 2021 and into 2022 has dropped in rank, but since 2023 has stayed in the top five sectors.
Sustainable Equity funding
Globally, inflows into sustainable equity funds have eased back in recent years with outflows emerging in early 2024.
US sustainable equity funds have seen outflows for some time (even during periods when traditional equity funds have seen inflows).
Outflows were a new development for European sustainable equity funds in early 2024.
Inflows returned to sustainable equity funds in May and flows were essentially flat in June. We’d note that flows for traditional equity funds have been positive in early 2024.
By our estimate, sustainable fund AUM now represents ~$2.3 trillion ($1.7 trillion for sustainable equity funds, $636 billion for sustainable fixed income funds).
Economics
China's International Trade Balance
China's trade surplus widened to US $84.65 billion in July 2024 from US $80.22 billion in the same period a year earlier.
Exports from China expanded 7.0% year-on-year in July 2024, easing from an 8.6% gain in the prior month. This marked the fourth straight month of growth in outbound shipments but the softest expansion since April.
In the first seven months of 2024, exports rose 4.0% to US $2.07 trillion, mainly driven by increased sales of agriculture products (2.0%), plastic products (7.2%), textile (3.2%), unwrought aluminum and aluminum materials (8.9%), furniture & parts (11.9%), electronics (5.6%), and household appliance (15.1%).
During the period, exports rose mainly to the US (2.4%), Hong Kong (10.7%), Taiwan (13.3%), India (2.8%), the UK (1.0%), Canada (4.0%), and the ASEAN countries (10.8%)
Meanwhile, imports rose 7.2%, rebounding from a 2.3% fall in the previous month, the strongest growth since April,, amid government efforts to stimulate domestic demand. Imports year-over-year in China increased to 7.20% in July from -2.30% in June of 2024.
The trade surplus with the United States narrowed to US $30.84 billion in June from US $30.81 4 billion in the previous month. For the first seven months of 2024, the country recorded a surplus of US $518 billion, with exports advancing 4.0% to US $2.07 trillion while imports grew 2.8% to US $1.49 trillion. The trade surplus with the United States stood at US $190.64 billion for January - July 2024.
Leede Insights is general market commentary that does not constitute a research report of any company. The views or opinions expressed represent the personal views of the writer, are subject to change without notice, and do not necessarily reflect the views of Leede Financial Inc. (“Leede”)
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