Mission Produce Inc T.AVO

Primary Symbol: AVO

Mission Produce, Inc. is engaged in the farming, packaging, marketing, and distribution of avocados to food retailers, distributors and produce wholesalers. It operates through three segments: Marketing and Distribution, International Farming, and Blueberries. Its Marketing and Distribution segment sources fruit from growers and then distributes the fruit through its global distribution network. Its International Farming segment owns and operates orchards from which all fruit produced is sold to its Marketing and Distribution segment. Its farming activities range from cultivating early-stage plantings to harvesting from mature trees. Its Blueberries segment is a farming operation that cultivates blueberry plants in Peru. It provides value-added services including ripening, bagging, custom packaging, logistical management, and quality assurance. The Company also provides its customers with merchandising and promotional support, insights on market trends and hands-on training.

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Mission Produce Inc

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Post by abolduc3106on Nov 04, 2015 8:06am

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CAD forecast to sink to 72¢, remain stunted through 2017

I wonder what that CIBC analyst who seemed all worried the CAD would be going up 15% in the next year is going to think about asking that question this morning.

It seem he shouldn't be all that concerned after all, so I guess you could say he jumped the gun twice yesterday and swung two strikes.

And Avigilon is going to have another couple of years to grow it's business before they need to start to worry about negative FX impact.

And the global market headwinds also seem to be subsiding.

GLTA

https://www.theglobeandmail.com/report-on-business/top-business-stories/canadian-dollar-forecast-to-sink-to-72-remain-stunted-through-2017/article27079028/

The eroding loonie

If you’re counting on a rebound for the Canadian dollar any time soon, don’t.

The latest forecast from Bank of Nova suggests the loonie is poised to tumble to as low as 72 cents (U.S.). Not only that, when it recovers it won’t crack the 80-cent mark even by the end of next year.

“Interest rate differentials will move against the Canadian dollar [CAD] as U.S. interest rates rise,” Shaun Osborne, Scotiabank’s chief foreign exchange strategist, said in the report, referring to the fact that the Federal Reserve is moving ever closer to a rate hike while the Bank of Canada is expected to do nothing on that front for some time yet.

“Low energy prices (we see no rebound in crude oil until later in 2016 amid a continued supply glut) and sluggish domestic growth imply continued downside pressure in the CAD through 2016.”

The Scotiabank forecast puts the currency at 73 cents at the end of 2015, with a further drop to 72 cents through most of next year. The bank sees it perking back up to 74 cents early in 2017 and then continuing to climb, but only to 79 cents by the end of the year.

Merrill Lynch, in a separate forecast this week, projected the loonie will dip to about 74 cents by early 2016 and stay there throughout the year.

That low dollar may be a problem for travellers headed for the United States, as well as importers and consumers forced to pay for higher imported goods.

But it’s not an issue for the Bank of Canada, which is counting on stronger exports.

“The Bank of Canada’s [BoC] aim of reorienting the economy from domestic-driven growth to (more sustainable) drivers, such as trade and business investment, has only been partially successful,” Scotiabank’s Mr. Osborne said.

“Trade has improved a little in recent months but business investment looks flat and may struggle to improve against the soft energy sector backdrop,” he added.

“Under these circumstances, policy makers will likely prefer to see the CAD stay relatively soft.”

Der schlamm

I’m not sure I’m phrasing this correctly but the Volkswagen Group is sinking ever deeper into der schlamm today as its troubles escalate.

Google Translate tells me that means mud, sludge, mire or ooze, which really sums it up whether or not I’ve lost something in the translation.

Volkswagen shares plunged after the auto maker disclosed late yesterday that up to 800,000 vehicles in Europe could be affected by understate fuel consumption.

“Under the ongoing review of all processes and workflows in connection with diesel engines it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process,” the company said.

Matthias Muller, the new CEO of the embattled group, said he will stop “at nothing and nobody” to fix the troubles at his company.

“VW wrote off another 8 per cent in Frankfurt as investors retreat to the sidelines to wait for the thunderstorm to calm down,” London Capital Group market analyst Ipek Ozkardeskaya said of today’s stock plunge.

“The [earnings per share] estimate fell by a dramatic 70 per cent over the past four weeks as the VW shares are expected to take a serious hit,” she added in a research note.

“But not only. The image of German precision, strength, security and reliance are equally damaged. At this stage, it is very difficult to value the goodwill of Volkswagen.”

Markets on rise

Global markets are generally on the rise so far, with a notable outlier.

Tokyo’s Nikkei climbed 1.3 per cent, Hong Kong’s Hang Seng 2.2 per cent, and the Shanghai composite a sharp 4.3 per cent.

In Europe, London’s FTSE 100 and the Paris CAC 40 were up by just shy of 1 per cent by about 5:30 a.m. ET, though Germany’s DAX slipped 0.1 per cent amid the escalating troubles of Volkswagen.

“In Germany, Volkswagen shares are in reverse once again, leaving the DAX languishing behind other indices; it was only really a matter of time before fresh problems were unearthed, and as usual investors are scrambling to try and put a figure on the likely cost to the company,” said IG market analyst Alastair McCaig in London.

“One thing is certain, it will be far in excess of the €6.5-billion already set aside.”

What to watch for today

First up is Statistics Canada’s reading of exports and imports in September, which is expected to show a modest narrowing of the trade deficit to somewhere between $1.2-billion and $2-billion.

“A slight rebound in energy prices and better volumes shipped to the U.S. combined with a weaker Canadian dollar likely increased exports by about $1-billion for the months,” said economists at CIBC World Markets.

“Other categories also benefited from the softer currency and, together, should have caused the deficit to narrow to about $1.2-billion in September.”

A couple of hours after that, Justin Trudeau announces his cabinet, and investors will be watching to see who forms Canada’s new economic team.

And throughout the day, corporate earnings continue to flood in, from such names as Facebook, Canaccord Genuity, Linamar, Marathon Oil, New Flyer Industries, Shopify and Sun Life, among others.

Chart of the day

Canadians were carrying $1.9-trillion in debts in September, a 7.4-per-cent annualized jump from the end of the second quarter, according to Royal Bank of Canada.

“A seasonal bounce in housing market activity this spring lingered into the summer months to help drive residential mortgage growth higher,” said RBC economist Laura Cooper, noting the increase of almost $75-billion in mortgage debt over the course of a year.