Here are four things you need to know this morning
Home prices dip again: Canadian home prices dropped in February as lingering economic uncertainty forced sellers to offer bigger discounts to reluctant buyers. The benchmark price of a home in the country fell 0.6 per cent from the month before to $663,828, continuing a string of declines, data from the Canadian Real Estate Association show. That period coincided with the outbreak of an ongoing trade war with the U.S., Canada’s largest trading partner. Though the majority of Canadian exports to the U.S. have so far been exempt from higher levies by a preexisting trade agreement, that deal is up for review this year, stoking the anxiety that’s already affecting Canada’s economy. Meanwhile, the war in Iran has led to a spike in energy and other costs, making the economic outlook more uncertain. Across Canada’s housing market, the prospect of continued economic turmoil may be making buyers and sellers more wary. Transactions fell 1.3 per cent in February from the previous month, while new listings dropped 3.9 per cent, according to the real estate association. The Bank of Canada hasn’t hinted at further interest-rate cuts, and the number of homes listed for sale is 3.7 per cent higher than a year ago. That’s given buyers who remain in the market both the leverage and incentive to keep pushing for lower prices.
Diesel tops US$5 a gallon south of border: U.S. diesel rose above $5 a gallon for the first time since December 2022, the latest sign of surging fuel price pressures menacing the global economy as the war in Iran continues to disrupt energy supplies. The nationwide average retail price reached $5.044 a gallon on Monday, according to the American Automobile Association. It has gained sharply since the conflict began. The surge in prices comes as the Strait of Hormuz — through which about a fifth of the world’s oil transit each day — remains largely closed to traffic. Countries are adopting increasing levels of protectionism in order to keep fuel at home and shield consumers from the higher costs. The jump in U.S. retail diesel prices is the latest surge among fuels that are key to the day-to-day functioning of the global economy. Jet fuel has soared above $200 a barrel and fuel oil — usually a product that trades lower than crude futures, but one that keeps shipping moving — is now close to $140 a barrel.
US$1 Trillion in sales for Nvidia could happen: Nvidia Corp. Chief Executive Officer Jensen Huang, addressing crowds at the company’s biggest annual event, unveiled a variety of new products while predicting that its flagship AI processors would help generate $1 trillion in sales through 2027. During a two and a half hour keynote address, Huang announced plans to push deeper into central processing units — Intel Corp.’s home turf — and introduced semiconductors made with technology acquired from startup Groq. The company even said it was developing chips for data centers in outer space. At the heart of Huang’s message: Demand for computing power continues to soar, and Nvidia is uniquely equipped to meet the challenge. “I believe that computing demand has increased by 1 million times in the last two years,” he said. “It is the feeling that we all have.”
Lagging sales have Kraft Heinz offering healthier fare: Kraft Heinz Co. is rolling out a series of healthier products to bolster some of its lagging brands, the first phase in the company’s efforts to revitalize growth after pausing its plans to split. In March and April, the company will officially unveil a new high-protein Kraft Mac & Cheese, a snack-size version of Lunchables and a low-sugar hydration beverage from Capri Sun that includes electrolytes. The product launches are part of a broader effort to restore growth in three brands that have struggled, but have responded well to recent investments, Chief Executive Officer Steve Cahillane said in an interview with Bloomberg News. The company aims to provide “proof points” to customers and investors that Kraft Heinz can turn its business around by repeating similar moves across other brands, he said. The new food launches will test Cahillane’s bet that investing in Kraft Heinz’s product development and leaning into protein-heavy, better-for-you foods can help reinvigorate sales.
