Daily Pulse
One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.
Michel Doucet
Vice-President and
Portfolio Manager
July 25, 2025
Canada
Canadian consumers pulled back on spending in May only to open their wallets in June. Headline retail sales fell 1.1% in May, one tick below expectations but in line with Statistics Canada’s flash estimate. Auto sales were the main factor driving weakness in retail receipts. Excluding that category, retail receipts declined 0.2%, slightly less than economists were expecting. Six out of nine subcategories saw retail sales rise over the month, but in real terms, breadth was much weaker with only 4 categories seeing an increase. Overall volumes fell 1.4% in May. Per capita spending also declined both in nominal and real terms. According to Statistics Canada’s flash estimate, retail sales rebounded 1.6% in June. Given that goods prices rose just 0.2% in June, its likely that most of the increase in retail sales was driven by volumes, essentially offsetting the weakness seen in May. For the quarter, nominal retail sales likely rose 1.7% annualized. While that’s not as bad as it seems given that goods prices were down, the sales data include significant volatility over the quarter. Following the numbers, Desjardins’ GDP tracking for Q2 suggests no growth.
United States
Intel CEO Lip-Bu Tan sparked concerns that he is more focused on cost cutting than restoring the company's technological edge. Tan said the company will cancel some factory projects and take a more conservative approach to future spending, calling investments begun under his predecessor "excessive and unwise". Intel will reduce capital expenditures and has laid off thousands of employees, with plans to cut staff by 15% and end the year with 75,000 employees.
The dollar gained after Donald Trump downplayed his clash with Jerome Powell over the Fed’s renovation costs, saying it wasn’t reason enough to fire him. The president did renew his call for lower interest rates though.
Europe
LVMH sales fell as shoppers reined in purchases of costly Louis Vuitton bags and Dior jackets, a sign the luxury titan remains stuck in its post-pandemic slump. Revenue at the French group’s fashion and leather goods division dropped 9% on an organic basis in the second quarter, worse than analysts’ estimates for a 7.8% drop.
President Christine Lagarde said the European Central Bank is in a “wait-and-see” mode after leaving interest rates unchanged. The ECB offered no guidance on future steps due to lacking clarity on the eventual level of tariffs. Lagarde said the euro zone’s economy is growing mostly in line with or a little better than expectations, but risks remain tilted to the downside.
Asia
The yen rose after people familiar said BOJ officials may mull another rate hike this year after the US trade deal.
Thailand warned the conflict with Cambodia may escalate into war as the two exchanged fire along their contested border. The baht fell.