Transportation

Canadian Bank Buying GE Capital Transportation Finance preview image Canadian Bank Buying GE Capital Transportation Finance article image

Canadian Bank Buying GE Capital Transportation Finance

CHICAGO, TORONTO, and FAIRFIELD, CT -- General Electric Corp. has agreed to sell its GE Capital Transportation Finance business in the U.S. and Canada to BMO Financial Group (BMO), the parent of BMO Bank of Montreal, and to its wholly-owned Chicago-based subsidiary BMO Harris Bank. Terms of the deal have not been released though BMO said the acquisition has net earning assets of approximately US$9 billion. The transaction is subject to customary regulatory and other approvals and is expected to close in December of 2015. The move is the latest by GE to sell off most of the assets in its GE Capital Financing operation. "We continue to execute on our asset sales and are on track to reduce our ending net investment by US$100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016," said Keith Sherin, GE Capital chairman and CEO.
Trucking Conditions Index at Highest Level This Year preview image Trucking Conditions Index at Highest Level This Year article image

Trucking Conditions Index at Highest Level This Year

BLOOMINGTON, IN - A measure of trucking conditions in the U.S. continues to improve, reaching a new high for the year, according to freight transportation forecasting firm FTR. Its newly released Trucking Conditions Index (TCI) measure for July continued its recent rise with a reading of 8.07. Substantial upward revisions to first quarter freight growth have helped to push full year growth projections close to 4%, said FTR. The stronger freight forecast is now reflected in the improved TCI readings which had been languishing in very modest territory. Additionally, recent revisions to U.S. second quarter gross domestic product (GDP) growth suggests that improvements in freight drivers could possibly continue, according to FTR. Along with these improvements, FTR is forecasting double digit positive TCI readings by the end of the year. "Stock market gyrations may have caused concern, but the freight market continues to chug along. Pressure to add more drivers has momentarily eased, yet freight continues to increase and rates paid to truckers are still relatively strong," said Jonathan Starks, FTR's director of transportation analysis.

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