| WEDNESDAY, JULY 29, 2015, CANADA EDITION TOP NEWS • Microsoft launches much-awaited Windows 10 Microsoft Corp launched its much-awaited Windows 10 operating system at midnight. • Thomson Reuters profit beats, currency weighs on revenue Thomson Reuters Corp reported a higher-than-expected quarterly profit even as currency weighed on its revenues. • K+S asks German government to fend off takeover-Handelsblatt German potash and salt miner K+S has turned to economy minister Sigmar Gabriel for help in resisting an unwanted takeover approach by Potash Corp of Saskatchewan Inc, and has discussed the option of German state bank KfW taking a stake in K+S, a newspaper reported. • Barclays to speed up cost cuts after extra $1.3 bln misselling hit Barclays' new executive chairman sought to stamp his mark on the bank by accelerating the sale of assets and cost cutting, after the group reported an 12 percent rise in profit and another big charge to compensate customers. • Hotel chain operator Hilton's revenue rises 9.6 pct The hotel chain operator reported a 9.6 percent rise in quarterly revenue, helped by higher room rates and occupancy.
BEFORE THE BELL Mirroring its U.S. counterpart, stock futures pointed to a higher opening for Canada's main stock index ahead of a policy statement from the U.S. Federal Reserve. European equities advanced, spurred by strong corporate earnings, while Asian markets closed broadly higher. Major currencies that are closely linked to commodity prices were back on the defensive as oil prices inched lower. Gold steadied.
STOCKS TO WATCH
Results • Sherritt International Corp (S). The miner reported a bigger loss for the second quarter, hurt by lower nickel prices. The company said on Tuesday its adjusted net loss from continuing operations widened to C$75.2 million, or 25 Canadian cents per share, in the three months ended June 30 from C$56.2 million, or 19 Canadian cents per share, a year earlier. • Thomson Reuters Corp (TRI). The company reported a higher-than-expected quarterly profit even as currency weighed on its revenues. The news and information company said second-quarter net earnings were $281 million, or 33 cents per share, compared with $260 million, or 31 cents per share, a year ago. Adjusted for special items, earnings were 52 cents per share. Analysts on average were looking for 50 cents per share. Revenue fell 4 percent to $3.04 billion.
In Other News • Bombardier Inc (BBDb). The German engineering group Siemens and Bombardier are in early talks to merge their rail businesses, The Wall Street Journal reported, citing people familiar with the matter. The paper said Bombardier was also in talks with other possible partners. • Potash Corp (POT). German potash and salt miner K+S has turned to German economy minister Sigmar Gabriel for help against an unwanted takeover approach by the company and has discussed the option of German state bank KfW taking a stake in K+S, a newspaper reported on Wednesday. K+S earlier this month rebuffed Potash Corp's 7.9 billion euros proposed bid of 41 euros per share as too low and suggested the suitor was planning to shrink the company. A K+S spokesman said last week the German company had rejected a new attempt by Potash to entice it into takeover talks.
ANALYSTS' RECOMMENDATION • Centerra Gold Inc (CG). BMO raises price target to C$6.25 from C$6 after the company reported a better-than-expected second-quarter earnings. • Magna International Inc (MGA). RBC cuts price target on its U.S.-listed shares to $67 from $68, expect second-quarter revenue to decline on the sale of the interiors division and forex headwinds. • Westjet Airlines Ltd (WJA). CIBC cuts price target to C$31 from C$32.25, following the company’s decision to reduce its capacity growth in fourth-quarter.
ECONOMIC EVENTS No Economic events are scheduled to for the day
MAJOR COMPANIES REPORTING RESULTS Jul 29: Agnico Eagle Mines Ltd (AEM). Expected Q2 earnings of 8 cents per share Alaris Royalty Corp (AD). Expected Q2 earnings of 34 Canadian cents per share ARC Resources Ltd (ARX). Expected Q2 earnings of 5 Canadian cents per share Atco Ltd (ACOx). Expected Q2 earnings of 57 Canadian cents per share Avigilon Corp (AVO). Expected Q2 earnings of 17 Canadian cents per share BrightPath Early Learning Inc (BPE). Expected Q2 earnings of breakeven per share Calfrac Well Services Ltd (CFW). Expected Q2 loss of 51 Canadian cents per share Canadian Utilities Ltd (CU). Expected Q2 earnings of 38 Canadian cents per share CanWel Building Materials Group Ltd (CWX). Expected Q2 earnings of 24 Canadian cents per share CGI Group Inc (GIBa). Expected Q3 earnings of 81 Canadian cents per share Detour Gold Corp (DGC). Expected Q2 loss of 9 cents per share easyhome Ltd (EH). Expected Q2 earnings of 35 Canadian cents per share EcoSynthetix Inc (ECO). Expected Q2 loss of 4 cents per share First Quantum Minerals Ltd (FM). Expected Q2 earnings of 10 cents per share Home Capital Group Inc (HCG). Expected Q2 earnings of 1.03 Candian per share Horizon North Logistics Inc (HNL). Expected Q2 loss of 3 Canadian cents per share HudBay Minerals Inc (HBM). Expected Q2 earnings of 11 Canadian cents per share Intact Financial Corp (IFC). Expected Q2 earnings of 1.66 Candian per share Kinross Gold Corp (K). Expected Q2 loss of 1 cents per share Lundin Mining Corp (LUN). Expected Q2 earnings of 8 cents per share Methanex Corp (MX). Expected Q2 earnings of 72 cents per share OpenText Corp (OTC). Expected Q4 earnings of 69 cents per share Suncor Energy Inc (SU). Expected Q2 earnings of 32 Canadian cents per share Surge Energy Inc (SGY). Expected Q2 loss of 2 Canadian cents per share Torstar Corp (TSb). Expected Q2 earnings of 16 Canadian cents per share TransAlta Corp (TA). Expected Q2 loss of 3 Canadian cents per share Westport Innovations Inc (WPT). Expected Q2 loss of 29 cents per share WiLan Inc (WIN). Expected Q2 earnings of 17 cents per share
Jul 30: Altagas Ltd (ALA). Expected Q2 earnings of 9 Canadian cents per share Athabasca Oil Corp (ATH). Expected Q2 loss of 6 Canadian cents per share Bombardier Inc (BBDb). Expected Q2 earnings of 5 cents per share Cameco Corp (CCO). Expected Q2 earnings of 21 Canadian cents per share Canadian Oil Sands Ltd (COS). Expected Q2 loss of 12 Canadian cents per share Canyon Services Group Inc (FRC). Expected Q2 loss of 32 Canadian cents per share Cenovus Energy Inc (CVE). Expected Q2 earnings of 10 Canadian cents per share Cott Corp (BCB). Expected Q2 earnings of 18 cents per share CRH Medical Corp (CRH). Expected Q2 earnings of 4 cents per share Domtar Corp (UFS). Expected Q2 earnings of 49 cents per share Dundee Precious Metals Inc (DPM). Expected Q2 earnings of 1 cent per share Eldorado Gold Corp (ELD). Expected Q2 earnings of 1 cent per share Endeavour Mining Corp (EDV). Expected Q2 earnings of 2 cents per share Fairfax Financial Holdings Ltd (FFH). Expected Q2 loss of $5.44 per share First Capital Realty Inc (FCR). Expected Full Year earnings of 87 Canadian cents per share Goldcorp Inc (G). Expected Q2 earnings of 6 cents per share Industrial Alliance Insurance and Financial Services Inc (IAG). Expected Q2 earnings of 97 Canadian cents per share Interfor Corp (IFP). Expected Q2 loss of 21 Canadian cents per share Lake Shore Gold Corp (LSG). Expected Q2 earnings of 1 Canadian cent per share MacDonald Dettwiler and Associates Ltd (MDA). Expected Q2 earnings of C$1.57 per share Manitoba Telecom Services Inc (MBT). Expected Q2 earnings of 26 Canadian cents per share Mercer International (MERC). Expected Q2 earnings of 22 cents per share Nevsun Resources Ltd (NSU). Expected Q2 earnings of 8 cents per share NexJ Systems Inc (NXJ). Expected Ful Year loss of 40 Canadian cents per share Norbord Inc (NBD). Expected Q2 loss of 17 cents per share Penn West Petroleum Ltd (PWT). Expected Q2 loss of 16 Canadian cents per share Potash Corporation of Saskatchewan Inc (POT). Expected Q2 earnings of 50 cents per share Progressive Waste Solutions Ltd (BIN). Expected Q2 earnings of 29 cents per share Quebecor Inc (QBRb). Expected Q2 earnings of 51 Canadian cents per share Resolute Forest Products Inc (RFP). Expected Q2 loss of 17 cents per share Smart Employee Benefits Inc (SEB). Expected Q2 loss of 1 Canadian cent per share Strongco Corp (SQP). Expected Q2 earnings of 14 Canadian cents per share Tembec Inc (TMB). Expected Q3 loss of 4 Canadian cents per share Teranga Gold Corp (TGZ). Expected Q2 earnings of 1 cent per share Timmins Gold Corp (TMM). Expected Q2 earnings of 0 cent per share Western Energy Services Corp (WRG). Expected Q2 loss of 6 Canadian cents per share Yamana Gold Inc (YRI). Expected Q2 loss of 1 cent per share ZCL Composites Inc (ZCL). Expected Q2 earnings of 13 Canadian cents per share
CORPORATE EVENTS 08:00 Toromont Industries Ltd (TIH). Q2 earnings conference call 09:00 Cgi Group Inc (GIBa). Q3 earnings conference call 09:00 New Gold Inc (NGD). Q2 earnings conference call 10:00 DH Corp (DH). Q2 earnings conference call 11:00 Alaris Royalty Corp (AD). Q2 earnings conference call 11:00 Centerra Gold Inc (CG). Q2 earnings conference call 11:00 Intact Financial Corp (IFC). Q2 earnings conference call 11:00 TransAlta Corp (TA). Q2 earnings conference call 17:00 Open Text Corp (OTC). Q4 earnings conference call
EXDIVIDENDS Alaris Royalty Corp (AD). Amount C$0.14 Bank of Montreal (BMO). Amount C$0.82 Bonavista Energy Corp (BNP). Amount C$0.04 Canadian Energy Services & Tech Corp (CEU). Amount C$0.03 Canfor Pulp Products Inc (CFX). Amount C$0.06 Cineplex Inc (CGX). Amount C$0.13 CI Financial Corp (CIX). Amount C$0.11 Canadian Tire Corporation Limited (CTC.A). Amount C$0.53 Enercare Inc (ECI). Amount C$0.07 Emera Inc (EMA). Amount C$0.40 First National Financial Corp (FN). Amount C$0.13 Freehold Royalties Ltd (FRU). Amount C$0.09 Mullen Group Ltd (MTL). Amount C$0.10 Northland Power Inc (NPI). Amount C$0.09 Peyto Exploration & Development Corp (PEY). Amount C$0.11 TORC OIL AND GAS LTD (TOG). Amount C$0.05 Molson Coors Canada Inc (TPX.A). Amount C$0.53 Whitecap Resources Inc (WCP). Amount C$0.06
(All analysts' estimates are according to Thomson Reuters I/B/E/S/)
|
| INSIGHT
PREVIEW-U.S. Fed expected to push ahead with rate hike plan
The Federal Reserve is expected on Wednesday to point to a growing U.S. economy and stronger job market as it sets the stage for a possible interest rate hike in September. The U.S. central bank is scheduled to issue its latest policy statement at 2 p.m. EDT (1800 GMT) following a two-day meeting, spelling out how policymakers feel the economy has progressed since they last met in June. Earlier this year the Fed embraced a meeting-by-meeting approach on the timing of what will be its first rate hike since June 2006, making such a decision solely dependent on incoming economic data. With a slew of employment, inflation and GDP reports to come before its September meeting, the Fed is unlikely to hint too strongly about its plans, Barclays economists Michael Gapen and Rob Martin wrote in a preview of this week's meeting. But simply hewing to the language of the June policy statement, when the Fed said the economy was expanding moderately, or even strengthening the outlook a bit, "leaves the door wide open for September," they wrote. Despite a dovish reputation, Fed Chair Janet Yellen has been among those pulling on the door handle in recent public statements, saying she felt a rate hike would be appropriate sometime this year absent a negative shock to the economy. Although another collapse in energy prices and growing economic uncertainty in China is clouding the global economic outlook, the Fed has largely looked beyond recent turmoil overseas. Instead, it has focused on the steady growth in the U.S. job market and on policymakers' expectations that inflation will eventually rise to the central bank's medium-term objective of 2 percent. The U.S. unemployment rate is 5.3 percent, near what many officials consider full employment. An economic contraction in the first quarter also has been set aside as an aberration, the result of a harsh winter and statistical "noise" that federal number crunchers are now trying to fix. Early projections that the second quarter was also going to be weak have since turned around. A "real-time" gross domestic product forecast by the Atlanta Fed as of the middle of May projected 0.5 percent annualized growth in the second quarter. When the final estimate was issued this week, the forecast had jumped to nearly 2.5 percent annualized growth.
---By Howard Schneider
__________________
NEWS ACCESS MADE EASY
Reuters Top News page displays a range of market and sector-specific subjects including: US, Europe and Asian companies, fixed income, credit, the global economy, emerging markets, corporate finance and industry sectors.
To access Top News -- Thomson ONE: Click News tab, Select Front Page from top right, Click Top News. |
|