• Vaccines set to unleash pent-up oil demand -IEA
After a three-month slide in global oil demand due to the spread of the Delta variant of COVID-19 and pandemic restrictions especially in Asia, vaccine roll-outs are set to power a rebound, the International Energy Agency (IEA) said.
• Nicholas weakens into tropical storm, battering Texas, Louisiana with rain
Heavy rains lashed Texas and Louisiana as hurricane Nicholas weakened into a tropical storm, bringing the threat of widespread floods and power outages as it swept down the U.S. Gulf Coast.
• Barrick eyes new mines, not deals, for future growth
Barrick Gold Corp's Chief Executive Mark Bristow spent years burnishing his reputation as an aggressive dealmaker, but he says now he is focused on new mines that he hopes will boost profit and the company's sagging stock price.
• Canadian National shareholder nominates four directors to company's board
Billionaire Chris Hohn's TCI Fund Management nominated four independent directors to Canadian National's board, a day after Kansas City Southern divulged plans to accept a buyout offer from Canadian Pacific Railway.
• Amazon boosts hourly pay to over $18, to hire 125,000 workers
Amazon.com hiked its average starting wage to $18 per hour and said it plans to hire more than 125,000 warehouse and transportation workers in the United States.
BEFORE THE BELL
Futures for Canada's main stock index were little changed, mirroring Wall Street futures, as investors remained on the sidelines ahead of the U.S. inflation data. European stocks slipped, weighed down by weakness in luxury and mining shares. Japan's Nikkei closed at a more than 31-year high, supported by gains in cyclical stocks. The dollar index was little changed, while gold prices were in the negative territory. Oil rose as another hurricane threatened to bring heavy rain to U.S. Gulf.
STOCKS TO WATCH
Deals Of The Day
• Corvus Gold: AngloGold Ashanti agreed on Monday to buy out Corvus Gold for 4.10 Canadian dollars per share in a deal valuing the exploration firm at 570 million Canadian dollars. The South African gold miner said the purchase of the 80.5% of Corvus shares it didn't yet own consolidates the two companies' projects in the Beatty District in southern Nevada and gives it the opportunity to establish a low-cost production base in the United States. "This transaction delivers a compelling, district-wide consolidation in Nevada, which allows for the Beatty District to become a potential Tier 1 asset for AngloGold Ashanti," Alberto Calderon, AngloGold Ashanti CEO, said in a statement.
In Other News
• Barrick Gold Corp: The company's Chief Executive Mark Bristow spent years burnishing his reputation as an aggressive dealmaker, but he says now he is focused on new mines that he hopes will boost profit and the company's sagging stock price. "The very foundation of our future has to be our geologists and where we are investing," Bristow told Reuters on the sidelines of the MINExpo conference in Las Vegas, the quadrennial gathering of industry executives and suppliers. "Organic growth is always a winner when it comes to value." The newfound focus on internal growth comes as Bristow pushes the mining industry to better invest in host communities. "They are stakeholders that are as important as our own shareholders," he said.
• Canadian National Railway Co: Billionaire Chris Hohn's TCI Fund Management nominated four independent directors to Canadian National's board, a day after Kansas City Southern divulged plans to accept a buyout offer from Canadian Pacific Railway Ltd. Canadian Pacific has offered $27.2 billion in a cash-and-stock deal, compared with Canadian National's $29.6 billion offer. "We did not seek a proxy fight, but without urgent action CN's operational and financial performance will continue to lag its peers under a board that lacks the right railroad experience and operational expertise," TCI's Hohn said in a statement on Monday. TCI also reiterated its call to replace Canadian National Chief Executive Officer Jean-Jacques Ruest with former Union Pacific executive Jim Vena.
• Magna International: Shares in Veoneer edged down after the auto tech firm stuck to its recommendation for Magna's bid after receiving an updated, non-binding offer from Qualcomm. The Swedish company has become an attractive takeover target as its expertise in making advanced driver assistance systems fits in the plan for both Qualcomm and Magna in cornering a share in a growing business. Qualcomm on Monday made a formal $37 per share bid for Veoneer in line with the offer announced last month and above Magna's original $31.25 per share offer. Despite the bigger price tag, Veoneer said its merger agreement with Magna remains "in full force and effect" and the company's board has not withdrawn its recommendation favouring a deal with Magna.
Canada's Trudeau sought an election he risks losing with only a week to go
Canadian Prime Minister Justin Trudeau had hoped to secure a majority in parliament when he called a snap election, but a lackluster campaign and public anger over a vote during a pandemic are putting his chances of victory at risk.
• Altus Group Ltd: CIBC raises target price to C$63 from C$58 to value the company in line with their peers.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 (approx.) Manufacturing sales mm for July: Expected -1.2%; Prior 2.1%
COMPANIES REPORTING RESULTS
Blackline Safety Corp: Expected Q3 loss of 12 Canadian cents per share
Evertz Technologies Ltd: Expected Q1 earnings of 19 Canadian cents per share
Fire & Flower Holdings Corp: Expected Q2 loss of 1 Canadian cent per share
Guru Organic Energy Corp: Expected Q3 loss of 6 Canadian cents per share
Haivision Systems Inc: Expected Q3 earnings of 8 Canadian cents per share
WildBrain Ltd: Expected Q4 earnings of 2 Canadian cents per share
No major companies are scheduled to report for the day.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0830 Fire & Flower Holdings Corp: Q2 earnings conference call
1000 Guru Organic Energy Corp: Q3 earnings conference call
1100 Blackline Safety Corp: Q3 earnings conference call
1100 Mountain Province Diamonds Inc: Annual Shareholders Meeting
1400 Canopy Growth Corp: Annual Shareholders Meeting
1700 Evertz Technologies Ltd: Q1 earnings conference call
1730 Haivision Systems Inc: Q3 earnings conference call
BCE Inc: Amount C$0.87
Cenovus Energy Inc: Amount C$0.01
Corby Spirit and Wine Ltd: Amount C$0.21
Corus Entertainment Inc: Amount C$0.06
Diversified Royalty Corp: Amount C$0.01
DREAM Unlimited Corp: Amount C$0.07
ECN Capital Corp: Amount C$0.03
Equitable Group Inc: Amount C$0.37
Intact Financial Corp: Amount C$0.83
Loblaw Companies Ltd: Amount C$0.36
MCAN Mortgage Corp: Amount C$0.34
Melcor Developments Ltd: Amount C$0.12
Morguard Corp: Amount C$0.15
Paramount Resources Ltd: Amount C$0.02
Parex Resources Inc: Amount C$0.12
Pason Systems Inc: Amount C$0.05
Shaw Communications Inc: Amount C$0.09
Topaz Energy Corp: Amount C$0.21
Tourmaline Oil Corp: Amount C$0.17
TransAlta Renewables Inc: Amount C$0.07
Wajax Corp: Amount C$0.25
(All analysts' estimates are according to I/B/E/S Refinitiv data)