• U.S. Senate Democrats, Republicans haggle over short-term debt fix
U.S. Senate Democrats and Republicans were expected to continue negotiating to avert a debt crisis after Democrats showed openness to a Republican offer to allow an extension of the federal debt ceiling into December.
• Tilray posts 43% rise in quarterly revenue on strong cannabis demand
Canadian pot producer Tilray reported a 43% rise in first-quarter revenue, driven by strong demand for cannabis after coronavirus-led lockdowns.
• Google rivals want EU lawmakers to act via new tech rules
DuckDuckGo and three other search engine rivals to Google urged EU lawmakers to take action against the Alphabet unit via new tech rules, saying they have yet to see positive results from an antitrust ruling against Google.
• Dutch watchdog finds Apple app store payment rules anti-competitive
The Dutch antitrust authority has found that Apple’s rules requiring software developers to use its in-app payment system are anti-competitive and ordered it to make changes, four people familiar with the matter said, in the latest regulatory setback for the iPhone maker.
• Moderna plans African mRNA vaccine factory as pressure grows
Moderna plans to invest about $500 million to build a factory in Africa to make up to 500 million doses of mRNA vaccines each year, including its COVID-19 shot, as pressure grows on the pharmaceutical industry to manufacture drugs on the continent.
BEFORE THE BELL
Futures tracking Canada's main stock index rose, riding on an improving global mood that was lifted by hopes that Washington could resolve its debt-ceiling standoff, while a dip in oil prices eased worries of higher inflation. Oil prices fell after the U.S. said it was considering selling oil from its strategic reserves and as Russia said it was ready to stabilise the natural gas market. Gold prices edged lower and the U.S. dollar held steady as investors steered clear of big bets before U.S. jobs data that could determine the Federal Reserve's monetary policy normalisation plans.
STOCKS TO WATCH
Tilray Inc: Canadian pot producer Tilray reported a 43% rise in first-quarter revenue, driven by strong demand for cannabis after coronavirus-led lockdowns. The world's largest cannabis producer by sales said its revenue rose to $168 million in the quarter ended Aug. 31 from $117.49 million a year earlier. Net cannabis revenue jumped 38%. The company said it was on track for at least $80 million in cost savings from its deal to merge with Aphria. Tilray, which announced the deal in December, added that it had saved about $55 million on a run-rate basis to date from the deal, with actual cash savings close to $20 million. Tilray's net loss widened to $34.6 million in the first quarter from $21.74 million, as total expenses more than doubled.
Canadian dollar upside seen shrinking if global economic recovery slows
There is less room for the Canadian dollar to gain ground over the coming year as analysts expect the prospect of slower global economic growth and accelerating inflation to undermine support from higher oil prices.
• MTY Food Group Inc: RBC raises price target to C$62 from C$52, ahead of the company's third-quarter earnings report which is expected to show continued progress in the U.S. & international segment and improved trends in the Canada segment.
• Quebecor Inc: TD Securities cuts price target to C$37 from C$38, noting the overall competitive and M&A landscape in Canada which is impacting the market environment in Quebec.
• Savaria Corp: Scotiabank cuts price target to C$23 from C$23.50, as supply chain issues like higher freight costs are increasingly being flagged by manufacturers as a source of earnings risk.
• Topaz Energy Corp: Canaccord Genuity raises price target to C$24 from C$23, after the company announced $238 mln in acquisitions while also increasing its dividend by 14%.
• Voyager Digital Ltd: BTIG cuts price target to C$31 from C$36, following first-quarter results that missed expectations, mainly due to the impact of a decline in cryptocurrency market volume.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
1000 Ivey PMI for Sep: Prior 63.8
1000 Ivey PMI for Sep: Prior 66.0
COMPANIES REPORTING RESULTS
Richelieu Hardware Ltd: Expected Q3 earnings of 53 Canadian cents per share
MTY Food Group Inc: Expected Q3 earnings of 86 Canadian cents per share
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0830 Aphria Inc: Q1 earnings conference call
1430 Richelieu Hardware Ltd: Q3 earnings conference call
1600 Velan Inc: Q2 earnings conference call
Dollarama Inc: Amount C$0.05
Guardian Capital Group Ltd: Amount C$0.18
Onex Corp: Amount C$0.10
Toronto-Dominion Bank: Amount C$0.79
Vecima Networks Inc: Amount C$0.05
(All analysts' estimates are according to I/B/E/S Refinitiv data.)