• Barrick offers PNG landowners a stake to resolve Porgera mine dispute
Barrick Gold has offered an extra 15% stake in its Porgera gold mine in
Papua New Guinea to local landowners, according to a letter from its
CEO, in a bid to break an impasse with the national government over the
• Hong Kong warns removing U.S. special status is a 'double-edged sword'
Hong Kong told the United States to keep out of the debate over national
security legislation being imposed by China, and warned that withdrawal
of the financial hub's special status under U.S. law could backfire on
the U.S. economy.
• Twitter hides Trump tweet for 'glorifying violence'
Twitter hid a tweet from President Donald Trump, accusing him of
breaking its rules by "glorifying violence" in a message that said
looters at protests in Minneapolis would be shot.
• Fed's Powell to speak as focus turns from crisis to bond-buying
Federal Reserve Chair Jerome Powell will speak in a public webcast, with
the details of the U.S. central bank's coronavirus-era programs nearly
complete and attention turning to the next phase of its response: a
likely restart of large-scale bond-buying and
promises about how long it might continue.
• CIBC lost $64 million in a day on paper in gold market turmoil
Canadian Imperial Bank of Commerce (CIBC) took a mark-to-market trading
loss of C$88.2 million in one day in March due mainly to volatility in
the gold market, the bank said in its second-quarter earnings report on
BEFORE THE BELL
Futures for Canada’s main
stock index and Wall Street’s major indexes fell, with European
shares trading lower, as concerns over escalating Sino-U.S. tensions weighed on investor mood. Hong Kong and Japanese
stocks retreated, while shares in China ended higher on stimulus hopes. The yen and gold rose
as investors looked for safe havens. Worries over weak fuel demand hurt oil prices. Investors will also watch out for GDP data, scheduled for release later in the day.
STOCKS TO WATCH
• Canadian Imperial Bank of Commerce (CM).
The bank took a mark-to-market trading loss of C$88.2 million in
one day in March due mainly to volatility in the gold market, it said
in its second-quarter earnings report on Thursday. CIBC said the loss
happened on March 24 and was "mostly attributable to our precious metals
trading business". It was by far the biggest
trading loss of any day since May last year, its report showed. CIBC
said it was mostly recouped in April.
• Barrick Gold Corp (ABX).
The company has offered an extra 15% stake in its Porgera gold mine in
Guinea to local landowners, according to a letter from its CEO, in a
bid to break an impasse with the national government over the mine's
future. Any deal would be the first struck by a resources company under
economic nationalist prime minister, James Marape,
who came to power a year ago seeking to retain a bigger share of the
country's resource riches. The government's position on Barrick's offer
is unclear. Marape's office did not immediately respond to a request for
comment and he has previously expressed a
desire for the state to operate the mine itself.
catalyzing pre-existing mega trends
The economic shock wrought by the COVID-19 pandemic has already been
profound but may just end up accelerating the dominant investment themes
already underway well before the virus hit.
• BRP Inc (DOO). RBC cuts rating to sector perform from outperform, seeing the company’s
shares as near fair value after rebounding sharply over the past 2 months.
• Vermilion Energy Inc (VET).
CIBC raises target price to C$8 from C$7, believing the management
shuffle should return the company to a more conservative operating
philosophy, which values
low financial leverage and a stable return of capital to
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 GDP qq for Q1: Prior 0.1%
0830 GDP qq annualized for Q1: Expected -10.0%; Prior 0.3%
0830 GDP implicit price qq for Q1: Prior 1.0%
0830 (approx.) GDP yy for Q1: Prior 1.47%
0830 GDP mm for Mar: Expected -9.0%; Prior 0.0%
0830 Producer prices mm for Apr: Prior -0.9%
0830 Producer prices yy for Apr: Prior -2.4%
0830 Raw materials prices mm for Apr: Prior -15.6%
0830 Raw materials prices yy for Apr: Prior -22.7%
1100 (approx.) Budget balance for Mar: Prior C$3.58 bln
1100 (approx.) Budget balance year-to-date for Mar: Prior -C$6.98 bln
COMPANIES REPORTING RESULTS
Canadian Western Bank (CWB). Expected Q2 earnings of 50 Canadian cents per share
Canopy Growth Corp (WEED). Expected Q4 loss of 59 Canadian cents per share
Laurentian Bank of Canada (LB). Expected Q2 earnings of 38 Canadian cents per share
No major companies are scheduled to report for the day.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0900 Laurentian Bank of Canada (LB). Q2 earnings conference call
1000 Canopy Growth Corp (WEED). Q4 earnings conference call
1000 Iamgold Corp (IMG). Annual Shareholders Meeting
1030 Canadian Western Bank (CWB). Q2 earnings conference call
1100 Osisko Mining Inc (OSK). Annual Shareholders Meeting
1100 Trilogy International Partners Inc (TRL). Annual Shareholders Meeting
1200 Assure Holdings Corp (IOM). Q4 earnings conference call
Agnico Eagle Mines Ltd (AEM). Amount $0.20
High Liner Foods Inc (HLF). Amount C$0.05
Norbord Inc (OSB). Amount C$0.05
Secure Energy Services Inc (SES). Amount C$0.00
TransAlta Corp (TA). Amount C$0.04
(All analysts' estimates are according to I/B/E/S Refinitiv data.)