TOP NEWS • Oil stocks to rise on slower demand, OPEC cuts needed to bolster prices Global oil stocks are set to rise next year amid weakening demand and a stronger U.S. dollar, executives at an oil conference said, adding that OPEC will have to cut output to reduce supply if they want prices to remain supported.
• Sunwing union opposes Canadian carrier's plans to hire foreign pilots The union for Sunwing Airlines pilots said it is urging Canada's government to stop a plan by the Ontario-based leisure carrier to hire foreign pilots this winter to help cope with an expected holiday travel surge.
• Canadians clean up after Fiona sweeps homes out to sea; one dead It will take several months for Canada to restore critical infrastructure after the powerful storm Fiona left an "unprecedented" trail of destruction, officials said on Sunday, as crews fanned out in five provinces to restore power and clean up fallen trees and debris.
• Energy, inflation crises risk pushing big economies into recession - OECD Global economic growth is slowing more than was forecast a few months ago in the wake of Russia's invasion of Ukraine, as energy and inflation crises risk snowballing into recessions in major economies, the OECD said.
• Twitter to interview Elon Musk, known for combative testimony Billionaire Elon Musk's tendency to dish out insults while being questioned under oath will be tested anew on Monday, when lawyers for Twitter are due to interview the Tesla CEO about his abrupt decision in July to ditch his $44 billion deal for the social media company.
BEFORE THE BELL Canada's main stock index futures fell, tracking a decline in oil prices on concerns of lower fuel demand from a possible global recession sparked by rising interest rates. U.S. stock index futures sank on fears that the Federal Reserve's hawkish rate policy to curb inflation will push the American economy into recession. European shares were down on worries about an economic downturn, although Italian shares outperformed after the right-wing coalition led by Georgia Meloni looked set to win the country's general election. Japan's Nikkei ended lower on deepening recession worries. Sterling crashed to a record low, helping the U.S. dollar to a new two-decade peak against a basket of major peers, while gold prices dropped.
STOCKS TO WATCH • Trevali Mining Corp: The miner will close its Perkoa zinc mine in Burkina Faso, a company official told Reuters, following a flood at the mine in April that killed eight workers. The miners drowned in the underground passages of the mine in Sanguie province after unexpected torrential rain during the West African country's dry season. The mine, one of Trevali's three main operating assets, has been closed since. "The funds still available...are insufficient to complete the rehabilitation of the mine," said Ditil Moussa Palenfo, country director of Nantou Mining, the Trevali entity that owns Perkoa. "Funds are barely sufficient to cover severance pay for terminated employees."
FOCUS Auto suppliers feel the green squeeze as carmakers get clean The auto industry's drive to a greener and cleaner future is a treacherous road for companies in its beleaguered supply chain. Only the strong and the shrewd may survive.
ANALYSTS' RECOMMENDATION • AGF Management Ltd: CIBC cuts target price to C$6.75 from C$7.25, to reflect the continued market-related drawdown in assets under management (AUM) levels.
• Altus Group Ltd: Scotiabank assumes coverage sector perform rating and a target price of C$58, saying the company looks reasonably priced, but there are many initiatives being undertaken by Altus that could lead to a valuation re-rate and a more positive view on the stock.
• Dye & Durham Ltd: Scotiabank assumes coverage with sector outperform rating and a target price C$31, given the company's higher leverage and smaller size and the management seeing a robust pipeline of M&A opportunities it will look to pursue.
• Kinaxis Inc: Scotiabank assumes coverage with a target price of C$203, reflecting the company's outsized subscription revenue growth relative to peers and the broader supply chain planning.
ECONOMIC EVENTS No economic indicators are scheduled for release.
COMPANIES REPORTING RESULTS September 26: Dye & Durham Ltd: Expected Q4 earnings of 17 Canadian cents per share Sangoma Technologies Corp: Expected Q4 loss of 9 Canadian cents per share
September 27: BlackBerry Ltd: Expected Q2 loss of 7 cents per share
CORPORATE EVENTS (All timings in U.S. Eastern Time) 1700 Dye & Durham Ltd: Q4 earnings conference call
EX-DIVIDENDS There are no major ex-dividends for the day.
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