TOP NEWS
• Fed expected to deliver small rate hike but keep anti-inflation tilt
The Federal Reserve is expected to raise its target interest rate by a quarter of a percentage point on Wednesday, setting aside the rapid hikes used last year to curb a surge in inflation in favor of a more stepwise hunt for a stopping point.
• OPEC+ seen sticking with oil output policy, delegates say
An OPEC+ panel is likely to recommend sticking with the oil producer group's output policy when it meets on Wednesday, four OPEC+ delegates said, as it weighs prospects for higher Chinese demand against concerns about economic slowdown
• U.S. EPA's move to block Pebble project in Alaska 'unlawful' - CEO
The U.S. Environmental Protection Agency's (EPA) decision to block the proposed Pebble copper and gold mining project near Alaska's ecologically sensitive Bristol Bay watershed is "unlawful" and hurts the state, said the top boss of the mining project.
• Tesla to raise Shanghai output after price cuts stoke demand -memo
Tesla plans to step up output at its Shanghai plant over the next two months to meet demand ignited by aggressive price cuts on its best-selling models, according to a planning memo seen by Reuters and a person with knowledge of the plan.
• Biden moves to slash U.S. credit card fees, app charges
The White House on Wednesday was due to announce fresh efforts to slash credit card late fees and drive down the prices that Apple and Google parent Alphabet charge on mobile app stores, part of a larger policy drive to promote competition in consumer markets, officials said.
BEFORE THE BELL
Canada's main stock index futures fell, mirroring Wall Street futures as investors patiently awaited the result from Federal Reserve's interest rate policy meeting. European shares edged higher as industrial stocks gained and market showed signs of economic resilience. In Asian equity markets, Japan's Nikkei ended flat, while Chinese stocks rose, as the country's manufacturing activity showed an improvement. Oil prices rose ahead of the OPEC+ meeting and the U.S. government data on crude and fuel stockpiles to be released later in the day. Gold prices were little changed, while the U.S. dollar slipped. Canada's manufacturing PMI data is due for release later in the day.
STOCKS TO WATCH
• Northern Dynasty Minerals Ltd: The U.S. Environmental Protection Agency's (EPA) decision to block the proposed Pebble copper and gold mining project near Alaska's ecologically sensitive Bristol Bay watershed is "unlawful" and hurts the state, said the top boss of the mining project. The EPA has moved to stop the company from storing mine waste at the watershed, home to important salmon species, including the world's largest sockeye salmon fisheries that support critical wildlife and a multibillion-dollar industry. "This preemptive action against Pebble is not supported legally, technically, or environmentally," said John Shively, chief executive of Pebble LP, a unit of Northern Dynasty Minerals. He also said U.S. President Joe Biden's strategy to secure minerals for green energy goals seems to be giving "passing support" to minerals such as lithium in the United States and seeking an "enormous supply of copper ... from other nations". "EPA's regulations are explicit that 404(c) actions may be initiated at any stage - including during the permit process or before an application is submitted for future projects," the EPA said.
• Suncor Energy Inc: The company on Tuesday said a small leak that was detected in refining process equipment has been contained at its 103,000 barrel-per-day Commerce City refinery in Colorado. "All workers have been accounted for, and there have been no reported injuries," the company said in a notice. In late December, the entire refinery was shut down and put into safe mode to allow for the inspection of all units after equipment damage due to extreme weather.
FOCUS
Investors go back to basics with simpler self-driving vehicles
Developing fully autonomous vehicles (AVs) that can go everywhere has proven harder and more expensive than expected, but investors are continuing to fund startups that target simpler self-driving vehicle solutions far removed from pedestrians and other vehicles operated by unpredictable humans.
ANALYSTS' RECOMMENDATION
• Superior Plus Corp: Canaccord Genuity cuts target price to C$12 from C$13, citing significant impact on the company’s propane demand due to warmer weather conditions across North America.
• Transalta Renewables Inc: Credit Suisse cuts target price to C$14 from C$17, reflecting the company's management guidance on dividend sustainability that could result in weak stock performance.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0930 S&P Global manufacturing PMI SA for Jan: Prior 49.2
COMPANIES REPORTING RESULTS
February 1:
CGI Inc: Expected Q1 earnings of C$1.60 per share
February 2:
BCE Inc: Expected Q4 earnings of 72 Canadian cents per share
Canada Goose Holdings Inc: Expected Q3 earnings of C$1.62 per share
Lightspeed Commerce Inc: Expected Q3 loss of 5 cents per share
Methanex Corp: Expected Q4 earnings of 51 cents per share
Open Text Corp: Expected Q2 earnings of 78 cents per share
Rogers Communications Inc: Expected Q4 earnings of 98 Canadian cents per share
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0900 CGI Inc: Q1 earnings conference call
1100 CGI Inc: Annual Shareholders Meeting
EX-DIVIDENDS
Canadian Utilities Ltd: Amount C$0.44
Richelieu Hardware Ltd: Amount C$0.15
(All analysts' estimates are according to I/B/E/S Refinitiv data) |
