CANADA CHATTER
PRE-OPEN
Canada’s stock index futures are higher on signs of inflation cooling and as investors anticipate a slower rate of U.S. interest rate hikes. European shares were up, supported by gains in healthcare stocks led by GSK. In Asian markets, Japan’s Nikkei ended higher, while China’s stocks ended lower as domestic COVID-19 cases rose sharply. The U.S. dollar gained, while gold prices dipped. Oil prices fell over demand outlook worries.
Canada’s stock index futures are higher on signs of inflation cooling and as investors anticipate a slower rate of U.S. interest rate hikes. European shares were up, supported by gains in healthcare stocks led by GSK. In Asian markets, Japan’s Nikkei ended higher, while China’s stocks ended lower as domestic COVID-19 cases rose sharply. The U.S. dollar gained, while gold prices dipped. Oil prices fell over demand outlook worries.
COMPANIES & NEWS
Quebecor Inc, Rogers Communications Inc & Shaw Communications Inc: Rogers and Shaw have finalised an agreement to sell Freedom Mobile to Videotron, a unit of Quebecor, the companies said, paving the way for a merger of Canada’s biggest telecom companies. Canada’s antitrust agency blocked Rogers’ C$20 billion acquisition of Shaw in May saying it would lessen competition in the country’s concentrated telecoms market, where customers pay among the highest bills. “This agreement with Quebecor brings us one step closer to completing our merger with Shaw,” Rogers Chief Executive Tony Staffieri said. The companies said the Freedom Mobile deal was subject to regulatory approvals and closing of the Rogers-Shaw merger.
McEwen Mining (TSX: MUX) reported Thursday that its Q2 2022 production was 27,600 gold ounces and 704,600 silver ounces, or 36,100 gold equivalent ounces (GEOs), down 11% compared to 40,700 GEOs produced in Q2 2021.
Silver Bullet Mines Corp. (TSXV:SBMI ), provides an operational update on the ramp-up of its 125 metric ton per day pilot plant in Arizona, on progress at its Buckeye Silver Mine in Arizona, and on progress at the Washington Mine in Idaho.
While processing the lower-grade material from the Buckeye, all components of the Arizona mill continue to perform within parameters. Adjustments continue to be made within those parameters to fine-tune production. As a result the mill is producing silver concentrate and is pouring silver dore bars from this material, while the ramp-up continues. The Company intends to introduce higher-grade material from the Buckeye once the mill is operating optimally, to avoid wastage in the tailings.
The silver concentrate and dore bars have been and continue to be shipped to potential purchasers for analysis. All purchases will likely be FOB the mill site.
Occasional challenges are being encountered with the motor and starter for the ball mill. The field team reasonably believes these challenges can be overcome in the near future.
At the Buckeye Mine, mineralized material is being extracted from the vein above the decline near the Treasure Room. SBMI is also bolting, screening and adding timber to the adit as part of its ESG commitment.
In Idaho at the Washington Mine, SBMI has begun the process to have the adit timbered and brought to current safety standards. The next step there would be for the contract miner to begin the process of extracting a bulk sample of between 1,500 and 3,000 tons, to be processed at a local mill. Management expects SBMI’s capital investment for this process to be relatively minor.
Stria Lithium Inc. (TSXV:SRA), is pleased to announce the closing of its purchase of the Romer Property from Braille Energy Systems Inc. effective August 11, 2022. In exchange for a purchase price of (i) cash in the amount of $125,000; (ii) 750,000 common shares of Stria issued at a deemed price of $0.50 per share on a post-consolidated basis; and (iii) a net smelter royalty of 1% (“NSR”), Stria acquires 57 contiguous and two isolated map-designated mining claims (total surface area: 2,592.1 ha or 26 km in the Labrador Trough sector of Nunavik, the northern division of the Nord-du-Québec administrative region.
As previously disclosed in its news release of March 4, 2022, Stria will have the option (the “Partial NSR Buyout Option”) to purchase 50% of the NSR such that the NSR is reduced from 1.0% to 0.5%. The Partial NSR Buyout Option may be exercised at any time by Stria for consideration of $500,000 payable in cash or stock or a combination thereof at Stria’s discretion.
InvestorIntel Corp. Starting Thursday, August 18th will be hosting an in-person InvestorTalk.com at the National Club every 3rdThursday of the month.
No economic indicators
COMPANIES REPORTING
August 12:
dentalcorp Holdings Ltd: Expected Q2 loss of 1 Canadian cent per share
MDA Ltd: Expected Q2 earnings of 1 Canadian cent per share
CORPORATE EVENTS (EST)
0830 dentalcorp Holdings Ltd: Q2 earnings conference call
0830 Exchange Income Corp: Q2 earnings conference call
0830 MDA Ltd: Q2 earnings conference call
0830 Softchoice Corp (CA): Q2 earnings conference call
0900 Vermilion Energy Inc: Q2 earnings conference call
0930 Park Lawn Corp: Q2 earnings conference call
1000 Algonquin Power & Utilities Corp: Q2 earnings conference call
1000 Canada Goose Holdings Inc: Annual Shareholders Meeting
1000 Chartwell Retirement Residences: Q2 earnings conference call
1000 Northland Power Inc: Q2 earnings conference call
1100 Wheaton Precious Metals Corp: Q2 earnings conference call
1130 Sandstorm Gold Ltd: Q2 earnings conference call
1300 Sienna Senior Living Inc: Q2 earnings conference call
EX-DIVIDENDS
Enbridge Inc: Amount C$0.86
Paramount Resources Ltd: Amount C$0.10
Shaw Communications Inc: Amount C$0.09
TransAlta Renewables Inc: Amount C$0.07
WORLD MARKETS
(07:48 EST)
US CHATTER
PRE-OPEN
Wall Street futures rose on signs of inflation cooling and as investors anticipate a slower rate of U.S. interest rate hikes. European shares were up, supported by gains in healthcare stocks led by GSK. In Asian markets, Japan’s Nikkei ended higher, while China’s stocks ended lower as domestic COVID-19 cases rose sharply. The dollar gained, while gold prices dipped. Oil prices fell over demand outlook worries.
Wall Street futures rose on signs of inflation cooling and as investors anticipate a slower rate of U.S. interest rate hikes. European shares were up, supported by gains in healthcare stocks led by GSK. In Asian markets, Japan’s Nikkei ended higher, while China’s stocks ended lower as domestic COVID-19 cases rose sharply. The dollar gained, while gold prices dipped. Oil prices fell over demand outlook worries.
COMPANIES & NEWS
U.S. Attorney-General Merrick Garland confirmed Thursday, that federal agents had searched former president Donald Trump’s Florida estate to probe whether he illegally removed records from the White House as he was leaving office. He said the Justice Department had asked a court to unseal a search warrant filed as part of the investigation due to “substantial public interest.”
The U.S. House of Representatives will vote on a $430 billion bill to fight climate change and lower prescription drug prices, in what Democrats view as a major political win for President Joe Biden ahead of November’s midterm elections.
Johnson & Johnson will stop selling talc-based baby powder globally in 2023, the drugmaker said on Thursday, more than two years after it ended U.S. sales of a product that drew thousands of consumer safety lawsuits.
EU, South Korea say U.S. plan for EV tax breaks may breach WTO rules
The European Union and South Korea have raised concerns about proposed U.S. tax credits for purchases of electric vehicles, saying they may discriminate against foreign-made vehicles and breach World Trade Organization (WTO) rules.
Alibaba Group Holding Ltd: China’s top internet watchdog said tech giants such as Tencent and Alibaba have submitted details of algorithms used in some of their products, complying with a drive by authorities to tighten oversight of platform algorithms. The rules are part of a broad regulatory crackdown by Beijing against its once free-wheeling technology sector. State media had accused internet platforms of using algorithms to invade user privacy and influencing their choices.
Alphabet Inc: Australia’s competition watchdog said that Google unit was ordered by the country’s Federal Court to pay A$60 million in penalties for misleading users on collection of their personal location data. The court found Google misled some customers about personal location data collected through their Android mobile devices between January 2017 and December 2018. Google misled users into believing “location history” setting on their android phones was the only way location data could be collected by it, when a feature to monitor web and applications activity also allowed local data collection and storage, the Australian Competition & Consumer Commission (ACCC) said.
Aluminium Corporation of China, China Life Insurance Co Ltd, PetroChina Co Ltd and China Petroleum & Chemical Corporation: Several Chinese state-owned companies including China Life Insurance and Sinopec announced plans to delist from the U.S. stock market. The companies, which also include Aluminium Corporation of China and PetroChina said in separate statements that they would apply for delistings of their American Depository Shares from the New York Stock Exchange. The four will keep their listings in Hong Kong and mainland Chinese. China and the United States have been in talks to resolve a long-running audit dispute that could result in Chinese companies being kicked off American exchanges if they cannot comply with U.S. audit rules. There was no direct mention of the auditing disputes in the companies’ separate statements.
General Motors Co & Stellantis NV: A U.S. appeals court on Thursday upheld a 2020 ruling that tossed out a racketeering lawsuit filed by General Motors against rival Fiat Chrysler Automobiles (FCA), now part of Stellantis, and former executives. GM filed the racketeering lawsuit in November 2019, alleging FCA bribed United Auto Workers (UAW) union officials over many years to corrupt the labor contract bargaining process and gain advantages, costing GM billions of dollars. “Even accepting GM’s theory as true, the chain of causation between FCA’s bribes and GM’s injury is still too attenuated,” said the unanimous opinion of the three-judge panel of the U.S. 6th Circuit Court of Appeals. GM said it strongly disagrees with the ruling, and said it will still pursue other claims not based on the racketeering laws.
Rivian Automotive Inc: The electric-vehicle maker on Thursday forecast a wider operating loss for the year and also said many of its current models will not qualify for new federal tax incentives. The company observed that its R1 series of premium pickups and SUVs is not likely to benefit from tax incentives in the new energy and climate bill passed by the U.S. Senate. Rivian said it now expects to post an adjusted loss before interest, taxes, depreciation, and amortization of $5.45 billion, compared with a previously projected loss of $4.75 billion. The company’s revenue was $364 million in the second quarter, compared with the $337.5 million expected by analysts. Net loss widened to $1.71 billion, from $580 million a year earlier.
Toyota Motor Corp: Japanese vehicle maker Hino Motors and its parent, Toyota, have been accused of historical misconduct in a class action lawsuit brought in the United States, Hino said. The case, in the Southern District of Florida, has been filed on behalf of those who bought or leased 2004-2021 model year Hino trucks in the United States, the company said in a statement. The complaint does not say how much the plaintiffs seek to recover but mentioned that the aggregate amount concerned exceeded a threshold of $5 million for the court to have jurisdiction, the company said.
Twitter Inc: The company on Thursday set out a plan to combat the spread of election misinformation that revives previous strategies, but civil and voting rights experts said it would fall short of what is needed to prepare for the upcoming U.S. midterm elections. The social media company said it will apply its civic integrity policy, introduced in 2018, to the Nov. 8 midterms, when numerous U.S. Senate and House of Representatives seats will be up for election. The policy relies on labeling or removing posts with misleading content, focused on messages intended to stop voting or claims intended to undermine public confidence in an election. Twitter said it has taken numerous steps in recent months to “elevate reliable resources” about primaries and voting processes.
Toyota Motor Corp: Japanese vehicle maker Hino Motors and its parent, Toyota, have been accused of historical misconduct in a class action lawsuit brought in the United States, Hino said. The case, in the Southern District of Florida, has been filed on behalf of those who bought or leased 2004-2021 model year Hino trucks in the United States, the company said in a statement. The complaint does not say how much the plaintiffs seek to recover but mentioned that the aggregate amount concerned exceeded a threshold of $5 million for the court to have jurisdiction, the company said.
Twitter Inc: The company on Thursday set out a plan to combat the spread of election misinformation that revives previous strategies, but civil and voting rights experts said it would fall short of what is needed to prepare for the upcoming U.S. midterm elections. The social media company said it will apply its civic integrity policy, introduced in 2018, to the Nov. 8 midterms, when numerous U.S. Senate and House of Representatives seats will be up for election. The policy relies on labeling or removing posts with misleading content, focused on messages intended to stop voting or claims intended to undermine public confidence in an election. Twitter said it has taken numerous steps in recent months to “elevate reliable resources” about primaries and voting processes.
ECONOMIC EVENTS (EST)
0830 Import prices mm for July: Expected -1.0%; Prior 0.2%
0830 Export prices mm for July: Expected -1.1%; Prior 0.7%
0830 Import prices yy for July: Prior 10.7%
1000 U Mich Sentiment Preliminary for August: Expected 52.5; Prior 51.5
1000 U Mich Conditions Preliminary for August: Expected 59.0; Prior 58.1
1000 U Mich Expectations Preliminary for August: Expected 48.4; Prior 47.3
1000 U Mich 1 year inflation preliminary for August: Prior 5.2%
1000 U Mich 5-year inflation preliminary for August: Prior 2.9%
COMPANIES REPORTING RESULTS
No major S&P 500 on radar
EX-DIVIDENDS
AGCO Corp: Amount $0.24
Amerisourcebergen Corp: Amount $0.46
Applied Industrial Technologies Inc: Amount $0.34
Bio-Techne Corp: Amount $0.32
Booz Allen Hamilton Holding Corp: Amount $0.43
CF Industries Holdings Inc: Amount $0.40
Chemed Corp: Amount $0.38
Chemours Co: Amount $0.25
Church & Dwight Co Inc: Amount $0.26
Cintas Corp: Amount $1.15
CNA Financial Corp: Amount $0.40
Constellation Energy Corp: Amount $0.14
Coterra Energy Inc: Amount $0.15
Eli Lilly and Co: Amount $0.98
Enviva Inc: Amount $0.90
Exelon Corp: Amount $0.33
International Paper Co: Amount $0.46
Jabil Inc: Amount $0.08
Jefferies Financial Group Inc: Amount $0.30
KKR & Co Inc: Amount $0.15
KLA Corp: Amount $1.30
Kroger Co: Amount $0.26
Murphy Oil Corp: Amount $0.25
Organon & Co: Amount $0.28
Oshkosh Corp: Amount $0.37
Rockwell Automation Inc: Amount $1.12
Selective Insurance Group Inc: Amount $0.28
Southern Co: Amount $0.68
Southwest Gas Holdings Inc: Amount $0.62
Teleflex Inc: Amount $0.34
Timken Co: Amount $0.31
United Parcel Service Inc: Amount $1.52
Westinghouse Air Brake Technologies Corp: Amount $0.15
Woodward Inc: Amount $0.19
EUROPE & ASIA CHATTER
EARLY MORNING MARKET VIEW
S&P 500 Index Mini Futures: 4,216.25; up 0.15%; 6.5 points
DJIA Mini Futures: 33,343.00; up 0.12%; 39 points
Nikkei: 28,507.60; up 2.47%; 688.27 points
MSCI Asia, Ex-JP: 531.26; up 0.12%; 0.64 point
EUR/USD: $1.0321; up 0.02%; 0.0002 point
GBP/USD: $1.2197; down 0.14%; 0.0017 point
USD/JPY: 133.14 yen; up 0.09%; 0.12 point
Spot Gold: $1,791.98; up 0.14%; $2.53
U.S. Crude: $93.82; down 0.55%; $0.52
Brent Crude: $99.08; down 0.52%; $0.52
10-Yr U.S. Treasury Yield: 2.8594%; down 0.028 point
10-Yr Bund Yield: 0.9775%; up 0.007 point
DJIA Mini Futures: 33,343.00; up 0.12%; 39 points
Nikkei: 28,507.60; up 2.47%; 688.27 points
MSCI Asia, Ex-JP: 531.26; up 0.12%; 0.64 point
EUR/USD: $1.0321; up 0.02%; 0.0002 point
GBP/USD: $1.2197; down 0.14%; 0.0017 point
USD/JPY: 133.14 yen; up 0.09%; 0.12 point
Spot Gold: $1,791.98; up 0.14%; $2.53
U.S. Crude: $93.82; down 0.55%; $0.52
Brent Crude: $99.08; down 0.52%; $0.52
10-Yr U.S. Treasury Yield: 2.8594%; down 0.028 point
10-Yr Bund Yield: 0.9775%; up 0.007 point
Euro STOXX 50 futures were down 4 points at 3,749.0, FTSE futures lost 4.5 points to 7,448.0, and German DAX futures were lower 16 points at 13,668.0, by 0430 GMT.
Asian stocks tracked Wall Street losses and the yen fell as investors remained filled with uncertainty over how aggressively the Federal Reserve would raise interest rates to tackle inflation despite softer numbers earlier this week.
Oil prices dropped in Asia trade amid an uncertain demand outlook, though benchmark contracts were headed for weekly gains as recession fears eased.
WORLD COMPANIES & NEWS
The U.K. economy contracted in the second quarter of 2022, although by less than economists expected as the cost of living hits hard.
Johnson & Johnson will stop selling talc-based baby powder globally in 2023, the drugmaker said on Thursday, more than two years after it ended U.S. sales of a product that drew thousands of consumer safety lawsuits.
Russia and Ukraine accused each other of shelling Europe’s biggest nuclear power plant as the U.N. chief proposed a demilitarised zone at the site amid fears of a catastrophe.
Credit Suisse has applied to the English High Court to initiate formal legal proceedings against Japan’s SoftBank Group in a $440 million dispute over Greensill-linked funds, two sources familiar with the matter said on Thursday.
Shares in GSK, Sanofi and Haleon fell sharply on Thursday, following declines earlier this week, amid growing investor concerns about U.S. litigation focused on a heartburn drug that contained a probable carcinogen.
Germany’s Uniper is prepared to swap liquefied natural gas (LNG) it gets from Australia’s Woodside for U.S. gas, so it can boost supplies in Europe more quickly during the coming winter, it said.
COMPANY ANNOUNCEMENTS
Flutter Entertainment PLC HY 2022 Earnings Release
freenet AG Q2 2022 Earnings Release
Simcorp A/S Q2 2022 Earnings Release
ECONOMIC EVENTS ( GMT)
0530 France ILO Unemployment Rate for Q2: Expected 7.3%; Prior 7.3%
0600 United Kingdom GDP Estimate 3M/3M for June: Expected -0.3%; Prior 0.4%
0600 United Kingdom GDP Estimate mm for June: Expected -1.3%; Prior 0.5%
0600 United Kingdom GDP Estimate yy for June: Expected 1.2%; Prior 3.5%
0600 United Kingdom Services mm for June: Expected -1.1%; Prior 0.4%
0600 United Kingdom Services yy for June: Expected 1.1%; Prior 3.7%
0600 United Kingdom Industrial Output mm for June: Expected -1.3%; Prior 0.9%
0600 United Kingdom Industrial Output yy for June: Expected 1.6%; Prior 1.4%
0600 United Kingdom Manufacturing Output mm for June: Expected -1.8%; Prior 1.4%
0600 United Kingdom Manufacturing Output yy for June: Expected 0.9%; Prior 2.3%
0600 United Kingdom Construction O/P Vol mm for June: Expected -1.5%; Prior 1.5%
0600 United Kingdom Construction O/P Vol yy for June: Expected 3.3%; Prior 4.7%
0600 United Kingdom Goods Trade Balance for June: Expected -22.300 bln GBP; Prior -21.445 bln GBP
0600 United Kingdom Goods Trade Bal. Non-EU for June: Prior -10.367 bln GBP
0600 United Kingdom GDP Prelim qq for Q2: Expected -0.2%; Prior 0.8%
0600 United Kingdom GDP Prelim yy for Q2: Expected 2.8%; Prior 8.7%
0600 United Kingdom Business Invest qq Prelim for Q2: Expected -0.3%; Prior -0.6%
0600 United Kingdom Business Invest yy Prelim for Q2: Prior 8.3%
0900 Euro Zone Industrial Production mm for June 0.2%; Prior 0.8%
0900 Euro Zone Industrial Production yy for June: Expected 0.8%; Prior 1.6%
Russia and Ukraine accused each other of shelling Europe’s biggest nuclear power plant as the U.N. chief proposed a demilitarised zone at the site amid fears of a catastrophe.
Credit Suisse has applied to the English High Court to initiate formal legal proceedings against Japan’s SoftBank Group in a $440 million dispute over Greensill-linked funds, two sources familiar with the matter said on Thursday.
Shares in GSK, Sanofi and Haleon fell sharply on Thursday, following declines earlier this week, amid growing investor concerns about U.S. litigation focused on a heartburn drug that contained a probable carcinogen.
Germany’s Uniper is prepared to swap liquefied natural gas (LNG) it gets from Australia’s Woodside for U.S. gas, so it can boost supplies in Europe more quickly during the coming winter, it said.
COMPANY ANNOUNCEMENTS
Flutter Entertainment PLC HY 2022 Earnings Release
freenet AG Q2 2022 Earnings Release
Simcorp A/S Q2 2022 Earnings Release
ECONOMIC EVENTS ( GMT)
0530 France ILO Unemployment Rate for Q2: Expected 7.3%; Prior 7.3%
0600 United Kingdom GDP Estimate 3M/3M for June: Expected -0.3%; Prior 0.4%
0600 United Kingdom GDP Estimate mm for June: Expected -1.3%; Prior 0.5%
0600 United Kingdom GDP Estimate yy for June: Expected 1.2%; Prior 3.5%
0600 United Kingdom Services mm for June: Expected -1.1%; Prior 0.4%
0600 United Kingdom Services yy for June: Expected 1.1%; Prior 3.7%
0600 United Kingdom Industrial Output mm for June: Expected -1.3%; Prior 0.9%
0600 United Kingdom Industrial Output yy for June: Expected 1.6%; Prior 1.4%
0600 United Kingdom Manufacturing Output mm for June: Expected -1.8%; Prior 1.4%
0600 United Kingdom Manufacturing Output yy for June: Expected 0.9%; Prior 2.3%
0600 United Kingdom Construction O/P Vol mm for June: Expected -1.5%; Prior 1.5%
0600 United Kingdom Construction O/P Vol yy for June: Expected 3.3%; Prior 4.7%
0600 United Kingdom Goods Trade Balance for June: Expected -22.300 bln GBP; Prior -21.445 bln GBP
0600 United Kingdom Goods Trade Bal. Non-EU for June: Prior -10.367 bln GBP
0600 United Kingdom GDP Prelim qq for Q2: Expected -0.2%; Prior 0.8%
0600 United Kingdom GDP Prelim yy for Q2: Expected 2.8%; Prior 8.7%
0600 United Kingdom Business Invest qq Prelim for Q2: Expected -0.3%; Prior -0.6%
0600 United Kingdom Business Invest yy Prelim for Q2: Prior 8.3%
0900 Euro Zone Industrial Production mm for June 0.2%; Prior 0.8%
0900 Euro Zone Industrial Production yy for June: Expected 0.8%; Prior 1.6%
Sources (but not limited too) Reuters, CNBC, Globe & Mail, InvestorIntel Corp, Kitco, Refinit
