PRE-OPEN
Canadian futures are trading lower, ahead of the country’s inflation numbers, with a fall in oil and gold prices weighing on sentiment. In Asian equities, China’s stocks ended lower over COVID-19 concerns, while Japan’s Nikkei ended flat. European stocks were up, supported by the mining sector. The U.S. dollar rose against a basket of major currencies.

 

Trojan Gold Inc. (CSE: TGII), is pleased to provide an update on its preliminary prospecting program at its 50% owned Hemlo South property, subject of the Company’s most recent 43-101 Technical Report. As noted in the 43-101 Technical Report, the Hemlo South property is located approximately 330 km northeast of Thunder Bay, 33km east from the Town of Marathon and is approximately 2km south of the Hemlo operations of Barrick Gold Inc. (Williams Mine) and comprises a total area of approximately 1,876 hectares (4,636 acres). The Hemlo Gold camp has produced some 21 million oz. gold to date and has been operating for 30 years. Barrick recently extended the life of the Williams Mine to 2026-2035 (from 2018). The Hemlo ore zone that produced that resource is sericite-rich and carries pyrite, gold, and molybdenite. It is geochemically anomalous in silver arsenic, barium, antimony, vanadium, and mercury. In addition, there is also a potential for conventional orogenic-type (or “greenstone-type”) gold mineralization to occur on the Hemlo South property. These types of gold deposits are currently being sought at Hemlo South under the supervision of rojan’s on-site geologists, Ryan Hrkac and Pizye Nankamba. Specifically, the Company is currently conducting the Phase 1 exploration program recommended in the 43-101 Technical Report with the exploration rew conducting a mapping program and taking soil and rock samples at the site of the Company’s 2020 Mobile Ion Geochemistry (“MIG”) Soil Orientation Survey,(as well as other locations on the property). 

Tassal Group said it had accepted a sweetened A$5.23 per share takeover offer from Canadian aquaculture company Cooke Inc, giving the Australia-based salmon producer an enterprise value of A$1.70 billion.  


ECONOMIC EVENTS (EST)
0815 Housing starts, annualized for July: Expected 262,100; Prior 273,800
0830 CPI inflation mm for July: Expected 0.1%; Prior 0.7%
0830 CPI inflation yy for July: Expected 7.6%; Prior 8.1%
0830 CPI BoC core yy for July: Prior 6.2%
0830 CPI BoC core mm for July: Prior 0.3%
0830 CPI mm SA for July: Prior 0.6%
0830 Core CPI mm SA for July: Prior 0.5%
0830 CPI median for July: Prior 4.9%
0830 CPI trim for July: Prior 5.5%
0830 CPI common for July: Expected 4.7%; Prior 4.6%
0830 CPI NSA for July: Prior 152.9
0830 CPI yy SA for July: Prior 7.94%
0830 Securities Canadians for June: Prior C$0.57 bln
0830 Securities Foreign for June: Prior C$2.35 bln


COMPANIES REPORTING
August 16:
No majors on tap


CORPORATE EVENTS 
No events


EX-DIVIDENDS
Cascades Inc: Amount C$0.12
Enghouse Systems Ltd: Amount C$0.18

PRE-OPEN
U.S. futures inched lower as signs of a slowing global economy continued to keep investors on edge. In Asian equities, China’s stocks ended lower over COVID-19 concerns, while Japan’s Nikkei ended flat. European stocks were up, supported by the mining sector. The dollar rose, while gold prices slipped. Oil prices fell on bleak economic outlook.

American Airlines Inc: The company has cut thousands of domestic and international flights from its November schedule as part of the carrier’s efforts to reduce disruptions that have afflicted the industry this year. The carrier has scheduled 31,000, or 16%, fewer flights for the month that contains the busy Thanksgiving holiday travel period, data from aviation analytics company Cirium showed. American said in an emailed statement that the cuts reflect network and schedule planning throughout the year. “Preliminary schedules are published 331 days in advance and then adjustments are made closer in based on the schedule we intend to operate,” the airline said.

Apple Inc: The company has set a Sept. 5 deadline for corporate employees to return to office at least three days a week, a Bloomberg News report said on Monday. The company, which told its employees of the new plan on Monday, will require employees to work from the office on Tuesdays, Thursdays and a regular third day that will be determined by individual teams, the report said. The iPhone maker did not immediately respond to Reuters request for comment.

Berkshire Hathaway Inc: The company run by billionaire Warren Buffett, has tripled its stake in online banking company Ally Financial and increased its bet that “Call of Duty” video game maker Activision Blizzard will be acquired by Microsoft. In a Monday regulatory filing describing its U.S.-listed equity investments as of June 30, Berkshire also said it exited what was once an $8.3 billion investment in Verizon and no longer owns Royalty Pharma, which buys drug royalties. Buffett’s conglomerate ended June with a $327.7 billion equity portfolio, led by $125.1 billion in Apple. 

 

BHP Group Ltd: The company reported bumper profits on the back of gains in prices of coal and other commodities, and declined to rule out a second approach in its spurned $6 billion bid for OZ Minerals. The company posted greater-than-expected 26% rise in earnings to $21.3 billion for the year ended June 30 – its highest since 2011 – and the announcement of a record dividend. “We have lots of levers for growth and M&A is just one of those levers … we will remain disciplined,” said BHP Chief Executive Officer Mike Henry in an earnings briefing. Henry did not comment on whether BHP would return to OZ Minerals with a revised offer.  

 

Home Depot Inc: The company reported quarterly comparable sales above Wall Street estimates on steady demand for home-improvement goods from builders and handymen. Home Depot’s comparable sales rose 5.8% for the second quarter, while analysts had expected a 4.9% growth. Net sales for the largest U.S. home improvement chain climbed 6.5% to a $43.79 billion, compared with estimates of $43.36 billion. Net earnings increased to $5.17 billion, or $5.05 per share, for the quarter ended July 31, from $4.81 billion, or $4.53 per share, a year earlier. Analysts were expecting $4.94 per share. 

KKR & Co Inc: The founders of Singaporean rubbish collector 800 Super Waste Management, backed by the private equity firm, are nearing a deal to sell the business which could value it at around $300 million, two sources with knowledge of the matter told Reuters. The company, controlled by executive chairman Lee Koh Yong and his family, is working with at least one adviser on the sale and could close the deal as early as this month, the sources said, declining to be identified as the information is confidential. Final bidders for 800 Super include Australia’s Macquarie Asset Management and KKR, which funded 800 Super’s 2019 management-led buyout from the local bourse and owns a minority stake in the company, the sources said. KKR and Macquarie declined to comment. 

Twitter Inc: The company needs to give Elon Musk documents from a former Twitter executive who Musk said was a key figure in calculating the amount of fake accounts on the platform, according to a Monday court order. Twitter was ordered to collect, review and produce documents from former General Manager of Consumer Product Kayvon Beykpour, according to the order from Chancellor Kathaleen McCormick of the Delaware Court of Chancery. Twitter and lawyers for Musk, the world’s richest person, did not immediately respond to requests for comment. Separately, Elliott Management, the hedge fund that pushed for big changes at Twitter two years ago, exited the stock during the second quarter, soon after Elon Musk announced plans to buy the social media company, a regulatory filing shows. 

Walmart Inc: The company forecast a smaller drop in full-year profit than previously projected, after deep discounts to clear excess merchandise and a drop in fuel prices helped it beat expectations for quarterly sales. Walmart reported inventories of $59.92 billion at the end of the second quarter ended July 31 that was still 25% above last year’s levels. “The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year,” Walmart Chief Executive Officer Doug McMillon said. Still, Walmart lifted its fiscal 2023 adjusted earnings forecast less than a month after slashing it. The company now expects adjusted earnings per share to fall 9% to 11%, compared with its previous forecast of a 11% to 13% decline. Walmart’s total revenue rose 8.4% to $152.86 billion in the second quarter, helped by demand for food and other essential items. Analysts had estimated revenue of $150.81 billion.


ECONOMIC EVENTS (EST)
0830 Building permits: number for July: Expected 1.650 mln; Prior 1.696 mln
0830 Building permits: change mm for July: Prior 0.1%
0830 Housing starts number for July: Expected 1.540 mln; Prior 1.559 mln
0830 Housing starts mm: change for July: Prior -2.0%
0915 Industrial production mm for July: Expected 0.3%; Prior -0.2%
0915 Capacity utilization SA for July: Expected 80.1%; Prior 80.0%
0915 Manufacturing output mm for July: Expected 0.2%; Prior -0.5%
0915 Industrial production yy for July: Prior 4.16%


COMPANIES REPORTING
Agilent Technologies Inc: Expected Q3 earnings of $1.20 per share
Jack Henry & Associates Inc: Expected Q4 earnings of $1.00 per share


CORPORATE EVENTS (EST)
0730 Sea Ltd: Q2 earnings conference call
0800 Walmart Inc: Q2 earnings conference call
0800 Premier Inc: Q4 earnings conference call
0800 On Holding AG: Q2 earnings conference call
0830 World Wrestling Entertainment Inc: Q2 earnings conference call
0830 Lumentum Holdings Inc: Q4 earnings conference call
0900 Home Depot Inc: Q2 earnings conference call
1630 Agilent Technologies Inc: Q3 earnings conference call

S&P 500 Index Mini Futures: 4,293.50; down 0.11%; 4.75 points
DJIA Mini Futures: 33,870.00; down 0.01%; 3 points
Nikkei: 28,856.00; down 0.05%; 15.78 points
MSCI Asia, Ex-JP: 531.55; up 0.31%; 1.64 points
EUR/USD: $1.0160; down 0.02%; 0.0002 point
GBP/USD: $1.2050; down 0.05%; 0.0006 point
USD/JPY: 133.44 yen; up 0.08%; 0.11 point
Spot Gold: $1,781.06; up 0.12%; $2.15
U.S. Crude: $88.84; down 0.64%; $0.57
Brent Crude: $94.22; down 0.93%; $0.88
10-Yr U.S. Treasury Yield: 2.7806%; down 0.009 point
10-Yr Bund Yield: 0.9075%; down 0.085 point
Euro STOXX 50 futures were up 13 points at 3,799, FTSE futures added 27 points to 7,514.0, and German DAX futures were higher 38 points at 13,843.0, by 0430 GMT.

Asian markets struggled for direction, weighed by worries over global growth following weak China data that knocked oil prices and commodity-linked currencies.

The safe-haven U.S. dollar hovered near a one-week high while the Aussie, euro and Chinese yuan remained under pressure as weak global economic data reignited recession fears.


COMPANIES & NEWS
Ukraine called for new sanctions on Russia and highlighted the risks and consequences of a catastrophe at Europe’s biggest nuclear plant, where fresh shelling nearby has reignited a blame game between both sides.

The move to delist five Chinese state-owned enterprises (SOEs) from the New York Stock Exchange (NYSE) signals Beijing may be willing to compromise in order to strike an audit deal with the United States and end a more than decade-old dispute, analysts and advisers said on Monday.

Britain, the first country to approve a coronavirus vaccine in late 2020, has now also given the first green light to a variant-adapted shot that targets both the original and Omicron version of the virus.

BHP Group reported bumper profits on surging commodity prices, sending shares sharply higher, as the global miner failed to rule out a second approach in its spurned $6 billion bid for OZ Minerals.

Workers at Volkswagen‘s main Mexico factory will be asked to vote again on whether to approve their union’s deal with management for 9% raises after initially rejecting the agreement, the union said on Monday.

Koninklijke Philips N.V.: The Dutch health technology company unexpectedly announced the imminent departure of CEO Frans van Houten, in the midst of a massive product recall that has halved its market value over the past year. Philips said Van Houten would be replaced on Oct. 15 by Roy Jakobs, head of the company’s Connected Care businesses, even though his third term as CEO was not due to end until April. “The supervisory board and current Philips CEO Frans van Houten have agreed that with the end of his third term in sight, the time is right for the change in leadership,” Philips said. “I’m happy with the outcome”, Van Houten told reporters. “It’s always difficult of course to let go, but it is a logical moment to hand over after 12 years. It’s great to be able to hand over to an internal successor with the conviction he will build on the foundation that I have laid.” A special shareholder meeting will be held on Sept. 30 to appoint Jakobs, who joined the company in 2010, as CEO. 


COMPANY ANNOUNCEMENTS
Demant A/S Q2 2022 Earnings Call
Pandora A/S Q2 2022 Earnings Call
Storskogen Group AB (publ) Q2 2022 Earnings Release
Straumann Holding AG HY 2022 Earnings Release


ECONOMIC EVENTS (GMT)
0600 United Kingdom Claimant Count Unemployment Change for July: Prior -20,000
0600 United Kingdom ILO Unemployment Rate for June: Expected 3.8%; Prior 3.8%
0600 United Kingdom Employment Change for June: Expected 256,000; Prior 296,000
0600 United Kingdom Average Weekly Earnings 3M yy for June: Expected 4.5%; Prior 6.2%
0600 United Kingdom Average Earnings (Ex-Bonus) for June: Expected 4.5%; Prior 4.3%
0600 United Kingdom HMRC Payrolls Change for July: Prior 31,000
0900 Euro Zone Eurostat Trade NSA for June: Expected -20.0 bln EUR; Prior -26.3 bln EUR
0900 Euro Zone Total Trade Balance SA for June: Prior -26.00 bln EUR
0900 Euro Zone ZEW Survey Expectations for Aug: Prior -51.1
0900 Germany ZEW Economic Sentiment for Aug: Expected -53.8; Prior -53.8
0900 Germany ZEW Current Conditions for Aug: Expected -48.0; Prior -45.8