Canadian Futures fall, tracking sour global sentiment, as investors were spooked by recession worries. European shares recovered some earlier losses after the Bank of England said that it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilize financial markets. Japan‘s Nikkei ended at a near three-month low and China’s main stock benchmark tumbled to five-month lows. In currency markets, nervous financial markets propelled the safe-haven U.S. dollar, while China’s onshore yuan ended the domestic session at its lowest level against the U.S. dollar since the global financial crisis of 2008. Meanwhile, oil prices rose, gaining support from U.S. production cuts caused by Hurricane Ian and gold prices were little changed.​

 

COMPANIES & NEWS

BlackBerry Ltd. (TSX: BB) The company on Tuesday reported a fall in cybersecurity revenue for the second quarter, as customers reined in spending due to an uncertain macroeconomic environment, sending its shares down in extended trading. The company has also been facing tough competition from Microsoft, Citrix Systems and International Business Machines in the security software segment, with revenue in the unit falling 7.5% to $111 million from a year ago. The company said in an earnings call that cybersecurity segment revenue in the third quarter is expected to be flat year-on-year. However, revenue at the company’s Internet of things (IoT) unit, which includes the QNX software for automotive customers, rose about 28% to $51 million as it signed up more customers. Total revenue fell 4% to $168 million for the quarter ended Aug. 31, compared with a consensus estimate of $166.7 million. Excluding items, the company posted a loss of 5 cents per share, narrower than analysts’ expectations of loss of 7 cents.

Canopy Growth Corp (TSX: WEED) will divest its retail business across Canada, as the pot producer doubles down on its efforts to turn profitable. The business includes stores operating under the Tweed and Tokyo Smoke retail banners, and follows recent efforts to become profitable by reining in costs through layoffs, exits from some international markets and store closures. Licensee partner OEG Retail Cannabis will buy 23 Tokyo Smoke and Tweed stores across Manitoba, Saskatchewan, and Newfoundland and Labrador, while cannabis retailer 420 Investments Ltd will purchase five corporate stores in Alberta, the company said. Canopy said all in-store staff working in the locations being acquired will be employed by the buyers pending completion of the transactions. Earlier this year, the company extended its time frame to achieve profitability as fewer-than-expected retail stores and cheaper black market rates crimp sales at legal recreational companies. 

Cineplex Inc: The Canadian cinema chain operator has reached out to the lenders of Cineworld to revive a potential merger with the bankrupt rival’s Regal Entertainment, the Wall Street Journal reported, citing people familiar with the matter. Cineworld declined to comment on the WSJ report, while Cineplex did not immediately respond to a Reuters request for confirmation. The two companies are locked in a multi-million dollar legal battle over a scrapped merger from two years ago. 


COMPANIES REPORTING
AGF Management Ltd: Expected Q3 earnings of 26 Canadian cents per share
H2O Innovation Inc: Expected Q4 earnings of 1 Canadian cent per share

CORPORATE EVENTS (EST)
1000 H2O Innovation Inc: Q4 earnings conference call
1100 AGF Management Ltd: Q3 earnings conference call
1700 Bengal Energy Ltd: Shareholders Meeting


EX-DIVIDENDS
Abc Technologies Holdings Inc: Amount C$0.03
Acadian Timber Corp: Amount C$0.29
Adf Group Inc: Amount C$0.01
Ag Growth International Inc: Amount C$0.15
Airboss of America Corp: Amount C$0.10
Algonquin Power & Utilities Corp: Amount $0.18
Altus Group Ltd: Amount C$0.15
Andlauer Healthcare Group Inc: Amount C$0.07
Andrew Peller Ltd: Amount C$0.06
ARC Resources Ltd: Amount C$0.12
Badger Infrastructure Solutions Ltd: Amount C$0.16
Bird Construction Inc: Amount C$0.03
Black Diamond Group Ltd: Amount C$0.01
Boyd Group Services Inc: Amount C$0.14
Bridgemarq Real Estate Services Inc: Amount C$0.11
BRP Inc: Amount C$0.16
Canacol Energy Ltd: Amount C$0.05
Canadian Banc Corp: Amount C$0.16
Canadian Pacific Railway Ltd: Amount C$0.19
Capital Power Corp: Amount C$0.58
Cardinal Energy Ltd (Alberta): Amount C$0.05
CES Energy Solutions Corp: Amount C$0.01
Chesswood Group Ltd: Amount C$0.04
CI Financial Corp: Amount C$0.18
Dexterra Group Inc: Amount C$0.08
Dividend Select 15 Corp: Amount C$0.06
Doman Building Materials Group Ltd: Amount C$0.14
Dundee Precious Metals Inc: Amount $0.04
E-L Financial Corp Ltd: Amount C$2.50
Element Fleet Management Corp: Amount C$0.07
Exchange Income Corp: Amount C$0.21
Extendicare Inc: Amount C$0.04
First National Financial Corp: Amount C$0.19
FirstService Corp: Amount $0.20
Freehold Royalties Ltd: Amount C$0.09
Gamehost Inc: Amount C$0.03
Gibson Energy Inc: Amount C$0.37
goeasy Ltd: Amount C$0.91
IGM Financial Inc: Amount C$0.56
Information Services Corp: Amount C$0.23
Innergex Renewable Energy Inc: Amount C$0.18
K-Bro Linen Inc: Amount C$0.10
Labrador Iron Ore Royalty Corp: Amount C$1.00
Martinrea International Inc: Amount C$0.05
Medical Facilities Corp: Amount C$0.08
Mullen Group Ltd: Amount C$0.06
NFI Group Inc: Amount C$0.05
North West Company Inc: Amount C$0.38
Northland Power Inc: Amount C$0.10
Nutrien Ltd: Amount $0.48
Osisko Gold Royalties Ltd: Amount C$0.05
Park Lawn Corp: Amount C$0.11
Peyto Exploration & Development Corp: Amount C$0.05
PHX Energy Services Corp: Amount C$0.10
Pizza Pizza Royalty Corp: Amount C$0.06
Pollard Banknote Ltd: Amount C$0.04
Power Corporation of Canada: Amount C$0.49
PrairieSky Royalty Ltd: Amount C$0.12
Premium Brands Holdings Corp: Amount C$0.70
Rogers Sugar Inc: Amount C$0.09
Savaria Corp: Amount C$0.04
Sienna Senior Living Inc: Amount C$0.07
Softchoice Corp (CA): Amount C$0.09
Spin Master Corp: Amount C$0.06
Stantec Inc: Amount C$0.18
Superior Plus Corp: Amount C$0.06
Surge Energy Inc: Amount C$0.03
Tamarack Valley Energy Ltd: Amount C$0.01
TC Energy Corp: Amount C$0.90
TerraVest Industries Inc: Amount C$0.10
TFI International Inc: Amount $0.27
Tidewater Midstream and Infrastructure Ltd: Amount C$0.01
Timbercreek Financial Corp: Amount C$0.05
Titan Mining Corp: Amount C$0.01
Total Energy Services Inc: Amount C$0.06
Transcontinental Inc: Amount C$0.48
Tree Island Steel Ltd: Amount C$0.03
Tricon Residential Inc: Amount $0.05
Vermilion Energy Inc: Amount C$0.08
Whitecap Resources Inc: Amount C$0.03
WSP Global Inc: Amount C$0.37
Yamana Gold Inc: Amount $0.03

 

 

 

 

 

 

U.S. stock index futures mostly pared losses as the benchmark U.S. Treasury yield pulled back from 12-year highs. 

COMPANiES & NEWS
U.S. mortgage interest rates jump to 6.52%, highest since mid-2008
The average interest rate on the most popular U.S. home loan climbed to its highest level since August 2008, data from the Mortgage Bankers Association (MBA) showed.

Apollo Global Management Inc & Ryder System Inc: Apollo is exploring a takeover of the freight services provider, Bloomberg News reported on Tuesday citing people with knowledge of the matter. Terms of a deal were not known but any transaction would be above Ryder’s current market cap of $3.4 billion, according to the report.  No deal has been reached and it is possible talks could collapse, in part due to challenges in the debt markets making it difficult to raise financing, the Bloomberg report said.  The potential bid comes months after Ryder rejected hedge fund HG Vora Capital Management’s offer to acquire the company for $4.4 billion.  

Apple Inc: The smartphone maker is dropping plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, Bloomberg News reported on Tuesday, citing people familiar with the matter. The company told suppliers to curtail efforts to increase assembly of its flagship iPhone 14 product family by as many as 6 million units in the second half of this year, Bloomberg reported. Instead, the Cupertino, California-headquartered company will aim to produce 90 million handsets for the period, nearly the same number as a year ago and in line with Apple’s original forecast this summer, the report said. Apple did not immediately respond to a Reuters request for comment. Demand for the higher-priced iPhone 14 Pro models is stronger than for the entry-level versions and at least one Apple supplier is shifting production capacity from lower-priced iPhones to premium models, Bloomberg reported. Separately, U.S. business and media publication Fast Company said it shut down its website on Tuesday evening after the site was hacked and sent “obscene and racist” notifications to Apple users via the iPhone maker’s Apple News service. 

Bank of America Corp, Barclays PLC, Citigroup Inc, Goldman Sachs Group Inc, Morgan Stanley & UBS group AG: U.S. regulators on Tuesday fined 16 financial firms, including the major banks, a combined $1.8 billion after staff discussed deals and trades on their personal devices and apps. The sweeping industry probe, first reported by Reuters last year and subsequently disclosed by multiple lenders, is a landmark case for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), marking one their largest collective resolutions. “Today’s actions – both in terms of the firms involved and the size of the penalties ordered – underscore the importance of recordkeeping requirements: they’re sacrosanct. If there are allegations of wrongdoing or misconduct, we must be able to examine a firm’s books and records,” said Gurbir Grewal, director of the SEC’s Division of Enforcement. The failings occurred across all 16 firms and involved employees at multiple levels, including senior and junior investment bankers and traders, the SEC said.  

Biogen Inc: Shares in Biogen and Eisai soared reflecting the surprise trial success of their experimental Alzheimer’s drug, which also lifted the stocks of rival drugmakers Roche and Eli Lilly. Nearly all drugs tested to treat Alzheimer’s – a fatal brain disease that affects an estimated 55 million globally – have stumbled in clinical trials.  The data is an “unequivocal win” for Alzheimer’s patients and Biogen, said BMO analyst Evan Seigerman.  The three drugs target a toxic protein plaque known as amyloid beta that has long been considered crucial to arresting the progression of the fatal brain disease, but previous attempts have led to failure after failure.  This so-called amyloid hypothesis suffered a particularly heavy blow last year, after U.S. regulators overruled their own panel of outside experts to approve another Biogen drug called Aduhelm, based on its plaque-clearing ability rather than proof that it helped slow cognitive decline. 

Boeing Co: Russia’s aviation industry will aim to go it alone without the West, using locally built parts to produce 1,000 airliners by 2030 and end a reliance on Boeing and Airbus, state-owned engineer Rostec said. The remarks from Rostec, a vast state corporation headed by a close ally of President Vladimir Putin that includes Russia’s only manufacturer of civil aircraft, are the strongest indication yet that the country’s aviation sector sees the confrontation with the West as a permanent schism. The West’s imposition of the most severe sanctions in modern history after Moscow sent thousands of troops into Ukraine has forced the biggest change on Russia’s economy since the Soviet Union crumbled from 1989 to 1991. The post-Soviet assumptions of the aviation sector have been turned on their head: foreign aircraft, mainly from Boeing and Airbus, account for 95% of passenger traffic, but sanctions mean there are no spare parts – and no prospect of any.

Exxon Mobil Corp: Strikes over pay at ExxonMobil’s oil refineries in France have forced the firm to limit refined product supply to its customers, a spokesperson told Reuters. “We have temporarily put limitations in place for customers in accordance with the terms of our supply contracts. We have a supply response team in place to supply product from unaffected sources,” the spokesperson said. French unions CGT and Force Ouvriere called a strike on Sept. 20 following wage negotiations with ExxonMobil related to rising inflation in Europe.

Ford Motor Co: The carmaker on Tuesday took the wraps off the latest version of its Super Duty pickup, providing a look at how the U.S. automaker will manage one of the biggest challenges confronting Detroit. At Ford, many of the newest things about the new Super Duty relate to connectivity and business productivity software that Ford hopes will generate revenue over the life of the vehicle. Ford Chief Executive Jim Farley has stressed the importance of software-driven features and is hiring more executives with digital commerce experience. Ford will install 5G modems in 2023 model Super Duty trucks to enable services such as driver behavior monitoring and digital paperwork systems for fleet operators. Dashboards have been reprogrammed to make it easier for companies that install specialized equipment such as hoisting arms to connect controls for their gear into the truck’s displays. Onboard scales will measure payloads and the new Super Duties will have more power plugs. 

JPMorgan Chase & Co:  The Wall Street giant is planning to double the size of its workforce at fledgling British retail bank Chase to at least 2,000 within two years, the CEO of the venture told Reuters, despite losses and some investor scepticism. JPMorgan said it had attracted one million customers and more than 10 billion pounds of deposits to its UK mobile app bank since its launch last September. It’s a template the bank wants to replicate in other international markets – despite an intensifying cost of living crisis that has soured the outlook for retail banks globally. “We want to be international, starting with the UK,” Sanjiv Somani, UK chief executive of Chase, said in an interview at the bank’s UK headquarters in Canary Wharf in London on Friday. “You have to look at a ten-year view. If you look at anything shorter it will not lead to the right conclusion … The retail banking revenue pool is in the trillions, even outside the U.S.” Chase already has 1,000 staff in Britain – out of a total 19,000 JPMorgan employees in the country – and Somani says this number will “at least double” by the end of 2024. The venture will expand from current and savings accounts by rolling out lending products – likely starting with a credit card – by the end of 2023, Somani said. 

Lyft Inc: The ride-hailing firm is freezing all hiring in the United States through the end of the year, a company spokesperson said on Tuesday, making the ride-hailing firm the latest to pause recruitment as high inflation forces cost-cutting measures. The company, which in July cut nearly 60 jobs in its rental division, has been battling surging expenses as U.S. inflation reaches levels not seen in four decades. As of June 30, Lyft had nearly 5,000 employees, according to its latest quarterly filing with the Securities and Exchange Commission. San Francisco, California-based company said its costs jumped 36% in its most recent quarter.  Lyft posted a record quarter in August on the back of soaring demand for rides and gains from its cost-cutting efforts.

Target Corp: Grocery delivery services Instacart and Target  Shipt said they will expand their payment methods for low-income shoppers in line with the White House’s efforts to ramp up healthy eating and curtail diet-related diseases. Instacart, which allowed food stamps or Supplemental Nutrition Assistance Program electronic benefits transfer (EBT) card purchases for the last two years for certain grocers, said in a statement that it plans to include TANF in 2023, and is also pushing to offer food stamp payments to all grocery partners. More than 21.4 million U.S. households use food stamps with nearly 3 million of the families ordering their groceries online, according to the United States Department of Agriculture. Food stamps restrict shoppers to non-alcoholic beverages, cold food items, seeds and plants. Instacart’s TANF addition will cover non-grocery items and service and deliver fees, which are not covered by SNAP EBT benefits. The company previously waived off its $3.99 delivery fees for food stamp purchases.  

Tesla Inc: Elon Musk’s lawyers urged a federal appeals court to throw out a provision in his 2018 consent decree with the U.S. Securities and Exchange Commission (SEC) requiring a Tesla lawyer to vet some of his posts on Twitter. In a brief filed late on Tuesday with the 2nd U.S. Circuit Court of Appeals in Manhattan, lawyers for Musk called the pre-approval mandate a “government-imposed muzzle” that inhibited and chilled his lawful speech on a broad range of topics. They also said the requirement violated the U.S. Constitution, and undermined public policy by running “contrary to the American principles of free speech and open debate.” In Tuesday’s filing, Musk’s lawyers said it was time to rein in the SEC. “Under the shadow of the consent decree, the SEC has increasingly surveilled, policed, and attempted to curb Mr. Musk’s protected speech that does not touch upon the federal securities laws,” the lawyers wrote. “Any objective served by the pre-approval provision has been served.” 


Walt Disney Co: The entertainment company will close its theme and water parks on Wednesday and Thursday as Hurricane Ian nears the coast of Florida, the company said on Tuesday. Residents of Florida’s Gulf Coast headed for higher ground as the hurricane threatens to bring a deadly storm surge and more than a foot of rain to some areas. The attractions that will be closed on Wednesday and Thursday include Animal Kingdom, Hollywood Studios, Epcot and Magic Kingdom, a spokesperson said. Walt Disney had earlier said that some of its hotels in the region would be closed through Friday. Universal Resort and SeaWorld also announced the closure of their theme parks on Wednesday and Thursday. ​


ECONOMIC DATA (EST)
0830 Advance goods trade balance for August: Prior -$90.19 bln
0830 Wholesale inventories advance for August: Prior 0.6%
0830 Retail inventories ex-auto advance for August: Prior 0.4%
1000 Pending Homes Index for August: Prior 89.8
1000 Pending home sales mm for August: Expected -1.4%; Prior -1.0%


COMPANIES REPORTING
Cintas Corp: Expected Q1 earnings of $3.13 per share
Paychex Inc: Expected Q1 earnings of 97 cents per share


CORPORATE DATA (EST)
0930 Paychex Inc: Q1 earnings conference call
1000 Cintas Corp: Q1 earnings conference call
1000 Newmark Group Inc: Annual Shareholders Meeting
1200 Duke Realty Corp: Shareholders Meeting
1200 Prologis Inc: Shareholders Meeting
1500 Worthington Industries Inc: Annual Shareholders Meeting
1700 Duckhorn Portfolio Inc: Q4 earnings conference call
1700 Vail Resorts Inc: Q4 earnings conference call
1730 MillerKnoll Inc: Q1 earnings conference call


EX-DIVIDENDS
ConocoPhillips: Amount $1.40
Equity Commonwealth: Amount $1.00
Northern Oil and Gas Inc: Amount $0.25
ProAssurance Corp: Amount $0.05

 

 

 

 

The International Monetary Fund openly criticised Britain‘s new economic strategy on Tuesday, following another slide in bond markets that forced the Bank of England to promise a “significant” response to stabilise the economy.

Bank of England delays bond sales, launches temporary purchase program after market turmoil.

The Bank of England said that it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilize financial markets, and added that it would postpone next week’s start of its gilt sale program.

 

Russian-installed officials in four occupied regions of Ukraine reported huge majorities of votes in favour of joining Russia as the United States planned a U.N. resolution condemning the referendums as shams and Russia remained defiant.

Europe was investigating on Tuesday what Germany, Denmark and Sweden said were attacks which had caused major leaks into the Baltic Sea from two Russian gas pipelines at the centre of an energy standoff.

Nexi, Europe’s biggest payment firm by volume, on Tuesday said it would increase profits more than markets expected over the next three years and generate around 2.8 billion euros in excess cash.

Strike action is stopping refined products from leaving all five of TotalEnergies’ refineries in France, and one of its fuel storage depots, a CGT union official told Reuters on Tuesday.

Just Eat Takeaway, Europe’s largest online food ordering and delivery company, said on Tuesday it expected to make an underlying profit in the second half of 2022, sooner than previously forecast.​

 

JPMorgan’s influential emerging market debt index is set to be pushed out into next year due to a number of issues New Delhi needs to address, four sources familiar with the matter said.

Adani Group will invest more than $100 billion over the next decade, most of it in the energy transition business, its Chairman Gautam Adani said on Tuesday, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan.

The Reserve Bank of India may have to resort to tried and tested measures to shore up its foreign exchange reserves, including encouraging non-resident Indians to deposit more funds, as it looks to stabilise a steadily declining rupee, economists said. 

Demand for loans is not showing any signs of slowdown even among low-to-medium income customers despite rising interest rates and concerns of growth losing momentum, a top executive of shadow lender Piramal Capital and Housing Finance said on Tuesday. 

India’s financial crime fighting agency on Tuesday searched the premises of Coda Payments India as part of a money laundering probe into the fintech firm and Sea Ltd’s Free Fire.

 

ArcelorMittal SA: An Indian joint venture of ArcelorMittal and Nippon will invest 410 billion rupees ($5 billion) to boost crude steel output capacity by 6 million tones a year at its Hazira plant, the Japanese firm said. The AM/NS India joint venture will build two blast furnaces, along with many other facilities, in its Hazira plant in western India, with plans to start operations by mid-2026. The expansion is aimed at meeting growing steel demand in India and winning a bigger slice of the market. The annual steel output capacity of the Hazira plant will increase to around 15 million tonnes after the expansion. “To secure a good presence, we want to win about 15% share in the Indian market where an annual crude steel output is expected to grow to around 200 million tonnes by 2030,” Mori told a news conference. “Therefore, we want to bolster AM/NS India’s output capacity to around 30 million tonnes by 2030,” he said. 

Novartis AG & Teva Pharmaceutical Industries Ltd: Europe’s drugmakers have warned they may stop making some cheap generic medicines because of surging electricity costs and are calling for an overhaul of the way they are priced, the latest industry to seek help as the energy crisis deepens. The generic drug industry lobby group Medicines for Europe, which represents companies including Teva, Novartis’s Sandoz unit and Fresenius SE’s Kabi business, on Tuesday sent an open letter to European Union member states’ energy and health ministers. The bloc’s 27 energy ministers are meeting on Friday to seek agreement on measures to ease the energy crunch in Europe, with a levy on windfall profits of fossil fuel companies and a gas price cap on the table. A spokesperson for the EU’s Czech presidency – responsible for preparing and chairing the meeting – confirmed the receipt of the letter but said the Friday talks were meant to approve proposals by the bloc’s executive European Commission.  

 

Toyota Motor Corp: The carmaker plans to start production and sales of a small electric sedan powered by BYD batteries by year-end as part of an ongoing collaboration with the Chinese company, three people close to the Japanese carmaker said. The for now China-only bZ3 sedan co-developed with BYD will be the second model in the new “Beyond Zero” (bZ) series of battery electric vehicles (BEVs) from Toyota, which has been criticised by activists and greC for not embracing BEVs fast enough. The first bZ car – the bZ4X sport-utility vehicle – was to hit the market in China earlier this year, but a global recall of the car forced Toyota to suspend production of the model globally. Toyota had planned to unveil the bZ3, which uses BYD’s less bulky Blade batteries, at the Beijing auto show in April, but the event was cancelled because of the COVID-19 pandemic, the sources said. They declined to be named because the plan is not public yet. 


ECONOMIC DATA (GMT)
0600 Germany GfK Consumer Sentiment for Oct: Expected -39.0, Prior -36.5
0600 Sweden Retail Sales mm for Aug: Prior -0.6%
0600 Sweden Retail Sales yy for Aug: Prior -3.9%
0645 France Consumer Confidence for Sep: Prior 80 82
0700 Sweden Consumer Confidence SA for Sep: Prior 56.3
0700 Sweden Total Industry Sentiment for Sep: Prior 102.4
0700 Sweden Manufacturing Confidence for Sep: Prior 116.4
0700 Sweden Overall Sentiment for Sep: Prior 97.5
0800 Austria Purchasing Managers Index for Sep: Prior 48.8
0800 Switzerland Investor Sentiment for Sep: Prior -56.3
0800 Italy Manufacturing Business Confidence for Sep: Expected 102.1, Prior 104.3
0800 Italy Consumer Confidence for Sep: Expected 95.1, Prior 98.3
0800 Italy Industrial Sales mm SA for Jul: Prior -0.2%
0800 Italy Industrial Sales yy WDA for Jul: Prior 18.0%