Here are five things you need to know this morning
Attacks in Middle East rattle markets: North American stock markets are set to open in the red, while oil is rising after fresh attacks in the Middle East fueled doubts over whether an end to the war is imminent. Brent crude rose three per cent to above US$97 a barrel after the U.S. carried out airstrikes on an Iranian military site. Investors are also digesting the latest reading on the U.S. economy, as well as inflation.
Canadian banks continue to top expectations: Royal Bank saw better-than-expected second-quarter results, helped by growth across its major businesses and lower-than-expected loan-loss provisions. Net income rose 26 per cent from a year earlier. RBC also raised its quarterly dividend and announced plans to buy back up to 45 million shares. TD Bank posted second-quarter earnings that beat analyst expectations, as the bank pointed to improving momentum in its U.S. operations. Total net income reached over $4 billion. The bank also increased its quarterly dividend. CIBC also topped analyst expectations, driven by higher trading revenue and growth across its businesses. Market volatility boosted trading activity in both equities and fixed income. The Bank also announced the sale of its Caribbean division to N.T. Butterfield & Son for US$1.6 billion. Unlike RBC and TD, CIBC did not raise its dividend.
PM Carney in NYC: Prime Minister Mark Carney is in New York today to pitch Canada as an investment destination. He’ll be meeting with various business leaders and will deliver remarks at the Economic Club of New York where he will outline Canada’s new economic strategy and progress made so far. The visit comes ahead of the expected renegotiations of the CUSMA trade pact.
BRP accelerating: Shares of BRP Inc. traded higher in the pre-market. The Quebec-based maker of Ski-Doos and Sea-Doos saw stronger-than-expected first-quarter results, helped by higher sales and improved margins across its powersports business. Revenue jumped 30 per cent from a year earlier to over $2 billion, beating forecasts. BRP also raised its full-year revenue outlook, but lowered its profit forecast, pointing to the impact of tariffs and related costs.
CPKC gets strike notice: The union representing signals and communications workers at Canadian Pacific Kansas City says they will walk off the job Sunday morning unless a deal is reached. The International Brotherhood of Electrical Workers says workers are largely concerned about wages, work-related expenses and work-life balance. CPKC spokesman Terry Cunha says railway operations will continue in the event of a strike and that the company has made “fair and balanced” offers, with wage and benefit increases in line with those of other unions across Canada.
