First Look With Surveillance: Afghan Deadline, China Relations
Canada’s banks continue steamrolling profit expectations. Royal Bank of Canada beat by a mile ($3.00 vs. $2.72) thanks largely to a half-billion-dollar release from funds that were previously set aside for bad loans. It also raked in record investment banking revenue and expanded its Canadian residential mortgage book by $10 billion. And National Bank outpaced Bay Street estimates amid growth in all of its divisions. So for the second consecutive day, a pair of lenders are once again demonstrating the Big Six’s resilience.
HOW TO SOLVE A HOUSING CRISIS?
One thing is clear from our real-time digital audience metrics: housing is the hottest topic for BNN Bloomberg. We’ll keep chasing fresh perspective on the policies that are being trotted out on the campaign trail as Canadians appear to be gripped by the reality that there’s an affordability crisis in this country. If you missed it, check out Greg’s conversation with Toronto-based broker John Pasalis, who didn’t mince words on the enormity of the problem facing prospective homebuyers, and take a look at Pattie’s take on housing FOMO.
MORE LUMBER PRODUCTION CUTS
Canfor announced last night that all but one of its sawmills in British Columbia will operate at 80 per cent capacity as of next week “until demand and pricing meaningfully improve.” The move comes five days after Conifex Timber announced a similar move, citing an “unprecedented collapse” in lumber prices – which are down almost 72 per cent since early May.
OTHER NOTABLE STORIES
- Alimentation Couche-Tard announced another tuck-in acquisition after yesterday’s closing bell. It’s buying 35 convenience store and gas stations in Oregon and Washington State from ARS Fresno LLC. This follows Couche-Tard’s recent news about expanding in Atlantic Canada.
- Nordstrom is one of today's market head-scratchers. The retailer's second-quarter sales more than doubled year-over-year, it beat on most metrics, and it raised its full-year revenue and margin forecasts. And yet the stock is down almost 10 per cent pre-market. Some interesting return-to-office anecdotal commentary in the earnings release, as Nordstrom said sales of shoes, apparel and accessories jumped "as consumers refreshed their wardrobes."
- Notable data: Canadian wholesale trade early indicator (July), U.S. durable goods orders
- Notable earnings: RBC, National Bank of Canada, Salesforce.com
- 9:30: Bloc Québécois Leader Yves-François Blanchet delivers remarks in Quebec City on employment insurance
- 10:00 : NDP Leader Jagmeet Singh delivers remarks in Windsor, Ont. on affordability (plus avail)
- 11:30: Conservative Party Leader Erin O’Toole makes announcement in Brantford, Ont. (plus avail)
- 12:00: Liberal Party Leader Justin Trudeau maks announcement in Surrey, B.C. (plus avail)
- 14:00: U.S. President Joe Biden hosts meeting on cybersecurity (attendees expected to include Apple CEO Tim Cook, Amazon CEO Andy Jassy, Microsoft CEO Satya Nadella)
- 14:30: Green Party Leader Annamie Paul holds news conference in Toronto