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Noah Zivitz

Managing Editor, BNN Bloomberg

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It’s one of the busiest days on the earnings calendar in Canada, and if you look close enough, you’ll find glimmers of optimism from Corporate Canada as it puts the worst of COVID-19 in the rear view. A few examples:

  • Canadian Natural Resources is riding high from stronger oil prices, and this morning it hiked its capital budget for this year and teased much stronger free cash flow – allowing it to buy back more shares.
  • Bombardier, whose shares have more than tripled this year, raised its financial forecasts and managed to report a net profit in the second quarter amid stronger demand for business jets.
  • Payments powerhouse Lightspeed also raised its full-year forecasts today as looser COVID restrictions helped drive a 220 per cent surge in fiscal first-quarter revenue. CEO Dax Dasilva joins us at 10:20 a.m.
  • And BCE outpaced second-quarter adjusted EPS expectations amid its first batch of year-over-year wireless service revenue growth since the onset of the pandemic and a 30 per cent revenue surge in its media division (which owns BNN Bloomberg) as ad spending picks up. CEO Mirko Bibic joins us at 3 p.m.

ELECTION DRUM BEAT

Prime Minister Justin Trudeau is back for another campaign-style announcement later this morning, and it comes as we’re getting a better sense of what Canada’s corporate leaders want to see whenever the election is officially called. The Canadian Chamber of Commerce is urging the major parties to finally tackle the deficit and reduce tax burdens. No surprise in either of those calls to action. We’re hoping to catch up with the chamber’s leader today to learn more.

TORONTO HOUSING EUPHORIA FADES

The sales slump in Canada’s largest housing market continued last month: seasonally adjusted activity slipped two per cent and the absolute number of sales was down 40 per cent from the all-time high set in March. Prices were relatively stable, though still below the $1.1 million record set two months earlier, thanks to tighter inventory.

OTHER NOTABLE STORIES

  • Canada’s economy saw a major turnaround in international trade in June as a record $53.8 billion in exports swung the balance into a surplus of more than $3 billion. Looks like energy was the star performer in the month as exports surged 22.9 per cent.
  • TMX Group crushed second-quarter profit expectations despite weaker trading revenue in the period. Credit for the performance goes to buoyant capital-raising activity by issuers, as revenue from that segment jumped 44 per cent year-over-year. We’ll speak with TMX CEO John McKenzie at 9:45 a.m.
  • Score Media and Gaming is being taken out by giant of America’s gambling industry. Penn National Gaming is buying the scrappy Canadian company for US$2 billion in cash and stock.
  • Quebecor CEO Pierre Karl Péladeau added a little colour to his company’s wireless strategy this morning, saying his company’s recent spectrum purchases “pave the way for major projects in Quebec and other Canadians provinces in the coming years.”
  • Sun Life Financial and Manulife Financial both managed to beat profit expectations in the second quarter, but there’s at least one interesting made-in-Canada contrast to establish as domestic operations were a profit drag for Manulife while Canada provided a boost to the bottom line at Sun Life.
  • It was a short-term pain for long-term gain narrative for Uber Technologies in its latest quarter. The ride-hailing company's adjusted EBITDA loss came in much larger than expected at US$509 million thanks to elevated investment in the flagship mobility business.
  • We’ll keep an eye on shares of Restaurant Brands International after the company said an affiliate of 3G Capital has given notice that it wants to swap 9.6 million exchangeable RBI LP units for 9.6 million common shares in RBI -- which it intends to dispose of.
  • Magna International is facing deal competition after Qualcomm said it offered to buy Veoneer for US$37 per share. Magna announced a friendly arrangement to buy the Sweden-based automotive technology company for US$31.25.

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian trade balance, U.S. initial jobless claims
  • Notable earnings: Canadian Natural Resources, Inter Pipeline, Pembina Pipeline, Parkland, Enerplus, BCE, Quebecor, Saputo, Onex, RioCan REIT, Thomson Reuters, Interfor, Constellation Software, Open Text, Lightspeed POS, Bombardier, Chartwell Retirement Residences REIT, Dream Office REIT, Gildan Activewear, Maple Leaf Foods, Moderna, Square, Expedia Group, Beyond Meat
  • 7:00: Bank of England releases interest rate decision
  • 10:30: Prime Minister Justin Trudeau makes announcement in Montreal alongside Quebec Premier François Legault (plus avail)
  • 15:00: U.S. President Joe Biden delivers remarks on goal of seeing electric vehicles account for half of all new vehicle sales in the U.S. in 2030