TOP NEWS
• Canadian government to review proposed Bunge-Viterra merger - transport minister
The Canadian government will review a planned merger between U.S. grains merchant Bunge and Glencore-backed Viterra, the transport minister said in a statement on Tuesday.
• Shopify invests in wholesale platform Faire
Shopify is investing in wholesale platform Faire, the companies said, in a global deal that would see the start-up adopt Shopify technology for its clients.
• FTC's Amazon antitrust lawsuit faces high bar in US court - experts
The U.S. Federal Trade Commission's lawsuit accusing Amazon.com of abusing its retail market power to stifle competition faces hurdles in court, testing the scope of U.S. antitrust law and posing roadblocks for the agency, legal experts said.
• Biden says UAW should fight for 40% pay raise in Michigan strike visit
President Joe Biden on Tuesday joined a picket line with striking autoworkers in Michigan, supporting their call for a 40% pay raise and saying they deserve a "lot more" than they are getting.
• US lawmakers demand documents on Ford battery partnership with CATL
The chairs of three U.S. House of Representatives committees demanded Ford Motor turn over documents tied to its partnership with Chinese battery company CATL and threatened to call CEO Jim Farley to testify before Congress.
BEFORE THE BELL
Futures for Canada's main stock index inched higher, supported by a rise in oil prices. Wall Street futures rose as retreating Treasury yields boosted megacaps, while investors awaited developments on a U.S. funding bill and inflation data releasing this week. European shares ticked up supported by industrials and tech stocks. Japan's Nikkei share average closed higher, rebounding from a one-month low. The U.S. dollar touched a 10-month high, while gold prices plummeted to its lowest in a month.
STOCKS TO WATCH
• Consolidated Uranium Inc & IsoEnergy Ltd: Uranium miner IsoEnergy said that it would buy all the shares of Consolidated Uranium it does not already own in an all-stock deal, valuing the combined company at C$903.5 million. The deal is expected to close in the fourth quarter of this year, post which Consolidated Uranium shareholders would own 29.5% of the combined company, while the rest will be held by IsoEnergy. Consolidated Uranium shareholders would receive 0.500 of a common share of IsoEnergy for each share held.
• Shopify Inc: The e-commerce giant is investing in wholesale platform Faire, the companies said, in a global deal that would see the start-up adopt Shopify technology for its clients. Faire, founded in 2017 and valued at $12.59 billion, would become the recommended wholesale marketplace for Shopify merchants. The companies declined to disclose the value of the deal or how big a stake Shopify was taking. Shopify's director of product Aneeqa Khan said the partnership would make it easy for Shopify merchants to find wholesale buyers, and enable retailers to source from Faire's network of brands. Faire, which focuses on independent businesses, says brands that previously only sold directly to consumers are switching to a wholesale model as they seek to curb their running costs.
ANALYSIS
Tesla's rivals scrap for thin slices of US EV sales
Ford Motor's decision to hit the brakes on a planned $3.5 billion battery plant in Michigan highlights a challenge for Tesla's growing crowd of rivals in the U.S. market: Tesla is pushing most of them into unprofitable, low-volume niches.
ANALYSTS' RECOMMENDATION
• Perpetua Resources Corp: H.C. Wainwright cuts target price to $10 from $10.25, factoring in projects that are affected by geopolitical risk factors.
• Stella-Jones Inc: RBC cuts target price to C$77 from C$79, citing the company's conservative estimates for the third quarter.
• TFI International Inc: RBC cuts target price to $153 from $155, after the company lowered guidance for second quarter and a challenging macro backdrop.
COMPANIES REPORTING RESULTS
September 27:
AGF Management Ltd: Expected Q3 earnings of 32 Canadian cents per share
H2O Innovation Inc: Expected Q4 earnings of break-even per share
Sangoma Technologies Corp: Expected Q4 loss of 3 cents per share
September 28:
Aritzia Inc: Expected Q2 loss of 4 Canadian cents per share
BlackBerry Ltd: Expected Q2 loss of 6 cents per share
CORPORATE EVENTS (All timings in U.S. Eastern Time)
1000 H2O Innovation Inc: Q4 earnings conference call
1100 AGF Management Ltd: Q3 earnings conference call
1200 Pipestone Energy Corp: Shareholders Meeting
1730 Sangoma Technologies Corp: Q4 earnings conference call
EX-DIVIDENDS
Algonquin Power & Utilities Corp: Amount $0.10
Canadian Imperial Bank of Commerce: Amount C$0.87
(All analysts' estimates are according to I/B/E/S Refinitiv data)
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