Johnson & Johnson announced Thursday that it will stop selling its talc-based baby powder worldwide in 2023. (Photo: 123RF)
News is essential
• Rogers and Shaw agree to sell Freedom Mobile to Quebec Rogers Communications and Shaw Communications announced that they have finalized an agreement to sell Freedom Mobile, a division of Quebecor, paving the way for the merger of two major Canadian telecommunications companies.
• Biden’s legislative victories with climate and drug legislation. The US House of Representatives will vote on a $430 billion bill to address climate change and lower prescription drug prices, which Democrats see as a major political victory for President Joe Biden ahead of November’s midterm elections.
• Several Chinese state companies will leave the New York Stock Exchange. Several Chinese state-owned companies, including China Life Insurance and oil giant Sinopec, have expressed their intention to withdraw from the US stock market.
• J&J will discontinue all sales of talc-based baby powder. Johnson & Johnson announced Thursday that it will stop selling its talc-based baby powder worldwide in 2023, two years after ending U.S. sales of a product that has been the subject of thousands of lawsuits over safety concerns.
• Tax relief for US EVs would violate WTO rules. The European Union and South Korea have raised concerns about tax credits offered by the United States for the purchase of electric vehicles, saying they could discriminate against vehicles produced abroad and thus violate World Trade Organization (WTO) rules.
(Re)read all market news
Trends before the opening
Canada’s main stock index and Wall Street futures led on signs of slowing inflation growth and investors now expect the Federal Reserve to tighten monetary policy less quickly.
European stocks rose on gains in the healthcare sector, led by GSK.
In Asian markets, the Japanese Nikkei ended the session in positive territory, as Chinese stocks fell on a sharp rise in Covid-19 cases in the country.
The US dollar is rising and the price of gold is falling. Oil prices fell on concerns about the demand outlook.
Follow the headlines
• Quebecor, Rogers Communications and Shaw Communications: Rogers and Shaw announced that they have finalized an agreement to sell Freedom Mobile, a division of Quebecor, paving the way for the merger of two major Canadian telecommunications companies. Antitrust authorities last May blocked a C$20 billion acquisition of Shaw by Rogers, saying it would reduce competition in the country’s already limited telecommunications market, where customers pay some of the highest bills in the world. “This agreement with Quebecor brings us one step closer to completing our merger with Shaw,” said Rogers CEO Tony Staffieri. Both companies said the deal with Freedom Mobile is subject to regulatory approval and completion of the Rogers-Shaw integration.
• Ag Growth International: ATB Capital Markets raised its target price to C$65.5 from C$59 after the company reported second-quarter results that beat expectations.
• Altus Group: CIBC raised its target price to C$58 from C$54 after the company posted very strong second quarter results.
• Canada Goose Holdings: Credit Suisse raised its target price from C$37 to C$39 citing strong demand and encouraging trends seen in China in June.
• Canadian Tire Corporation: Desjardins Securities lowered its target price from C$225 to C$215 to reflect a bearish impact.
• Savaria: Scotiabank raised its target price to C$17.5 from C$16.5 after the company reported second-quarter EBITDA despite inflationary pressures.
Key indicators on the agenda
No major indicators are expected today.
Publication of results
Dentalcorp Holdings: Q2 loss per share forecast C$0.01
MDA: Q2 earnings per forecast of CA$0.01
Ivanhoe Mine: Q2 earnings per share are forecast at US$0.10
K92 Mining: Q2 earnings per share are forecast at US$0.05
08:30 Dentalcorp Holdings: Q2 earnings conference call
08:30 Exchange Income: Q2 earnings conference call
08:30 MDA: Q2 earnings conference call
08:30 Softchoice(CA): Q2 earnings conference call
09:00 Vermilion Power: Q2 earnings conference call
09:30 Park Lawn: Q2 earnings conference call
10:00 a.m. Algonquin Power and Utilities Q2 earnings conference call
10:00 am Canada Goose Holdings: Annual General Meeting of Shareholders
10:00 am Chartwell Retirement Residence: Q2 earnings conference call
10am Northland Power: Q2 earnings conference call
11:00 a.m. Wheat is precious metal Q2 earnings conference call
11:30 am Sandstorm Gold: Q2 earnings conference call
1:00 pm Siena Senior Living: Q2 earnings conference call
Enbridge: amounting to C$0.86
Best Resources: amounting to C$0.10
Shaw Communications: amounting to C$0.09
TransAlta Renewables: amounting to C$0.07
All analyst forecasts are based on I/B/E/S data from Refinitiv.