The Bank of Canada is scrambling to rein in runaway inflation before price hikes happen on their own. (Photo: Wladyslaw/CC)
• 50 basis point hike expected in Canada, but what will happen next? The Bank of Canada will almost certainly make a second straight half-point interest rate hike as it scrambles to rein in runaway inflation before price hikes materialize on their own. same.
• WSP Global extends US$1.9 billion for Wood’s consulting business. British energy services company Wood Plc has announced the sale of its built environment consultancy division to Canada’s WSP Global for US$1.9 billion to raise funds and reduce debt.
• Amazon.com says unfairly targeted by US antitrust bill. Amazon.com has slammed a US congressional bill banning big tech companies from giving preference to their own activities on their websites, saying it is being unfairly targeted without subjecting rivals to similar rules.
• Biden will meet with formula producers. Joe Biden will host a virtual roundtable with producers of infant formula milk to gain insight into the industry’s efforts to increase supply to address the shortage hitting the United States.
• Pfizer will sell its shares in its joint venture with GSK after the split. Pfizer plans to sell its 32% stake in Haleon, a consumer health care joint venture with British drugmaker GSK, once the company is transformed into an independent listed company in July, according to GSK.
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TRENDS BEFORE OPENING
Futures contracts for Canada’s main stock market index are down as investor sentiment around the world is hurt by runaway inflation and economic growth risks, and the Bank of Canada is due to announce today its decision on its interest rates.
Dow and S&P futures are up slightly after Salesforce released very strong quarterly results, as data on private sector employment and manufacturing activity, announcements that could give clues to the strength of the US economy.
European stocks are down due to a slowdown in manufacturing activity in the Eurozone and disappointing retail sales in Germany. Japanese equities are slightly ahead, benefiting from the rise in car manufacturers’ stocks after the publication of a report from analysts who were positive about the outlook for this sector.
The US dollar is gaining ground, supported by strength in Treasuries. Gold prices have fallen. Oil prices are on the rise after European Union leaders agreed to a partial, phased ban on Russian gas and oil imports.
TITLES TO FOLLOW
• WSP Global: British energy services company Wood Plc has announced the sale of its built environment consultancy division to Canada’s WSP Global for US$1.9 billion to raise funds and reduce debt. The sale comes about six months after London-listed Wood began a strategic review of its business, which employs 5,500 consultants in the industrial, government, transport, water, energy and mining sectors. . WSP chief executive Alexandre L’Heureux said the built environment consulting business will help expand the Toronto-listed firm’s land and environmental consulting services.
MAIN INDICATORS ON THE AGENDA
9:30 a.m. S&P Global Manufacturing PMI, seasonally adjusted (May): previous 56.2
10:00 a.m. (approximately) Key rate, Bank of Canada: consensus 1.50%; previous 1.00%
PUBLICATIONS OF RESULTS
Descartes Systems Group: earnings per share forecast of US$0.26 in Q1
Laurentian Bank of Canada: C$1.15 earnings per share forecast in Q2
VersaBank: Earnings per share forecast of C$0.23 in Q2
Canaccord Genuity Group expects Q4 earnings per share of C$0.45
Descartes Systems Group: Q1 earnings per share forecast of US$0.26
Laurentian Bank of Canada: C$1.15 Q2 earnings per share forecast
VersaBank: Q2 earnings per share forecast of CA$0.23
Canaccord Genuity Group: Q4 earnings per share forecast of C$0.45
8:30 a.m. CAE: Q4 earnings conference call
9:00 a.m. Laurentian Bank of Canada: Q2 earnings conference call
9:00 a.m. VersaBank: Q2 earnings conference call
10:00 a.m. Park Lawn: annual general meeting of shareholders
5:30 p.m. Descartes Systems Group: Q1 earnings conference call
Atco: amount of C$0.46
Great-West Lifeco: amount of C$0.49
Imperial Oil: amount of C$0.34
Kinross Gold: amount of US$0.03
All analyst forecasts are based on I/B/E/S data from Refinitiv.