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Walt Disney is alleviating his concerns about the future of video-on-demand by attracting 7.9 million new Disney+ customers. (Photo: 123RF)

News Basics

• Biden is looking for ways to prevent Beijing from accessing US data. The Biden administration is preparing an executive order that would give the Department of Justice sweeping powers to prevent foreign powers such as China from accessing Americans’ personal data, according to a person familiar with the file and extracts from the document seen by Reuters.

• Manulife and Sunlife suffered declines in the first quarter, affected by the epidemic in Asia. Manulife and Sun Life, Canada’s largest life insurer, on Wednesday reported a decline in core earnings from a year ago as the COVID-19 pandemic negatively impacted its profitability in Asia, and Manulife also missed its target.

• Disney Takes Advantage of Video On Demand, Issues Inflation Warning. Walt Disney allayed concerns about the future of video-on-demand on Wednesday by attracting 7.9 million new customers to Disney+, but warned that supply chain issues and rising wages could affect its finances.

• Tapestry, Coach’s parent company, lowers its earnings forecast for the year. Tapestry Inc slashed its profit forecast for the current year as sales of luxury handbags and apparel were hit by the new lockdown measures in China, sending the stock lower before markets opened.

• The International Energy Agency is floundering and expects to compensate for Russian supplies. The International Energy Agency (IEA) said the world would not run out of oil even if production from sanctioned Russia dwindled, turning around after anticipating a potential “energy shock”. World Show” in March.

(Re)read all market news

Directions before opening

Major Canadian stock index futures are pointing to a lower open after yesterday’s correction and lower gold and oil prices. Wall Street futures fell, following the trend seen in global stock markets, on renewed fears that rising inflation could lead to massive interest rate hikes that would slow global economic growth. The US dollar is advancing because of its attractiveness as a safe haven. Bitcoin slumped to a 16-month low leading to a divestment from riskier assets as the collapse of TerraUSD, a well-known stable cryptocurrency, heightened the current tension.

Nicknames to follow

• Manulife Financial & Sun Life Financial: Manulife and Sun Life reported lower core earnings Wednesday from last year as the COVID-19 pandemic negatively impacted their profitability in Asia, and Manulife also missed target. It reported base earnings of C$1.5 billion for the quarter ended March 31, or C$0.77 a share, compared to C$1.6 billion last year, or C$0.82 a share. Analysts expected an unchanged result. Sun Life’s core earnings were C$843 million for the year, or C$1.44 per share, down from C$850 million last year, or C$1.45. Analysts had expected earnings of $1.41 Canadian dollars per share. Manulife attributed the decline in profits to the “rapid and unprecedented emergence of COVID-19 that has disrupted new business activity in many Asian markets.” Earnings for this region fell 5.8%, offsetting the 20% growth in Canada. A 31% drop in Sun Life’s profit in the US, due to increased health and death claims, and a 4% drop in Asia, due to lower sales to Hong Kong due to COVID-19 restrictions, were behind Sun Life’s lower earnings. Despite recent market volatility, both companies have posted higher profits in their wealth and asset management divisions. Sun Life’s earnings are up 12% from a year ago, while Manulife’s is up about 4%. In both cases, assets under management were high.

Recommendations

• Building birds: CIBC is reducing its price target from C$13 to C$12 to take into account a potential economic slowdown.

Boyd Group Services: CIBC lowers its price target from C$175 to C$168 as the business operating environment remains tough, with rising inflation and the labor market showing few signs of improvement.

• Dextera Group: Scotiabank lowered its price target from C$11 to C$10 as the company’s modular solutions segment faced project delays in the first quarter, leading to lower production and margins.

• Endeavor Silver: CIBC is reducing its price target from C$9 to C$8 to reflect recent weakness and volatility in silver prices.

• Superior Plus: ATB Capital Markets lowered its price target from C$14.5 to C$13.5 due to a tighter margin outlook.

The main indicators on the agenda

No major indicators expected today.

publish results

May 12

African oil: Expected earnings per share for the first quarter of $0.06

Algonquin Energy and Utilities: Earnings per share forecast for the first quarter of $0.21

Canadian Tire Corporation: Earnings per share forecast of $1.74 CAD in the first quarter

Cardinal Energy (Alberta): Earnings per share forecast for the first quarter of C$0.31

waterfalls: Earnings per share forecast CAD 0.05 in the first quarter

CI Finance: Earnings per share forecast CAD 0.84 in the first quarter

Crescent Point Energy: Earnings per share forecast C$0.35 in the first quarter

Dochebo: Expected loss per share of $0.08 in the first quarter

ECN Capital: Earnings per share for the first quarter forecast $0.05

The first majestic silver: Earnings per share for the first quarter forecast $0.05

iA Financial Corporation: CAD 1.97 forecast first quarter earnings per share

Lyon Furniture: Earnings per share forecast CAD 0.47 in the first quarter

Park Lawn: Earnings per share forecast C$0.35 in the first quarter

Kibecor: Earnings per share forecast for the first quarter of C$0.52

May 13

Amira: Earnings per share forecast C$0.93 in the first quarter

Orla Mining: Forecast earnings per share for the first quarter of $0.03

Company Agenda

07:30 CCL Industries: Q1 earnings conference call

08:00 Canadian Tire Company: Q1 earnings conference call

08:00 AM Docebo: Q1 earnings conference call

08:00 Manulife Financial: Q1 earnings conference call

08:00 Osisko Gold Equity: Q1 earnings conference call

08:00 WSP globally: Q1 earnings conference call

8:30 a.m. Softchoice (California): Q1 earnings conference call

09:00 Waterfalls: Q1 earnings conference call

09:00 CI Finance: Q1 earnings conference call

09:00 stank: Q1 earnings conference call

09:00 Torex Gold Resources: Q1 earnings conference call

09:30 goeasy: Q1 earnings conference call

09:30 Kibekor: Annual general meeting of shareholders

10:00 a.m. Canadian Tire Corporation: Annual general meeting of shareholders

10:00 a.m. Canadian Tire Corporation: Annual general meeting of shareholders

10 a.m. Monday Mining: Annual general meeting of shareholders

10 AM Onyx: Annual general meeting of shareholders

10:00 AM Primo Water: Q1 earnings conference call

10:00 AM from Sun Life Financial: Q1 earnings conference call

10:00 AM Wisdom Gold Mines: Q1 earnings conference call

10:30 a.m. Parex Resources: Q1 earnings conference call

11:00 am Falls: Annual general meeting of shareholders

11 a.m. goeasy: Annual general meeting of shareholders

11 a.m. Interfor: Q1 earnings conference call

11:00 AM Labrador Iron Ore Estate: Annual general meeting of shareholders

11:00 AM Manulife Financial: Annual general meeting of shareholders

11:00 AM Pan American Silver: Q1 earnings conference call

11:00 AM BETO Exploration and Development Company: Q1 earnings conference call

11:00 a.m. Energy Canada: Annual general meeting of shareholders

11 a.m. WSP Global: Annual general meeting of shareholders

11:30 a.m. iA Financial Institution: Q1 earnings conference call

11:30 a.m. Parex Resources: Annual general meeting of shareholders

11:30 a.m. Sandstorm Gold: Q1 earnings conference call

12:00 pm Al Hilal Energy Point: Q1 earnings conference call

12:00 Fortuna Silver Mines: Q1 earnings conference call

12:00 Precision drilling: Annual general meeting of shareholders

12:00 PM Trikan Wells Service: Q1 earnings conference call

12:30 PM Stantec: Annual general meeting of shareholders

1:00 p.m. Osisko Gold Equity: Annual general meeting of shareholders

1:00 p.m. Energy Canada: Q1 earnings conference call

2:00 p.m.: CCL Industries: Annual general meeting of shareholders

2:00 p.m. iA Financial Institution: Annual general meeting of shareholders

2:00 p.m. Furniture Lyon: Annual general meeting of shareholders

2:00 pm. Kibekor: Q1 earnings conference call

3:30 PM Trikan Wells Service: Annual general meeting of shareholders

5:00 p.m. Birchcliffe Energy: Annual general meeting of shareholders

5:00 PM Peyto Exploration & Development: Annual general meeting of shareholders

5:30 PM ECN Capital: Q1 earnings conference call

Coupon seconds

Enbridge: Amount of 0.86 Canadian dollars

Magna International: Amount 0.45 USD

Shaw contacts: Amount of 0.09 Canadian dollars

Trans Alta Renewable Energy: 0.07 Canadian dollars

All analyst forecasts are based on I/B/E/S data from Refinitiv.

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