(Illustration: Camille Charbonneau)
THE ESSENTIAL NEWS
• Rising gasoline prices are expected to boost U.S. inflation in August. U.S. consumer prices likely saw their biggest rise in 14 months in August, driven by a rise in the cost of gasoline, but an expected moderate rise in core inflation could encourage the Federal Reserve to keep interest rates on hold next Wednesday.
• Dollarama is revising its annual sales forecasts upwards to meet demand for essential products. Dollarama raised its annual sales forecast after beating quarterly sales estimates as Canadians embraced the discount retailer’s cheaper deals in response to rising prices for essential goods.
• Sigma Lithium is exploring alternatives after receiving proposals for the miner and the Brazilian unit. Miner Sigma Lithium said it was evaluating strategic alternatives for the entire company, including its Brazilian unit, sending the U.S.-listed company’s stock higher in pre-market trading. walk.
• It will take Canada 20 years to recoup subsidies given to Stellantis and Volkswagen, a watchdog says. The Canadian government will take 20 years to recoup the C$28.2 billion in combined subsidies it is offering to Volkswagen and Stellantis-LG Electric Solutions to build two electric vehicle (EV) battery factories, the Canadian government said on Tuesday. country’s fiscal watchdog.
• Apple disputes France’s conclusions and asserts that the iPhone 12 respects the wave emission thresholds. Apple said its iPhone 12 model was certified by several international bodies as meeting global radiation standards, after a French watchdog ordered it to stop selling the wearable on the grounds that it violated thresholds European electromagnetic wave emission limits.
TRENDS BEFORE OPENING
Canadian stock index futures fell as gold prices remained near their lowest levels in two weeks, due to the rise in US bond yields. US stock index futures fell slightly as investors avoided taking significant risks ahead of the inflation rate release later in the day, which could clarify the inflation outlook and its effect on interest rates. THE European stocks fell due to a change in expectations from the European Central Bank’s interest rate decision this week. THE Nikkei Japanese stocks ended lower, but losses were limited as investors bought stocks that could withstand higher rates. THE American dollar rose slightly in comparison with other major currencies. The prices of oil rose on expectations that crude oil supply will remain tight until the end of the year.
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HEADLINES TO FOLLOW
• Dollarama: The company raised its annual sales outlook after beating quarterly estimates as Canadians bought the budget retailer’s cheaper offerings following rising prices for essentials. “We expect this strong demand to persist through the second half of the year in the current macroeconomic environment,” said Dollarama CEO Neil Rossy. Dollarama also increased prices on some products to offset rising logistics and labor costs, which have persisted due to supply chain issues in Canada. The discount store operator said it now expects sales growth to be between 10% and 11% for fiscal 2024, compared to growth of 5% to 6% previously estimated. The company’s sales increased to C$1.46 billion in the second quarter, up from C$1.22 billion a year earlier. Net income for the quarter ended July 30 reached C$245.8 million, or 86 Canadian cents per share, beating market expectations of 77 Canadian cents.
• Sigma Lithium: The mining company said it is evaluating strategic alternatives for the entire company, including its Brazilian unit. The company said it had received several proposals for its Grota do Cirilo project in Brazil, Sigma Brazil for its parent company Sigma Lithium. According to Sigma Lithium, these proposals came from “global leaders in the energy, automotive, battery and lithium refining sectors.” The Vancouver, British Columbia-based company, operating primarily in Brazil, said it plans to conclude the assessment this year and that a decision will be made at a shareholder meeting. Sigma Lithium Chief Executive Officer Ana Cabral-Gardner said in July that Bank of America was coordinating discussions with parties interested in acquiring the company.