Here are five things you need to know this morning:
Inflation in Canada has fallen to its slowest pace in more than three years: The latest numbers from Statistics Canada show the consumer price index (CPI) rose 2.5 per cent in July from a year ago – below the 2.7 per cent pace a month earlier, and matching expectations. It also marks the lowest rate of annual inflation since March 2021. It’s the seventh consecutive month of headline rates running within the Bank of Canada’s target range, keeping the central bank on track to cut rates for a third straight meeting next month. On a monthly basis, the consumer price index climbed 0.4 per cent, also matching expectations.
Home improvement retailer Lowe’s has cut its full-year revenue and profit forecasts: After the company reported its sixth straight quarter of declining sales, Lowe’s said consumers are spending less than expected on do-it-yourself projects, as the macroeconomic environment remains challenging. The company says it continues to make inroads with professional customers as well as online. In November 2022, Lowe’s announced that it would sell its Canadian operations to Sycamore Partners for US$400 million. Following the completion of the sale in 2023, Sycamore began to phase out the Lowe’s brand in Canada, replacing it with the new Rona banner Rona+.
Gran Tierra Energy will be a stock to watch today: The Calgary-based company is buying i-3 Energy in a cash-and-stock deal valued at about $308 million. i-3 is a Scotland-based oil and gas producer with assets in the U.K. and Canada. Gran Tierra says the deal will add diversification to its portfolio, as currently most of its projects are in Colombia and Ecuador.
Vancouver-based lumber company Interfor is indefinitely curtailing operations at two of its U.S. locations, due to weak market conditions: The wind-down of the two sawmills, in Georgia and South Carolina, is expected to be completed by the end of September. About 180 employees will be affected.
There are multiple reports today that Edgar Bronfman Junior has formally submitted a US$4.3 billion bid to take control of Paramount Global, topping an existing offer from Skydance Media: Bronfman’s family has roots in Montreal – his grandfather founded the Seagram alcohol company. Bronfman is currently chairman of FuboTV, a streaming television company that won an injunction last week to stop the launch of sports streaming service Venu. He previously had leadership roles at MCA and Warner Music Group.
