Here are five things you need to know this morning:
GDP data hints at softening economy: Statistics Canada reported new GDP data this morning for the second quarter; numbers that showed the economy grew by 2.1 per cent on an annualized basis. That’s better than the 1.8 per cent that economists were expecting and well ahead of the Bank of Canada’s 1.5 per cent projection, but beneath the surface, the data shows the economy is not growing fast enough to outpace population growth. On a non-annualized basis, per-capita GDP declined by 0.1 per cent during the quarter. That’s a fifth straight quarterly contraction on that metric, which suggests everyone’s slice of the economic pie hasn’t been increasing in more than a year. On a monthly basis, GDP declined slightly in the month of June. It’s done so in two of the past four months.
Couche-Tard hoping big pension plans will help in 7-Eleven bid: Alimentation Couche-Tard Inc. is reaching out to major Canadian pension plans for help to finance its ambitious plan to buy Japanese convenience store chain 7-Eleven. Citing anonymous sources familiar with the talks, Bloomberg is reporting that Couche-Tard is reaching out to Maple Eight members like the Caisse, CPP and Teachers to kick the tires on potentially backing a bid for the chain. Couche-Tard first pitched the plan earlier this month but has so far not gotten a warm reception from 7-Eleven, which itself is turning to the Japanese government for takeover protection. With a market value of about US$38 billion, any bid to buy 7-Eleven would be the biggest takeover of a Japanese company ever, and the biggest ever for Couche-Tard, which itself is worth $55 billion.
Lululemon shares seesaw after cutting outlook: Shares in Lululemon went from downward dog after the bell Thursday to tree pose this morning after the athleisure giant revealed quarterly earnings yesterday and cut its outlook for the coming year. The company posted higher profit and revenue, but the latter came in lower than expectations. The company says its full year revenue guidance is now expected to be in a range of up to US$10.48 billion, down from $10.8 previously. Earnings are expected to be up to $14.15 a share, down from $14.47 previously. While the stock headed lower after the numbers came out, they are back in the green as I write this, as Wall Street thinks the lowered expectations are beatable.
Trans Mountain Pipeline pumping out cash: Landlocked Canadian crude oil isn’t the only thing coursing through the recently expanded Trans Mountain Pipeline, as the project’s owner revealed yesterday that its adjusted earnings before interest, taxes, depreciation and amortization rose to $283 million in the three months up to the end of June. That’s more than five times the tally seen a year ago, long before the May 1 date when the expanded pipeline finally opened. The federal government says the pipeline has tripled the capacity to ship crude from Alberta to B.C. for export. Average daily throughout hit 704,000 barrels in June, official data shows.
Emergent BioSolutions shares up 20% on mpox vaccine approval: Shares in Emergent BioSolutions are surging after the FDA approved its smallpox vaccine for use in individuals at high risk of mpox infection. Shares in the company have quadrupled this year, along with many other mpox vaccine makers, after an outbreak of the disease in Africa started to spread around the world. The World Health Organization has declared the current mpox outbreak a global health emergency.
