Here are five things you need to know this morning:
Trump threatens 25% tariffs on Canada, Mexico: Markets around the world are volatile this morning after Donald Trump threatened to slap tariffs of 25 per cent on all imports from Canada and Mexico, and an additional 10 per cent on Chinese goods. The moves are needed to clamp down on migrants and drugs flowing across the U.S. border, Trump said on the social media network he owns. Market reaction has been swift, with the relief rally that U.S. equities have enjoyed since his election starting to fray. The Canadian dollar fell to its lowest level in four years, below 71 cents US, while the peso tumbled to its lowest level since 2022. Hardest hit sectors include the auto industries where shares in Ford, GM and Chrysler owner Stellantis – all of which feature Canada and Mexico prominently in their supply chains – were all down in premarket trading. We will have extensive coverage on what this all means throughout the day on BNN Bloomberg.
Couche-Tard misses on earnings, hikes dividend: Alimentation Couche-Tard reported adjusted earnings per share that missed estimates for the second quarter. The convenience store owner’s revenue came in at US$17.4 billion in Q2, below estimates of $18.1 billion, while EPS of 74 cents missed by two cents. The company didn’t provide any updates on its bid to buy the Japanese owner of 7-Eleven, a slow-moving saga that has weighed on the stock. The company did see fit to raise its quarterly dividend to shareholders, however, upping the payout by 11 per cent to 19.5 cents.
Best Buy and Kohl’s shares tumble on weak sales outlook: Shares of retailers Best Buy and Kohl’s were both selling off premarket after the companies posted weak earnings and bleak outlooks headed into the holiday shopping season. Electronics retailer Best Buy cited “uneven” consumer demand for gadgets, and says it expects its same-store sales to decline by up to 3.5 per cent from last year’s level. Kohl’s painted an even gloomier picture, citing weakness in its apparel and footwear business. The retailer has now missed analyst expectations for 12 quarters in a row and the stock is set to open at its lowest level in four years.
Zoom shares muted: Shares of Zoom Video Communications were set to open sharply lower after the tech company reported third quarter results after the bell yesterday. While the numbers were mostly positive, they failed to meet lofty valuations and after a 60 per cent run up in the share price this year, some profit taking seems to be underway.
Eli Lilly shares gain as Biden floats Medicare plan: Shares in Eli Lilly and other drug makers are higher this morning after U.S. President Joe Biden proposed rule changes that would mandate weight loss drugs be included in government-funded drug plans like Medicare and Medicaid. Even shares in foreign drug companies like Novo Nordisk are rallying on the news.