Here are five things you need to know this morning:
BoC expected to cut: The Bank of Canada is set to announce their latest decision on interest rates today, and the betting odds favour a 50-basis point cut. That would bring the benchmark rate to 3.25 per cent and likely put pressure on the loonie, which has been staring in the direction of 70-cents US for a while now based on the apparent divergence between the U.S. and Canadian economies. We’ll have extensive coverage starting at 9:45 this morning when Tiff Macklem and co. explain their line of thinking.
TikTok fights back against ban: TikTok Technology Canada Inc. has filed a court challenge to the Canadian government’s order for it to close its Canadian subsidiary. In a court filing, the unit of Chinese company Bytedance said the government’s order is disproportionate and exceeds officials’ legal scope. The video-sharing app has 14 million users in Canada, which is more than one quarter of the country’s population.
Albertsons terminates merger deal with Kroger: A proposed merger of two U.S. grocery store chains is in tatters this morning after Albertsons announced it has exercised its right to terminate the deal with Kroger Co. The move comes after a federal judge ruled in favour on Tuesday of a Federal Trade Commission push to invalidate the US$20 billion pact on competitive grounds. Shares in both companies are lower in the premarket this morning.
GameStop shares pop after earnings: Shares in meme stock GameStop are higher this morning after the company posted quarterly results after the bell yesterday that showed a surprise jump into profitability. Sales came in at US$860 million, which was down by 20 per cent from last year and below estimates. But adjusted profit came in at just over $26 million, well ahead of the expected $11 million loss, as the company’s cost cutting efforts seemingly paid off. The shares are up about four per cent in premarket trading.
Roots profit jumps: Iconic Canadian retailer Roots is reporting a big jump in earnings in its latest quarter. Profit at the Canadian clothing company rose to $2.4 million, up from $519,000 this time last year. Total sales rose by 5.3 per cent. Roots says growth was driven by strong demand for its fleeces and activewear.