Shopify is introducing changes to its employee compensation plans, giving them more flexibility between the cash and stock components. (Photo: 123RF)
• Federal budget: modest spending on housing and banks. Justin Trudeau’s government wants to tackle housing overheating with the budget unveiled on Thursday, which aims to increase the affordability of homes and fight rising inflation, while promising modest spending to support medium-term growth.
• Federal budget: reduction of bond issues, tightening in sight. The budget released yesterday indicates that Canada is reducing the debt it issues, including long-term bonds, as the recovery of the economy from the COVID-19 crisis strengthens the outlook.
• Federal budget: support for carbon storage and some minerals. Ottawa will offer substantial incentive to companies investing in carbon capture and storage technologies and set aside up to CAD $ 3.8 billion over eight years to accelerate exploration, extraction and processing of reduction-related minerals of greenhouse gas emissions.
• United States: drop in profits for large banks in the first quarter? Large US banks are expected to experience a sharp decline in first quarter earnings compared to a year ago, when they benefited from a very high level of trading and brokerage, as well as a reduction in bad loan provisions.
• Shopify: More flexibility between cash and stock clearing. Shopify has introduced changes to its employee compensation plans, giving them greater flexibility between the cash and stock components, The Globe and Mail reported Thursday.
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TRENDS BEFORE OPENING
Futures for Canada’s leading stock index are pointing to a higher open ahead of today’s release of Canadian employment data. Wall Street futures are leading, but gains have been limited by the prospect of significant rate hikes around the world and geopolitical risks. European equities are up as investors turn their attention to the first round of the French presidential election this weekend. Asian equity markets ended the session in positive territory. The US dollar index hits 100 for the first time in nearly two years as gold prices drop. Oil prices are also losing ground as several countries tap into their strategic reserves.
TITLES TO FOLLOW
• Shopify: The company has introduced changes to its employee compensation plans, giving them more flexibility between cash and equity components, The Globe and Mail reported on Thursday that the changes will take effect from July through the end of the year. . Shopify did not immediately respond to a request for comment from Reuters. The changes were disclosed at a general meeting of the company Thursday afternoon, according to the Globe and Mail, and are aimed at making wages more competitive at a time when the e-commerce company’s stock has taken a hit.
• Energy advantage: RBC increases its price target from C $ 8.5 to C $ 10 to account for a more favorable outlook for natural gas prices and better visibility on the company’s return on capital investment initiatives.
• Copperleaf Technologies: The National Bank of Canada begins monitoring the stock with an outperformance rating and a target price of $ 20 to reflect the company’s scalable platform as well as its vertical formation and expansion strategy.
• Diversified Royalty: CIBC is lowering its outperformance rating to neutral to reflect the return or increase in disruptions related to COVID-19 and rate hikes.
• Victoria Gold: CIBC cut its price target from $ 23 to $ 21 after the company missed the target and reported lower-than-expected gold production in the first quarter.
MAIN INDICATORS ON THE AGENDA
08:30 (approx.) Activity rate (March): consent 65.4%; previous 65.34%
08:30 (approx.) Change in seasonally adjusted employment rate, part-time (March): previous 215 100
08:30 (approx.) Change in seasonally adjusted employment rate, full-time (March): previous 121,500
08:30 (approx.) Seasonally adjusted unemployment rate (March): consensus 5.3%; previous 5.5%
08:30 (approx.) Change in occupancy rate (March): consent 80,000; previous 336,600
08:30 (approximately) Average salaries, permanent employment, var. annual (March): previous 3.3%
PUBLICATIONS OF RESULTS
Entertainment Choir: Second quarter earnings per share forecast of CA $ 0.08
MTY food group: Q1 earnings per share forecast C $ 0.62
No major corporate publications.
08:00 Corus Entertainment: Second quarter earnings conference call
08:30 Food Group MTY: First quarter earnings conference call
12:00 Tocvan Ventures: annual general meeting of shareholders
13:00 Permex Oil: annual general meeting of shareholders
SECONDATIONS OF THE GOOD
No major coupon detachment is planned for today.
All analysts’ forecasts are based on Refinitiv’s I / B / E / S data.