Author: Consultant

Hong Kong’s Hang Seng drops around 2% as Asia markets slip; China’s inflation rises

• Asia-Pacific shares fell on Wednesday as investors digest inflation data from China and look ahead to the U.S. CPI report.
• China’s consumer prices increased 2.7% in July compared with the same period in 2021, the most since July 2020.
• Economists predict that consumer inflation in the U.S. will come in at 8.7%, compared with 9.1% in June, according to Dow Jones.

https://www.cnbc.com/2022/08/10/asia-markets-china-inflation-cpi-earnings-economic-data.html

Telus’ Net Income Soars 45% In Q2 As It Reports Rise In Mobile, Internet Customers

Telus Corp. says its net income soared by 45 per cent in its most recent quarter as the company nabbed more mobile phone and internet customers.

The Vancouver telecommunications firm swung to a net income of $498 million in its second quarter, up from $344 million in the same period last year.

The earnings for the period ended June 30 amounted to 34 cents per share, up 36 per cent from 25 cents per share.

On an adjusted basis, Telus reported a $422 million profit in the quarter, up more than 21 per cent from $348 million during the same period in 2021.

The company says it added 93,000 net new mobile phone subscribers and 34,000 net new internet service customers in the quarter.

Its revenue reached $4.4 billion in the second quarter, up seven per cent from $4.1 billion a year ago.

This report by The Canadian Press was first published Aug. 5, 2022.

Power Corp.’S Q2 Profits Fall 71 Per Cent To $527 Million

Power Corporation of Canada says it earned $527 million in the second quarter, a 71 per cent decline from the prior year’s quarter.

The Montreal-based management and holding company — which holds economic interests in insurance, retirement, wealth management and investment businesses — reported net profit of 78 cents per share, compared with the $994 million or $1.47 per share it earned in the second quarter of 2021.

On an adjusted basis, Power Corp. reported second-quarter net earnings of $584 million or 87 cents per share, compared with $1.02 billion or $1.51 per share in 2021.

Power Corp., which holds a 66.6 per cent interest in Great-West Lifeco, says that company’s contribution to its net earnings decreased by 6.5 per cent and contribution to adjusted net earnings was comparable with 2021.

Power Corp. also holds a 62.2 per cent stake in IGM Financial Inc. and says that company’s contribution to net earnings decreased by 12.8 per cent.

The company holds a 14.9 per cent interest in Groupe Bruxelles Lambert and says GBL had a negative contribution to earnings of $44 million in the second quarter, including fair value decreases and impairments in its alternative asset portfolio.

This report by The Canadian Press was first published Aug. 5, 2022.

Barrick Gold Reports US$488 Million Q2 Profit, Up From US$411M A Year Ago

Barrick Gold Corp. reported a second-quarter profit of US$488 million, up nearly 19 per cent from US$411 million in the same quarter last year.

The gold miner, which keeps its books in U.S. dollars, says the profit amounted to 27 cents per diluted share for the quarter ended June 30 compared with 23 cents per share a year ago.

Revenue for the quarter totalled US$2.86 billion, down from US$2.89 billion in the second quarter last year.

Gold production in the quarter was 1,043,000 ounces, up from 1,041,000 in the same quarter of 2021, while its average realized gold price rose to US$1,861 an ounce compared with US$1,820 a year ago.

On an adjusted basis, Barrick says it earned 24 cents per share, down from 29 cents per share a year ago.

President and chief executive Mark Bristow says the company has continued to take steps to increase its sustainability.

“There are challenging times ahead, but Barrick faces them with strong and agile leadership, a robust balance sheet, solid Life of Mine plans, a reliable cash flow and a strategy focused on sustainability and value creation,” he said in a statement.

This report by The Canadian Press was first published Aug. 8, 2022.

Potential curb on Australian LNG exports is another blow to Asia-Pacific gas markets

• Asia-Pacific has been suffering months of tight LNG supplies and soaring prices in the region due to competition from European buyers looking to replace restricted Russian gas.
• The Australian Competition and Consumer Commission called for Canberra to protect domestic gas supplies and curb exports after projecting the east coast of the country could suffer a shortfall next year.
• This could make things tough for new LNG importers such as the Philippines looking to buy their first shipments this year.

https://www.cnbc.com/2022/08/07/potential-curb-on-australian-lng-exports-is-another-blow-to-asia-pacific-gas-markets-.html

China’s July coal imports surge 24% to meet peak power load

• China’s coal imports in July rose by nearly a quarter from June to near the highest levels so far this year as power generators increased purchases to provide for peak summer electricity demand.
• The government has vowed to avoid power rationing this year and has urged coal-burning power generators, which supply about 60% of the country’s electricity, to enlarge coal stocks.
• Data tracked by Refinitiv showed China’s seaborne coal imports from Russia would hit a record high of 7.38 million tonnes in July.

https://www.cnbc.com/2022/08/07/chinas-july-coal-imports-surge-24percent-to-meet-peak-power-load.html

Earnings Due This Week

Calendar: Aug 8 – Aug 12

Monday, August 8

China foreign reserves, trade surplus, yuan financing, new yuan loans and M2 money supply.

Earnings include: American International Group Inc.; Barrick Gold Corp.; Capstone Mining Corp.; CT REIT; Curaleaf Holdings Inc.; Dominion Energy Inc.; Hudbay Minerals Inc.; RioCan REIT; WSP Global Inc.

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Tuesday, August 9

(6 am ET) NFIB U.S. small business economic trends survey for July.

(830 am ET) U.S. productivity and unit labour costs for the second quarter. Unit labour costs are expected to be up 9.7% on an annualized basis.

Earnings include: Andlauer Healthcare Group Inc.; Bausch Health Companies Inc.; Boardwalk REIT; Boyd Group Income Fund; Coinbase Global Inc.; Cronos Group Inc.; ECN Capital Corp.; Freehold Royalties Ltd.; Hydro One Ltd.; InterRent REIT; Kinaxis Inc.; Lundin Gold Inc.; Nuvei Corp.; Osisko Gold Royalties; Pet Valu Holdings Ltd.; Summit Industrial Income REIT; Superior Plus Corp.

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Wednesday, August 10

China CPI and PPI data for July. They are expected to be up 2.9% and 4.9%, respectively.

Germany and Italy CPI for July. Inflation in both countries is expected to be about 8.5% higher than a year ago.

(7 am ET) U.S. MBA mortgage applications

(830 am ET) U.S. consumer prices for July. Consensus calls for a rise of 8.8% from June – slightly tamer than May’s rise of 9.1% – or 6.1% when excluding food and energy.

(830 am ET) U.S. wholesale inventories for June. They are expected to be up 1.9%, holding stable from May.

(2 pm ET) U.S. budget balance for July.

Earnings include: ATS Automation Tooling Systems Inc.; Ballard Power Systems Inc.; CAE Inc.; Canada Goose Holdings Inc.; Canadian Apartment Properties REIT; CCL Industries Inc.; Centerra Gold Inc.; Crombie REIT; Element Fleet Management Corp.; Emera Inc.; Franco-Nevada Corp.; Goeasy Ltd.; Granite REIT; Killam Properties Inc.; Linamar Corp.; Manulife Financial Corp.; Metro Inc.; Pan American Silver Corp.; Parex Resources Inc.; Peyto Exploration & Development Corp.; Russel Metals Inc.; Stantec Inc.; Stelco Holdings Inc.; Stella-Jones Inc.; Tricon Capital Group Inc.; Trulieve Cannabis Corp.; Walt Disney Co.

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Thursday August 11

(830 am ET) U.S. initial weekly jobless claims

(830 am ET) U.S. producer product price index final demand for July. It’s expected to be up 10.4%, easing from June’s reading of 11.3%.

Earnings include: Algonquin Power & Utilities Corp.; Altus Group Ltd.; Brookfield Asset Management Inc.; Canadian Tire Corp. Ltd.; Chartwell Retirement Residences; CI Financial Corp.; E-L Financial Corp.; Equitable Group Inc.; Exchange Income Corp.; Filo Mining Corp.; H&R REIT; Lifeworks Inc.; Northland Power Inc.; Northwest Healthcare Properties REIT; Onex Corp.; Primo Water Corp.; Quebecor Inc.; Smart REIT; TransAlta Renewables Inc.; Vermilion Energy Inc.; Westshore Terminals Investment Corp.; Wheaton Precious Metals Corp.

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Friday August 12

Euro area industrial production for June. France CPI for July. Also: UK GDP, services index, industrial production, manufacturing production and trade deficit data.

(830 am ET) Canada construction investment for June.

(830 am ET) Canada new motor vehicle sales for June, expected to be down 10% from a year ago.

(10 am ET) U.S. import prices for July. They are expected to be up 9.3% from a year earlier, easing from June’s reading of 10.7%.

(10 am ET) U.S. University of Michigan consumer sentiment for August. It’s expected to be at 52.0, up slightly from 51.5 in July.

Earnings include: Cresco Labs Inc.; Dentalcorp Holdings Ltd.; Lassonde Industries Inc.; MDA Ltd.; Nexus REIT; Seabridge Gold Inc.

Suncor’s Q2 Net Profit Increases More Than Fourfold Year-Over-Year

Suncor Inc. says it earned $3.99 billion in the second quarter of 2022, or $2.84 per common share, more than four and a half times the $868 million it earned in the same period of 2021.

The Calgary-based oil producer and refiner, which reported after markets closed Thursday, says its adjusted funds from operations hit $5.35 billion in the quarter, the highest in the company’s history by 33 per cent.

Production from the company’s oilsands assets increased to 641,500 barrels per day in the second quarter, up from to 615,700 bpd in the prior-year quarter, due to increased production at its Syncrude and Fort Hills sites.

Refinery crude throughput increased to 389,300 barrels per day and refinery utilization was 84 per cent in the second quarter of 2022, compared to 325,300 barrels per day and 70 per cent in the prior-year quarter.

Suncor says it is undertaking specific safety improvements in light of a string of recent deaths at its work sites.

Suncor says it will also be undertaking a strategic review of its retail business. It says the review will evaluate and consider everything from a potential sale of the business to options to enhance the value of its retail business.

This report by The Canadian Press was first published Aug. 4, 2022.