HEADLINES
Services PMI Rose to 47.2 in March as War Weighed on Demand, Activity
Activity in Canada's services industry remained in decline last month as the geopolitical uncertainty stirred up by the Iran war weighed on market demand and lifted costs, data showed.
The S&P Global Canada services purchasing managers index nudged up to 47.2 in March, a further improvement after advancing to 46.5 the month before but still indicating a solid decline for the sector and a fifth successive month below the 50 threshold separating contraction from expansion.
Business services and transport and storage companies recorded especially acute falls in output during March, S&P Global's survey found.
"The impact of the war in the Middle East has led to heightened uncertainty and delayed decision making amongst clients, although firms are confident that a swift resolution would lead to an uplift in activity," said Paul Smith, economics director at S&P Global Market Intelligence.
Barrick's Big Pakistan Copper-Gold Project Faces Possible Jump in Cost, Timeline
Barrick Mining warned of a possible jump in the cost and in timeline to develop its massive copper-gold project in Pakistan.
The Canadian miner said it is slowing development activity at the Reko Diq project and continuing a review until mid-2027 following preliminary findings and an escalation of security issues in the country and region.
Barrick had estimated the first phase of development would cost between $5.6 billion and $6 billion, and phase two between $3.3 billion and $3.6 billion, with first production targeted by the end of 2028.
Barrick said it continues to believe in the long-term value of Reko Diq, which it estimates is one of the world's largest undeveloped copper and gold projects.
MDA Space's Satellite Pipeline Driving Growth, JPMorgan Says
MDA Space's satellite business has scale and momentum, which should help the stock grow at a faster clip.
JPMorgan said in a report that the satellite business "comprises about 75% of the company's $40 billion five-year pipeline." The concentration of demand underpins the bank's view that the segment "has room to run," supported by a new Montreal facility capable of producing around 400 satellites a year.
With Satellite Systems sales already rising significantly since 2021, coupled with exposure to both commercial and military markets, JPMorgan said MDA is positioned as a national champion as Canada's defense budget grows 9% annually.
JPMorgan initiates coverage on the stock with a overweight rating and an initial price target of $34.
Extendicare Shares Rise as TD Upgrades to Buy on Home Health Care Growth Acceleration
Extendicare shares rose after TD Cowen upgraded the stock, citing the company's growing home health care platform as a key driver of future performance.
Shares rose 1.4% to C$28.14.
The Canadian senior-care company's Home Health Care operations have been behind the company's strong stock growth, said TD Cowen analyst Jonathan Kelcher in a report.
TD Cowen upgraded the stock to a buy rating from hold, and the target price to C$32 from a prior C$19.
Nutrien Is Taking Steps Toward Portfolio Optimization
Nutrien is making a new push to optimize its portfolio, which the company expects will drive higher free cash flow per share.
CIBC's Hamir Patel said in a report that since 4Q24, the company has generated around $900 million in gross proceeds from shedding noncore assets and is targeting decisions on phosphate, Trinidad Nitrogen and Brazil Retail by the end of 2026.
CEO Ken Seitz told CIBC the Phosphate review remains ongoing, with options including "restructuring ... a partnership or a sale," while Trinidad's idled nitrogen assets remain economically unfeasible given gas constraints and port issues. In Brazil, Nutrien has cut retail locations by around half and achieved breakeven Ebitda, yet still sees room to "further improve its ROIC."
Patel said these steps reinforce confidence in the outperformer rating.
TALKING POINT
Kraken Robotics Primed for New Era of Underwater Warfare
By Adriano Marchese
The world is pivoting toward unmanned warfare, and Kraken Robotics is positioning itself at the vanguard.
The St. John's, Newfoundland-based firm has seen a surge in demand for its subsea sensors, drones and robotic systems as global militaries race to secure underwater infrastructure and adapt to new domains of conflict.
"When they need it, they really need it," Chief Executive Greg Reid said in an interview. "And we're in one of those moments right now."
For over a decade, Kraken developed its seafloor technology for a defense market that was largely exploratory. That changed in 2022: The invasion of Ukraine and the sabotage of the Nord Stream pipelines transformed naval modernization from a long-term goal into an immediate strategic priority.
With its pending C$615 million acquisition of the U.K.-based underwater technology company Covelya Group, Kraken is expanding its capabilities to meet the accelerating demand.
Roughly 70% to 80% of Kraken's pre-acquisition revenue was defense-related, Reid said, where the rest was commercial business largely centered on using its equipment to gather and process offshore data for customers. The Covelya deal adds more commercial exposure while also giving Kraken the scale and capabilities to bid as a prime contractor on larger defense programs.
Kraken is also positioning itself to accommodate faster procurement cycles as military orders accelerate thanks to greater availability of capital. Greater investor interest has lifted the stock by more than threefold in the past year, allowing the company to raise C$402.5 million in March to expand capacity and reduce lead times.
The company has more than tripled its capacity to produce underwater batteries with the addition of a new facility in Halifax, complementing its operations in Germany. The new money has gone toward investing more heavily into its inventory, shifting toward what Reid called building to forecast rather than waiting for signed orders before purchasing parts.
"We are ready and waiting," Reid said.
Reid also sees the rise in autonomous underwater vehicles as part of a broader structural shift in naval procurement rather than an exclusively wartime need. From the Baltic to the Strait of Hormuz where Iranian mines now threaten one of the world's most critical shipping lanes, governments are scrambling to build undersea surveillance and mine-hunting capabilities that went underinvested in for years.
Submarines and surface ships will always be central to naval fleets, Reid said, but drones and autonomous crafts are playing a bigger part in operations. "You can complement [bigger ships] with highly capable underwater drones that can perform a lot of functions," he said. "And instead of costing multiple billions per asset, you might be talking anywhere from one to $50 million dollars per asset."
Reid said the shift toward unnamed systems is part of a broader awakening across Western defense budgets.
"The cat is out of the bag. This is not a blip in time," Reid said. "This is recognizing that it's a more dangerous world out there."
Write to Adriano Marchese at [adriano.marchese@wsj.com]
Expected Major Events for Tuesday
05:00/JPN: Feb Indexes of Business Conditions - Preliminary Release
07:45/ITA: Mar Italy Services PMI
07:50/FRA: Mar France Services PMI
07:55/GER: Mar Germany Services PMI
08:00/UK: Mar UK monthly car registrations figures
08:30/UK: Mar UK Official Reserves
08:30/UK: Mar S&P Global UK Services PMI
10:00/FRA: Feb OECD CPI
12:15/CAN: Mar Official International Reserves
12:30/US: Feb Advance Report on Durable Goods
12:55/US: 04/04 Johnson Redbook Retail Sales Index
14:00/US: Apr RCM/TIPP Economic Optimism Index
14:00/CAN: Mar Ivey Purchasing Managers Index
15:00/US: Mar Global Services PMI
19:00/US: Feb Consumer Credit
20:30/US: API Weekly Statistical Bulletin
23:30/JPN: Jan Final Labour Survey - Earnings, Employment & Hours Worked
23:30/JPN: Feb Provisional Labour Survey - Earnings, Employment & Hours Worked
23:50/JPN: Feb Balance of Payments
23:50/JPN: Mar International Transactions in Securities
23:50/JPN: 4Q Revised Balance of Payments
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
Aehr Test Systems (AEHR) is expected to report for 3Q.
Avalon Advanced Materials Inc (AVL.T) is expected to report for 2Q.
Bank of South Carolina Corp (BKSC) is expected to report for 1Q.
Franklin Resources Inc (BEN) is expected to report.
Greenbrier Cos Inc $(GBX)$ is expected to report $0.87 for 2Q.
Kura Sushi USA Inc (KRUS) is expected to report $-0.17 for 2Q.
Kustom Entertainment Inc $(KUST)$ is expected to report for 4Q.
Levi Strauss & Co $(LEVI)$ is expected to report $0.37 for 1Q.
Skillsoft Corp $(SKIL)$ is expected to report for 4Q.
Ultralife Corp $(ULBI)$ is expected to report for 1Q.
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(END) Dow Jones Newswires
April 06, 2026 16:30 ET (20:30 GMT)
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