HEADLINES
Bank of Montreal and Rival Lenders Lift Dividends on Back of Earnings Growth
Canada's biggest banks are bumping up shareholder payouts after logging a jump in quarterly earnings and a drop in loan-loss provisions, despite the heightened uncertainty created by the Middle East conflict.
Bank of Montreal, Bank of Nova Scotia and National Bank of Canada kicked off earnings season for the country's largest lenders with plans to lift their dividends, supported by capital reserves that remain well above the minimum required by the industry regulator even with ongoing share buybacks.
The banks, which rank among the six biggest that together control most of Canada's banking assets, each recorded underlying earnings for the fiscal second quarter that topped analyst forecasts and improvement in return on equity, a closely watched measure of profitability.
Scotiabank Boosts Dividend Payout as Earnings Climb National Bank Raises Dividend 6.5% After Earnings Increase
Lululemon Stock Rises on Peace Deal With Founder
Lululemon Athletica and company founder Chip Wilson are burying the hatchet.
They have reached a deal that will allow Wilson to name two new directors to the company's board after its annual meeting in June. The company also agreed to add a third director with product and brand expertise in apparel to the board by Oct. 1.
In exchange, Wilson, who owns 8.7% of Lululemon's shares, will agree to stop criticizing the company for 18 months.
Lululemon shares settled nearly 3% higher at $131.04.
Canada in Talks to Acquire Saab Spy Planes, Carney Says
Canadian officials have entered into talks to acquire surveillance aircraft from Saab, Prime Minister Mark Carney said, as the nation rebuilds its military and strengthens security ties with Europe.
At a defense conference Wednesday in Ottawa, Carney said the Swedish company's GlobalEye aircraft would help detect and deter threats across the Arctic. Saab said it has offered to build, maintain and upgrade the planes that Canada purchases in partnership with Canadian firms.
Saab added that it has neither signed an agreement nor received an order from Ottawa.
Montreal-based Bombardier supplies the underlying platform for the GlobalEye aircraft. Carney said that, as envisaged, about a third of the aircraft produced would be assembled in Canada, creating about 3,000 aerospace-sector jobs, with a good portion of them in Quebec.
Canada Moves Toward Energy Superpower Goal With German LNG Deal
Canada unveiled a deal to sell liquefied natural gas to Germany, marking a significant step in Prime Minister Mark Carney's effort to capitalize on its oil-and-gas reserves and position the country as an energy superpower.
Canadian Energy Minister Tim Hodgson said Wednesday that Germany's state-owned utility, SEFE, has agreed to purchase one million metric tons a year of LNG for up to 20 years, with shipments starting early in the 2030s. SEFE said the agreement, once concluded, would mark Germany's first partnership with a Canadian LNG supplier.
The deal is the result of geopolitical developments this decade - Germany attempting to reduce its reliance on Russian gas, and Canada trying to increase exports of its energy products to non-U.S. markets amid heightened trade tensions between Ottawa and Washington.
Institutional Fund Manager LetkoBrosseau Launches Retail Mutual Funds to Broaden Reach
Montreal-based investment manager Letko, Brosseau & Associates Inc. is launching eight mutual funds as it makes its first foray into serving retail investors after decades spent focused on institutional money managers.
The new funds will be managed with "substantially" the same investment approach and team as LetkoBrosseau's institutional strategies, the company said in a statement.
The eight funds will be offered through investment advisers and represent most of LetkoBrosseau's largest investment strategies, accounting for most of its C$22.5 billion in assets under management.
Source Energy Services Gets TSX Green Light for C$4 Million Buyback
Source Energy Services intends to launch a share repurchase program to buy back up to C$4 million worth of shares.
The Canadian oilfield services company said Wednesday that the Toronto Stock Exchange has approved its plan to buy back up to 996,288 common shares over the course of a one-year period starting on May 29.
Shares fell 4.8% to C$13.78.
TALKING POINT
More Certainty Needed on Trade Talks and Major Projects, Bank CEOs Say
By Stefanie Marotta of The Globe and Mail
Three chief executive officers of Canada's biggest banks are cautioning that businesses and consumers need greater certainty on trade negotiations and major project investments as Ottawa seeks to bolster the economy amid geopolitical tensions.
Bank of Nova Scotia, Bank of Montreal and National Bank of Canada posted higher second-quarter profits on Wednesday that beat analysts' expectations, bucking concerns over trade and economic uncertainty.
Scotiabank chief executive officer Scott Thomson said he has observed a "significant change in tone" from international investors, who are becoming more interested in opportunities in the Canadian market.
"I've lived this, you've seen a lot of foreign money leave Canada, and now you have a lot of foreign money looking at Canada for foreign direct investment," Thomson said during a conference call with analysts.
He said Canada's pension funds -- which have typically focused on global investments -- are considering investing in projects within Canada. The Maple 8 pension funds have faced criticism for neglecting domestic opportunities.
Thomson referred to a "grand bargain" in Western Canada as part of Prime Minister Mark Carney's efforts to attract capital. Earlier this month, Alberta and Ottawa struck a deal on carbon pricing and emissions reductions, a key step in advancing a plan for a new oil pipeline.
He pointed to Ottawa's plans to potentially privatize airports. Institutional investors, including pension funds, would be the most likely buyers.
Thomson also said the Harmonized Sales Tax rebate on new homes is "having an impact on real estate in Ontario." The federal and provincial governments announced the HST rebate on new homes in March in a bid to revive home building industry and jumpstart sales of thousands of newly built, but unsold, condos in the Toronto region.
Trade uncertainty over looming negotiations on the United States-Mexico-Canada Agreement has weighed on businesses, causing them to pause on spending on their growth plans.
Thomson said there is growing awareness among business leaders across North America that the three markets depends on each other.
"CUSMA is not something that's going to be ripped up," he said, using the Canadian acronym for the deal.
"It may continue to evolve, and there may be tariffs on specific sectors, and there may be some industries that are impacted, but ultimately it's very clear that this regional trading bloc is increasingly important to the US, as opposed to unimportant."
BMO CEO Darryl White said the Canadian economy must contend with modest GDP growth, persistent inflation and unemployment. Clarity on USMCA negotiations and infrastructure investments would boost growth in both Canada and the U.S.
Business clients have been advocating for greater regulatory competitiveness in Canada, White said. And recent measures by the federal government, including speeding up project reviews and improving trade relationships, are a "good start."
"Businesses operate across multiple jurisdictions, and meaningful growth will depend on a co-ordinated approach and alignment across governments to drive a more competitive environment for business investments in Canada," White said during a conference call.
National Bank CEO Laurent Ferreira said the war in Iran will continue to disrupt supply chains, driving inflation and higher rates. He also said ongoing trade tensions and unemployment are causing "commercial tensions" in Canada.
"It feels like we are in a bit of a lull in our country, in terms of business investment," Ferreira said. "We are definitely encouraged by the shift in our government towards a focus on the economy, so that bodes really well going forward."
Expected Major Events for Thursday
00:30/JPN: Apr Detailed Import & Export Statistics
06:45/FRA: Apr PPI
08:00/ITA: May Consumer Confidence Survey
08:00/ITA: May Business Confidence Survey
09:00/ITA: Apr Foreign Trade non-EU
10:00/ITA: Apr PPI
12:30/US: Apr Advance Report on Durable Goods
12:30/US: 1Q Preliminary Corporate Profits
12:30/CAN: Mar Payroll employment, earnings and hours, and job vacancies
12:30/US: 1Q 2nd estimate GDP
12:30/CAN: 1Q Balance of Payments
12:30/US: 05/23 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: Apr Personal Income and Outlays
13:00/RUS: Weekly International Reserves
14:00/US: Apr New Residential Sales
14:30/US: 05/22 EIA Weekly Natural Gas Storage Report
16:00/US: 05/22 EIA Weekly Petroleum Status Report
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:30/JPN: May CPI (Tokyo), CPI ex-Food (Tokyo)
23:30/JPN: Apr Labour Force Survey
23:50/JPN: Apr Preliminary Retail Sales
23:50/JPN: Apr Preliminary Industrial Production
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
ATS Corp (ATS.T) is expected to report $0.15 for 4Q.
Ambarella Inc $(AMBA)$ is expected to report $-0.45 for 1Q.
American Eagle Outfitters Inc $(AEO)$ is expected to report $0.11 for 1Q.
American Woodmark Corp $(AMWD)$ is expected to report $0.22 for 4Q.
Asana Inc $(ASAN)$ is expected to report $-0.13 for 1Q.
Atlantic International Corp $(ATLN)$ is expected to report for 1Q.
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May 27, 2026 16:31 ET (20:31 GMT)
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