2023-08-08 20:25:05
(Illustration: Camille Charbonneau)
NEWS ESSENTIALS
• Moody’s downgrades US banks and warns other banks might be downgraded. Moody’s downgraded the credit ratings of several small and midsize U.S. banks on Monday and said it may downgrade some of the country’s biggest lenders, warning that the sector’s credit strength will likely be put to the test. challenged by financing risks and lower profitability.
• Barrick beats quarterly earnings estimates on rising gold prices. Barrick Gold beat analysts’ expectations for its second-quarter profit as the Canadian gold miner benefited from higher gold prices.
• UPS cuts its revenue forecast due to lower e-commerce demand and a new labor contract. United Parcel Service has lowered its 2023 revenue and margin forecasts, hurt by slowing e-commerce demand and an improved employment contract it has offered its employees, which caused its shares to decline 6.6% in pre-market trading.
• Restaurant Brands, parent company of Burger King, exceeds quarterly revenue estimates. Restaurant Brands beat market estimates on quarterly sales, driven by growing demand at its Burger King chain and steady traffic at Tim Hortons.
• Eli Lilly exceeds profit estimates, driven by its new diabetes drug. Eli Lilly beat Wall Street estimates for second-quarter profit and raised its full-year profit forecast, buoyed by strong demand for its new diabetes drug, Mounjaro, ahead of a decision on its use as a weight loss treatment.
TRENDS BEFORE OPENING
Futures contracts linked to the main Canadian stock market index fell while the commodity prices fell following data showed China’s imports and exports fell more than expected in July, stoking fears of weak demand from the world’s biggest consumer of metals. Futures contracts on Wall Street eased as financial stocks tumbled following Moody’s downgraded the credit ratings of several small and midsize U.S. banks and signaled it may downgrade some of the country’s biggest lenders. European banking stocks fell sharply following Italy approved a 40% profit tax on lenders for 2023, while the FTSE 100 index of London fell, penalized by declines in the mining sector following the disappointing results of Glencore. On the Asian front, the average for Japanese equities Nikkei ended higher, following gains in US equities overnight. At the same time, Chinese stocks retreated following disappointing trade data. I’or fell due to the rising US dollar.
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TITLES TO FOLLOW
• Shopify: The e-commerce company asked a federal judge in West Texas to compel a patent holder, who was suing it for infringement, to reveal its backers, arguing that such disclosure is necessary to avoid possible conflicts of interest. Shopify said there was evidence that Lower48 IP’s intellectual property was backed by backers that had not previously been disclosed. “Unless the court requires disclosure of third-party interests, neither the court nor Shopify will know who the beneficiaries of this litigation are,” its attorneys wrote. Shopify General Counsel Jess Hertz said in a statement that Shopify would “aggressively” seek to unmask companies that the company says are “stealthily orchestrating hundreds of patent litigation cases each year” in an effort to get quick wins.
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