Here are five things you need to know this morning:
Canadian Western Bank says legal claim to blame for delayed earnings: There are three certainties in life: death, taxes, and your stock paying the price if you inexplicably delay your earnings release. Canadian Western Bank got a reminder of the latter last week after delaying its fourth-quarter results on Friday without explanation. Over the weekend the bank says a legal claim related to one of its units was to blame and added that the outcome is unlikely to have a material effect on either its financial results or its looming takeover by National Bank. Things may well turn out to be fine in the long run, but the bank got a lesson in why sunlight is the best disinfectant, as the stock had its worst day in a year and a half on the uncertainty.
Gold rally restarts after China central bank starts buying again: The price of gold is trading higher this morning after word that China’s central bank is adding bullion to its reserves for the first time in seven months. China’s central bank said it bought 160,000 ounces of gold last month, the first net purchase since March. The spot price for bullion is up by more than US$30 to $2,663 an ounce this morning.
Lundin Mining sells European assets: TSX-listed miner Lundin Mining is selling its operations in Portugal and Sweden to Boliden. The deal is worth US$1.37 billion at a minimum but could go up depending on what happens with the price of copper and zinc. The company says it will use the proceeds to strengthen its balance sheet and support the expansion of its projects in Chile and Argentina.
Consumer confidence is slumping, Nanos says: Consumer confidence in Canada has fallen to its lowest level in a year, according to the Bloomberg Nanos Confidence Index. The weekly gauge of consumer sentiment fell to 51.54 from 52.15, while expectations for the future slipped even more, to 48.69 from 49.66, the lowest since December of last year. “Canadian consumer confidence continues a downward trajectory in the wake of the U.S. presidential election,” pollster Nik Nanos said. “People are almost four times more likely to think the economy will get weaker rather than stronger in the next six months.”
Lululemon stock has best day since 2018: Shares in Lululemon will be one to watch today to see if the apparel maker can stretch out last week’s buying spree. The shares had their best day since 2018 on Friday on strong earnings and an even better forward outlook. The stock has sold off heavily this year but was the biggest contributor to the S&P’s gain on Friday, with eight times the normal trading volume.