TD Bank and Bank of Montreal signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023.
A busy week lies ahead for Canada’s business world, with major banks, retailers, and economic data in focus. From earnings reports to labour negotiations, several developments could shape market sentiment in the coming days.
Big Banks Set to Report
Canada’s largest banks will reveal their third-quarter earnings this week, giving investors a close look at the sector’s financial health. Bank of Montreal and Scotiabank will kick things off on Tuesday. Their results will be followed by Royal Bank of Canada and National Bank on Wednesday. CIBC and TD Bank Group will close out the week with their announcements on Thursday. Analysts are expected to pay particular attention to loan growth, credit losses, and performance in capital markets as interest rates and economic pressures weigh on financial institutions.
Air Canada Contract Vote
Flight attendants at Air Canada will begin voting Wednesday on a tentative labour agreement. The deal, which ended a strike at the airline earlier this month, includes higher wages and a new pay system for time spent working on the ground. The outcome of the vote will be closely watched as the airline works to stabilize operations after labour unrest. The decision could also set the tone for future negotiations in Canada’s aviation sector.
Dollarama Earnings in Focus
Discount retailer Dollarama Inc. is scheduled to release its second-quarter earnings on Wednesday, followed by a conference call with analysts. The results will provide insight into Canadian consumer spending habits at a time of high living costs. The company recently completed its acquisition of The Reject Shop Ltd., a discount retailer based in Australia. The deal marks a major international expansion for Dollarama and could become a significant growth driver in the years ahead.
Hudson’s Bay Back in Court
Hudson’s Bay Co. will return to court on Thursday and Friday as part of an ongoing legal dispute with its landlords. The hearings will determine whether landlords must accept B.C. billionaire Ruby Liu as a tenant. Liu has signed an agreement to purchase 28 Hudson’s Bay leases. While three have already been approved because they are in malls she owns, landlords are resisting the transfer of the remaining 25, arguing that Liu lacks a clear plan for the properties. The court’s decision could play a crucial role in the future of one of Canada’s most storied retailers.
GDP Data to Close the Week
Statistics Canada will release its June and second-quarter GDP figures on Friday, offering a snapshot of the country’s economic performance. An early estimate suggested a modest rebound of 0.1 percent in June and a flat reading for the quarter overall. The data will be closely monitored by policymakers, economists, and businesses as Canada continues to navigate sluggish growth and the lingering effects of high interest rates.
