The Daily Chase: Biden’s OPEC plea lands with a thud; Wood prices collapse

US National Security Advisor Jake Sullivan and the broader Biden administration have a lot to think about today after their very public call for OPEC + to pump more oil (which landed with a thud in Alberta).

The International Energy Agency has cut its forecast for global oil demand growth for this year and dismissed supply fears that just weeks ago pushed crude prices to new heights three years. “OPEC + ‘s immediate impetus comes up against slower growth in demand and higher production from outside the alliance, eliminating lingering suggestions of tight supply in the near term or of a super cycle, ”the watchdog said in its latest market report. He also warned that OPEC + production is unlikely to follow a “linear path” next year.

And we also heard directly from OPEC today, with this commitment in its latest Oil Market Report: “Amidst these precarious prospects, the vigilance and determined efforts of the countries participating in the [declaration of cooperation] will always be more important in our efforts to maintain a stable and balanced market. So it seems that the cartel is in no rush to flood the market.

THE EXECUTIVES ‘PARADE CONTINUES

Today we have another slew of great Canadian business leaders on the network, with many company specific and macro themes to explore with each one. After announcing significant revenue growth as COVID restrictions eased in the second quarter, Ellis Jacob, CEO of Cineplex shares his take on the reopening process with Greg at 3:20 p.m. We also have Linda Hasenfratz from Linamar, who runs a Canadian industrial heavyweight that has just returned to profitability, at 9:10 am We’ll hear some great Canadian plays on food trends and consumption when Managing Director of Metro Eric La Flèche and Pizza Pizza CEO Paul Goddard (whose board of directors just increased dividend payments) join us shortly after 10 a.m. and we will meet again at 8.45 a.m. with Chris Goodridge, President and COO of VerticalScope Holdings – whose quarterly results this week were not very well received by investors despite a 59% jump in advertising revenue.

FRAMEWORK …

Much interest these days in the remarkable collapse in lumber prices. At market close yesterday, Chicago-traded futures have fallen almost 71% since they peaked at US $ 1,686 in May. It’s worth pointing out that in the vast commodities world, this is the wood that U.S. Federal Reserve Chairman Jerome Powell has often touted as a case study in transient inflation..

OTHER SIGNIFICANT STORIES

  • Our Bloomberg News partners report that Tim Hortons“The Chinese company is close to making a deal to be made public via a SPAC, with an announcement possible this week. The backstory: Restaurant Brands International partnered with Cartesian Capital Group in 2018 to open more than 1,500 Tim Hortons branches in China over a decade.
  • Canadian tireS’s online business is booming, with record e-commerce activity increasing overall revenue 23.9% to $ 3.9 billion in the second quarter. Its normalized earnings exceeded the analysts’ average estimate at $ 3.72 per share.
  • A big deal announced after the closing bell yesterday by the Montreal company Software as a Service Firm MDF Commerce. He envisions the growth of the digitization of US public markets with the acquisition of Periscope Intermediate Corp. for $ 259.9 million. For reference, MDF’s market cap at yesterday’s close was $ 243.7 million. There is bought deal financing and a private placement to help fund the transaction.

NOTABLE OUTPUTS / EVENTS

  • Notable data: initial jobless claims in the United States and producer price index
  • Notable Benefits: Brookfield Asset Management, Cineplex, CAPREIT, Chorus Aviation, Pet Valu, Indigo Books & Music, The Walt Disney Co., Airbnb
  • 9 am: The Parliamentary Budget Officer publishes the report “Financial support for Air Canada”
  • 9 a.m .: Ontario releases quarterly financial update
  • 11:15 am: US President Joe Biden delivers remarks at White House on plan to cut prescription drug costs

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