Q2’s balance of payments data hammers home the trade war impact, with the current account deficit hitting a record $21B on lower exports south of the border…

… and foreign portfolio divestment of $17B accelerating to levels not seen since 2007 - as investors reduce exposure due to uncertainty.

If there was a bright spot in the print, it was in corporate investment - which showed a recovery in the activity of Canadian firms abroad (profit reinvestment, M&A) and a continued appetite from foreign (mostly U.S.) corporates to allocate capital here.

Payroll employment declined 0.2% in June, led by declines in manufacturing - which has shed nearly 2% YTD as challenges to trade impact job creation.

Job vacancies improved slightly, climbing 2.5% M/M to 492K…

… but remain down big Y/Y - with an 11% drop that’s been magnified by a 9% jump in unemployment over the same time frame.

Desjardins is taking Guardian Capital (GCG) off the market in a ~$1.7B deal, growing its platform to $280B of client assets for a hefty 60% premium - as the race to consolidate capital heats up.

The transaction comes a year after Guardian acquired Sterling Capital for ~$100M, boosting its institutional and retail footprint…

… as well as its U.S. exposure - a key part of the deal for Desjardins, who’s looking to accelerate its global expansion.

Wealth/asset management deals are hitting the wire like clockwork, with iA Financial’s $600M takeout of Richardson Wealth a month ago and BMO’s $625M Burgundy acquisition a month before that. This is a scale game - let’s see who’s next.

After its very vocal activist campaign on Dye & Durham, Plantro is back at it - taking aim at Calian Group (CGY) with a “leaked” letter to management…

… urging a full or partial sale of the company, specifically its underperforming IT segment - so CGY can focus on the generational defense setup in front of it.

Calian responded, and then announced a buyback program for up to 10% of the float - which Plantro immediately shot down as a bad use of capital. Things could get messy here, but there’s plenty of room for multiple expansion.

Flagging the selling at Bombardier (BBD), which follows its recent $2B deal.

EQB Inc. (EQB) fell 11% on earnings, which missed estimates by nearly 20% - driven by margin compression…

… and continued challenges in credit quality - counter to what we’ve seen from the other Canadian banks this quarter.

Combined with a tough outlook and new leadership, EQB’s return profile should remain under pressure in the near-term.

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