INVESTMENT STRATEGY GROUP

MARKET BEAT

Thursday, September 03, 2020

MACRO VIEW Market Indicators Index Level* Change YTD YTD (C$) The TSX (-0.6%) is trading lower as the energy sector fell while Wall S&P/TSX 16,674.18 -0.14% -2.3% -2.3% Street's main stock indices are being weighed down by the tech sector. S&P 500 3,539.26 -1.16% 9.5% 10.4% West Texas Intermediate crude oil (-1.0%) prices declined to their NASDAQ 11,727.58 -2.73% 30.7% 31.8% lowest point since early August, as focus turned to weaker U.S. fuel Dow Jones 28,925.47 -0.60% 1.4% 2.2% demand and a slow economic recovery from COVID-19. Gold (-0.1%) is Nikkei 225 23,465.53 0.94% -0.8% 2.1% basically flat. North American bond yields dipped with the U.S. 10-year Euro Stoxx 50 3,353.83 0.48% -10.4% -4.7% at 0.63%, and the Canadian 10-year at 0.54%. The Canadian dollar FTSE EM 2,342.62 -0.65% 1.4% 2.2% declined against the greenback as oil prices fell and data showed a widening trade deficit. Canadian Market Movers Canada’s trade deficit widened to C$2.45 billion versus CVE Cenovus Energy 3.1% forecasts of a C$2.5 billion shortfall in July. Exports rose 11.1% and imports increased 12.7%, as motor vehicles and parts were the biggest CNQ Can Natural Res 2.8% contributors to the increase in exports and imports. The U.S. trade IMO Imperial Oil 2.2% deficit of goods and services in July expanded by 18.9% to US$63.6 IPL Inter Pipeline L 1.7% billion versus US$58 billion forecast, from a revised US$53.5 billion in WEED Canopy Growth Co 1.5% June. Exports increased from June by 8.1%, while imports gained 10.9%. TECK/B Teck Resources -1.9%

U.S. jobless claims came in better than expected totaling 881,000 AEM Agnico Eagle Min -1.9% versus 950,000 expected. The number reflects both an improving labor SHOP Shopify Inc -2.9% market as well as a change in methodology from the Labor Department OTEX Open Text Corp -3.2% to address seasonal factors. FM First Quantum -3.6% *As of September 3 2020 10:34 AM. Source: Bloomberg CANADIAN MARKETS

U.S. Market Movers Gestion Audem, a company controlled by the Audet Family that holds SPG Simon Property 3.2% 69% of Cogeco (CGO, +0.6%) voting rights and 82.9% of Cogeco SLB Schlumberger Ltd 3.0% Communications (CCA, -0.3%) voting rights has rejected the unsolicited, non -binding takeover bid from Altice (ATUS, -4.2%) and Rogers (RCI.B, - AXP American Express 2.8% 0.6% ). This was the second attempt by Rogers to move into Quebec OXY Occidental Pete 2.7% GE General Electric 2.4% after failing to acquire Videotron back in 2000. CRM Salesforce.Com -3.5% Brookfield Property (BPY.UN, +0.3%) announced that it has purchased AAPL Apple Inc -3.6% all 35.5 million units of substantial issuer bids (SIB). Each unit was acquired for US$12, a total cost of US$426 million. This purchase is a ADBE Adobe Inc -3.9% part of a US$1 billion equity commitment previously announced by PYPL Paypal Holdings -4.5% Brookfield Asset Management (BAM.A, -1.1%). BPY noted that there is NVDA Nvidia Corp -4.8% US$486 million remaining from the US$1 billion equity commitment *As of September 3 2020 10:34 AM. Source: Bloomberg which is available until the end of 2020.

Magna (MGA, -2.5%) is set to acquire the majority ownership of a Benchmark Bonds & Rates

Chinese seat supplier, Honglizhixin (HLZX). MGA will also acquire a Chg1 Yld1 Dec-202 Mar-212 majority stake in its existing joint venture with HLZX. The joint venture CA 2YR 0.00% 0.26% 0.35% 0.35% currently has two manufacturing plants and following the acquisition, it CA 10YR -0.01% 0.54% 0.70% 0.80% will look to increase this to twelve manufacturing plants. US 2YR -0.01% 0.13% 0.25% 0.30% US 10YR -0.01% 0.63% 0.80% 1.00% IGM Financial (IGM, -0.3%) announced net inflows of $271 million in August 2020 compared to $62 million last year. IGM also reported total Rate1 Dec-202 Mar-212 assets under management were $173.2 billion this month, up 1.5% CA Prime 2.45% - - month -over-month (M/M), and up 7.1% year-over-year (Y/Y). CA Overnight Tgt 0.25% 0.25% 0.25% Fed Funds Tgt 0.25% 0.13% 0.13%

1 - As of September 3 2020 10:34 AM.; 2 - CIBC forecasts. Source: Bloomberg CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 1 Market Beat

Currencies & Commodities

U.S. MARKETS Price* Change YTD C$/US$ 0.764 0.005 -0.8% Blackstone Group (BX -1.7%) and Global Infrastructure Partners have US$/€ 0.845 -0.002 -5.3% put forth an offer to purchase railroad operator, Kansas City Southern Gold $1,935.64 -$7.16 27.6% (KSU -1.2%). While the terms of the offer have not been made public, Copper per 100 lb $298.55 -$3.50 5.7% Kansas City Southern carries a market value in excess of US$18 billion. Oil (WTI) $40.93 -$0.58 -33.0% The railroad company reported 2019 revenue of US$2.87 billion and Oil (WCS) $31.12 -$1.06 -19.3% operates a network that runs from central Mexico to the U.S. Midwest. Natural Gas (NYMEX) $2.53 $0.04 15.4% Costco (COST -0.3%) reported strong sales figures for August which Natural Gas (AECO) $2.08 $0.06 21.6% included a 13.2% jump in same-store sales and a 101.6% increase in e- *As of September 3 2020 10:34 AM. Source: Bloomberg commerce sales. Net sales also climbed 15% year-over-year to US$13.56 billion. Equity Indices YTD Apparel brand PVH (PVH +5.9%) reported adjusted EPS of US$0.13 per 120 share for its second quarter, well ahead of a consensus loss of US$2.43 110 per share. Revenue was down 33% year-over-year, however, the 100 company saw a 50% jump in its e-commerce sales. 90 80 Cybersecurity provider CrowdStrike (CRWD -9.3%) fell despite releasing better-than-expected Q2 results. The company reported adjusted 70 earnings of US$0.03 per share, slightly ahead of an expected loss of 60 US$0.01 per share. Revenue also beat consensus projections, coming in

31 Jul 31

30 Apr30

31 Jan 31

30 Jun 30

31 Mar31

29 Feb 29 31 Aug31

at US$199 million over an expected US$188.5 million. The company also Dec 31 31 May 31 provided improved guidance for its third quarter. S&P/TSX Dow Jones S&P500

Earnings Releases Name Date Est. Act. Broadcom Inc (AVGO) 09/03 $5.22 -- * Cooper Cos Inc (COO) 09/03 $1.53 -- * Campbell Soup Co (CPB) 09/03 $0.61 $0.63 * Laurentian (LB) 09/04 $0.46 -- Descartes Sys (DSG) 09/09 $0.10 -- *

Transcontinent-A (TCL/A) 09/09 $0.46 -- Empire Co Ltd A (EMP/A) 09/10 $0.59 -- North West Co In (NWC) 09/10 $0.47 --

Kroger Co (KR) 09/11 $0.51 -- * Enghouse Sys Ltd (ENGH) 09/11 $0.38 -- Aurora Cannabis (ACB) 09/11 -$0.43 --

Oracle Corp (ORCL) 09/13 $0.86 -- * Lennar Corp-A (LEN) 09/14 $1.57 -- * Source: Bloomberg * = USD Economic Calendar - Canada Economic Calendar - U.S. Day Release Prior Est. Actual Day Release Prior Est. Actual 9/3 Int'l Merchandise Trade (Jul) -3.19b -2.50b -2.45b 9/3 Challenger Job Cuts YoY (Aug) 576.10% -- 116.50% 9/4 Net Change in Employment (Aug) 418.5k 250.0k -- 9/3 Nonfarm Productivity (2Q F) 7.30% 7.50% 10.10% 9/4 Full Time Employment Change (Aug) 73.2 -- -- 9/3 Unit Labor Costs (2Q F) 12.20% 12.00% 9.00% 9/4 Part Time Employment Change (Aug) 345.3 -- -- 9/3 Initial Jobless Claims 1006k 950k 881k 9/4 Unemployment Rate (Aug) 10.90% 10.10% -- 9/3 Continuing Claims 14535k 14000k 13254k 9/4 Hourly Wage Rate Permanent Employees YoY5.70% (Aug) 5.40% -- 9/3 Trade Balance (Jul) -$50.7b -$58.0b -$63.6b 9/4 Participation Rate (Aug) 64.30% 64.50% -- 9/3 Bloomberg Consumer Comfort 44.3 -- 45.1 9/4 MLI Leading Indicator MoM (Jul) -1.40% -- -- 9/3 Markit US Services PMI (Aug F) 54.8 54.7 55 9/4 Ivey Purchasing Managers Index SA (Aug) 68.5 -- -- 9/3 Markit US Composite PMI (Aug F) 54.7 -- 54.6 9/8 Bloomberg Nanos Confidence 52.7 -- -- 9/3 ISM Services Index (Aug) 58.1 57 56.9 Source: Bloomberg Source: Bloomberg BRAD BROWN, CFA - SR. MANAGER, EQUITIES PUJA GHOSH, CFA, MBA, MSC. – ASSOCIATE LAUREN ELLISON, CIM, CFP – ASSOCIATE JOHNNY TAM, MASC, CFA - ASSOCIATE ALLAN BISHOP - DIRECTOR, FIXED INCOME ANKUR JAIN – ASSOCIATE

CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 2 Market Beat

IMPORTANT DISCLOSURES

Important disclosures, including potential conflicts of interest information, our system for rating investment opportunities and our dissemination policy can be obtained by writing to CIBC World Markets Inc. BCE Place, 161 Bay Street, 4th Floor, , Ontario M5J 2S8, Attention: Research Disclosures Request. This report is issued and approved for distribution in Canada by CIBC World Markets Inc., a member of the Investment Industry Regulatory Organization of Canada and a member of the Canadian Investor Protection Fund. Any questions should be directed to your sales representative. Every province in Canada and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, some of the securities discussed in this report may not be available to every interested investor. Accordingly, this report is provided for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. No part of any report may be reproduced in any manner without the prior written permission of CIBC World Markets. The information and any statistical data contained herein have been obtained from sources which we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. All opinions expressed and data provided herein are subject to change without notice. A CIBC World Markets company or its shareholders, directors, officers and/or employees, may have a long or short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. A CIBC World Markets company may have acted as initial purchaser or placement agent for a private placement of any of the securities of any company mentioned in this report, may from time to time solicit from or perform financial advisory, or other services for such company, or have lending or other credit relationships with the same. The securities mentioned in this report may not be suitable for all types of investors; their prices, value and/or income they produce may fluctuate and/or be adversely affected by exchange rates. Since the levels and bases of taxation can change, any reference in this report to the impact of taxation should not be construed as offering tax advice; as with any transaction having potential tax implications, clients should consult with their own tax advisors. Past performance is no guarantee of future results. In preparing the advice given in this document, CIBC World Markets did not take into account the investment objectives, financial situation and particular needs of any particular client of CIBC World Markets. Before making an investment decision on the basis of any recommendation made in this document, the recipient should consider how appropriate the recommendation is to their particular investment needs, objectives and financial circumstances. To allow CIBC World Markets to take into consideration a recipient’s objectives, financial situation and particular needs, CIBC World Markets requests that, prior to acting on any of the recommendations herein, you contact one of our client advisers to discuss your particular circumstances. Although each company issuing this report is a wholly owned subsidiary of Canadian Imperial Bank of Commerce (“CIBC”), each is solely responsible for its contractual obligations and commitments, and any securities products offered or recommended to or purchased or sold in any client accounts (i) will not be insured by the Federal Deposit Insurance Corporation, the Canada Deposit Insurance Corporation or other similar deposit insurance, (ii) will not be deposits or other obligations of CIBC, (iii) will not be endorsed or guaranteed by CIBC, and (iv) will be subject to investment risks, including possible loss of the principal invested. The CIBC trademark is used under license. This report may also be distributed by any party authorized to do so by CIBC World Markets Inc. CIBC is a division of CIBC World Markets, a subsidiary of CIBC and Member CIPF. © 2020 CIBC World Markets Inc. All rights reserved. Unauthorized use, distribution, duplication or disclosure without the prior written permission of CIBC World Markets is prohibited by law and may result in prosecution. CIBC Private Wealth Management consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. CIBC Private Wealth Management is a registered trademark of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc. Insurance services are available through CIBC Wood Gundy Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc. If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor. Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by CIBC World Markets Corp./Inc.: Stock Prices as of 09/02/2020 Cogeco (2g, 12) (CGO-TSX, C$92.19) Cogeco Communications (2g, 12) (CCA-TSX, C$114.27) Rogers Communications (2a, 2c, 2e, 2g, 7, 8, 13) (RCI.B-TSX, C$56.90) Brookfield Property Partners (2g, 7) (BPY-NASDAQ, US$11.46) Brookfield Asset Management (2g, 3a, 7, 14) (BAM-NYSE, US$34.67) Magna International (2a, 2c, 2g, 4a, 4b, 7) (MGA-NYSE, US$51.45)

Key To Important Disclosure Footnotes: 1 CIBC World Markets Corp. makes a market in the securities of this company. 2a This company is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months. 2b CIBC World Markets Corp. has managed or co-managed a public offering of securities for this company in the past 12 months. 2c CIBC World Markets Inc. has managed or co-managed a public offering of securities for this company in the past 12 months. 2d CIBC World Markets Corp. has received compensation for investment banking services from this company in the past 12 months. 2e CIBC World Markets Inc. has received compensation for investment banking services from this company in the past 12 months. 2f CIBC World Markets Corp. expects to receive or intends to seek compensation for investment banking services from this company in the next 3 months. 2g CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from this company in the next 3 months. 3a This company is a client for which a CIBC World Markets company has performed non-investment banking, securities-related services in the past 12 months.

CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 3 Market Beat

3b CIBC World Markets Corp. has received compensation for non-investment banking, securities-related services from this company in the past 12 months. 3c CIBC World Markets Inc. has received compensation for non-investment banking, securities-related services from this company in the past 12 months. 4a This company is a client for which a CIBC World Markets company has performed non-investment banking, non-securities-related services in the past 12 months. 4b CIBC World Markets Corp. has received compensation for non-investment banking, non-securities-related services from this company in the past 12 months. 4c CIBC World Markets Inc. has received compensation for non-investment banking, non-securities-related services from this company in the past 12 months. 5a The CIBC World Markets Corp. analyst(s) who covers this company also has a long position in its common equity securities. 5b A member of the household of a CIBC World Markets Corp. research analyst who covers this company has a long position in the common equity securities of this company. 6a The CIBC World Markets Inc. fundamental analyst(s) who covers this company also has a long position in its common equity securities. 6b A member of the household of a CIBC World Markets Inc. fundamental research analyst who covers this company has a long position in the common equity securities of this company. 6c One or more members of Investment Strategy Group who was involved in the preparation of this report, and/or a member of their household(s), has a long position in the common equity securities of this company. 7 CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1% or more of a class of equity securities issued by this company. 8 A partner, director or officer of CIBC World Markets Inc. or any analyst involved in the preparation of this research report has provided services to this company for remuneration in the past 12 months. 9 A senior executive member or director of Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., or a member of his/her household is an officer, director or advisory board member of this company or one of its subsidiaries. 10 Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., has a significant credit relationship with this company. 11 The equity securities of this company are restricted voting shares. 12 The equity securities of this company are subordinate voting shares. 13 The equity securities of this company are non-voting shares. 14 The equity securities of this company are limited voting shares.

CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 4