INVESTMENT STRATEGY GROUP

MARKET BEAT

Monday, January 04, 2021

MACRO VIEW Market Indicators Index Level* Change YTD YTD (C$) The TSX (+0.7%) is higher helped by a rising energy sector while Wall S&P/TSX 17,547.87 0.66% 0.7% 0.7% Street's main indices are modestly lower after hitting a record high S&P 500 3,740.87 -0.40% -0.4% -0.3% earlier in the trading session. West Texas Intermediate crude oil (- NASDAQ 12,879.06 -0.07% -0.1% 0.0%

0.2%) prices are slightly down, while OPEC meets to discuss capping Dow Jones 30,324.83 -0.92% -0.9% -0.9% output at current levels in February, as COVID-19 keeps worries about Nikkei 225 27,258.38 -0.68% -0.7% -0.6% demand elevated. Gold (+2.2%) prices started the new year by Euro Stoxx 50 3,581.81 0.82% 0.8% 1.3% surpassing the key US$1,900 level, as rising COVID-19 cases have FTSE EM 2,700.64 1.16% 1.2% 1.1% investors turning to the metal. North American bond yields have steadied in morning trade with the U.S. 10-year at 0.93%, and the Canadian Market Movers Canadian 10-year at 0.68%. The Canadian dollar strengthened against the greenback as oil prices climb and domestic data showed factory BPY-U Brookfield Prope 16.2% activity expanding in December at its fastest pace on record. WEED Canopy Growth Co 8.8%

Canadian factory activity grew at its fastest pace on record in K Kinross Gold 7.1% Decembe r as new orders and production expanded, while manufacturers ABX Barrick Gold Crp 6.8% remain optimistic that output would continue to rise. WPM Wheaton Precious 6.2% CAR-U Can Apartment -0.9%

CANADIAN MARKETS QSR Restaurant Brand -1.0%

SHOP Shopify Inc -1.2% Brookfield Asset Management (BAM.A, -3.1%) has offered to buy all of BNS Of Nova Sco -1.5% the units it currently does not own of Brookfield Property Partners BAM/A Brookfield Ass -3.1% (BPY.UN, +16.4%) for US$5.9 billion or US$16.50 per unit representing a *As of January 4 2021 10:31 AM. Source: Bloomberg 14% premium to the last closing price. BPY unitholders will have the option to receive US$16.50 in cash, 0.40 Brookfield Class A shares, or U.S. Market Movers 0.66 of BPY preferred units with a liquidation preference of US$25.00 TSLA Tesla Inc 4.2% per unit. NVDA Nvidia Corp 3.0% Fiera Capital (FSZ, +3.2%) is selling Bel Air Investment Advisors, its INTC Intel Corp 2.9% ultra-high net worth private wealth platform to Hightower Advisors. It XOM Exxon Mobil Corp 2.0% has also completed the sale of its New York-based private wealth TMO Thermo Fisher 1.9% investment manager, Wilkinson Global Asset Management, to Wilkinson CMCSA Comcast Corp -2.1% Global Capital Partners. Fiera noted that the combined selling price for both transactions is approximately $81 million. RTX Raytheon Technol -2.4% BKNG Booking Holdings -2.5% Magna (MG, -0.9%) agreed with Fisker (FSR-NYSE, +2.3%) to develop an KO Cocaola Co/The -2.6% Advanced Driver Assistance System for the Fisker Ocean SUV which is BA Boeing Co/The -3.0% expected to launch in late 2022. The Fisker Ocean will be manufactured *As of January 4 2021 10:31 AM. Source: Bloomberg exclusively by Magna in Europe.

Benchmark Bonds & Rates U.S. MARKETS Chg1 Yld1 Mar-212 Jun-212

Magellan Health (MGLN, +12.2%) shares were trading higher following CA 2YR 0.00% 0.20% 0.35% 0.40% the announcement that it will be acquired by the health insurer, CA 10YR 0.00% 0.68% 0.80% 0.85% Centene (CNC, +1.5%). Centene will pay US$2.2 billion in cash to US 2YR 0.00% 0.12% 0.30% 0.30% US 10YR 0.01% 0.92% 1.00% 1.10% purchase Magellan, inclusive of debt. The equivalent US$95 per share purchase Rate1 Mar-212 Jun-212 price represents a 14.7% premium to Magellan’s prior closing price. CA Prime 2.45% - - MGM Resorts (MGM, -4.1%) has placed a bid to acquire British company CA Overnight Tgt 0.25% 0.25% 0.25% Entain for US$11 billion. Entain, the parent of betting firm Ladbrokes, Fed Funds Tgt 0.25% 0.13% 0.13%

1 - As of January 4 2021 10:31 AM.; 2 - CIBC forecasts. Source: Bloomberg CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 1 Market Beat

Currencies & Commodities has noted that the offer significantly undervalues its business. Price* Change YTD Thermal imaging and sensor maker, FLIR Systems (FLIR, +19.1%) will be C$/US$ 0.785 0.001 -0.1% acquired by Teledyne Technologies (TDY, -7.4%) for US$8 billion in cash US$/€ 0.815 0.005 -0.4% and stock combined. The deal reflects an implied share price of US$56, Gold $1,934.96 $36.28 1.9% a 28.1% premium to its prior closing price. Copper per 100 lb $357.45 $5.55 1.6%

The UK has begun administering doses of AstraZeneca (AZN, +1.9%) and Oil (WTI) $48.52 $0.00 0.0% Oxford University’s joint COVID-19 vaccine. Unlike the vaccines Oil (WCS) $33.92 $0.75 2.3% developed by competitors Pfizer (PFE, -1.0%) and Moderna (MRNA, Natural Gas (NYMEX) $2.61 $0.07 2.7% +5.1%) AstraZeneca’s vaccine does not require extremely cold storage Natural Gas (AECO) $1.95 -$0.02 0.0% temperatures. *As of January 4 2021 10:31 AM. Source: Bloomberg Tesla (TSLA, +4.2%) reported that it delivered a record-setting 499,550 vehicles in 2020, up from 2019’s figure of 367,500. Despite exceeding Equity Indices Since Jan 2020 Wall Street’s consensus production estimate of 481,261 vehicles, Tesla 120 missed its initial 500,000 vehicle goal. Tesla points to the COVID-19- 110

related temporary closure of its U.S. plant as the main reason for 100 missing its target. 90 80

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S&P/TSX Dow Jones S&P500

Earnings Releases Name Date Est. Act. T-Mobile Us Inc (TMUS) 01/07 $0.51 -- * Micron Tech (MU) 01/07 $0.65 -- * Constellation-A (STZ) 01/07 $2.41 -- * Walgreens Boots (WBA) 01/07 $1.01 -- * Conagra Brands I (CAG) 01/07 $0.74 -- *

Lamb Weston (LW) 01/07 $0.62 -- * Corus Ent Inc-B (CJR/B) 01/12 $0.29 -- Ihs Markit Ltd (INFO) 01/13 $0.67 -- *

Shaw Comm-B (SJR/B) 01/13 $0.32 -- Aritzia Inc-Sub (ATZ) 01/13 $0.23 -- Aphria Inc (APHA) 01/13 -$0.03 --

Blackrock Inc (BLK) 01/14 $8.64 -- * First Republic B (FRC) 01/14 $1.50 -- * Source: Bloomberg * = USD Economic Calendar - Canada Economic Calendar - U.S. Day Release Prior Est. Actual Day Release Prior Est. Actual 1/4 Bloomberg Nanos Confidence 55.1 -- 56 1/4 Markit US Manufacturing PMI (Dec F) 56.5 56.3 57.1 1/4 Markit Canada Manufacturing PMI (Dec) 55.8 -- 57.9 1/4 Construction Spending MoM (Nov) 1.30% 1.00% 0.90% 1/5 MLI Leading Indicator MoM (Nov) 2.70% -- -- 1/5 ISM Manufacturing (Dec) 57.5 56.7 -- 1/5 Industrial Product Price MoM (Nov) -0.40% -- -- 1/5 ISM New Orders (Dec) 65.1 -- -- 1/5 Raw Materials Price Index MoM (Nov) 0.50% -- -- 1/5 ISM Prices Paid (Dec) 65.4 -- -- 1/7 Int'l Merchandise Trade (Nov) -3.76b -3.54b -- 1/5 ISM Employment (Dec) 48.4 -- -- 1/7 Ivey Purchasing Managers Index SA (Dec) 52.7 -- -- 1/5 Wards Total Vehicle Sales (Dec) 15.55m 15.73m -- 1/8 Net Change in Employment (Dec) 62.1k -20.0k -- 1/6 MBA Mortgage Applications 0.80% -- -- 1/8 Full Time Employment Change (Dec) 99.4 -- -- 1/6 ADP Employment Change (Dec) 307k 50k -- 1/8 Part Time Employment Change (Dec) -37.4 -- -- 1/6 Markit US Services PMI (Dec F) 55.3 55.2 -- 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

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IMPORTANT DISCLOSURES

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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.

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