MORNING NEWS CALL P·owered by Reuters

Canada Edition Friday, August 6, 2021

TOP NEWS • U.S. job growth seen strong as technical factors provide a boost U.S. job growth likely remained robust in July amid shifts in seasonal employment at schools caused by the pandemic, which could mask some softening in underlying labor market conditions as the boost from fiscal stimulus and the economy's reopening fades.

• Auto parts maker Magna cuts revenue forecast as chip crunch weighs Magna International, whose bid for Swedish rival Veoneer was trumped by chipmaker Qualcomm, cut its full-year sales forecast, citing a slowdown in automobile production as a semiconductor shortage plagues the sector.

• posts smaller loss on pot demand surge Canopy Growth reported a smaller adjusted core loss in its fiscal first quarter, as it benefited from cost cuts and a rise in cannabis use during the coronavirus pandemic.

• Amazon scores big win as India court stalls Future's $3.4 billion retail deal India's top court handed Amazon.com a major victory in a dispute where it sought to block its partner Future Group from selling $3.4 billion in assets to rival Reliance Industries.

• Biden seeks to make half of new U.S. auto fleet electric by 2030 President Joe Biden took a step toward his goal of slashing greenhouse gas emissions on Thursday with an executive order aimed at making half of all new vehicles sold in 2030 electric, a move made with backing from the biggest U.S. automakers.

BEFORE THE ’s main stock index futures edged higher, ahead of the country’s employment data, gaining support from higher oil prices. U.S. stock index futures traded in a tight range ahead of a key jobs report. Meanwhile, European shares pared losses. In Asian equity markets, Japan's Nikkei closed higher to mark its best week in over two months on upbeat earnings, while China shares ended lower on worries over a continuing surge of new cases of COVID-19 and tightening government regulations, although they recorded their biggest weekly gain in six. Gold was pinned below the $1,800 mark as the dollar firmed.

STOCKS TO WATCH • Canopy Growth Corp: The pot producer reported a smaller adjusted core loss in its fiscal first quarter, as it benefited from cost cuts and a rise in cannabis use during the coronavirus pandemic. People across North America have turned to cannabis for relaxation and entertainment during the months-long isolation caused by

REFI N ITIV'"

DATA IS JUST 1 THE BEGINNING ~ MORNING NEWS CALL - CANADIAN EDITION August 6, 2021

COVID-19, lifting sales of pot producers. Canopy, which has told investors it would turn profitable in the current fiscal year, said its adjusted gross margin improved by 1,400 basis points from a year earlier to 21%. The company posted an adjusted core loss of C$63.6 million for the three months ended June 30, compared with a C$94 million loss in the fourth quarter.

• Magna International Inc: The auto parts maker, whose offer to buy Swedish rival Veoneer was trumped by chipmaker Qualcomm, cut its full-year sales forecast, citing a slowdown in automobile production due to a semiconductor shortage plaguing the sector. Magna's revenue for the year is now expected to be between $38 billion and $39.5 billion, compared to a previous forecast of $40.2 billion to $41.8 billion. Net income attributable to Magna was $424 million, or $1.40 per share, in the quarter ended June 30, from a loss of $647 million, or $2.17 per share, a year earlier. Total sales more than doubled to $9.03 billion. "The second quarter of 2021 included the production disruptions due to the ongoing global semiconductor chip shortage," Magna said in a statement.

ANALYSIS CEOs and central bankers talk past each other on inflation The bosses of top multinationals are fretting about rising inflation but the very people responsible for keeping price growth in check - central bankers - seem unfazed. Even as policymakers at the U.S. Federal Reserve, European Central Bank and elsewhere diverge on how quickly to wind down massive pandemic stimulus programmes, they agree on one thing: the recent surge in inflation is not a major concern.

ANALYSTS' RECOMMENDATION • BCE Inc: JPMorgan raises target price to C$66 from C$60, after the company reported solid second-quarter results with better-than-expected postpaid phone net adds and strong wireless financials.

• Bombardier Inc: ATB Capital Markets raises target price to C$2 from C$1.75, after the company delivered better -than-expected second-quarter results.

• Lightspeed POS Inc: ATB Capital Markets raises target price to C$200 from C$150, driven by higher payments penetration in North America, and incorporating the launch of payments in Europe.

• Inc: RBC raises price target to C$71 from C$69, saying the company’s second-quarter results were good driven by strong results in the U.S. and Canada.

• Corp: raises target price to C$145 from C$139, citing the company’s best second-quarter organic revenue growth in over a decade.

ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0830 (approx.) Average hourly wages permanent employee yy for July: Prior 0.10% 0830 (approx.) Employment change for July: Expected 177,500; Prior 230,700 0830 (approx.) Unemployment rate for July: Expected 7.4%: Prior 7.8% 0830 (approx.) Full time employment change SA for July: Prior -33,200 0830 (approx.) Part time employment change SA for July: Prior 263,900 0830 (approx.) Participation rate for July: Prior 65.2% 1000 Ivey PMI for July: Prior 67.7 1000 Ivey PMI SA for July: Prior 71.9

COMPANIES REPORTING RESULTS August 6: Boralex Inc: Expected Q2 loss of 2 Canadian cents per share Canopy Growth Corp: Expected Q1 loss of 26 Canadian cents per share Cronos Group Inc: Expected Q2 loss of 7 cents per share Magna International Inc: Expected Q2 earnings of $1.38 per share Power Corporation of Canada: Expected Q2 earnings of 94 Canadian cents per share Sprott Inc: Expected Q2 earnings of 40 cents per share

August 9: Corp: Expected Q2 earnings of 26 cents per share GDI Integrated Facility Services Inc: Expected Q2 earnings of 51 Canadian cents per share

REFI N ITIV'"

DATA IS JUST 2 THE BEGINNING ~ MORNING NEWS CALL - CANADIAN EDITION August 6, 2021

Hudbay Minerals Inc: Expected Q2 earnings of 11 cents per share Ltd: Expected Q2 earnings of $2.09 per share Osisko Gold Royalties Ltd: Expected Q2 earnings of 10 Canadian cents per share Village Farms International Inc: Expected Q2 loss of 3 cents per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 0730 CCL Industries Inc: Q2 earnings conference call 0830 Cronos Group Inc: Q2 earnings conference call 0830 Kinaxis Inc: Q2 earnings conference call 0830 Parkland Corp: Q2 earnings conference call 0900 Badger Infrastructure Solutions Ltd: Q2 earnings conference call 0900 Recipe Unlimited Corp: Q2 earnings conference call 0900 Russel Metals Inc: Q2 earnings conference call 1000 Canopy Growth Corp: Q1 earnings conference call 1000 Chartwell Retirement Residences: Q2 earnings conference call 1000 Corp: Q2 earnings conference call 1000 Sprott Inc: Q2 earnings conference call 1100 Ballard Power Systems Inc: Q2 earnings conference call 1100 Boralex Inc: Q2 earnings conference call 1100 Enerplus Corp: Q2 earnings conference call 1100 goeasy Ltd: Q2 earnings conference call 1100 Interfor Corp: Q2 earnings conference call 1100 Ritchie Bros Auctioneers Inc: Q2 earnings conference call 1130 Sandstorm Gold Ltd: Q2 earnings conference call 1200 Silvercorp Metals Inc: Q1 earnings conference call

EX-DIVIDENDS There are no major exdivs for the day.

(All analysts' estimates are according to I/B/E/S Refinitiv data.)

REFI N ITIV'"

DATA IS JUST 3 THE BEGINNING ~ MORNING NEWS CALL - CANADIAN EDITION August 6, 2021

PICTURE OF THE DAY

Men's heavyweight boxing gold medallist Julio Cesar La Cruz of Cuba poses for photos during the medal ceremony in Kokugikan Arena, Tokyo, Japan, August 6. REUTERS/Ueslei Marcelino

The Financial and Risk business of Thomson Reuters is now Refinitiv. © 2021 Refinitiv. All rights reserved.

(Compiled by Sourav Bose and Haneyl Jacob in Bengaluru) Refinitiv 3 Times Square, New York, NY 10036 To subscribe for The Morning Newscall newsletter click here Please visit: Refinitiv for more information. For questions or comments about this report, contact: [email protected] Privacy statement

To launch a Co-branded Morning News Call from your firm, contact: [email protected]

REFI N ITIV'"

DATA IS JUST 4 THE BEGINNING ~