Scotibank Previews Canada's Macroeconomic Data Out on Monday

FINWIRES Analysis

The bank's caveat to watch volumes over headline values is the key tell: a 4.5% shipments jump driven by price rather than real output would overstate manufacturing momentum. Pairing soft housing starts with price-inflated factory data points to an economy where nominal strength masks flat real activity. This nuance matters more for Bank of Canada framing than the raw beat.

Key Takeaways

Price effects may inflate headline shipments gain

Volume data is the real signal

Housing starts seen pulling back

Canadian manufacturing shipments are expected at 8:30 a.m. ET on Monday to post strong growth of about 4.5% month-over-month seasonally adjusted based on advance guidance from Statistics Canada, said Scotiabank.

However, the bank advises watching volumes as higher prices probably played a significant role in April.

Also at 8:30 a.m. ET on Monday, Scotiabank noted that Canadian wholesale sales are expected to post a small rise with similar arguments.

Canada also refreshes housing starts for May at 8:15 a.m. ET on Monday that may pull back, added the bank.

Morguard Announces $250 Million Debenture Offer and Early Redemption of Series H Senior Unsecured Debentures

Morguard (MRC.TO) agreed to issue $250 million aggregate principal amount of series J senior unsecured debentures, it said after markets closed on Thursday.The debentures will bear interest at a rate of 4.307% per year and will mature on June 18, 2029.Morningstar DBRS assigned a provisional rating of "BBB (low)" with a Stable trend.The company also said that it will redeem all of its outstanding 9.5% Series H senior unsecured debentures due Sept. 26, 2026 on June 22, 2026.The net proceeds of the offering will be used towards the early redemption of the 2023 debentures and for general corporate purposes, it added."The redemption price will be paid in cash and is approximately $1,014.753 per $1,000 principal amount of 2023 Debentures, together with accrued and unpaid interest on the 2023 Debentures up to, but excluding, the Redemption Date," said the company.The company's shares were last seen up $1.00 at $122.00 on the Toronto Stock Exchange.Price: $122.00, Change: $+1.00, Percent Change: +0.83%

$MRC.TO

Japan Gold Announces US$1 Million Convertible Debenture Financing; Shares up 5.8%

Japan Gold (JG.V) on Friday said it will raise US$1 million from a private placement of unsecured convertible debenture for gross proceeds of US$1 million to Equinox Partners Investment Management, a strategic investor and major shareholder of the company.The three-year debenture bears an interest rate of 10% per year, accruing daily but payable in cash only at the maturity date, on the occurrence of an event of default or upon an early redemption, stated the company.The company will have the right, at its option, to make an early redemption in cash of all or any part of the principal amount together with payment of any accrued but unpaid interest, said the company."In addition, the company will have the right, at its election, to satisfy its obligation to pay cash to the debenture holder through the delivery of common shares of the company in lieu of cash, at a price per share which equals the greater of: (i) the most recent market price of the shares on the TSX Venture Exchange on the date that the accrued interest becomes payable; (ii) $0.11; and (iii) a price per security or conversion price of debt securities in a future financing event," stated the company.The net proceeds will be used for general working capital purposes, said the company.Equinox holds a 29.32% stake in Japan Gold.The company's shares were last seen up C$0.005 to C$0.09 on the TSX Venture Exchange.

$JG.V