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Canadian Mortgage Rate Wars

Major Canadian banks are in an intense battle for mortgage customers, significantly reducing profit margins. Royal Bank of Canada (RBC), the nation’s largest mortgage provider, has reported that its mortgage business earnings have plummeted to just one-third of previous levels.

During a conference call, RBC’s CEO Dave McKay described the current situation as “historic” and marked by “intense competition.” The bank attributes this to volatile funding costs and competitive pricing pressures — trends they believe are impacting the entire industry.

You can read more on the matter here.

What’s going on?

• FAA to Revise Environmental Assessment for SpaceX’s Boca Chica Launch Site (theDeepDive)

• China launches anti-dumping probe into Canadian canola imports in retaliation for EV tariffs (Globe)

• CPP Investments to Spend Up to $430 Million On Luxurious New Toronto Office (theDeepDive)

• Brazilians flock to Bluesky after court bans Elon Musk’s X (FT)

• Realtors Are Throwing in the Towel: TRREB Membership Drops for First Time in Years as Market Cools (theDeepDive)

• Treasury yields slide as investors weigh slowing growth fears (CNBC)

• Chase Bank Viral ‘Glitch’ Leads to A Massive Number of People … Committing Fraud (theDeepDive)

• China and Philippines trade blame over latest vessel collisions in disputed South China Sea (CNN)

• Billionaires Offer Solutions to Fix Unrealized Gains Loophole (theDeepDive)

• Bank of Canada expected to cut interest rate Wednesday with no signs of stopping there (FP)

What’s the latest?

• Market: Bond yields edged up, with ten-year yields at 3.919% and two-year yields at 3.935%, as markets awaited U.S. economic data. Asia-Pacific stocks were mixed, and economists expect the ISM manufacturing survey to remain at 47.5 and job growth of 160,000. Gold held near $2,494, while Brent crude oil fell to $77.13 per barrel.

• Corus Debt Relief: Corus Entertainment amended its credit agreement, raising its debt-to-cash flow ratio limit to 4.75 until Oct. 15, easing its financial covenants. The company has over $1 billion in debt, with major repayments due in 2027 and 2028.

• PMI Surge: Canadian manufacturing showed some stabilization in August, with the PMI rising to 49.5 from 47.8 but still below 50.0 for the 16th month. Output and new orders improved, while employment fell to 48.8. Input prices hit a 16-month high, and the Canadian dollar weakened to 1.3946 per U.S. dollar before rebounding to 1.3475.

• Tariff Retaliation: China is investigating Canadian rapeseed imports in retaliation for Canada's tariffs on Chinese goods. The probe follows a surge in rapeseed futures in China and a drop in North American canola futures. China imported 5.05 million tons of Canadian rapeseed last year, and palm oil futures rose on speculation of increased demand for alternative oils.

• BoC: Despite stronger-than-expected 2.1% growth in Q2, the Bank of Canada is likely to cut rates next week due to weak per-capita GDP and stagnant growth. The central bank's key rate, currently at 4.5%, is expected to decrease by a quarter-point. Unemployment rose to 6.4% in July, while inflation slowed to 2.5%.

This is why Bill Ackman's new fund failed

The stock market and stuff

• Volkswagen Mulls First-Ever Factory Closures in Germany (theDeepDive)

• Boeing Shares Tumble as Wells Fargo Cuts to Rare Bearish View (Bloomberg)

• Toncoin Plummets Amid Pavel Durov’s Arrest and TON Blockchain Shutdown (theDeepDive)

• Copper futures fall as Goldman cuts forecast on softening Chinese demand (BNN)

In the juniors

• ATHA Energy Concludes 10,000 Metre Drill Program At Angilak (theDeepDive)

• Lumina Gold’s Flagship: Cangrejos’ $2.2B NPV at $1,650 Gold, 26 Year Mine Life (theDeepDive)

• Goliath Resources Intersects High Concentration Of Visible Gold, Makes New Discovery At Depth (theDeepDive)

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.