The Daily Chase: Grocery bills expected to hit records in 2022; Nuvei responds to short report
BNN Bloomberg
One day after the Bank of Canada reiterated its view that inflationary forces like energy prices and supply bottlenecks are “stronger and more persistent than expected”, we’re getting another reminder that the cost of living isn’t going to ease any time soon.
One day after the Bank of Canada reiterated its view that inflationary forces like energy prices and supply bottlenecks are “stronger and more persistent than expected”, we’re getting another reminder that the cost of living isn’t going to ease any time soon. According to the annual forecast led by Dalhousie University and the University of Guelph, Canadians should brace for overall food price inflation of five to seven per cent next year, which works out to $966 for a sample family of four, and would mark the strongest price growth in the 12-year history of these reports. For all the talk of meatflation, however, that trend could be put to rest when the calendar flips to 2022. The food price report is pinning meat price growth next year at nil to two per cent. Whereas daily and restaurant food prices are seen as the primary inflationary drivers, with price growth of six to eight per cent. More details on this at BNNBloomberg.ca.
And quickly on the topic of food, we’ll flag here that Empire Company – the parent of Sobeys and Safeway, among other banners – said today that sales (excluding fuel) fell 1.3 per cent at stores that were open for at least one year in the latest quarter. Management also noted that the easing of COVID-19 restrictions has chewed into its sales volume as dining out ramps up.
NUVEI DISMISSES SHORT-SELLER’S REPORT
After seeing its shares plunge as much as 56 per cent yesterday before ending the session down 40 per cent, Nuvei said in a statement last night it believes the cause of that collapse – a critical report by Spruce Point Capital – was “intentionally misleading.” The Montreal-based payments processor also reaffirmed its financial forecasts. Its shares have been up almost 10 per cent in pre-market trading. We’ll point out here that Spruce Point’s claims (largely focused on criticism of management and the company’s takeover history) haven’t phased the analysts who track Nuvei. In fact, the stock has one more buy recommendation than at this time yesterday.
KINROSS DOING $1.8B DEAL
The gold miner announced last night that it has struck a deal to buy Great Bear Resources for $1.8 billion in cash and stock. The prize here is Great Bear’s Dixie project near Red Lake, Ont, which Kinross Chief Executive J. Paul Rollinson described in a release as a “top tier deposit.” The takeover offer of $29.00 per share is a 31 per cent premium to Great Bear’s closing price Tuesday, and a contingent value right worth $1.00 per share is also being dangled.
