Everything You Need to Know on Thursday: Rogers Communications Acquires Bell's $4.7 Billion Stake in MLSE

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,439.30, up 1.65% from previous close

● August inflation keeps Bank of Canada on track to cut, says UBS

● Rogers Communications acquires Bell's $4.7 billion stake in MLSE

● TD Bank CEO Bharat Masrani to retire, Canadian head Raymond Chun to take over

Today, the Canadian dollar is trading at 73.71 US cents, an increase from previous close.

Canadian headline inflation decreased by 0.2% in August, with the annual rate slowing to 1.95% from July's 2.53%, as reported by UBA. Core inflation edged up by 0.1% month-over-month, with the annual core rate declining to 2.43%. The Bank of Canada's core inflation metrics also showed a slowdown, with the trimmed mean at 2.4% and the weighted median at 2.3%.

Shelter costs rose by 0.44% month-over-month in August, though the annual increase moderated to 5.34%. Despite a rise in rents, overall price pressures in the consumer price index decreased, with fewer components exceeding a 3% annual increase.

The labor market showed increasing slack, with a notable drop in the employment-to-population ratio to 60.8%. UBA anticipates that the Bank of Canada might cut rates by 25 basis points in October, with potential further reductions if economic conditions weaken. More details are expected in the Bank of Canada's upcoming September meeting summary.

Rogers, owner of the Toronto Blue Jays and Sportsnet, sees this acquisition as central to its strategy in communications and entertainment. Bell plans to use the sale proceeds to reduce debt and focus on transforming its business model, while continuing to broadcast games and maintaining sponsorship ties with MLSE teams. The transaction, expected to close in mid-2025, is subject to league and regulatory approvals.

Rogers emphasized that the deal will not impact its debt leverage, involving private investors for financing. The agreement also secures long-term Canadian ownership and investment in these teams, aligning with Rogers' broader sports and media strategy.

Masrani, who has served as CEO for a decade, steps down amid a major money laundering scandal in the U.S., which has led TD to reserve US$3-billion for potential penalties. Chun, a TD veteran with 32 years at the bank, has managed the wealth management and insurance sectors prior to his current role. Despite his relatively short nine-month tenure leading the profitable Canadian personal and commercial banking division, his promotion comes as part of a larger executive reshuffle at TD.

Additionally, Riaz Ahmed of TD Securities is set to retire early next year, with Tim Wiggan, currently heading wealth management, poised to succeed him. The changes in TD’s leadership come at a pivotal time as the bank navigates through its legal challenges and aims for stability in its operations.