Everything You Need to Know on Wednesday: Couche-Tard Sweetens Offer for 7-Eleven Owner to $47 Billion

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

● S&P/TSX 60 Index Standard Futures are trading at 1,444.70, down 0.06% from previous close

● Canada's merchandise trade deficit hit $1.1B in August: Statistics Canada

● Rate cuts have 'barely' improved housing affordability: RBC economist

● Couche-Tard sweetens offer for 7-Eleven owner to $47 billion

● Cameco eyes expansions of uranium mines on rising nuclear demand

Today, the Canadian dollar is trading at 73.12 US cents, a slight decrease from the previous close.

Statistics Canada says the country posted a merchandise trade deficit of $1.1 billion in August as lower oil prices weighed on exports.

The agency said Tuesday the result compared with a revised deficit of $287 million in July. The initial reading for July released last month pointed to a surplus of $684 million for the month.

The result came as total exports fell one per cent to $64.3 billion in August.

Exports of energy products fell three per cent, as shipments of crude oil fell 4.1 per cent, mainly due to lower prices.

Total imports edged up 0.3 per cent in August to $65.4 billion as imports of motor vehicles and parts rose 2.4 per cent.

A Royal Bank of Canada (RBC) economist says that recent interest rate cuts by Canada’s central bank have improved affordability in the country’s housing market, but not significantly.

In a report released Tuesday, Robert Hogue said RBC’s affordability metrics “inched” lower in markets across the country in the second quarter, but prospective buyers still face historic challenges.

“Buyers continue to struggle to find a home they can afford in the aftermath of massive price escalation and spike in interest rates during the pandemic,” the report said.

“Recent declines barely moved RBC’s affordability measures off worst-ever levels nationally and in many major markets.”

Hogue said that the modest improvement in affordability is expected to grow into more significant relief for homebuyers in the coming months, as the Bank of Canada is expected to continue cutting rates.

No substantive negotiations have taken place since the new offer, the people added. Seven & i confirmed later on Wednesday that it received a revised private proposal from Couche-Tard. The Japanese company said in a statement that it will maintain the confidentiality of its current discussions and act in the best interests of shareholders and other stakeholders.

“We’ve got some fantastic uranium ore bodies, and we’re looking to extend and expand those where we can,” chief executive Tim Gitzel said in an interview. Gitzel didn’t specify which projects the company might expand.

Uranium prices have soared over the past three years as investors piled into the commodity underpinning the world’s push for more nuclear energy. However, the spot price has fallen about 22 per cent this year since hitting a record high of US$106.40 per pound on Feb. 1.