$CM

Canada’s TSX ended Thursday down 10.11 points at 36,136.31 as Middle East uncertainty weighed sentiment. Canadian Natural Resources rose after beating Q2 profit estimates; AtkinsRéalis and Quebecor also reported higher quarterly revenue. Restaurant Brands International topped same-store sales expectations. Shopify jumped after raising forecast revenue above estimates. Celestica fell; Lightspeed slipped.

Canada’s banks say they face hurdles financing defence firms because many SMEs lack prior procurement contracts and compliance track records. The government plans to expand defence spending, including a $6-billion BDC defence financing program and a defence industrial strategy to triple revenue. Banks cite regulatory and risk constraints, while procurement cycles can take about seven years.

Canada’s Financial Consumer Agency (FCAC) said controls at Canada’s Big Six banks to prevent misrepresented or unsuitable sales are “insufficient” and “underdeveloped,” though it found no widespread mis-selling. The FCAC reviewed RBC, TD, Scotiabank, BMO, CIBC and National Bank, will investigate possible conduct-rule breaches, and plans a modernized supervision framework. Complaints rose 28% at an industry ombudsman.

Butterfield Bank agreed to buy CIBC Caribbean Bank’s 91.7% stake from Canadian Imperial Bank of Commerce for US$1.794 billion, creating a combined bank and wealth manager with about US$29 billion in assets, according to a joint release. Deal completion is expected in 1H 2027, pending approvals. The offer is US$1.14 per share, 61% cash and 39% Butterfield shares.

CIBC is testing CAI 2.0, a more powerful agentic AI workspace, with about 250 handpicked employees, after launching CAI 1.0 a year ago. CIBC said CAI costs about $3 per user per month versus about $40 for some enterprise assistants like Microsoft Copilot or Google Gemini, while CAI 2.0 users pay $4 to $250 monthly depending on usage. The bank plans gradual rollout to manage compute token costs.

Fitch Ratings affirmed Canadian Imperial Bank of Commerce (CIBC) long-term IDR at 'AA-?' and short-term IDR at 'F1+', with a Stable outlook. Fitch also affirmed ratings for key subsidiaries and upgraded CIBC Bank USA’s shareholder support rating to 'aa-?' and its IDRs to 'AA-?' and 'F1+'. Fitch cited diversified earnings, capital strength, and deposit funding.

CIBC said it is partnering with Taskrabbit Canada to provide Taskers with skilled trades banking offers, including free everyday banking via the CIBC Smart Account, special credit card offers, tailored advice, and financial literacy resources. CIBC will also sponsor Taskrabbit’s quarterly Top Tasker program with cash incentives. CIBC launched a skilled trades banking offer in 2024 and expanded in 2025.

Canada’s S&P/TSX Composite (^GSPTSE) closed at 35,369.08, up 408.76 points (+1.17%). The move was attributed to rebounds in tech and materials, plus higher metals and oil amid U.S.-Iran ceasefire hopes and ongoing tariff/geopolitical concerns. Notable gainers included DSV, HBM, TKO, CLS; losers included BRE, NA, BN, CM.

Investment Executive reports that Canadian financial planners say banks are both competitors and sources of new clients, citing customer service issues. The Canadian Bankers Association says six major banks are expanding into financial planning. It cites RBC’s 1,500-planner RBC Investments group, BMO’s wealth unit, and banks’ 1999 net income of $9.1B globally.

Canada’s TSX fell 62.93 points to 35,200.92 by midday as financial and healthcare stocks declined amid cautious sentiment over escalating U.S.-Iran tensions and a softer-than-expected CPI. Canadian Imperial Bank of Commerce and National Bank of Canada dropped, while Celestica rose. Statistics Canada said June CPI rose 2.8% y/y.