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Streetwise Streetwise newsletter: CIBC lowers full-year profit outlook; Wealthsimple raises $100-million

Here are the top reads on deals and financial services over the last 24 hours,

CIBC lowers full-year profit outlook, following flat second-quarter earnings: Canadian Imperial Bank of Commerce reported second-quarter earnings largely on par with expectations, but the lender is recalibrating its forecast for the full fiscal year and now expects little-to-no profit growth in 2019. CIBC made $1.3-billion in its most recent quarter, a 1.9-per-cent gain over the same period in 2018. After adjusting for one-time items, the bank’s profit has been flat for five straight quarters. Story (Tim Kiladze, for subscribers)

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Wealthsimple raises $100-million in one of Canada’s largest investment rounds for a fintech company: Power Financial Corp.’s online investment manager Wealthsimple has raised $100-million in one of the country’s largest investment rounds for a fintech company. Wealthsimple announced Wednesday that its latest round of funding was led by Allianz X, the digital investment arm of Germany-based Allianz Group, a global insurer and investment company that manages almost €2-trillion in assets. Story (Clare O’Hara, for subscribers)

HSBC to open 50-person AI lab in Toronto: HSBC Holdings PLC is opening a new 50-person data lab in Toronto that will harness the city’s artificial-intelligence talent. The London-based global bank announced the lab at the Collision tech conference in Toronto on Wednesday. Story (Josh O’Kane)

Here’s how Canadian banks are trying to keep their customers hooked on borrowing: Full credit to the banks for resourcefulness in selling Canadians on ways to rack up more debt. The latest debt numbers from the credit-monitoring firm TransUnion Canada suggest developments in real estate lending have slowed the market for home equity lines of credit, or HELOCs. Opinion (Rob Carrick)

Barrick bids to buy remaining Acacia shares, put an end to Tanzania tax dispute: Barrick Gold Corp is offering US$285-million in stock to buy the minority share of Acacia Mining PLC it doesn’t already own, in a move that may finally end a multiyear export ban in Africa that has crippled a portion of its gold production. Toronto-based Barrick, which already owns 63.9 per cent of London-listed Acacia, says it is prepared to offer 0.153 of a Barrick share for each minority Acacia share. Story (Niall McGee)

MORE DEALS NEWS

U.S. Justice Dept staff recommends blocking T-Mobile-Sprint deal, sources say: The U.S. Justice Department’s antitrust division staff has recommended the agency block T-Mobile US Inc’s $26 billion acquisition of smaller rival Sprint Corp, according to two sources familiar with the matter. While Justice Department staff balked at the merger, the Federal Communications Commission indicated on Monday it had reached an agreement in principle with the companies to allow the deal after the companies agreed to sell Sprint’s prepaid brand Boost Mobile. Story (Reuters, for subscribers)

Canopy Growth pushes into Cannabis beauty and wellness with $73.8-million This Works buy: Canopy Growth Corp. said on Wednesday it would buy skincare company This Works for $73.8-million, adding beauty and sleep products to the Canadian weed producer’s portfolio of cannabis oil, hemp and medical capsules. Story (for subscribers)

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