BMO Equity Research IN Tune

In this short (7 min) Metal Matters podcast, we discuss whether the recent RRR cut signals a Chinese policy change which could influence commodity markets, moving forward the first Fed hike, steel production cuts in China and why Europe’s carbon border adjustment mechanism is just a stepping stone.Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/132C274D-CDFC-4E2F-B7DE-4B1BF484D9D0.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

As equity markets head into the second half of 2021, the following podcast provides an update on our forecasts for both the US and Canadian stock markets, with particular attention on the secular bull market in the US, Canada’s consistent performance, and the transition to more fundamentally driven portfolio management.Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/8E7041BD-9C39-4CEB-83A4-030509E14121.PDFTo access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

In our inaugural Metal Matters podcast, we consider China’s SRB base metal sales, met coal market tightness, cost inflation and our latest commodities outlook.BMO clients can view our report, "Q3 2021 Commodity Price Update - Beyond the Inflationary Bottleneck Bonanza", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/b115acb0-9b85-452b-b1c2-197536e25703/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/132C274D-CDFC-4E2F-B7DE-4B1BF484D9D0.PDFTo access our full disclosures, please visit:https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

Oil & Gas Thematic Analyst Jared Dziuba discusses the BMO Energy Research Team’s latest IN Front report: “Survivor Canada: The Unparalleled Position of Canadian Oil in a Transition Challenge.” Against commonly held views, we engage in a thought-provoking discussion about why the Canada’s oil sands business is poised to maintain long-term production, and potentially gain market share in a net zero, energy transition world. Jared points out that Canada and its oil companies have practiced ESG since before it was even a “thing,” and why they are poised to maintain a faster pace of improvement than industry. He further explains how oil sands bitumen is distinctly unique in both its extraction and makeup, which provides transition opportunities not available to other sources of oil and supports its longevity in the global supply chain. Finally, Jared suggests that there is meaningful investment opportunity in the “underdog,” as the stocks of Canadian producers have been disproportionately affected by sustainability concerns, despite our findings to the contrary.BMO clients can view our report, "Survivor Canada: The Unparalleled Position of Canadian Oil in a Transition Challenge", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/0da735b3-5b1c-4496-a91b-4e15583f2ff8/To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A02B1E8C-0334-46FD-8AC7-AC74AE1D3083.PDF

In this podcast, Sohrab reviews the Canadian banks’ second quarter results, makes the case why Canadian banks should be outperformers in the next year or so, and draws investors’ attention to Outperform-rated BNS, CM, and NA.To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/

BMO Capital Markets’ Group Head, Dan Barclay, moderates a discussion on the takeaways from BMO’s 16th Annual Farm to Market Conference across the food and agriculture value chain.Joel Jackson, Chemicals and Fertilizer Analyst, explores how farmers and crop input producers are handling higher commodity prices, how on-farm carbon management and sustainability are becoming increasingly relevant, how digital agriculture analytics tools have become table stakes, and how technology may become the solution to a host of farming stresses, including sustainability, labour shortages, and an aging farmer demographic.Kelly Bania, Food Retail Analyst, discusses the critical importance of supply chains in the food industry, the outlook for food inflation, and how membership fatigue could push more partnerships across the consumer landscape so that retailers can offer benefits beyond the basics.Ken Zaslow, Food and Agribusiness Analyst, dives into how many of the companies across the food supply chain are positioned to benefit from the current environment. In addition, he suggests that the inflation we are seeing is both broad based and demand driven, and exacerbated by supply constraints, implying it is unlikely to ease in the near term. Ken also digs into the learnings from his recent report “Mission Impossible: Assessing ESG Risks and Opportunities in the US Packaged Food Industry.”Together, Dan and the three analysts take a deep dive into trends of the future, inflation, and ESG in a 20-minute podcast that covers the core themes of BMO’s 16th Annual Farm to Market Conference.To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/5615AAA7-A560-455F-AD1C-2189F65F2C57.PDF

Congested urban landscapes and overburdened ground infrastructures are about to be transformed with a new form of transportation, a scheduled or on-demand air taxi service that can whisk passengers along faster, safer, and less expensively than the alternatives. Improvements in battery technology and distributed electric propulsion and leaps in aerospace technology have given rise to electric vertical takeoff and landing (eVTOL) aircraft.We expect that the first commercial flights of these innovative new aircraft should begin in late 2023 and that the likely first use case is as a scheduled airport shuttle. The leading startups have already attracted $3.2 billion in venture capital, and major brands such as Airbus, Boeing, Hyundai, and Porsche are pursuing their own urban air mobility solutions. We estimate that the total addressable market for eVTOLs could be more than $1.25 trillion by 2035.We believe that eVTOLs can be more than competitive with cars or even pooled car services. At annual production volumes of 5,000 units or more, we estimate that a given eVTOL type can be about 390% and 190% cheaper on a per passenger mile basis than UberX and UberPool, respectively.We anticipate that eVTOL aircraft will be operated by commercial pilots meeting high safety and recurring training standards. We project eVTOL could require 66,000 additional pilots over the coming decade, expanding the current addressable market by 25%.We believe that Outperform-rated CAE will be a key beneficiary of this new dimension of transportation —urban air mobility. BMO clients can view our report, "Ready for Takeoff: Urban Air Mobility Takes Flight", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/e5011038-0b74-470e-b064-1ac1bfa4f06f/To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/3A2B8424-475A-4683-93A6-10D523235EEC.PDF

Oil and Gas Analyst Randy Ollenberger discusses the notion of peak oil demand and what it really means. Randy explains why oil demand is likely to continue to grow over the balance of this decade before beginning a slow decline. He also examines the global supply outlook and discusses why there could be a supply shortage in the next five years. And finally, Randy provides his views on how the Canadian oil sands companies are positioned to outperform in this environment.BMO clients can view our report, "Oil Demand to 2040: Beyond the Hype", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/cac7fe4e-e703-4841-8b72-473ba5b343be/To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/CCB5AB8B-DE9F-40E5-AD39-5F0EDA34A4BF.PDF

Chemicals and Fertilizer Analyst Joel Jackson discusses the latest in ag chemicals, fertilizer, and lithium, and also summarizes his recent in-depth report on digital agriculture. With lower-than-expected crop production last year in different regions and China rebuilding its animal herds, crop prices have risen materially and raised the possibility of an ag super cycle. Joel explains why he thinks the seeds and crop chemicals producers could be best positioned to profit from this. He also lays out the bullish trajectory of the EV revolution, and how this is benefitting lithium suppliers. Finally, Joel presents why it has been difficult to get farmers to pay up for digital ag software analytics tools.BMO clients can view our report, "Digital Ag – Powerful Analytics Tools but So Far Only Table Stakes", by visiting: https://researchglobal0.bmocapitalmarkets.com/research/091a11b3-a6c3-4258-9981-69493a22147a/To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/A8E1F017-5F17-4F35-9FAB-9A5831F0375B.PDF

We review the implications of the announcements made at China’s recent NPC meeting, which saw the release of the 14th Five-Year Plan for economic development, for global metals and bulk commodity markets. Into H2 2021, China’s aim for more balanced growth after an investment-heavy 2020 may see a retracing of some year-to-date gains across industrial metals. Longer term, however, the country’s push for decarbonisation and rural revitalisation will help to underpin demand.To access our full disclosures, please visit: https://researchglobal0.bmocapitalmarkets.com/public-disclosure/Episode transcript: https://research-ca.bmocapitalmarkets.com/documents/78DA76D6-10C0-4D12-BDF3-448B97A2B327.PDF