HEADLINES

Producer Prices Continue to Increase, Climbing 1.3% in August

Canadian manufactured goods prices continued to march higher last month as the resumption of the conflict between the U.S. and Iran drove up energy prices.

Statistics Canada's industrial product price index increased 1.3% in July from the month before. Compared with a year earlier, prices were 13.5% higher, a 23rd straight annual increase.

The monthly advance was sharper than the 0.8% rise in the index expected by economists, and follows a softer 0.3% increase in producer prices in June. The continued increase in prices hints at inflation risk for Canadians at a time when the central bank is wary of the spike in energy costs this year passing through more broadly into higher prices.

Prices for raw materials bought by manufacturers operating in the country also increased between July and August, and showed another jump from last year.

Stellantis Could Face Strike Threat in Canada Over Factory Sale

The union representing more than 9,000 Stellantis employees in Canada said it could be in a strike position in the coming weeks unless the carmaker changes course on its plan to sell a Toronto-area factory to a defense firm.

Unifor officials are weighing their next steps, as the current labor deal with Stellantis expires on Sept. 20, Lana Payne, the union's president, said Thursday. The union's goal is to reach a tentative settlement with Stellantis without a strike, she added.

"However, bargaining remains extremely challenging right now, and we are at an impasse. Therefore, strike action remains a real possibility," Payne said.

Metro Reaches Tentative Deal to End Months-Long Quebec Distribution Strike

Metro has reached a tentative agreement with the union representing distribution, transportation and administrative employees in Quebec, potentially bringing to an end a five-and-a-half month labor strike.

The Canadian grocer said that it has reached the agreement in principle with STTEUMR for the renewal of the collective agreement with 550 union employees at the produce distribution center in Laval. The lengthy labor dispute has been ongoing since March 30.

The agreement will be submitted to employees for a ratification vote on Sept. 24.

Luca Mining Buys Mexico Project From Agnico Eagle

Luca Mining has agreed to acquire a gold-silver-copper project in Jalisco, Mexico, from mining major Agnico Eagle Mines for up to $60 million, plus a net smelter return interest.

Luca Mining said that it would pay Agnico Eagle for the El Barqueno property $10 million up front in newly issued shares, followed by two $15 million deferred contingent payments that can be paid with either cash or stock. It would then pay up to $20 million upon achievement of certain production milestones.

Agnico Eagle would also receive a 2% net smelter return interest on all metal production for certain areas of the property that currently have a defined mineral deposit. Luca said it would have the right to purchase back half of the net smelter return for $12.5 million.

Silvercorp Metals Renews Buyback Program for 4% of Public Float

Silvercorp Metals has renewed its share-repurchase program to buy back up to 4% of its shares over the next year.

The Canadian mining company said it plans to buy back up to 8.8 million of its own shares for cancellation through a normal course issuer bid.

Silvercorp can begin buying back the shares starting Sept. 21.

Telesat, Orange Commission First European Gateway for Lightspeed LEO Network

Telesat and telecom operator Orange have commissioned the first European ground gateway for the Telesat Lightspeed low Earth orbit satellite network.

The gateway is a key component of Telesat's terrestrial infrastructure as it looks to deploy an initial 225 satellites that will form the Telesat Lightspeed constellation.

Telesat's shares rose 5.3% to C$72.09.

The gateway, which is now installed and commissioned, is hosted in Orange's teleport in Bercenay-en-Othe, France, where the company will provide connectivity to Telesat's hub in Paris.

Orvana's Bolivia Project Produces First Copper Cathodes from Stockpiles But Output Guidance Dropped

Orvana Minerals has hit a second key milestone in the ramp-up of processing operations in Bolivia but warned its subsidiary in the country continues to fall behind production expectations.

The mining company on Thursday withdrew a recently scaled-back production target for its Empresa Minera Paititi unit.

Based on the ramp-up performance to date and the estimated time needed to reach stable operating conditions, Orvana said fiscal 2026 production is expected to be below guidance provided in August.

TALKING POINT

Carney Puts His Pivot Away From the U.S. to the Test

By Amanda Coletta

STRASBOURG, France -- Canadian Prime Minister Mark Carney is attempting the most dramatic reorientation of his country's economy and international alliances since Ottawa entered a free-trade agreement with the U.S. almost 40 years ago.

Carney used an address to the European Parliament to insist that his efforts weren't aimed at creating a third bloc "to become a great-power rival-only with better manners."

Instead, he cast the idea of a bespoke partnership with the European Union as critical for protecting Canada's sovereignty, at a time when it is locked in a trade war with the U.S. and confronting President Trump's threats to make it the 51st state.

Carney, who didn't mention the president in his address, later told a news conference that no one would dictate his country's partnerships. He spoke not long after Trump had derided Canada as a "terrible trade partner" and described the idea of Canada gaining associate membership of the EU as a potentially "hostile act" attracting additional U.S. tariffs on European countries.

In two high-profile forums this week-Canada's inaugural investment summit in Toronto where he played host to the titans of global finance, and a whirlwind trip to Europe-Carney sought to put into practice his plan to insulate the country from Trump's economic aggression. Together they brought into focus the scale of Carney's ambitions and the challenges and risks that accompany them.

Since becoming prime minister, Carney has set a goal of doubling Canada's non-U.S. exports by 2035 and has been on the hunt for export markets outside the U.S., where traditionally three quarters of its exports have gone. He has spent much of his time in office jet setting across the globe to drum up new investment and forge new trade and security partnerships.

For Carney, who was educated at the University of Oxford and served seven years as governor of the Bank of England, Europe has been key to his plans. Unlike several of his predecessors, who made their first international trips to the U.S, Carney's debut on the international stage took in Paris and London, where he touted Canada as "the most European of non-European countries."

Since then, Canada became the first non-European nation to join the EU's defense procurement mechanism. Carney was the first head of government from outside Europe to attend a European Political Community meeting this year, and this week was the first non-European leader to attend the address that opens a new session of the European Parliament.

European and Canadian officials have said the two sides want the closest possible relationship short of full membership in the EU. There are scant details on what associate membership would entail, but in his address, Carney called for greater cooperation in areas such as critical minerals, energy, space and artificial intelligence, and for Canadian participation in the EU's study-exchange program.

"We are not fair-weather allies," he said. "We do not pursue zero-sum deals. Our commitment to the rule of law, and our unyielding defense of human dignity, individual freedom and democracy share the same deep roots, the same unwavering dedication."

Forging deeper ties with Europe has broad support in Canada, but some opposition lawmakers have warned that it could erode, not shore up, sovereignty. Carney said he intends to hold a vote in the Canadian Parliament on the final structure of the new pact. Canada and the EU have had a trade agreement since 2017, but 10 EU members haven't ratified it.

The arrangement could also draw blowback in some European capitals and the U.S.

"If they do that, if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things," Trump said on Wednesday, responding to a question about Canada possibly becoming an associate member.

In a news conference, Carney called the new Canada-EU alliance a "positive process" and said no one would dictate his country's partnerships.

"That's my response to the American president," he said.

Write to Amanda Coletta at amanda.coletta@wsj.com

Expected Major Events for Friday

06:00/GER: Aug PPI

06:00/UK: Aug Retail sales

08:30/UK: 2Q Bank of England statistics on UK banks' external claims

08:30/UK: Aug Monthly Insolvency statistics

08:59/JPN: Japan Monetary Policy Meeting decision

09:00/ITA: Jul Balance of Payments

13:15/US: Aug Industrial Production and Capacity Utilization

14:00/US: Aug Leading Indicators

14:00/US: Aug State Employment and Unemployment

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Friday Bloomia Holdings Inc (TULP) is expected to report for 4Q.

Progressive Corp $(PGR)$ is expected to report.

Southern Banc Co Inc (SRNN) is expected to report for 4Q.

Starcore International Mines Ltd (SAM.T) is expected to report for 1Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.