TOP STORY
🚫 China Broadens iPhone Ban in Self-Reliance Push, Apple Shares Down 6%

This week, China extended its ban on the use of iPhones and other foreign tech within state firms and agencies. This move comes as part of Beijing’s broader attempt to reduce its dependency on American tech.

The ban is significant for Apple since China accounts for nearly 20% of its revenue. While China is also a critical hub in Apple’s production network, Apple has made recent moves to diversify its production with major Apple supplier Foxconn beginning production of the iPhone 15 in India.

The US government has recently imposed similar restrictions, including bans on telecom equipment from Chinese firms Huawei and ZTE, citing national security concerns. TikTok, the Chinese-owned video app, is also prohibited on government-issued phones in the U.S.

FROM OUR FRIENDS @ HAMILTON ETFS

🎂 HDIV Celebrates Its 2-Year Anniversary!

In addition to our CTO Kartik and Ambassador Joyee Yang’s birthdays this week, there’s another special date to celebrate - HDIV, the 4th most popular ETF on Blossom recently celebrated its 2-year anniversary! 🥳

The Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV:TSX), with a current 10.94% yield¹, seeks to provide attractive monthly income and long-term capital appreciation from a diversified, multi-sector portfolio of primarily covered call ETFs focused on Canada.

In Adriano's (aka Passive Income Investing’s) recent video about HDIV, he a few key highlights about the ETF:

1. High Yield & Diversification: HDIV offers a yield of 10.94%¹ with a sector mix similar to the TSX 60.

2. Performance: Since inception, HDIV has outperformed the S&P/TSX 60 and S&P 500 indexes (total return).²

3. Income & Growth: Modest cash leverage of 25% to enhance yield and growth potential.

4. Flexibility: Active management allows flexibility for the managers to pick the best underlying funds.

To learn more about HDIV, check out the fact sheet available on Hamilton ETFs website!

1. An estimate of the annualized yield an investor would receive if the most recent distribution remained unchanged for the next 12 months, stated as a percentage of the price per unit on August 31, 2023

2. Based on annualized total returns since inception on July 19, 2021. As at August 31, 2023. Source: Bloomberg 

MOST TALKED ABOUT THIS WEEK
⛽️ Enbridge Signs a $14B Deal to Purchase Three US Gas Utilities

On Tuesday, Enbridge’s stock fell 6.5% after announcing a $14B deal to buy three utilities from Dominion Energy including East Ohio Gas, Questar Gas, and Public Service Co of North Carolina.

The deal gives Enbridge greater access to US customers, making them the supplier of 7 million customers in Ohio, North Carolina, Utah, Idaho, and Wyoming, and also positions Enbridge as the largest gas utility business in North America.

Moody’s, a well-known credit rating agency, downgraded the outlook for Enbridge from stable to negative, saying the deal would add to an ‘already weak financial profile’.

As the 2nd most held stock on Blossom with 5,538 holders, the news drove significant discussion and activity. 1,082 investors on Blossom bought the stock this week and 189 sold.

FROM OUR FRIENDS @ IR LABS

🗓️ Virtual Roadshow for Small-Cap Enthusiasts

This Wednesday, Sept 13, irlabs will be hosting a virtual roadshow with live presentations from 17 small-cap companies in sectors ranging from food & beverage, tech, healthcare, transportation, and more!

What is a roadshow?

• A roadshow is a chance for companies to pitch investors on why they should invest in their stock.

What is irlabs?

• irlabs is an investor relations firm, meaning they work with companies to share news with existing investors and help the companies reach new investors.

What is a small cap?

• A small-cap is generally defined as a company with a <$2B market cap. Compared to ‘blue-chip’ stocks like Apple, small-caps are much more risky, with much higher and more frequent swings in the stock price (i.e. up 50% or down 50%). Investors (especially beginners) should exercise special caution when investing in these stocks.

With that in mind, roadshows can be a great way to learn about new companies in your favourite sectors, and stay up to date about the latest innovations in the industry!

ENTERTAINMENT
🍿 Disney & Comcast Negotiation Accelerates, Charter Dispute Continues

This week, Comcast ($CMCSA) agreed to expedite the sale of its 33% stake in Hulu, to Disney ($DIS). This sale would make Disney the sole owner of the popular streaming service.

Hulu is significant to Disney given its robust subscriber base of 48.3 million, outweighing Comcast Peacock's 24 million and contending with Disney+'s impressive 105.7 million global users.

Brian Roberts, Comcast’s chief executive, indicated that the valuation discussions, initially set for after January 2024, are now expected to commence post-September 30.

Meanwhile, the friction between Charter Communications ($CHTR) and Disney has escalated, leading to an unprecedented blackout of Disney-owned channels on Spectrum cable services. The dispute centers around an annual $2.2 billion payment from Spectrum to Disney to feature its channels in Spectrum's cable packages — a standard industry practice where cable providers pay a fee to content creators like Disney to make their channels available to cable subscribers.

During a Goldman Sachs event on Thursday, Charter CEO Chris Winfrey elaborated on the tense situation, mentioning a shift towards "more and more of a potential reality" where Disney channels, including the sporting titan ESPN, might be permanently absent from their offerings.

Winfrey proposed a new “general entertainment” package that comes at a reduced cost but notably excludes Disney’s sports content. He criticized the current separation between streaming and linear television offerings and called for a consolidated approach to withstand the evolving landscape of the television industry.

CANADIAN NEWS
🏦 Bank of Canada Holds Steady on Key Interest Rate

On Wednesday, the Bank of Canada (BoC) opted to pause its key interest rate at 5%, citing signals of “easing excess demand” in the economy, while expressing potential for further rate hikes if necessary.

Recent data pointed to a slowing economy, with real gross domestic product (GDP) witnessing contraction in the second quarter. However, the BoC is treading carefully to avoid fueling speculation about potential rate cuts, given that Canada’s inflation rate recently ticked up to 3.3% in July, a surge from 2.8% in June.

The employment landscape is also witnessing a downturn, with the unemployment rate increasing for three consecutive months. Industry experts hint at sluggish economic growth, raising the potential of a possible recession.

 FROM THE BLOSSOM COMMUNITY

🎙 Top Discussions This Week

🗞️ What else you might’ve missed:

• Tesla ($TSLA) just announced plans to install 20,000 EV charging stations across 2,000 Hilton ($HLT) properties in North America.

• McDonald’s ($MCD) got an upgrade from Wells Fargo, as they claim that the company “is firing on all cylinders.”

• C3.ai ($AI) plunged after forecasting a larger loss than expected for Q2.

• Microsoft ($MSFT) announced it’s teaming up with Paige to build the world’s largest image-based AI model for identifying cancer.

• AMC ($AMC) was down 43% this week after announcing plants to sell up to $40 million shares.

• WeWork ($WE) is reportedly re-negotiating all of its leases with landlords.