Oct 30, 2018
The Daily Chase: Global stocks mixed; one-on-one with WestJet's CEO
By Noah Zivitz
Global stocks are mixed this morning and futures are pointing to a muted open in New York after another stunningly volatile session on Monday. The Dow Jones Industrial Average saw the most dramatic activity, with a 918-point swing from peak to trough as Boeing led the group down. The TSX shed 1.12 per cent amid another day of hefty losses for pot stocks. And the Nasdaq fared worst of all, falling 1.63 per cent with names like Amazon and Netflix down more than 20 per cent from recent highs this month. We’ll do a deep dive on the outlook for tech with Adam Johnson at 9:35 a.m. ET and BNN Bloomberg's Andrew Bell will cover the cannabis industry’s post-legalization growing pains.
CONSTELLATION-CANOPY: ONE YEAR LATER
Check out BNNBloomberg.ca for David George-Cosh’s behind-the-scenes look at how Constellation Brands pulled Canada’s pot sector out of the fringes, in the words of one prominent Bay Street financier, one year ago today with its initial investment in Canopy Growth. As Dave reports, it was Linton’s background in Canada’s tech scene that helped attract the global alcohol powerhouse.
IN CONVERSATION WITH ED SIMS
We look forward to discussing WestJet’s latest quarterly results with CEO Ed Sims this afternoon. The airline returned to profitability in the third quarter, albeit with net income down 66 per cent from last year. The airline’s stock has plunged 27 per cent this year amid a laundry list of investor concerns, ranging from labour strife, to fuel costs, and ongoing apprehension about the carrier spreading itself thin with the Swoop launch and expanded fleet.
CALGARY OLYMPIC BID UP IN THE AIR
The Calgary Herald is reporting a local council committee will vote on whether to pull the plug on the bid to host the 2026 games amid municipal-provincial-federal discord over who will foot the bill. The vote isn’t binding, but it goes to show the lack of consensus on paying up to play host to the world.
CHINA-U.S. LATEST
U.S. President Donald Trump told Fox News yesterday he thinks his administration “will make a great deal with China”. The interview aired a few hours after Bloomberg reported the White House is getting ready to heap another round of tariffs on Chinese exports if Trump and Xi Jinping fail to iron out some of their differences next move at the G20 summit in Buenos Aires.
OTHER NOTABLE STORIES
-Shares of Guyana Goldfields collapsed in early trading (40.1 per cent last time I looked) after the company cut its full-year production forecast
-AltaGas announced this morning it’s eyeing up to $2 billion in asset sales in the near term to help finance capex
-We've got a new development in Manulife's court battle that attracted the attention of notorious short seller Carson Block. The lifeco is pointing to new Saskatchewan regulations that cap the amount insurers have to accept for life insurance policies. As a result, Manulife says it will ask the court to toss claims brought forward by Mosten Investment.
-The parade of pot stocks on Wall Street will continue this week. Aphria confirmed this morning it will make its NYSE debut on Nov. 2.
-GE is slashing its quarterly dividend to a mere penny per share in the latest sign of the industrial conglomerate’s fall from grace. The company is also taking a US$22-billion impairment charge and restructuring in Power unit.
-Shares of BP have been up as much as 4.8 per cent in London after the company’s third-quarter adjusted profit more than doubled to US$3.84 billion. Notably, due in part to higher (global) oil prices the company now says it will finance the acquisition of BHP’s shale assets entirely with cash.
-The Canadian Union of Postal Workers’ rotating strike has moved into Montreal. Walkouts are also ongoing in parts of B.C.; Ontario; Manitoba; and Lloydminster, SK.
-Callidus Capital has appointed finance industry veteran Patrick Dalton as interim CEO amid Newton Glassman’s leave of absence. The announcement included details on Glassman’s recent spine and back surgery and indicated there’s no clear timeline for his return.
NOTABLE RELEASES/EVENTS
-Notable earnings: WestJet, AltaGas, Genworth MI Canada, GE, Coca-Cola, Facebook, Mastercard, Pfizer, eBay, Under Armour, Fiat Chrysler
-Notable data: S&P/Case-Shiller U.S. home price index, U.S. consumer confidence
-9:30 a.m. ET: CRTC Chair Ian Scott addresses Senate Standing Committee on Transport and Communications
-10:00 a.m. ET: Apple holds product launch event in Brooklyn, NY.
-11:00 a.m. ET: Conservative Party of Canada Leader Andrew Scheer holds fireside chat at Toronto Real Estate Board annual meeting
-3:30 p.m. ET: Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins address House of Commons Standing Committee on Finance
-4:30 p.m. ET: Former U.S. Fed Chair Janet Yellen delivers keynote at Schwab Impact conference in D.C.
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.
