BLACKBERRY PROGRESS REPORT
BlackBerry is tumbling in pre-market trading after the smartphone pioneer-turned-software leader came up light on the top line. First-quarter adjusted revenue was US$244 million, about 20 million less than analysts, on average, expected. It surprised with a two-cent adjusted per share profit. But, evidently – at least based on the early reaction, that’s not good enough. Much more on this story throughout the day. Jameson will monitor the call at 8:00 a.m. ET. And BNN's Amber Kanwar picks up the file from Waterloo later this morning, including an interview with CEO John Chen at 10:40 a.m. ET.
BUFFETT HALO EFFECT
Now that the world’s most famous investor has thrown his support behind Home Capital Group, today we consider the halo effect. “When we did this transaction, we were focused on what was this going to mean to the depositors,” director Alan Hibben told us in the First on BNN interview yesterday. Is the Buffett seal of approval enough for advisors to steer their clients into Home Trust and Oaken GICs? Dale Jackson and Pattie Lovett-Reid will bring their perspective to that crucial question this morning.
Hibben also made us wonder whether this is just a stepping stone for Warren Buffett in Canada. “We do think it might say something about the shape of the Canadian housing market, and how a respected global investor might think about [that],” he told us. Two questions to consider: Will Buffett put more money to work in Canada? And could his presence make some of Canada’s housing bears reconsider the outlook?
Also worth pointing out the halo effect extended well beyond Home Capital yesterday. While HCG surged 27%, names like Equitable Group (+12.5%) and Genworth MI Canada (+11.5%) also spiked.
LIFE AFTER SEARS
I’d like to hear more about the ripple effect from the 59 store closures that were announced yesterday. What happens to the smaller communities affected? How about the landlords and suppliers?
B.C. LIBERALS AWAIT THEIR FATE
Christy Clark’s minority government made a last ditch effort yesterday at preserving power with its speech from the throne, but the Green-NDP alliance is showing no signs of relenting in its bid to topple the Liberals. There were some policy reversals in the speech, and also continued support for controversial wedge issues like Site C, LNG and Kinder Morgan’s Trans Mountain Expansion. Today we’ll get you set for the next steps in the process that could see a confidence vote happen as early as next week.
IN CONVERSATION WITH ROBERT DE NIRO
That’s something BNN has never been able to say before. Today, we’ll bring you Jon Erlichman's interview with the legendary actor. It’s part of our new Sidelines project, where we sit down with celebrities to talk about how they’re capitalizing on their star power by building businesses beyond what made them famous. Watch for De Niro on BNN at 10:20 a.m. ET today.
BNN Advisor
Vancouver: Housing concerns cross generations
Winnipeg and Saskatchewan: The loonie and U.S. protectionism weigh on Central Canada
Yellowknife and Whitehorse: The hurdles of northern living and aboriginal issues
OTHER NOTABLE STORIES:
-The legislation is in place, but still big questions for the Canada Infrastructure Bank. Chief among them: governance. Recall we were recently told that the government has received a recommendation on who should chair the controversial upstart. Jon will have insight on next steps in the process.
-We’ll keep an eye on units of Dream Office REIT after it announced property sales worth $1.7 billion after yesterday’s closing bell. Among the divestitures: Dream’s 50 per cent stake in Scotia Plaza. It’s a full exit for Dream barely five years after it teamed up with H&R REIT to buy the plaza in a $1.27-billion deal. Also worth considering the KingSett factor here. Second time this week we’ve seen it as a high-profile buyer. – Producer: Michael
-Today is supposed to be the deadline for the U.S. Commerce Department to reach a decision on anti-dumping duties on Canadian softwood. Officially, we’ve been told the decision won’t be announced until Monday. We’ll be ready in case it leaks early.
-And one notable anniversary: Hard to believe that it’s already been one year since the United Kingdom voted to leave the European Union. Still so many unknowns about what the reality of Brexit will look like. As always, the currency is arguably the best barometer. And today the Great British Pound is trading around 1.27 against the U.S. dollar. A year ago, it was nearly 1.49.
NOTABLE RELEASES/EVENTS
-Notable earnings: BlackBerry (conference call at 8:00 a.m. ET)
-Notable data: Canadian CPI (8:30 a.m. ET), U.S. new home sales (10:00 a.m. ET)
-9:00 a.m. ET: New guidelines to reduce health risks from cannabis use to be announced in Ottawa
-10:00 a.m. ET: Finance Minister Bill Morneau makes infrastructure announcement in Etobicoke, Ontario – we’re sending camera
-11:15 a.m. ET: St. Louis Federal Reserve President James Bullard delivers speech in Nashville
-Deadline for U.S. Commerce Department to reach preliminary decision on Canadian softwood anti-dumping duties
-Alberta Energy Minister Margaret McCuaig-Boyd in Bismarck, North Dakota, to promote Alberta energy industry
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN'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.bnn.ca/subscribe.
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