Here are five things you need to know this morning
Mixed signals on Canadian economy: We have some mixed signals on the Canadian economy this morning. Gross domestic product shrank by 0.3 per cent in August, coming in lower than the flat growth that was expected. Manufacturing was a weak spot -- goods-producing industries overall shrank by 0.6 per cent, marking the fifth contraction since the start of the year. However, StatsCan estimates GDP expanded by 0.1 per cent in September, indicating the Canadian economy appears to be on track to eke out overall growth for the third quarter of this year.
‘Turning point’ for Canada-China: Prime Minister Mark Carney says Canada and China are at a turning point in their relationship. This comes after eight years without official meetings between the leaders. The meeting was hosted by China and lasted just 39 minutes. The two leaders met during the Asia Pacific Economic Cooperation summit in South Korea. Carney said he was pleased with the outcome of the meeting and said he accepted President Xi’s invitation for a state visit in the future.
MEG Energy vote postponed: Canadian oil producer MEG Energy has postponed a shareholder vote on a $7.6 billion takeover proposal by Cenovus Energy until next week to give it time to disclose more information on asset sales. MEG Chairman James McFarland adjourned an investor meeting on Thursday evening in Calgary after hours of delay, announcing that it will be held instead on Nov. 6. The move ended a day that Bloomberg News is calling “bizarre”. McFarland deferred a vote that had been scheduled for 9 a.m. Calgary time because of a regulatory matter that the company wouldn’t explain. Meanwhile this morning Cenovus reported a rise in third-quarter profit, driven by record oilsands production and near-full refinery utilization that helped offset weaker crude prices.
CN Rail tops expectations: CN Rail shares traded higher in the pre-market after third-quarter profit beat expectations. The company says it will be focusing on productivity and reducing spending to maintain its numbers. The news comes amidst layoffs of 400 non-unionized workers and the pressures of steep tariffs on steel, aluminum, auto and lumber imports.
Amazon shares surge: Shares of Amazon traded sharply higher in the pre-market. The company’s cloud unit reported its strongest growth rate in almost three years. Amazon Web Services logged a beat on revenue growth with income up 20 per cent since the same time last year. Amazon’s management says they’re optimistic about the business but didn’t forecast a reacceleration of growth.
