Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

We’ve seen two big downside surprises on the jobs front this morning. In Canada, the economy shed 207,100 jobs last month. That was more than economists expected and shows the labour market moved into reverse under the weight of new COVID restrictions. But the big surprise is on the other side of the border. The world’s largest economy only added 266,000 jobs in April --- falling way short of Wall Street’s prediction for a gain of 1 million. But as Frances Donald from Manulife Investment Management told us in her instant analysis, “bad news is good news” for these equity markets that have come to crave low rates.

CEO PARADE

What a lineup this morning, presenting a fantastic opportunity for real-time perspective on hiring trends and intentions. Linamar CEO Linda Hasenfratz joins shortly after 9 a.m., fresh off reporting double-digit sales gains in the company’s two major divisions yesterday that sent the stock up more than 6 per cent. Then it's Great-West Lifeco CEO Paul Mahon at 10:10 a.m., whose company reported a big surge in profit earlier this week thanks in part to acquisition-fueled growth in the U.S. Then we've got Dream Office REIT CEO Michael Cooper at 10:30 a.m. on the future of work and how it's affecting his business. The parade closes with Open Text's Mark Barrenechea whose software firm is still benefitting from growth in the cloud, based on the latest quarter reported yesterday.

INVESTING LEGEND SITTING ON MOUNTAIN OF CASH

If you missed it, check out Amber Kanwar’s interview with Michael Lee-Chin at BNNBloomberg.ca; he opened up about why his fund is more than 50 per cent in cash right now and had some pointed commentary about day traders. Read all about it here.

BRACING FOR LINE 5 DEADLINE

If Michigan Governor Gretchen Whitmer gets her way, Enbridge’s Line 5 pipeline will be taken out of service by next Wednesday. Today we’ll hear from one of the key stakeholders, when Sarnia Mayor Mike Bradley joins Commodities shortly after 11 a.m. Watch for Tara Weber’s tee-up piece at BNNBloomberg.ca.

OTHER NOTABLE STORIES

• West Fraser Timber delivered a candidate for understatement of the year, saying low rates, low inventory, favourable demographics and the work-from-home trend “appear to be positively influencing” housing demand in North America. That modest tone comes in a quarterly report showing Q1 sales more than doubled, while adjusted EBITDA skyrocketed to more than US$1 billion. WFT also said it will spend US$150 million to bolster five of its U.S. lumber mills.
• Air Canada’s revenue sank 80 per cent year-over-year in the first quarter while cash burned improved sequentially to $1.28 billion. The airline said it expects capacity to double this quarter compared to last year, and its CEO called on governments to lift “blanket” travel restrictions.
• Cenovus Energy today said it’s now aiming to exceed the original target of $1.2 billion in synergies from the takeover of Husky Energy and hinted it could “approach” its $10-billion debt-reduction target this year if commodity prices remain consistent. That all comes alongside first-quarter results that include a swing to positive free funds flow of $594 million.
• Inter Pipeline says the cost of building its much-vaunted Heartland Petrochemical Complex has inched up to $4.2 billion from $4.0 billion, with $3.4 billion spent to date. The midstream player, which is attempting to thwart Brookfield’s hostile takeover bid, also reported first-quarter profit that beat expectations and said it’s aiming to present an update on its strategic review before Brookfield’s bid expires on June 7.
• Martinrea International beat first-quarter profit and sales estimates despite the global semiconductor shortage that’s rattling the auto industry. The company did however warn that production sales this quarter could slip sequentially as it works through the chip challenge.
• Some dividend news from yesterday’s after-hours earnings bonanza: Algonquin Power & Utilities is raising its payout 10 per cent to a quarterly rate of US$0.1706 per share (while posting a 36 per cent surge in first-quarter revenue). Wheaton Precious Metals is nudging up its dividend to US$0.14 per cent share (while reporting record quarterly revenue. We’ll speak with CEO Randy Smallwood at 2:30 p.m.).
• CN Rail is continuing to position itself for a possible takeover of Kansas City Southern; this morning it announced it’s buying 1,000 high-capacity grain hopper cars that are being built in Mexico.
• TC Energy swung to a $1.1-billion net loss in the latest quarter due to a $2.2-billion impairment charge tied to Keystone XL after U.S. President Joe Biden rescinded the pipeline's permit. Adjusted profit narrowly beat expectations, however.

NOTABLE RELEASES/EVENTS

• Notable data: Canadian labour force survey, U.S. non-farm payrolls
• Notable earnings: Air Canada, Enbridge, TC Energy, Cenovus Energy, Enerplus, Telus, Hydro One, Cameco, Cinemark Holdings, DraftKings
• 11:30 a.m.: U.S. President Joe Biden delivers remarks on jobs report
• 11:30 a.m.: Prime Minister Justin Trudeau discusses COVID-19 situation alongside Health Minister Patty Hajdu, Small Business Minister Mary Ng, International Development Minister Karina Gould, Chief Public Health Officer Dr. Theresa Tam, Deputy Chief Public Health Officer Dr. Howard Njoo
• 12:30 p.m.: U.S. Treasury Secretary Janet Yellen joins White House Press Secretary Jen Psaki for press briefing
• Deadline for comment in OSFI public consultation on proposed B-20 adjustment.