Boeing shares are under modest pressure in pre-market trading after Australia and Singapore barred the 737 Max from their airspace, joining a list of countries acting out of abundance of caution in the wake of the Ethiopian Airlines crash. After initially sinking almost 14 per cent yesterday, Boeing shares closed down 5.3 per cent. In the absence of facts about the circumstances surrounding the crash, we’ll continue addressing the problem of perception for Boeing and airlines flying the 737 Max.
The British Pound rallied against every major global counterpart after U.K. Prime Minister Theresa May emerged from a meeting with European Commission President Jean-Claude Juncker with revisions to the Brexit agreement’s Irish backstop. The currency later slipped after U.K. attorney general Geoffrey Cox said the legal risk associated with Brexit is unchanged after the tweaks. Lawmakers are expected to vote on May’s plan later today.
TRANSCANADA WARNS ON KXL
Almost two years since U.S. President Donald Trump declared he’d “call Nebraska” to push Keystone XL along, the controversial pipeline saga continues. Lawyers representing TransCanada warned in a court filing yesterday that a Montana injunction blocking KXL threatens “thousands of jobs…and hundreds of millions of dollars in taxes” – not to mention US$900 million in potential profit for the company.
RALLYING AROUND NEW NAFTA
They won’t dare call it the New NAFTA. But a group led by Gary Locke, a former U.S. Ambassador to China, is aiming to rally public support in the U.S. for the trilateral trade deal. We’ll chase Locke. Check out the ad here.
OTHER NOTABLE STORIES
-Niko Resources’ fall from grace is just about complete. The company’s stock is being delisted from the TSX at the close of trading tomorrow. Keep in mind Niko is a one-time high flier on the TSX. Stock peaked above $100/share in 2010 before going into a tailspin in the wake of a corruption case.
-SNC-Lavalin announced today it has signed a three-year contract with Chevron Australia for general engineering services. Terms weren’t disclosed.
-Worth flagging the TSX is less than 500 points from its all-time high after yesterday’s 110-point gain.
-Clearwater Seafoods announced a 50-year Arctic Surf Clam partnership with 14 First Nations that includes "millions of dollars" in annual revenue sharing.
-Another reminder that Linamar’s industrial division is the company’s real growth driver, with sales in that unit surging almost 70 per cent year-over-year in the fourth quarter, while the much larger transportation division’s sales flatlined. We have CEO Linda Hasenfratz at 9:10 a.m. ET.
-Notable data: U.S. CPI
-8:00 a.m. ET: RBC CEO Dave McKay presents at RBC Capital Markets Financial Institutions Conference in New York
-9:30 a.m. ET: Agriculture Minister Marie-Claude Bibeau addresses Calgary Chamber of Commerce
-10:00 a.m. ET: Wells Fargo CEO Tim Sloan testifies at U.S. House Financial Services Committee hearing "An Examination of Wells Fargo's Pattern of Consumer Abuses"
-10:15 a.m. ET: U.S. Trade Representative Robert Lighthizer addresses U.S. Senate Finance Committee hearing “The Road Ahead for the World Trade Organization”
-11:30 a.m. ET: CMHC to release report on foreign buyers in B.C., Ontario, Nova Scotia
-1:30 p.m. ET: Cott holds investor day in New York
-U.K. Parliament to vote on Theresa May's Brexit plan
-IHS CERAWeek energy conference continues in Houston (runs to Friday)
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.