We knew a deal was in the works, and now it’s official. Mitsubishi Heavy Industries is buying Bombardier’s regional jet program for US$550 million; MHI is also inheriting US$200 million in associated liabilities. Bombardier CEO Alain Bellemare says the deal “represents the completion” of the company’s aerospace transformation.
GOLD RALLY CONTINUES
Gold is into a sixth straight day of gains, touching the highest level since May 2013 at US$1,439.21 an ounce. The metal is being propelled higher by the Fed’s new tone, and geopolitical tension is presumably also playing a role. This morning we’ll discuss the drivers and Andy will address the outlook for gold stocks.
LOTS OF FEDSPEAK
We have former U.S. Federal Reserve Vice-Chair Alan Blinder on Bloomberg Markets, around the same time Fed Chair Jerome Powell is addressing the Council on Foreign Relations, and just after our Bloomberg partners speak with FOMC dissenter James Bullard. We’ll keep tabs on any commentary that emboldens market conviction in an imminent rate cut.
Do you think WestJet negotiated the best possible takeover price for its shareholders?
ART OF THE DEAL
There’s still a fair bit of interest in documents showing the 737 Max grounding played a role in Onex reducing its offer for WestJet during negotiations earlier this year. Begs the question of whether WestJet got the best possible deal for its shareholders, particularly since CEO Ed Sims has said on this station he thinks the Max will return to service this year. Have your say in our BNNBloomberg.ca daily poll.
SIDEWALK LABS MAKES ITS CASE
It only took 1,500-some-odd pages for Alphabet’s Sidewalk unit to table its master plan for a controversial waterfront development in Toronto. In an interview with Jon Erlichman, Sidewalk CEO Dan Doctoroff likened the project to a “50-sided Rubik’s Cube” and argued there isn’t a “massive amount of downside.” Nonetheless, the proposal is already hitting some speed bumps, as outlined in early reaction from Waterfront Toronto – which has to sign off on the plan. Watch for Jon’s interview with Doctoroff on The Open.
OTHER NOTABLE STORIES
- AbbVie is buying Allergan in a US$63-billion cash and stock takeover. Allergan shares surged in pre-market trading ahead of the announcement after The Wall Street Journal reported a deal was in the works.
- Newton Glassman’s Catalyst Capital picked up some of Ontario Teachers’ Pension Plan’s shares in HBC and a spokesperson for the firm told The Globe and Mail it will not support the privatization proposal.
- FedEx shares are slipping in pre-market trading ahead of quarterly results and as Bloomberg reports China is considering blacklisting the shipping company for its role in D.C.’s attempt to choke off Huawei.
- Purolator, which is majority-owned by Canada Post, announced today it will invest $1 billion in an attempt to keep pace with surging e-commerce business. The funding will go toward a new hub in Toronto, among other things.
- Group Mach announced today it has waived the financing condition attached to its takeover offer for Transat. Mach also said it has a non-binding agreement with Quebec’s government tied to the proposal. But it’s not sharing any specifics on that. Transat is still in the midst of exclusive takeover negotiations with Air Canada.
- Notable earnings: FedEx
- Notable data: Canadian wholesale trade, S&P/Case Shiller U.S. home price index, U.S. new home sales
- 11 a.m. ET: Environment and Climate Change Minister Catherine McKenna announcement in Ottawa on how government will allocate some proceeds from carbon tax (plus avail)
- 10 a.m. ET: Transport Minister Marc Garneau, Via Rail CEO Cynthia Garneau, Canadian Infrastructure Bank CEO Pierre Lavallée make announcement in Trois-Rivières re. advancing Via’s high-frequency rail proposal for Quebec City-Toronto corridor (NOTE: John assigned chase for principals yesterday)
- 12 p.m. ET: Vivian Krause delivers speech ("Over a Barrel: Rethinking the Activism Against Canadian Oil & Gas") to Economic Club in Toronto
- 1 p.m. ET: U.S. Federal Reserve Chair Jerome Powell addresses Council on Foreign Relations in New York
- 1:45 p.m. ET: U.S. President Donald Trump signs executive order “Eliminating Regulatory Barriers to Affordable Housing”
- 3:30 p.m. ET: Richmond Fed President Tom Barkin speaks at University of Ottawa
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.