Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The shock still hasn’t worn off from the Caisse de Dépôt’s pull-no-punches statement on SNC-Lavalin. After the big pension fund blasted the beleaguered engineering firm’s “unacceptable trend” and called for “decisive and timely action”, what’s next? We’ll get perspective from another candid investor on The Open when David Taylor joins BNN Bloomberg's Jon Erlichman to discuss SNC’s outlook. Already this morning, Middlefield’s Dean Orrico, Paul Bagnell’s guest co-host on The Street, called SNC a “disaster” that “may be beyond saving” and potentially at risk of a “massive downsizing.”

CATALYST VS. HBC

Newton Glassman’s Catalyst Capital is aiming to scoop up almost 15 million HBC shares in an attempt to obstruct the privatization offer being considered by Canada’s oldest company. The Catalyst offer is for $10.11 per share, compared to the $9.45 per cent share offer being dangled by the privatization group led by HBC Chair Richard Baker. Catalyst is also calling on HBC’s special committee to “explore any and all transactions that have the potential to maximize value for all shareholders”.

EARNINGS SEASON

We’re getting the first wave of big Canadian names today, starting with Rogers Communications delivering an in-line second-quarter adjusted profit as wireless service revenue climbed three per cent even as postpaid subscriber growth fell sharply. CN Rail takes the spotlight after the closing bell. In the U.S., some early earnings movers include Harley-Davidson (slipping in pre-market after cutting its shipments forecast) and Coca-Cola (rising in pre-market after nudging up its organic revenue growth outlook).

ONEX-WESTJET

Shareholders vote today on Onex’s proposed takeover of WestJet. Quick reminder: the friendly deal is for $31 per share. The information circular on the arrangement made it clear the groundings of Boeing’s 737 Max factored into Onex’s decision to reduce its original proposal of $35.75/share. Keep an eye on BNNBloomberg.ca for a poll on what this deal, when it closes, will mean for WestJet customers.

BREXIT OUTLOOK

As expected, Boris Johnson has been elected leader of the U.K. Conservative Party, meaning he’s poised to replace Theresa May as prime minister tomorrow. This means Brexit is about to get another prominent news cycle as the EU faces a new counterpart in negotiations ahead of the Oct. 31 break-away date. We’re looking forward to hearing from former Canadian High Commissioner Mel Cappe at 10:20 a.m. ET.

OTHER NOTABLE STORIES

-Garda World Founder Stephan Crétier has teamed up with BC Partners to buy Rhone Group’s stake in the security company for $5.2 billion. As a result, BC Partners will own 51 per cent of the firm, while Crétier will hold the balance.

-Just Energy could be a stock to watch today after disclosing “customer enrolment and non-payment issues”, which it says will result in up to a $50-million impairment on accounts receivable in Texas.

-TD Ameritrade is searching for a new CEO after announcing Tim Hockey will step down by February 2020. Hockey was formerly a senior official at TD Bank, which is Ameritrade’s largest shareholder.

-The Canadian dollar fell as low as 76.09 cents US this morning, drifting away from that 80-cent call that was making the rounds recently.

-Intel shares are inching higher in pre-market trading amid reports it’s closing in on a deal to sell its cellular modem business to Apple for approx. US$1 billion.

-Restaurant Brands International is taking another of its banners into China in a big way, announcing a plan to open 1,500 Popeyes stores over the next decade.

NOTABLE RELEASES/EVENTS

-Notable earnings: Canadian National Railway, Rogers Communications, Coca-Cola Co., Visa, United Technologies, JetBlue, Harley-Davidson, Texas Instruments, Snap, Hasbro

-Notable data: U.S. existing home sales

-9:00 a.m. ET: International Monetary Fund releases World Economic Outlook Update

-12:00 p.m. ET: WestJet holds special shareholders' meeting in Calgary on takeover by Onex

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.