The Canadian labour market blew past expectations in January, adding 150,000 jobs in the month – exactly 10 times the average analyst estimate. The gains were almost entirely concentrated in full-time jobs – up 121,000 positions – and the unemployment rate held steady at 5.0 per cent. On a provincial basis, Ontario, Quebec and Alberta led the way in the month, and if we look at the private-public breakdown, it was heavily tilted to the former, where private employers added 115,000 positions in the month. Now, it's worth taking this all with a grain of salt – the labour force survey is notoriously volatile (as evidenced by December's headline 104,000 additions being promptly downwardly revised to 69,200 jobs added), and one could drive a truck through the confidence intervals of the survey, but this is a key indicator for the Bank of Canada, which wouldn't mind seeing some heat come out of the labour market as it looks to tamp down inflation.

IN CONVERSATION WITH MARK CARNEY

Sort of speaks for itself – you won't want to miss our Amber Kanwar's full sit-down interview with the former Bank of Canada governor, where a slew of topics were discussed. Of note, Carney thinks expectations that global central banks will start taking a scalpel to rates later this year are “misplaced,” given the ongoing fight to quash runaway inflation, and why he thinks price pressures are at risk of becoming entrenched. Of course, Carney – given his work as UN special envoy on climate action – also weighs in on the energy transition away from fossil fuels and the economic impact of climate change in the interview. We'll be rolling the interview out throughout the day on the network and at BNNBloomberg.ca.

MAGNA MISSES Q4 PROFIT ESTIMATES

Looks like something of a mixed quarter over at Magna International. The auto parts manufacturer badly missed fourth-quarter profit estimates – adjusted earnings per share came in at $0.91 against estimates for $1.11 – though sales did increase five per cent to hit $9.6 billion. As for that profit miss, the company says higher net engineering costs tied to its electrification business (so, components for electric cars), rising product launch costs and some operational troubles at a European facility were the main drags on the bottom line. That said, Magna's outlook for the year ahead is pointing to some further growth – at the high end of the range, it expects to generate $41.2 billion in total sales in fiscal 2023, up nine per cent year-over-year.

RUSSIA TO CUT OIL OUTPUT IN RETALIATION TO SANCTIONS

The Kremlin appears to be more than willing to wield Russia's energy clout as a cudgel in its continued standoff with the West. Russia says it will cut oil output by 500,000 barrels per day next month (about five per cent of January output), making good on a threat to retaliate against western sanctions including a price cap on Russian energy products. The curtailment is sort of a roundabout way to pinch global oil supplies – while the West hasn't really been buying Russian oil in the wake of Moscow's invasion of Ukraine, that crude has been snapped up by the likes of China and India, who will have to replace those barrels with oil sourced from countries that the western world will still deal with. As a result, oil prices have erased earlier losses, sending U.S. benchmark West Texas Intermediate prices about two per cent higher this morning.   

HIGHER RATES WEIGH ON ENBRIDGE

It appears one of North America's largest pipeline operators couldn't shake off the impact of rising rates. Enbridge missed fourth-quarter adjusted earnings per share estimates ($0.63 vs estimates for $0.71), as higher financing costs due to rising rates and increased depreciation expenses weighed on the bottom line. If we widen the scope a bit, the company also booked a non-cash goodwill impairment charge of $2.5 billion in the quarter due to some troubles in its gas transmission unit, though that isn't reflected in the adjusted figures. All that being said, the company has reaffirmed its 2023 forecast, with expectations for up to $16.5 billion in adjusted EBITDA this fiscal year.

OTHER NOTABLE STORIES

  • Telus is naming former finance minister John Manley as its new board chairman, replacing Dick Auchinleck.
  • Net revenue over at Aurora Cannabis was up 25 per cent quarter-over-quarter in its fiscal Q3, with the company saying it posted growth across all cannabis segments.
  • TD Bank and First Horizon have mutually agreed to extend the outside date of that planned $13.4-billion takeover deal to May 27 from the earlier plan to close things off by Feb. 27 as they await regulatory approvals.  
  • Home Capital group has obtained final court approval for its deal to be acquired by Smith Financial for $44 per share.
  • Interfor swung to a loss in the fourth quarter, as slumping lumber demand and lower prices weighed on results.
  • Shares of Lyft are tanking in the premarket – down 30 per cent or so – after the ride-hailing company forecasted dramatically lower profits than expected and said it plans to but prices in a bid to attract and retain customers.

NOTABLE RELEASES/EVENTS

  • Notable data: Employment Report, University of Michigan Consumer Sentiment Index, TRREB releases 2023 housing market outlook (1200)
  • Notable earnings: Enbridge, Corby Spirit and Wine, Constellation Software, Magna International