Innovation Minister Francois-Philippe Champagne has expressed concerns over the potential impact of Rogers’ plan to buy Shaw Communications for $26 billion including debt. In an interview with Bloomberg, Champagne said how the deal impacts consumer prices going forward is among the key questions in the review; during the 2019 election campaign, Prime Minister Trudeau set a goal of reducing the cost of wireless services by 25 per cent within four years. The takeover can’t move forward without approval from the federal government, Canada’s competition bureau and industry regulators.

PANDEMIC WEIGHS ON DOLLARAMA EARNINGS

Shares of Dollarama will be in focus today after the company reported its fourth quarter results. The discount retailer announced it raising its quarterly dividend by 7 per cent. However, recent shutdowns across Canada due to the pandemic weighed on the company’s fourth-quarter profit. It earned $173.9 million or 56 cents on an adjusted basis, meeting analysts expectations but being down from the same period a year ago. The company remains committed to growing its presence in Canada, saying it plans to have 2,000 locations in the country by 2031.

ONLINE SALES OFFSET IN-STORE SALES DECLINE AT LULULEMON

Lululemon customers may be hesitant to shop in person at the company’s brick-and-mortar stores amid the pandemic, but they’re not shying away from shopping online. The athletic and yoga apparel retailer said online sales were up 92 per cent in the fourth quarter, a jump similar to the 93 per cent increase it saw in Q3. The surge helped the company reach its e-commerce goals three years earlier than expected. Sales in the fourth quarter came in at US$1.7 billion, topping expectations. Lululemon also provided investors with an upbeat outlook for revenue during the current quarter and for the year as it expects to continue benefitting from remote workers preferring more comfortable clothing. Its full-year profit outlook, however, is lower than what analysts were expecting.

OTHER NOTABLE STORIES

  • Investors are waiting for the rollout of U.S. President Biden’s multitrillion dollar infrastructure and spending plan as well as details on how it will be funded
  • Economists expect to hear the Canadian economy grew by 0.5 per cent in January but shrank by 2.6 per cent on an annualized basis when gross-domestic-product figures are released at 8:30 a.m. ET.
  • Shares of Blackberry are down more than 5 per cent in pre-market trading after the company reported disappointing fourth-quarter revenues. Quarterly profit was in line with analyst expectations.

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian GDP (Jan.), Canadian industrial product and raw materials price indices, China PMI, U.K GDP (Q4, final reading)
  • Notable earnings: Dollarama, AGF Management, Walgreens Boots Alliance
  • 9 a.m.: The PBO to release a pre-budget outlook report
  • 10 a.m.: Minister Francois-Philippe Champagne, Minister Patty Hajdu, Premier Doug Ford, Minister Victor Fedeli and Mayor John Tory to announce investment to support Canada’s future pandemic preparedness
  • 11 a.m.: Seven Generations holds virtual shareholders' meeting for vote on combination with Arc Resources
  • 1 p.m.: Arc Resources holds virtual shareholders' meeting for vote on share issuance associated with Seven Generations deal
  • OPEC Joint Ministerial Monitoring Committee meeting