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Noah Zivitz

Managing Editor, BNN Bloomberg

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CN Rail is on strike notice after the Teamsters union representing approximately 3,200 conductors and railyard coordinators warned on Saturday they’ll walk off the job Tuesday if the two sides don’t come to terms on a labour agreement. The chief operating officer of CN, which is fresh off confirming a round of job cuts, said the company suggested binding arbitration for the sake of “protecting the Canadian economy,” but the union balked. Teamsters, meanwhile, says CN needs to “adjust their operating practices in the interest of safety.” Labour Minister Patty Hajdu says the government is “monitoring the situation closely.”

HEXO CEO: “EVERYBODY MISSED” UNLICENSED POT

Hexo’s disclosure late Friday of illegal pot production at one of Newstrike’s facilities before those two companies tied the knot raises all kinds of questions about quality control and whether Health Canada has sufficient resources for site inspections. Hexo’s release refers to there having been an “impression” and “assumption” about licensing by Newstrike’s team. It also said the federal regulator made “no observations” about cultivation in the unlicensed area at a Niagara facility when it conducted an inspection in February. “Everybody missed this, including Health Canada,” said Hexo CEO Sebastien St-Louis in an interview with David George-Cosh for BNNBloomberg.ca. Be that as it may, why did Hexo wait until Friday to disclose?

TSX WINNING STREAK

The TSX Composite Index has closed higher in every session so far this month, gaining 3.3 per cent over that stretch of 11 straight gains, and attaining new records along the way. Names like Home Capital Group (+29.8 per cent), Ballard Power Systems (+26.3 per cent), Stantec (+24.2 per cent) and Bombardier (+24.1 per cent) have been the best-performing stocks during the streak.

Aldo CEO says Canada better shielded from retail ‘apocalypse’ than U.S.

As the retail cemetery grows, the leader of Montreal's Aldo Shoes says Canada is better protected from the retail "apocalypse" than the "over-stored" U.S. David Bensadoun, CEO of The ALDO Group, joins Paige Ellis to discuss how the shoemaker has managed to grow sales despite the sector's headwinds, how women's approach to shopping has changed, and why he believes it is "irresponsible" to transport clothes and shoes by plane.

IN CONVERSATION WITH DAVID BENSADOUN

Paige Ellis caught up with the chief executive of The Aldo Group, who declared point blank that the Canadian shoe retailer will “never go public.” Bensadoun was also candid on environmental responsibility (including dismay with Texans for apparently not appreciating Aldo’s desire to cut down on waste) and the need to “prune” stores. Watch for it on BNN Bloomberg and BNNBloomberg.ca

OTHER NOTABLE STORIES

-T-Mobile US announced today its president, Mike Sievert, will succeed John Legere as CEO in May. Legere will remain a director at the American wireless company. (Sidenote: Interesting to see this news just a few days after Legere’s name was floated as a potential candidate to run WeWork.)

-As expected, Saudi Aramco will likely fall short of the US$2-trillion valuation originally envisioned by the kingdom. In an updated filing this weekend, the world’s largest oil producer landed on a stake sale that could result in a US$1.7-trillion valuation. As our Bloomberg partners point out, Aramco is relying mightily on domestic buyers after running into some tepid international demand.  

-Aimia announced a truce this morning with its top shareholder and a group of dissidents that were leading a proxy fight. As part of the settlement, Aimia will make changes to its board of directors in the coming months and repurchase up to $125 million of its shares via substantial issuer bids. 

-Barrick Gold is selling its 50 per cent stake in an Australia mine to Saracen Mineral Holdings for US$750 million.

-HP has rejected Xerox’s takeover proposal while leaving the door open to an eventual combination.

-The New York Times is reporting WeWork could announce at least 4,000 layoffs as early as this week.

-Cott announced this morning it’s buying The Water Guy, which has ~7,500 residential and commercial customers across New Jersey, Pennsylvania, Maryland and Delaware. Terms weren’t disclosed.

NOTABLE RELEASES/EVENTS

-1:00 p.m. ET: Corus Entertainment holds investor education session in Toronto

-Two-day Public-Private Partnerships conference begins in Toronto 

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.