The Big Three: Tensions mount over Huawei CFO arrest; OPEC awaits Russian support; first ministers meet
Huawei CFO Meng Wanzhou is expected to appear at a B.C. Supreme Courthouse in Vancouver for a bail hearing this morning (time TBC) to decide on next steps ahead of a possible extradition to the United States. Still tons of layers to peel back on this story: like what Huawei can do to reassure governments and telecom industry business partners, and the fiery language in Chinese state media. We’ll keep chasing perspective from former senior Canadian government officials and diplomats.
AVISTA INVESTS $2.4B IN CRONOS
We've got another blockbuster crossover agreement in the cannabis industry today. Cronos Group has struck a deal with Altria that will see the cigarette-maker spend $2.4 billion for a 45-per-cent stake in the Canadian pot producer. And there's a provision that could take Altria's stake to 55 per cent.
WTI and Brent oil prices are little changed this morning as the OPEC+ group meets amid uncertainty about the magnitude of a coordinated production cut, if any at all. Recall the Saudi energy minister warned yesterday he wasn’t confident a deal can be hammered out in Vienna. Earlier this morning, Russia Energy Minister Alexander Novak said he’s prepared to negotiate on production cuts. We’ll track developments.
APHRIA VS. SHORTS
Investors heard or saw something they liked yesterday, sending Aphria shares 50 per cent higher to close at $7.50 in spite of another round of allegations from short sellers Hindenburg Research and Quintessential Capital Management. Their latest report questions transactions related to Aphria’s relationship with Liberty Health Sciences (LHS) and the pot producer’s ties with Clarus Securities. See what some of the principals had to say in response here. Should also note LHS released a short statement last night accusing the shorts of “factual errors and outdated information.”
TRUDEAU FACES PREMIERS
Saskatchewan Premier Scott Moe is vowing to “break through the fluff” at today’s meeting of first ministers in Montreal. It’s a sentiment that was echoed by Alberta’s premier yesterday. Suffice to say, tension runs deep at this meeting, though it seems for now Ontario Premier Doug Ford is dialing back his threat to walk out of the meeting. We’ll keep tabs on developments via our CTV News colleagues.
OTHER NOTABLE STORIES
-Lululemon reported double-digit gains in third-quarter revenue, profit and same-store sales yesterday. It also raised its full-year revenue, profit and same-store sales forecasts, while indicating comparable sales growth will decelerate in the fourth quarter. Stock is flat pre-market.
-Lulu Founder Chip Wilson is also in the news today. He’s in a consortium that has formally agreed to buy Amer Sports in a 4.6-billion euro takeover.
-Callidus Capital late yesterday acknowledged Braslyn’s non-binding $2.00/share proposal, noting there’s no guarantee of an agreement. Callidus shares have been halted since early yesterday morning.
-Notable data: Labour force survey, U.S. non-farm payrolls, University of Michigan consumer sentiment index
-8:00 a.m. ET: Prime Minister Justin Trudeau attends first ministers' meeting in Montreal (Ministers Morneau, LeBlanc, McKenna, and Ambassador MacNaughton to join talks at 10:00 a.m. ET)
-8:00 a.m. Et: Finance Minister Bill Morneau delivers remarks in Montreal at event hosted by Conseil du patronat du Québec
-12:00 p.m. ET: Foreign Affairs Minister Chrystia Freeland holds media call from Berlin (should monitor for any discussion of Huawei)
-4:00 p.m. ET: Trudeau holds media avail in Montreal
-OPEC+ meeting in Vienna (news conference scheduled for 7:00 a.m. ET)
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.