Huawei Technologies Founder Ren Zhengfei is attempting to ease security fears about the Chinese telecom equipment giant, vowing in a rare media briefing “not [to] do anything to harm the world.” Ren also compared Huawei to “a sesame seed” in the broader trade clash between China and the United States, and praised Donald Trump as “a great president” – while ominously warning “you have to treat well the companies and countries so that they are willing to invest in the U.S. ...”
We’ll assess how that will play in D.C., the implications for Huawei’s CFO, and the ripple effect for Canada. And on that front, it should be pointed out China has issued a travel alert for visitors to Canada.
GOLDCORP FOUNDER’S REACTION TO NEWMONT DEAL
Still plenty of layers to peel back on Goldcorp’s sale to Newmont Mining, and we’ll get unique perspective on the deal this morning when Rob McEwen joins us. Is Newmont the right partner? Was a sale inevitable? Does the loss of a head office matter? We’ll explore some of those issues and more with McEwen at 10:30 a.m. ET.
IN CONVERSATION WITH BRUCE LINTON
Right after our interview with McEwen, we’ll connect with Bruce Linton to discuss his plan to plant Canopy Growth’s flag in New York State after getting the go-ahead to produce hemp. Also looking forward to what Linton has to say about the Ontario retail licence lottery.
BREXIT VOTE
Theresa May's plan to pull the United Kingdom out of the European Union goes to a vote today in Parliament. It's widely anticipated lawmakers will reject her strategy, which would leave her with three days to present a new plan amid fear of an eventual hard Brexit. We'll assess her options.
TSX EXTENDS WINNING STREAK
The S&P/TSX Composite Index has posted seven straight days of gains, matching its longest winning streak since last June. CN and CP helped lead the way yesterday, alongside Canopy Growth. Despite the streak, the TSX still hasn’t fully climbed out of the hole it dug for itself in December.
OTHER NOTABLE STORIES
-Loblaw announced this morning President Sarah Davis is taking on more responsibilities, including responsibility for the company’s management team. Additionally, Galen G. Weston is shedding his CEO title while his chairmanship becomes an executive role.
-Crescent Point Energy announced this morning it will cut its quarterly dividend to one cent per share from the existing monthly rate of three cents, while announcing its intent to repurchase up to seven per cent of its shares. CEO Craig Bryksa says the buyback is a better use of capital with the stock trading where it is these days (ie, down 60.8 per cent over the last year).
-Tilray is partnering with the company behind brands like Tapout, Juicy Couture and even Elvis Presley. Under the arrangement with Authentic Brands Group, Tilray will pay as much as US$250 million in cash and stock to “develop, market and distribute” cannabis products globally (where legal).
-Magna International is forecasting total sales in a range of US$40.2B-US$42.4B this year, versus the average analyst estimate for US$41.2B. The auto parts maker says its North American unit faces a “negative impact” from General Motors’ recently-announced plant closures.
NOTABLE RELEASES/EVENTS
-Notable data: Canadian existing home sales
-Notable earnings: Delta Air Lines, United Continental, JP Morgan Chase, Wells Fargo, UnitedHealth
-9:30 a.m. ET: U.S. Senate Judiciary Committee holds confirmation hearing for Attorney General nominee William Barr.
-10:00 a.m. ET: ECB President Mario Draghi addresses European Parliament
-1:45 p.m. ET: Unifor National President Jerry Dias holds news conference in Detroit
-7:00 p.m. ET: Prime Minister Justin Trudeau holds town hall in St. Catharines, Ont.
-U.K. lawmakers to vote on Brexit plan (voting on amendments starts at 2:00 p.m. ET. Bloomberg estimates results of the actual so-called meaningful vote will be disclosed around 5:00 p.m. ET)
-The partial U.S. government shutdown is now into a 25th day.
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.
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