Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

HOME CAPITAL TURNAROUND

It still feels like just yesterday we were doing a daily play-by-play on the run on deposits at Home Capital Group, so this morning’s results serve as another reminder of the dramatic turnaround that’s been staged at the alternative lender. Adjusted profit up 24.1 per cent in the third quarter, outpacing all analyst estimates in the process; mortgage originations up almost eight per cent; provisions for credit losses down; deposits up; and a new share buyback program is in the works. Main question today is whether it’s too late for investors to jump aboard after Home Capital’s shares have already doubled this year.

IMPERIAL CEO SKEPTICAL ON TRANS MOUNTAIN 

“We’ll believe it when we see it.” That’s how Imperial Oil CEO Rich Kruger described the degree of skepticism in the energy industry about Canada’s ability to build the Trans Mountain expansion, or add any new pipelines for that matter. “We need expanded access and if you ask me to bet on exactly when, I’m not quite as confident,” he told BNN Bloomberg. See the full interview here. Should point out Paul Bagnells’s guest co-host on The Street, Kash Pashootan, basically said it was fine and dandy for Kruger to be calm and measured in his interview with Greg Bonnell, but “the fact of the matter is it’s been a bloodbath for investors.”

IN CONVERSATION WITH DAVID MACNAUGHTON

We have Canada’s former ambassador to the United States this afternoon for unique perspective on the state of Canada-U.S. relations and insight from the frontlines on what it’s like dealing with the Trump administration. Watch for Greg’s interview with David MacNaughton on The Real Economy.

OTHER NOTABLE STORIES

-National Bank CEO Louis Vachon, who has been viewed as a candidate to be the Caisse de Depot’s next chief executive after Michael Sabia steps down next year, released a statement this morning saying his “only priority in the coming years” will be overseeing the bank he currently leads.

-Canada Goose shares are rallying in pre-market trading after the parka maker navigated “continuing external uncertainties,” in the words of CEO Dani Reiss. Revenue surged almost 28% in the second quarter, while adjusted profit surpassed analyst expectations.

-Shoppers Drug Mart was once again the growth driver for Loblaw in the third quarter, with same-store sales at the drugstore chain rising 4.1% compared to a 0.1% gain in the company’s supermarket business. Adjusted profit was essentially flat and in line at $1.25/share.

-Some forecast-driven stocks to watch today: Martinrea is pushing out its sales and profit margin targets by a year due to delays with certain vehicle programs and it’s baking some extra wiggle room into its fourth-quarter profit forecast due the spillover from the GM strike.  And Canadian Solar shares are drifting lower in pre-market trading after the company cut its revenue forecast.

-Another sign this morning that Canada’s decision about whether to allow Huawei to play a role in 5G networks won’t be made easily (or soon): The Globe and Mail is reporting CSIS and the Communications Security Establishment are “at odds” over the matter.

-A spokesperson for Guy Laliberté has confirmed the Cirque du Soleil founder has been detained in Tahiti and is being questioned over cultivation of cannabis for his personal medicinal use.

NOTABLE RELEASES/EVENTS

-Notable earnings: Loblaw, Canada Goose, Home Capital Group, Stelco Holdings, CAE, Cisco Systems

-Notable data: U.S. CPI

-9:30 a.m. ET: Prime Minister Justin Trudeau meets with Bloc Quebecois Leader Yves-Francois Blanchet in Ottawa 

-10:00 a.m. ET: U.S. House Intelligence Committee begins open hearings on impeachment inquiry

-10:15 a.m. ET: Blanchet holds avail in House of Commons Foyer

-11:00 a.m. ET: U.S. Federal Reserve Chair Jerome Powell addresses Congressional Joint Economic Committee

-12:10 p.m. ET: U.S. President Donald Trump meets with Turkey President Recep Tayyip Erdogan in the Oval office

-12:45 p.m. ET: Former Canadian Ambassador to U.S. David MacNaughton delivers keynote at PMAC National Conference in Toronto

-3:10 p.m. ET: Trump holds joint media avail with Erdogan at The White House

-Three-day Ontario Economic Summit begins in Toronto

-International Energy Agency releases World Energy Outlook

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.