Nov 13, 2018
The Daily Chase: Markets regain ground; TransCanada meets with investors
By Noah Zivitz
There’s some calm in the market this morning after yesterday’s drubbing on Wall Street. Major European indices are little changed, and U.S. futures are pointing to a bounce at the start of trading. The Dow Jones Industrial Average and Nasdaq fell more than two per cent on Monday, thanks in no small part to the renewed concern about iPhone demand that sent Apple shares down five per cent. But the fact that just four of the Dow members closed higher tells us this was much more than a tech story.
TRANSCANADA FACES INVESTORS
The pipeline company holds an investor day meeting in Toronto, fresh off learning its Keystone XL project has run into another roadblock in the U.S. This morning it will be all about assuaging any concern over that decision and pointing to other growth projects in the works that will support the company’s plan to hit $10 billion in EBITDA in 2021 and raise its dividend up to 10 per cent per year. TransCanada shares are down almost 16 per cent so far this year, underperforming Enbridge (-11.5 per cent) and the energy group (-12 per cent).
HQ2 SWEEPSTAKES
There are multiple reports Amazon has decided to carve HQ2 up, with half going to New York and the other chunk going to Crystal City, Virginia. An announcement to confirm the news is expected as early as today. Tons of angles to consider: chiefly, for our purposes, is this good or bad news for Toronto, the lone Canadian city to have made the list of 20 finalists? We'll chase reaction from those who led the bid and prominent voices in the tech community. Secondly, after stirring up a bidding war by promising 50,000 jobs and a US$5-billion investment, is Amazon's flip flop commendable (in terms of lessening the strain on any individual city) or a PR fumble? Should point out The Wall Street Journal is reporting Amazon might also announce “major sites” for other cities.
CLEARING ONTARIO’S POT DELIVERY BACKLOG
The Ontario Cannabis Store says it has cleared the backlog that was resulting in delivery delays for recreational pot buyers in the province, while warning the Canada Post strike could still result in setbacks. The OCS also says it has received more than 220,000 orders since Oct. 17 and is “working closely” with the industry to improve product availability. If you missed it, Aurora Cannabis’s CEO had far more colourful language to describe the early days of legalization.
ITALY BUDGET FACEOFF
Today's the deadline for Italy to submit a revised budget to the EU for consideration. Bloomberg is citing local reports in Italy that suggest Economy Minister Giovanni Tria will offer a lower (ie, more realistic) growth outlook, but won’t budge on the deficit forecast, which was originally pegged at 2.4 per cent of GDP.
OTHER NOTABLE STORIES
-Brookfield Business Partners is teaming up with the Caisse de Depot to buy Johnson Controls’ power solutions unit for US$13.2 billion.
-Cenovus’s CEO is calling on the Alberta government to exercise its legislative power to curb drilling activity in the province to address “extraordinary circumstances” that have dragged down oil prices, according to Bloomberg. Should point out West Texas Intermediate is now into a 12th straight day of losses.
-Unifor warned in an early-morning release unionized workers at The Globe and Mail could walk off the job this week as contract negotiations stall.
-Bloomberg is reporting U.S. President Donald Trump will meet with members of his trade team today to discuss the possibility of going ahead with tariffs on auto imports. No clear timeline for a decision. We’ll gather reaction when/if an announcement is made.
NOTABLE RELEASES/EVENTS
-Notable earnings: Tilray, Cronos Group, DHX Media, CAE, Stelco Holdings, Home Depot
-8:00 a.m. ET: TransCanada holds investor day meeting in Toronto
-12:00 p.m. ET: NFL COO Maryann Turcke delivers speech in Toronto
-12:00 p.m. ET: Invest in Canada Chairman Mitch Garber delivers speech in Montreal
-1:30 p.m. ET: Foreign Affairs Minister Chrystia Freeland meets with Unifor members in Windsor, plus media avail
-Calgary residents vote in plebiscite on 2026 Winter Games bid
-GMP Securities hosts Next in Tech conference in Toronto
-International Energy Agency releases World Energy Outlook
-ASEAN summit begins in Singapore
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.
