Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

McDonald’s cut ties yesterday with CEO Steve Easterbrook, saying his consensual relationship with an unnamed employee violated corporate policy and “demonstrated poor judgment.” McDonald’s shares had surged 96 per cent since Easterbook became chief executive in early 2015, and Bloomberg Intelligence Analyst Michael Halen said there’s “a very strong argument that he was the best CEO in the restaurant industry.” But the company’s board wasn’t influenced by performance. Today, we’ll consider the signal this sends and explore execution risks as McDonald’s USA leader Chris Kempczinski takes over.

ARAMCO IPO

At last, Saudi Arabia has got the ball rolling on a domestic initial public offering of Aramco with an eye toward trading beginning next month. Between now and then, the big question is how close the army of bookrunners will come to achieving Crown Prince Mohammed Bin Salman’s previously-stated desire for a US$2-trillion valuation and the implications for achieving his economic vision for the kingdom.

KEYSTONE CLEANUP

Our Bloomberg colleagues are reporting TC Energy’s Keystone pipeline could be offline for another week after the spill in North Dakota on Oct. 29. The company formerly known as TransCanada estimates 9,120 barrels of oil leaked (which it points out is roughly the equivalent of half an Olympic swimming pool).

CPPIB BUYING PATTERN ENERGY

Canada Pension Plan Investment Board is buying Pattern Energy for US$26.75 per share in a big bet on renewables (albeit at a discount to Friday’s closing price). The announcement comes almost three months to the day since Pattern confirmed it had attracted takeover interest. Including debt, today’s deal is worth US$6.1 billion.

IN CONVERSATION WITH CFL COMMISSIONER

With the playoffs about the begin, Canadian Football League Commissioner Randy Ambrosie recently spoke with Paige Ellis about his plan to transform the CFL’s “folksy” image into a “big global” brand. Watch for it on air and at BNNBloomberg.ca

OTHER NOTABLE STORIES

-The head of Deloitte Canada says there’s a “business case that’s impossible to ignore” in having strong workplace mental health programs, with a new study showing returns on investment grow as those initiatives mature. Disclosure: BNN Bloomberg parent Bell is one of the companies cited in the report.  

-The “piles of debt” that the Bank of Canada warned about last week are seemingly forcing many Canadians to rein in their gift-giving plans, with an Equifax survey showing 55 per cent of consumers in this country say they’ll spend less this holiday season.

-Bausch Health shares are rallying in pre-market trading after the drugmaker outpaced third-quarter revenue and adjusted profit estimates and nudged up its full-year forecasts.  

-Under Armour shares are falling after The Wall Street Journal broke news on a regulatory probe of the company’s accounting practices. The apparel maker said it believes its disclosures have been “appropriate.” Separately, UA today trimmed its full-year revenue forecast.  

NOTABLE RELEASES/EVENTS

-Notable earnings: Nutrien, Bausch Health, CargoJet, Uber Technologies, Peloton

-Notable data: U.S. durable goods orders

-10:30 a.m. ET: National Coalition of Chiefs Energy and Natural Resource Summit in Calgary (speakers incl. Alberta Premier Jason Kenney, Project Reconciliation Founder Delbert Wapass. Agenda here)

-Public consultations begin regarding Air Canada's proposed takeover of Transat

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.