National Bank has closed out Big Six earnings season with a modest uptick in profit and a richer dividend. Feels like this quarter has given bulls and bears plenty to chew on. BNN Bloomberg's Paul Bagnell is piecing together a wrap for BNNBloomberg.ca, and we’re looking forward to an upcoming interview with Laurentian Bank CEO Francois Desjardins, whose company also nudged up its dividend this morning.
GOOSE’S PAINFUL LESSON
Canada Goose is the new poster child for the dangers of missing expectations. The parka maker lost almost one-third of its value yesterday, after falling a couple million dollars short of revenue estimates. In the process, it was the biggest drag on the TSX on a day when Canadian stocks fell the most since Christmas Eve. Was the reaction justified? And what signal does this send to investors in other high-growth stocks? We’ll discuss all of that this morning.
IN CONVERSATION WITH RAPTORS' FOUNDER
BNN Bloomberg's Greg Bonnell has a feature interview today with John Bitove, who brought the NBA to Toronto. From the Skydome days, to Kawhi, praise for the current ownership group, Smash Mouth (!) vs Drake, and his prediction for the series – watch for the full interview on The Real Economy and BNNBloomberg.ca.
TALKING TRADE IN OTTAWA
U.S. Vice-President Mike Pence is in Ottawa today for meetings with Prime Minister Justin Trudeau as the NAFTA nations work toward ratifying their new trade deal. We’ll assess hurdles to ratification south of the border. Optics will be a compelling aspect of today’s coverage, as America’s second-in-command handles the discussions while U.S. President Donald Trump remains on home turf.
ROGERS VICE-CHAIR WARNS ON HUAWEI
Phil Lind spoke out against allowing Huawei to play a role in Canada’s 5G future in an interview on BNN Bloomberg yesterday afternoon. “Huawei is cheaper and quite sophisticated, but the fact is they’re very, very close to the Chinese government,” he told Catherine before saying he doesn’t think Huawei should be allowed to potentially “control” Canada’s telecom system. Have to point out Rogers partnered with Ericsson on 5G.
OTHER NOTABLE STORIES
-Our Bloomberg partners are reporting China is holding off on new purchases of American soybeans in the latest salvo in their trade feud.
-Greyhound is up for sale. Aberdeen-based FirstGroup Plc announced its intent to divest the intercity bus service that staged a dramatic retreat in Canada last year. Shares of FirstGroup have been up as much as 13 per cent in London.
-Calgary-based Big Rock Brewery disclosed “significant cost-cutting measures” yesterday, citing the tax burden in its home province.
NOTABLE RELEASES/EVENTS
-Notable earnings: National Bank, Laurentian Bank, BRP, Lightspeed, Uber, Dollar Tree, Costco, Gap
-Notable data: Canadian current account balance, U.S. GDP
-9:30 a.m. ET: Finance Minister Bill Morneau holds media avail in Milton, Ont.
-10:00 a.m. ET: Ontario finance minister Vic Fedeli and Treasury Board President Peter Bethlenfalvy hold media avail to discuss province’s economy
-2:00 p.m. ET: Facebook holds annual meeting in Menlo Park, California
-2:30 p.m. ET: Bank of Canada Senior Deputy Governor Carolyn Wilkins delivers speech in Calgary (remarks on bank website at 2:15 p.m. ET; media avail at 3:50 p.m. ET)
-U.S. Vice-President Mike Pence in Ottawa for meeting with Prime Minister Justin Trudeau (1150 welcoming ceremony, 1155 meeting in Prime Minister’s Office, 1230 expanded meeting with Canadian Council for the new NAFTA, 1345 joint media avail)
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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