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Noah Zivitz

Managing Editor, BNN Bloomberg

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West Texas Intermediate is inching ever closer to US$60 per barrel as oil extends a rally that’s seen the price nearly double since late April. OPEC+ injected some additional optimism into the market yesterday, with its claim of 101 per cent compliance with production quotas. We’ll continue gathering market intel on crude’s rally juxtaposed against the still-daunting threat of COVID-19 and the gradual transition to renewable energy.

SUNCOR NAVIGATES COVID IMPACT

Lots to sift through at Suncor Energy: it swung to a fourth-quarter operating loss and funds from operations were halved amid pandemic fallout. Both metrics, however, improved sequentially. And there are several notable one-time items: in addition to the previously-announced impairment on West White Rose, Suncor booked a $142-million provision tied to Keystone XL. And, subsequent to quarter-end, Suncor says it sold its stake in a North Sea oil field for up to US$375 million.

BCE RAISING DIVIDEND AND BOOSTING CAPEX

The big telco gave investors a whole lot to think about today. The annual dividend is increasing 5.1 per cent to $3.50 per share amid what CFO Glen LeBlanc described in a release as a “rock-solid financial foundation” after BCE managed to beat fourth-quarter profit estimates despite the continued impact of COVID-19. The company – which owns BNN Bloomberg through its Bell Media division -- is also pledging up to $1.2 billion in additional capital investment. CEO Mirko Bibic described it to us as the next step in BCE’s “big, heavy infrastructure project” that’s been underway for more than a decade and said it ultimately supports dividend growth that investors crave. We’ll address all of this, and other issues that’ve grabbed the public’s attention lately. Watch for our conversations with Bibic today on BNN Bloomberg and BNNBloomberg.ca.

REDDIT FALLOUT

According to our Bloomberg News partners, the heads of the U.S. Federal Reserve, U.S. Securities and Exchange Commission, Commodity Futures Trading Commission and the Federal Reserve Bank of New York will be in the room for the meeting convened by U.S. Treasury Secretary Janet Yellen to address recent market turmoil. It’s unclear at this point whether the meeting will be closed to the media or if there’ll be access to principals before or after.

OTHER NOTABLE STORIES

  • Canaccord Genuity raked it in during the latest quarter, with revenue surging 36.6 per cent to a record $533 million amid booming business for its investment banking operations. We’re looking forward to speaking with CEO Dan Daviau shortly after 10 a.m.
  • We’ve also got Lightspeed POS CEO Dax DaSilva lined up for an interview in The Open, with his company having just reported a much narrower fiscal third-quarter loss than analysts expected. Lightspeed also forecast revenue that would top estimates.
  • Canada Goose shares have been up more than 10 per cent in pre-market trading after the parka maker easily exceeded fiscal third-quarter profit estimates as its online sales surged 39 per cent year-over-year.
  • McKinsey & Co., one of the world’s best known consulting firms, has reportedly agreed to pay upward of US$600 million in a settlement with dozens of U.S. states over its role in fueling the opioid epidemic via the services it provided to the likes of Purdue Pharma and Johnson & Johnson. 
  • Royal Dutch Shell’s fourth-quarter is the latest reminder of challenges facing the world’s supermajors as cash flow sank 39 per cent and adjusted profit collapsed – no matter whether you’re looking at it year-over-year or sequentially.
  • Goodfood Market might be a stock to watch after it announced a $60 million financing (4.8 million shares at $12.50 apiece). Proceeds will, among other things, go toward building out same-day delivery services.
  • NFI Group is also going to market, announcing late yesterday it will raise $250 million by issuing almost 8.5 million shares priced at $29.60 each.

NOTABLE RELEASES/EVENTS

  • Notable data: U.S. initial jobless claims
  • Notable earnings: BCE, Canada Goose, Open Text, Saputo, Brookfield Renewable Partners, Lightspeed POS, Indigo Books and Music, Royal Dutch Shell, Merck, Gilead Sciences, Ford Motor Co., Peloton Interactive, Snap Inc., Pinterest
  • 7 a.m. ET - Bank of England releases interest rate decision
  • 9 a.m. - Parliamentary Budget Officer releases costing note "Simplifying the Home Office Expense Deduction"
  • 11 a.m. - Procurement Minister Anita Anand and Industry Minister Francois-Philippe Champagne address Industry Committee hearing on domestic manufacturing capacity for COVID-19 vaccines
  • 11:30 a.m. - White House press briefing
  • 2:45 p.m. - U.S. President Joe Biden delivers remarks at U.S. State Department after meeting with secretary of state
  • 3:30 p.m. - Air Canada, WestJet officials address Transport Committee hearing on COVID-19’s impact on the aviation sector