Aphria has closed the book on its purchase of Latin American assets that fell into the spotlight after a short-seller report. The Canadian cannabis producer today said a special committee has verified the assets - and the puchase price was in an "acceptable range." However, the committee has also idenitifed certain conflicts in the boardroom that weren't properly disclosed.
While Ottawa is abuzz over alleged political interference in the SNC-Lavalin affair, some politicians can't resist the urge to fuel the fire. Quebec Premier Francois Legault came right out and told reporters he urged the prime minister to "settle as soon as possible" for the sake of protecting SNC's workforce, while adding SNC’s management told him they’re ready to pay “very large amounts” to resolve the corruption case. Stands to reason this might come up when the PM takes questions later today. Meanwhile, investors await SNC breaking its silence when it reports earnings a week from today.
INVEST LIKE BUFFETT
Warren Buffett’s Berkshire Hathaway is back in Suncor, to the tune of 10.8 million shares. Berkshire is no stranger to the Canadian energy giant, having previously taken a stake in 2013 (which it subsequently exited in 2016). This is just one of the highlights from 13F season.
IN CONVERSATION WITH BRUCE LINTON
We’ve got Canopy Growth’s boss on The Open to discuss the cannabis producer’s latest quarter. Last night’s quarterly report shows the advent of legal recreational cannabis in Canada was a revenue boon for Canopy. Beyond that, lots of interesting tidbits in the release. Like operating expenses soaring to almost $170 million from $42 million a year earlier. And a point-blank declaration that's it’s "likely" going to make more acquisitions. Also buried in the release: CFO Tim Saunders is stepping down later this year.
CHINA-U.S. TRADE
The high-level trade talks in Beijing closed on an optimistic note, but still no clear agreement to extend the tariff standstill beyond March 1. China President Xi Jinping is quoted as saying “important progress” was achieved and that talks will resume next week in Washington, D.C.. Earlier, U.S. Trade Representative Robert Lighthizer said the two sides “made headway on very, very important and difficult issues.”
DODGING ANOTHER SHUTDOWN
U.S. President Donald Trump is expected to sign the government funding bill that cleared the Senate and House last night, and then quickly pivot to exercising executive power to build his border wall with Mexico. And that’s where things get dicey, with reports that he’ll shuffle US$7 billion to cover the bill – which could prompt congressional and legal challenges. Trump will deliver remarks on this in a few hours.
OTHER NOTABLE STORIES
-Enbridge's adjusted fourth-quarter profit rose to $1.17 billion. In a release, CEO Al Monaco said Line 3 is still on track to enter service before the end of 2019; and he vowed to "take a disciplined approach to investment decisions."
-Fairfax Financial disclosed late yesterday it suffered a $756-million loss on its equity investments in the fourth quarter.
-Agnico Eagle swung to a fourth-quarter loss — largely on a $389.7-million impairment. We have CEO Sean Boyd on The Street.
-Air Canada swung to a net loss in the fourth quarter, while EBITDAR hit a new record of US$543 million. The airline is forecasting a key adjusted cost metric will rise as much as 3.0 per cent this year.
-The Canadian Press is reporting Prime Minister Justin Trudeau will announce the feds are steering $40 million to BlackBerry at an event this morning in Kanata, Ont.
-And we’ve got a CTV News report on why tiny homes aren’t always everything they’re cracked up to be
NOTABLE RELEASES/EVENTS
-Notable earnings: Air Canada, Enbridge, Cineplex, Fortis, PepsiCo, Deere & Co.
-Notable data: Canadian international securities transactions, Canadian existing home sales, U.S. retail sales
-8:30 a.m. ET: Fairfax Financial conference call
-9:15 a.m. ET: Prime Minister Justin Trudeau makes announcement in Kanata alongside BlackBerry CEO John Chen (plus media avail)
-10:00 a.m. ET: U.S. President Donald Trump delivers remarks in Rose Garden on national security and southern border
-11:45 a.m. ET: Ontario Premier Doug Ford holds photo op at Canadian International Autoshow in Toronto
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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