The Quebec government has tabled a budget with surpluses all the way out to 2023-24. Beneath the surface, most interesting for our purposes is the $1 billion being set aside to “assist with the development of strategic businesses” as well as a plan to “develop business intelligence in the field of head office protection.” We’ll chase that angle while keeping in mind Neil Bruce’s adamant denial when we asked earlier this week if he threatened to move SNC-Lavalin’s HQ. If you missed that interview, watch for BNN Bloomberg’s special, SNC Strikes Back, tonight at 7:30 p.m. ET (plus encore presentations this weekend).
PAULSON WARNS ON NEWMONT-GOLDCORP DEAL
Renowned gold investor Paulson & Co. is giving the thumbs down to Newmont’s US$10-billion takeover of Goldcorp, saying in a release late yesterday it cannot support the deal under its current structure. Notably, Paulson doesn’t want any of the benefit of Newmont’s new Nevada joint-venture with Barrick to flow to Goldcorp. “If Goldcorp does not agree to the revised terms, that would be its loss,” Paulson wrote in a letter to Newmont’s CEO. We’ll gather reaction.
CANADIAN CONSUMERS TAPPED OUT?
More evidence this morning that Canadian consumers are scaling back their spending habits. Retail sales unexpectedly fell in January — the third straight monthly decline. Auto sales were a major weak spot in the first month of the year. The overall weakness was broad-based as sales fell in most provinces.
TECK GETS INVESTMENT GRADE NOD FROM S&P
After a couple brushes with financial ruin in the last decade, Teck Resources is being rewarded for cleaning up its balance sheet, with S&P raising Teck’s credit rating into investment grade territory. S&P says the BBB- rating is a reflection of Teck’s “deliberate steps” to manage its debt and its “heightened resilience” to commodity price volatility.
BREXIT EXTENSION
EU leaders have removed the risk of a hard Brexit next Friday. They’ve told U.K. Prime Minister Theresa May she’ll have until April 12 to decide on next steps if she fails to win Parliamentary approval for her secession strategy next week.
OTHER NOTABLE STORIES
-The Canola Council of Canada is indicating China's avoidance of Canadian canola extends beyond Richardson. "Canola seed exporters report that Chinese importers are unwilling to purchase Canadian canola seed at this time," the council said in a release. A China government spokesperson said overnight there was no update on the Canola issue.
-Joe Ceci disclosed (in campaign season, it should be noted) that Scotiabank is sitting on a “detailed proposal” to acquire ATB and that he previously blocked a proposed deal.
-Hydro One has submitted a $5-billion investment plan to the Ontario Energy Board that could result in slightly more expensive bills for customers. We’ll see what the provincial government has to say about that.
-Bloomberg News is reporting Uber is leaning toward listing on the New York Stock Exchange when it goes public.
-Nike shares are down more than four per cent in pre-market trading after third-quarter revenue came in a bit below estimates (US$9.61 billion vs US$9.65 billion)
NOTABLE RELEASES/EVENTS
-Notable earnings: BRP, Tiffany & Co.
-Notable data: Canadian retail sales, Canadian CPI, U.S. existing home sales
-12:30 p.m. ET: Finance Minister Bill Morneau holds media avail in Halifax after remarks on Budget 2019
-2:30 p.m. ET: Prime Minister Justin Trudeau discusses Budget 2019 in Thunder Bay, Ont. (plus avail)
-B.C. reference case re. oil transportation continues before provincial Court of Appeal
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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