Our top priority today is the pursuit of insight on the industrial and economic consequences of the blockades that have snarled rail traffic and forced Canadian National to warn yesterday of “imminent” network shutdowns if the protests aren’t soon cleared out of the way. In its statement, CN also made it clear there’s reputational risk at stake for this country: “The impact [of the blockades] is also being felt beyond Canada’s borders and is harming the country’s reputation as a stable and viable supply chain partner.” We had hoped to address the root cause this morning in Commodities with Wet’suwet’en Hereditary Titleholder Theresa Tait Day. Unfortunately, that interview is being rescheduled to a later date.
WHAT A LINEUP
Great example today of how you won’t find better access to Canada’s most influential business leaders than BNN Bloomberg. It started at 7:20 a.m. ET with Barrick Gold CEO Mark Bristow, fresh off exceeding fourth-quarter profit estimates and raising the miner’s dividend, who said he’s “eminently comfortable” with the freshly-raised payout and said he’ll approach potential asset sales in the “right and appropriate way”. On The Open, Jon Erlichman sits down with Canada’s Outstanding CEO of the Year, Lino Saputo Jr., for a feature conversation. Andy will speak with Newfoundland and Labrador Premier Dwight Ball about his province’s recent agreement with the feds to shield customers from cost overruns at the massive Muskrat Falls hydroelectricity facility. And stay tuned this afternoon for Tara Weber’s conversation with Cenovus CEO Alex Pourbaix, who today touted progress reducing the company’s debt load while reporting a swing to positive adjusted funds flow. Lots of company-specific and macro themes to cover with him. And in The Close, Catherine explores the retail landscape with SmartCentres executive chairman Mitchell Goldhar.
EARNINGS PARADE
Some of the other names on our radar after reporting quarterly results: Market darling Shopify sailed past fourth-quarter estimates as revenue surged 47 per cent; it also forecast first-quarter and full-year revenue that’s roughly in line with estimates. And Cineplex has reported fourth-quarter declines in theatre attendance and profit as it moves toward closing its sale to Cineworld. We await results from the big lifecos later today; might be particularly intriguing to see how Manulife Financial’s significant Asia footprint has been affected by the coronavirus outbreak.
BLUNT TALK FROM OSFI CHIEF
Jeremy Rudin spoke out yesterday on the risks and opportunities facing Canada as industries and policymakers grapple with climate change. He warned industries like fossil fuel production and transportation will be “directly disrupted. … The second round of transition risk arises as the decline in profits and employment in the disrupted industries ripples through the broader economy.” Rudin said it’s too early to determine the economic impact of that transition, but said it’s “prudent” to prepare for a “sharply negative” effect.
OTHER NOTABLE STORIES
-A new Angus Reid Institute survey illustrates the extent to which Canadians are divided over Teck’s Frontier oil sands mine proposal, with 49 per cent of respondents saying they support it, 40% saying they oppose it, and the balance undecided.
-Samsung unveiled its long-awaited Z Flip phone yesterday. The foldable device arrives in Canada on Feb. 21 for $1,819.99.
-Shares of Bed Bath & Beyond have been down more than 25 per cent in pre-market trading after the company warned of weak same-store sales in its fiscal fourth quarter due deteriorating store traffic, “inventory management issues, and increased promotional activity and markdowns.”
-Toromont Industries could be a stock to watch today after the heavy equipment supplier raised its quarterly dividend almost 15% to $0.31 per share.
And a special programming note: don’t miss our broadcast of Bloomberg Television anchor Francine Lacqua’s feature interview with outgoing Bank of England governor Mark Carney tonight at 9:30pm ET.
NOTABLE RELEASES/EVENTS
-Notable earnings: Shopify, Manulife Financial, Sun Life Financial, Great-West Lifeco, Barrick Gold, Kinross Gold, Cenovus, Hydro One, Cineplex, Finning International, Molson Coors, Cisco Systems
-10:00 a.m. ET: U.S. Federal Reserve chair Jerome Powell testifies before U.S. Senate Banking Committee
-1:15 p.m. ET: Finance Minister Bill Morneau holds avail in Toronto after meeting with private sector economists
-2:00 p.m. ET: Environment and climate change minister Jonathan Wilkinson makes announcement in Vancouver about plastics pollution (plus avail)
-2:30 p.m. ET: Infrastructure minister Catherine McKenna holds media avail in Vancouver
-7:15 p.m. ET: Bank of Canada governor Stephen Poloz participates in panel at Australia-Canada Economic Leadership Forum in Melbourne
-CRTC begins two-day hearing in Montreal regarding BCE’s proposed purchase of V television network (agenda https://crtc.gc.ca/broadcast/eng/hearings/2020/ag12_02.htm?_ga=2.195823727.2103219665.1580847370-541664565.1580847370)
-European General Court to begin hearing Google's challenge of 2.4-billion euro antitrust fine.
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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