May 28, 2019
The Daily Chase: Scotia misses as loan losses rise; tech giants in the hot seat
By Noah Zivitz
Bank of Nova Scotia has missed second-quarter profit estimates as provisions for loan losses jumped in part because of deals that closed in the latest three-month period. And, similar to its peers, core Canadian banking delivered muted growth. We’ll monitor the conference call for colour on credit quality and any discussion about the value of having the bank’s brand attached to the Raptors.
BIG TECH IN THE HOT SEAT
Mark Zuckerberg and Sheryl Sandberg are reportedly going to be no-shows for the International Grand Committee on Big Data, Privacy and Democracy hearing in Ottawa today on the duty to protect users’ privacy. Instead, Facebook is apparently sending its head of public policy for Canada. Should be pointed out that Facebook is one of the initial supporters of the federal government’s new Declaration on Online Integrity (background here)
SLIM HOPE FOR ‘RAPTOR [GDP] REVIVAL’
BMO is dashing any hope that might exist for a major economic lift courtesy of the Toronto Raptors’ deep run in the NBA playoffs. “It may make a small contribution to growth in May, and early June, but it takes a lot to move the needle,” Chief Economist Doug Porter wrote in a note to clients, adding even a 0.1 percentage point contribution to GDP would be surprising and likely to be reversed a month later. Meanwhile, numbers floating around the secondary market are gobsmacking. Courtside seats for game seven are listed for as much as US$112,500.00 on Stubhub.
OTHER NOTABLE STORIES
-Nutrien announced late yesterday it will raise its quarterly dividend to US$0.45/share from US$0.43. We’ll discuss the fertilizer producer’s outlook tomorrow in an exclusive interview with CEO Chuck Magro.
-TC Energy (ex-TransCanada) is selling an 85 per cent stake in its Northern Courier Pipeline to AIMCo. All told, TC is expecting $1.15 billion in proceeds.
-NFI Group is buying Alexander Dennis Limited for 320-million British pounds ($546 million) in a deal being described as “transformational” for the Winnipeg-based bus maker. ADL is based in the U.K., and generated 631 million British pounds ($1.08 billion) in revenue last year.
-Bombardier says its transportation division has been named the preferred bidder for a monorail system in Cairo. The contract to design and build the project could be worth 1.2 billion euros.
-Authentic Brands Group is paying US$110 million to acquire the intellectual property of Sports Illustrated. SI’s editor-in-chief says the deal opens the door for the magazine’s brand to be tacked onto events, gambling, gaming and other licensing platforms.
NOTABLE RELEASES/EVENTS
-Notable earnings: Bank of Nova Scotia, Indigo Books & Music
-Notable data: S&P/Case Shiller U.S. home price index, U.S. consumer confidence
-0830: International Grand Committee on Big Data, Privacy and Democracy holds two-day meeting in Ottawa. Confirmed speakers include Jim Balsillie, Roger McNamee. (Facebook CEO Mark Zuckerberg and COO Sheryl Sandberg summoned to appear)
-9:30 a.m. ET: Husky Energy holds investor day meeting in Toronto
-9:45 a.m. Et: Foreign Affairs Minister Chrystia Freeland and Assistant Deputy Minister Steve Verheul address House of Commons Committee on Foreign Affairs and International Development
-10:30 a.m. ET: Nutrien holds investor day meeting in Toronto
-1:00 p.m. ET: Canopy Rivers hosts investor day meeting
-3:45 p.m. ET: Natural Resources Minister Amarjeet Sohi holds media avail in Vancouver on Canada’s Energy Future
-4:00 p.m. ET: Advisory Council on Climate Action releases final report in Vancouver
-5:00 p.m. ET: Conservative Party of Canada Leader Andrew Scheer delivers speech in North York, Ont. on Canada's immigration system
-European Council meeting in Brussels regarding nominations for heads of EU institutions (including European Central Bank)
