May 15, 2019
The Daily Chase: Shaw cashing out of Corus; Restaurant Brands plans expansion
By Noah Zivitz
Shaw Communications is unloading its stake in Corus Entertainment. The $548-million share sale (at a substantial discount to yesterday's closing price) comes three years after Shaw sold its media division to Corus, picking up 71 million Class B shares in the process. While Shaw says the proceeds will go toward general corporate purposes, analysts at Canaccord Genuity were quick to point out the exit is "prudent" in light of capital demands for wireless expansion.
INFLATION PICKS UP
In the words of CIBC, it was a "steady as she goes story" as Canada's annual inflation rate inched up to 2.0 per cent in April from 1.9 per cent in March. StatsCan notes a 10 per cent surge in gasoline prices was driven in part by carbon taxes.
DEBATING C-69, AND MORE
Quite the conversation being teed up today on The Close. Canoe Financial Chairman W. Brett Wilson, Green Party of Canada Leader Elizabeth May, and Ecojustice Lawyer Joshua Ginsberg will join BNN Bloomberg's Catherine Murray to share their views on Bill C-69, which has the energy industry up in arms — but is about so much more than pipelines. Safe to assume this will not be a dull conversation at 4:30 p.m. ET.
RESTAURANT BRANDS PLOTS GLOBAL EXPANSION
The parent company of Tim Hortons today will detail its plan to reach 40,000 restaurants over the next decade. It’s touting annual growth rates in the burger, chicken and coffee markets, clearly checking all of those boxes. But what about pizza as questions remain about RBI’s next acquisition target? We’ll monitor the company’s investor day presentation in New York.
U.S. TARGETS TELECOM SECURITY THREATS
There are multiple reports the Trump Administration will soon unveil an executive order that would prevent American companies from using telecom gear made by companies that are seen to pose a national security threat. While Huawei isn't expected to be named, the order threatens to further inflame relations with China. We'll tee up the stakes.
THE ART OF THE IPO
Looking forward to our conversation this afternoon with CIBC’s head of global investment banking, Roman Dubczak. In the aftermath of Uber’s tumultuous debut, this interview should yield compelling intel on the strategy behind taking companies public.
FREELAND IN D.C.
Foreign Affairs Minister Chrystia Freeland will again make the case for the Americans to lift their tariffs on Canadian steel and aluminum when she meets with U.S. Trade Representative Robert Lighthizer today in Washington, D.C.. She also has unspecified meetings on Capitol Hill. We’ll tee up the talks this morning with trade lawyer Mark Warner.
OTHER NOTABLE STORIES
-Shares of Aurora Cannabis are falling in New York after reporting a 305 per cent surge in third-quarter net revenue that still fell short of expectations and a larger than expected loss. We’ll monitor management commentary on this morning’s conference call.
-Shares of Tilray, meanwhile, are rallying in pre-market trading amid an upside surprise in revenue, albeit while reporting a hefty loss.
-The Prime Minister is in Paris for a couple days of meetings with global leaders. Big Tech will be under the microscope in those discussions, as governments tackle online extremism in the wake of the Christchurch shootings.
-And ahead of its parent company’s investor day meeting in New York, Tim Hortons announced it’s hopping the Beyond Meat bandwagon
NOTABLE RELEASES/EVENTS
-Notable earnings: Stars Group, Alibaba, Cisco Systems, Macy's
-Notable data: Canadian CPI, Canadian existing home sales, U.S. retail sales
-9:00 a.m. ET: Restaurant Brands International holds investor day in New York
-10:00 a.m. ET: U.S. House Aviation Subcommittee holds hearing on status of Boeing 737 Max
-10:00 a.m. ET: U.S. Treasury Secretary Steven Mnuchin addresses Senate Appropriations subcommittee
-13F filing deadline in the United States
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.
