Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

SNC-Lavalin is blasting Codelco's decision to cancel the problematic US$260-million contract that triggered a pair of recent profit warnings that clobbered SNC's stock. "We are appalled and surprised," SNC said in a release late last night, adding the Chilean state-owner miner's decision is "unwarranted and in breach of good faith." Safe to describe it as a stunning development, particularly after SNC CEO Neil Bruce told BNN Bloomberg last week "the issues in Chile are behind us." We'll chase reaction and follow the bouncing ball on the political scandal surrounding the company after SNC’s elaborate statement yesterday spelling out its case for a remediation agreement.

FREELAND WARNS ON TRADE DEAL

Foreign Affairs Minister Chrystia Freeland emerged from a meeting in D.C. yesterday with U.S. Ambassador Robert Lighthizer with a warning about the fate of the new North American free trade agreement. “The existence of these (U.S. steel and aluminum) tariffs for many Canadians raises some serious questions about NAFTA ratification,” she said. Meanwhile, U.S. President Donald Trump will talk trade with members of Congress this afternoon.

TRANSALTA RISK PROXY FIGHT

Yesterday, TransAlta fetched headlines by lining up Brookfield as a strategic investor. Last night, the power company disclosed it could have a proxy fight on its hands as Mangrove Partners plans to nominate five directors to the company’s board. Mangrove, and two other investors, warned of their activist intentions earlier this month. In a release this morning, they said they haven’t decided yet whether they’ll solicit proxies.

OTHER NOTABLE STORIES

-Andy DeFrancesco’s SOL Global disclosed this morning it acquired an 8.19 per cent stake in Jones Soda. No clear indication of his intent; just saying SOL is eyeing “numerous operational and strategic opportunities”.

-Cronos Group's fourth-quarter revenue surged 248 per cent. Impressive growth, but consider the absolute dollar figure is $5.6 million, well below the average estimate of $10.8 million.

-Bloomberg just flashed a headline indicating China halted canola imports from Regina-based Viterra. Should note canola will be on the prime minister’s agenda today when he meets with senior Richardson execs in Winnipeg. 

-More Brexit chaos in the U.K. parliament, as lawmakers voted to weigh alternate options, including a potential no-deal secession.

-Toronto councilor Mike Layton is pushing a motion to study the cost of climate change for the city and assess the possibility of legal action against oil companies as a result.

-Great-West Lifeco is buying a 28 per cent stake in German fintech company JDC Group AG. Terms weren’t disclosed.

-The first G7 GDP report of the week delivered as expected, with France’s fourth-quarter economic output rising 0.3 per cent.

-Uber is buying Dubai-based Careem Networks for ~US$3.1 billion.

NOTABLE RELEASES/EVENTS

-Notable earnings: Cronos Group

-Notable data: U.S. housing starts and building permits, U.S. consumer confidence

-8:30 a.m. ET: Sun Life Financial investor day meeting

-10:00 a.m. ET: Prime Minister Justin Trudeau discusses Budget 2019 in Winnipeg alongside International Trade Diversification Minister Jim Carr (plus avail)

-12:15 p.m. ET: Prime Minister Trudeau and Minister Carr meet in Winnipeg with James Richardson & Sons CEO Hartley Richardson and Richardson International CEO Curt Vossen 

-2:30 p.m. ET: Finance Minister Bill Morneau discusses Budget 2019 in Vancouver (avail at 5:00 p.m. ET)

-3:15 p.m. ET: U.S. President Donald Trump meets with members of Congress on trade in White House cabinet room

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.