Reports that SNC-Lavalin Group is considering breaking itself up shouldn’t come as a surprise since the company’s plan to “consider options that would protect value for shareholders” after being turned away from a remediation agreement is well documented and dates back to at least December. The fact that such similar reports, based on a private meeting with investors last week, landed nearly simultaneously, forces us to consider how close SNC is to a decision.
GM’S FUTURE IN CANADA
Unifor and General Motors Canada have called a joint news conference for this morning to discuss the future of the automaker’s operations in Oshawa, Ont. as the clock ticks down to the planned closure of GM’s plant in that city. We’ll set the scene this morning and gather reaction this afternoon.
WESTJET CEO TOUTS 737 MAX
Ed Sims says the 737 Max “will likely be the safest narrow-body aircraft to ever enter service” when it’s cleared to fly again. And he’s not just talking a good game. He told BNN Bloomberg's Tara Weber he and his family will “almost certainly” be on the first flight when regulators give Boeing’s troubled aircraft the green light.
IN CONVERSATION WITH EVAN SIDDALL
We have an interview this afternoon with the head of Canada Mortgage and Housing Corporation. Great timing after Bank of Canada Governor Stephen Poloz’s “call to arms” for mortgage market diversification earlier this week. Watch for the interview on Bloomberg Markets.
THE FUTURE OF BARRICK
We’ve got an interview today with Barrick Gold CEO Mark Bristow. Earnings were released this morning, alongside an underscoring of the company’s new, lean structure in Toronto (70 people occupying a single floor of office space), but really this conversation will be a progress report on Randgold integration and the Nevada joint-venture with Newmont.
CHINA-U.S. TRADE
There’s some calm in the market this morning, with futures pointing to a soft open in New York after yesterday’s sharp declines. Negotiations are set to resume tomorrow in Washington, D.C. In the meantime, JPMorgan CEO Jamie Dimon shared his perspective in an interview with our Bloomberg partners, saying he still sees 80% odds that a deal will be done, while warning it would be a “huge mistake” to set policy based on the stock market.
OTHER NOTABLE STORIES
-Transcontinental has announced a plan to close its plant in Brampton, Ont., affecting 155 employees.
-Huawei CFO Meng Wanzhou is expected back in B.C. Supreme Court today for the next phase of her extradition hearing. We’ll monitor developments.
-A new report is shining light on money laundering in British Columbia’s luxury vehicle market. B.C. Attorney General David Eby calls the findings “disturbing.” We’ll chase him and former RCMP officer Peter German, who helmed the report. (Link to release and full report: https://news.gov.bc.ca/releases/2019AG0042-000885)
-Mortgage originations and deposits rose year-over-year in Home Capital Group’s first quarter, prompting CEO Yousry Bissada to say “more Canadians are trusting us.” Adjusted profit, meanwhile, fell in the quarter and provisions for loan losses increased.
-Lyft shares are down ~one per cent in pre-market trading after the company reported a 46 per cent surge in active riders, albeit while posting a US$1.14-billion quarterly loss. Should also point out Lyft and Uber drivers are rallying today in New York. And as investors eagerly await Uber’s IPO later this week, Jon is setting the scene here.
NOTABLE RELEASES/EVENTS
-Notable earnings: Barrick Gold, Home Capital Group, Sun Life Financial, Spin Master, Torstar, Franco-Nevada, Wheaton Precious Metals, Finning International, Chorus Aviation, Alcanna, Thomson Reuters, Walt Disney Co., The New York Times Co.
-Notable data: Canadian housing starts
-10:30 a.m. ET: Alimentation Couche-Tard Founder Alain Bouchard among honourees at Order of Canada ceremony in Ottawa
-1100: Unifor National President Jerry Dias and GM Canada President Travis Hester make announcement in Toronto
-1300: B.C. Supreme Court hearing re. Meng Wanzhou extradition
-1330: Natural Resources Minister Amarjeet Sohi in Calgary to announce clean technology project funding for Alberta’s oil and gas sector (plus avail).
-1530: Enbridge AGM in Calgary
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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