The Big Three: Oil rises; China-U.S. talks may restart; Canadian earnings to begin
SNC-Lavalin has yanked its financial forecasts for this year and unveiled a massive restructuring strategy that will see the engineering and construction giant exit lump-sum contracting and “explore all options” for its resources business. The company is also booking a $1.9-billion goodwill impairment charge tied to its oil and gas unit. “We are tackling the problem at the source,” said interim CEO Ian Edwards in a release, adding he’s expecting “material improvement in the predictability and clarity of our results.” We’ll gather insight today on whether it’s enough to stabilize a stock that has plunged 44 per cent this year.
The head of CannTrust Holdings’ special committee that’s been tasked with reviewing the company’s illegal production scandal is vowing to “take appropriate actions…to restore trust” in the pot producer. No doubt that’s a tall task after the fiasco that sent the company’s stock into a tailspin and stirred fears it could lose its licences. CannTrust also confirmed today it filed its report with Health Canada last week. Now it’s in a holding pattern while it awaits the regulator’s response.
EARNINGS SEASON HEATS UP
We’ve got the likes of Loblaw, CN Rail, Suncor and Rogers this week in Canada; and names like Amazon.com, McDonald’s, Visa, Boeing and Facebook are on deck in the United States. Plenty of opportunities to gauge the impact of global trade tension at a macro level, in addition to all the company-specific stories. We’ve got some previews lined up today.
West Texas Intermediate and Brent crude oil prices are moving higher as traders wait for the next developments after a British oil tanker was seized on Friday in the Strait of Hormuz. U.K. Prime Minister Theresa May is leading an emergency meeting on the situation today, while her defense secretary spoke about the need to “de-escalate tensions” in an interview with Sky News.
OTHER NOTABLE STORIES
-Aimia is suing its largest shareholder, announcing today it has commenced legal action against Mittleman Brothers in Ontario, citing “unlawful and destructive interference…”
-Flowr Corp. announced a bought deal financing, with 10.6 million units (comprised of a common share and half-share purchase warrant) being sold at $4.10 each. Flowr shares closed Friday at $4.82. If the over-allotment is exercised, Flowr will raise $50.03 million.
-Timing is unclear, but a U.K. government spokesperson said the country will announce its decision on 5G today.
-Equifax has agreed to pay as much as US$700 million in a settlement with American regulators stemming from its massive security breach in 2017.
-Altagas is selling U.S. generation assets to TerraForm Power for $940 million.
-If you missed it late Friday: GFL Environmental confirmed a long-anticipated plan to list subordinate shares in Canada and the United States in an offering led by BMO, Goldman, J.P. Morgan, RBC and Scotia.
-Notable earnings: PrairieSky Royalty, Halliburton
-Notable data: Canadian wholesale trade
-11:00 a.m. ET: Huawei, Ice Wireless, Qikiqtaaluk Corp. make announcement in Ottawa (plus avail at 11:50 a.m. ET)
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.