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Noah Zivitz

Managing Editor, BNN Bloomberg

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European stocks are rallying and futures are pointing to a higher open in New York as investors evaluate the U.S. midterm results that, on the surface at least, delivered on expectations. Democrats flipped the House of Representatives, while Republicans are hanging on to the Senate. House Minority Leader Nancy Pelosi is calling it a “new day in America” that will restore checks and balances in Congress. U.S. President Donald Trump, meanwhile, declared the elections a “tremendous success” in a tweet early last night. Our coverage will focus on what a divided Congress means for Trump’s agenda, the implications for investors, and spillover for Canada-U.S. relations. And David George-Cosh will recap pot legalization measures that passed in three states.

IMPERIAL OIL GREEN LIGHTS MAJOR OIL SANDS PROJECT

Despite some dismal sentiment (to wit: retiring GMP FirstEnergy deputy chairman Jim Davidson telling us yesterday capital flight from the oil patch is the worst he's ever seen), Imperial Oil has signed off on a final investment decision to proceed with its $2.6-billion Aspen oil sands project. The announcement touts the legwork that's been done to bring Indigenous communities on board, and trumpets technology that Imperial says will slash emissions and water use. "We do not take investment decisions light, particularly in these challenging times. This is right technology at the right time to make a competitive investments," in the words of CEO Rich Kruger. 

KRAFT HEINZ SCALES BACK IN CANADA

The food conglomerate that was pieced together by Warren Buffett and Brazil's 3G announced late yesterday it's selling its Canadian natural cheese unit to Parmalat for $1.62 billion, while saying it "remains steadfast in its commitment to the Canadian market." The assets that Parmalat is picking up generated more than half a billion dollars in revenue last year and include household names like Cracker Barrel.  

(U.S.) OIL STEADIES

West Texas Intermediate oil is trading modestly higher this morning after a seven-session losing streak that saw prices plunge into bear market territory yesterday, down more than 20 per cent from a recent high in October. We await the weekly U.S. inventory report later today; and just moments ago Bloomberg reported OPEC delegates meeting this weekend will discuss the possibility of curbing production next year. The price of Western Canada Select, meanwhile, is hovering near US$20 per barrel.

OTHER NOTABLE STORIES

-Home Capital Group's third-quarter profit rose nine per cent year-over-year, topping estimates in the process, while mortgage originations surged 273 per cent year-over-year. Of course, the year ago period was a dark time for the alternative lender. Home Capital also announced a buyback this morning.

-Spin Master’s third-quarter revenue came in a bit shy of estimates at US$620 million; the toy maker’s president said in a release his industry “did not see as much recovery in the third quarter as we expected” after Toys “R” Us’s liquidation.

NOTABLE RELEASES/EVENTS

-Notable earnings: Manulife Financial, Sun Life Financial, Home Capital Group, Linamar, Kinross, Industrial Alliance, CGI Group, Square

-9:00 a.m. ET: Imperial Oil holds investor day meeting in Toronto (plus CEO Q&A with reporters at 12:15 p.m. ET via teleconference)

-11:00 a.m. ET: RCMP, Canadian Anti-Fraud Centre and Canada Revenue Agency hold technical briefing in Ottawa on phone scams and call centers in India

-11:30 a.m. ET: Finance Minister Bill Morneau holds groundbreaking in Montreal for new National Bank HQ, plus media avail

-Randgold holds special shareholder meeting for vote on takeover by Barrick

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.