Thomas Cook has succumbed as a casualty of technological disruption (and debt). The 178-year-old travel company threw in the towel today, commencing insolvency proceedings after saying it failed to secure a financial lifeline. Its collapse has left an estimated 150,000 travelers stranded and left a clean-up job for the U.K. government, which says it will help arrange travel for affected passengers. We’ll dig around on implications for Canadians. Keep in mind Transat acquired Thomas Cook’s Canadian agency network in 2006 and just last year the two companies announced a fleet sharing agreement.
FIRST QUANTUM: NO TAKEOVER TALKS
The Canadian-based miner with globe-spanning assets is refuting takeover speculation, saying flatly it has “not engaged in any discussions (of that nature)…and has no knowledge of potential takeover bids, change of control transactions or proposals.” Last week, our Bloomberg partners reported First Quantum had attracted some preliminary takeover interest. The company however confirmed it is holding talks about the potential sale of a minority stake in its Zambian copper business.
TSX ON A ROLL
Canadian stocks are making a habit of breaking records, with the TSX closing at year another all-time high Friday. The Composite Index has posted gains in eight of the last 10 sessions.
CAMPAIGN LATEST
The Conservatives unveiled their housing plan today, which includes a pledge to “fix the mortgage stress test”, allow 30-year amortization for insured mortgages held by first-time buyers, and start an inquiry into money laundering in Canadian real estate. Yesterday, the Liberals again tried to steer some attention away from last week’s controversy with a pair of major policy announcements, including a pledge to raise the basic personal income tax amount to $15,000 and a vow to take “strong action” to cut cell phone bills 25 per cent. Meanwhile, the latest Nanos poll for CTV and The Globe and Mail shows the two-way race tightening up again with Liberal support at 33.1 per cent and the Conservatives at 34.3 per cent.
OTHER NOTABLE STORIES
-DHX Media announced an overhaul this morning including a planned name change (to WildBrain), a restructuring (up to $12 million in costs), and a new CFO. The company also posted gains in fourth-quarter adjusted EBITDA and revenue.
-The U.S. Federal Aviation Authority has convened a meeting in Montreal today with counterparts from around the world to provide an update on the software fix for Boeing’s 737 Max program. If you missed it Friday, BNN Bloomberg's Paige Ellis reported on WestJet’s expectation that the troubled jets will be certified soon but it’s an open question about when they’ll be back in the sky.
-Bloomberg is reporting some WeWork directors will float the idea of replacing CEO Adam Neumann at a board meeting today.
-The Wall Street Journal is reporting it could take “many months” to fully restore output at Saudi Aramco after attacks last weekend knocked out production representing five per cent of global oil output. And seemingly, no cost is too steep for the company: “Aramco is asking contractors to name their price for patch-ups and restorations,” according to the WSJ.
NOTABLE RELEASES/EVENTS
-Notable earnings: DHX Media
-Notable data: Canadian wholesale trade
-8:30 a.m. ET: Liberal Party Leader Justin Trudeau makes announcement in Hamilton, Ont.
-10:00 a.m. ET: Conservative Party Leader Andrew Scheer makes announcement in Woodbridge, Ont.
-10:30 a.m. ET: NDP Leader Jagmeet Singh announces “star candidate” in Bathurst, NB
-12:00 p.m. ET: Green Party Leader Elizabeth May makes announcement in Fredericton
-Huawei CFO Meng Wanzhou due back in B.C. Supreme Court re. extradition hearing process
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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