The Big Three: Election call looms; Apple undercuts Netflix; Suncor CEO says investing chill remains
Prime Minister Justin Trudeau triggered the federal election campaign this morning after Governor General Julie Payette gave the go-ahead to dissolve Parliament. Between now and Oct. 21, BNN Bloomberg will focus on the issues and platform pledges that most directly affect our viewers’ money and the economy: from taxes, to fiscal sustainability, energy and the environment, housing, retirement planning, and much more. And our election tracker is live on BNNBloomberg.ca for a rapid snapshot of where the parties stand on some hot-button topics.
TOUGH TIMES AT ROOTS
The sweatwear maker today said it might miss its full-year sales forecast as a result of “recent macro-economic and geopolitical headwinds [its] Asia business is facing.” And it’s also expecting to miss profit targets amid higher expenses and the impact of U.S. tariffs. Meanwhile, second-quarter same-store sales fell and its adjusted loss more than doubled in the latest three-month period.
SNC POPS AGAIN
Yesterday it was an analyst report that pushed SNC-Lavalin shares higher. And the buying activity resumed today. No obvious single news catalyst, but worth pointing out a regulatory filing dated Sept. 10 showing Jarislowsky Fraser built a 10.81 per cent stake in SNC as of the end of August. Should note the filing also got some mainstream attention in a La Presse article. SNC shares were up as much as 10.6 per cent in early trading.
EXCHANGE M&A — MAYBE
Hong Kong Exchanges & Clearing has tabled a proposal to buy the London Stock Exchange Group for US$36 billion in cash and stock. LSEG says its board will review the “preliminary and highly conditional approach.” There are significant spillover implications, considering LSEG’s recent agreement to buy financial data service provider Refinitiv.
OTHER NOTABLE STORIES
-CT Real Estate Investment Trust slipped in early trading after the REIT and Canadian Tire announced a bought deal secondary sale of 16.8 million units priced at $14.25 apiece.
-Catalyst Capital Group has officially disclosed a 15.99 per cent stake Hudson’s Bay Company. The updated ownership position was previously reported by our Bloomberg partners, who point out Catalyst is now a greater threat to the viability of a privatization bid led by HBC executive chairman Richard Baker.
-Bloomberg is also reporting the U.S. Federal Trade Commission is “in the early stages of a sweeping probe” into how Amazon.com operates, including interviews with small business owners to assess whether Amazon is stifling competition.
-U.S. President Donald Trump renewed his attack on the Federal Reserve this morning, saying in a series of tweets the central bank “should get our interest rates down to ZERO, or less.” He went on to personally disparage chair Jerome Powell.
-Notable earnings: Aurora Cannabis, Roots
-9:30 a.m. ET: Green Party Leader Elizabeth May launches election campaign in Victoria, B.C.
-10:00 a.m. ET: Prime Minister arrives at Rideau Hall for meeting with Governor General Julie Payette (Trudeau delivers remarks and media avail after meeting)
-10:15 p.m. ET: NDP Leader Jagmeet Singh holds campaign launch event in London, ON (1015)
-12:00 p.m. ET: Conservative Party of Canada Leader Andrew Scheer holds campaign launch event in Trois-Rivieres, QC (plus avail)
-2:00 p.m. ET: People’s Party of Canada Leader Maxime Bernier launches campaign in Etobicoke, ON
-2:05 p.m. ET: CP Rail CEO Keith Creel presents at Morgan Stanley conference
-6:00 p.m. ET: Conservative Party of Canada Leader Andrew Scheer holds campaign launch event in Woodbridge, ON
-Deadline for Enbridge to respond to Canadian Energy Regulator’s comment period on Mainline open season
Editor’s note: An earlier version of today’s Daily Chase promoted an interview with Franco-Nevada chair Pierre Lassonde. Unfortunately, that segment didn’t happen as scheduled today. We hope to bring you an interview with Lassonde soon.