The TSX made it nine for nine yesterday, extending a winning streak that has propelled the composite index six per cent higher and nearly erased the losses registered in December when Canadian stocks tumbled almost 10 per cent before the Christmas market holiday. Great insight on the rally coming up this morning from the likes of Myles Zyblock and Andrew Pyle.
HUSKY ABANDONS MEG TAKEOVER
Husky Energy said Thursday morning it will abandon its hostile takeover bid for MEG Energy after failing to win enough shareholder support before yesterday’s 5 p.m. ET deadline. Husky also called out “several negative surprises” since its offer was launched. Specifically: Alberta “departing from free market principles” by forcing production cuts, and a “continued lack of meaningful progress” on the pipeline front.
MCCALLUM CALLS FOR CORPORATE SUPPORT IN CHINA DISPUTE
John McCallum, who made a name for himself on Bay Street before jumping into politics, says the business community has a role to play in Canada’s ongoing dispute with China. “Certain corporate leaders from around the world are meeting Chinese counterparts and we would engage them,” he told reporters yesterday when asked about Ottawa’s strategy for helping three jailed Canadian citizens, including one who faces a death sentence. McCallum also warned the diplomatic feud is “not good for the image of corporate China in the world.”
RBC CUTS KEY MORTGAGE RATE
Still lots of interest in RBC’s move to trim its five-year fixed mortgage rate from 3.89 per cent to 3.74 per cent. Was it enough to rev up homebuying activity and force its peers/rivals to follow? We’ll assess.
BREXIT LATEST
Theresa May’s government survived a no-confidence vote yesterday and the biggest question she faces remains the same: what’s the plan ahead of the March 29 divorce date? Expect plenty of political gamesmanship in the coming weeks. Next date to circle on the calendar is Jan. 29 – that’s when Parliament will vote on the PM’s plan b.
OTHER NOTABLE STORIES
-Peyto Exploration announced late yesterday it will “temporarily” slash its monthly dividend to two cents per share from the current rate of six cents as part of a new three-year plan designed to absorb the shock of weak Canadian natural gas prices. The company is also reducing its capital budget for this year to $150-$200 million from the previous target range of $250-$300 million.
-Vanguard announced the death of its founder, John Bogle, in a release late yesterday. We'll reflect on his legacy as a pioneer of index funds who laid the groundwork for Vanguard to become the US$4.9-trillion asset manager it is today.
-The partial U.S. government shutdown is now into a 27th day.
NOTABLE RELEASES/EVENTS
-Notable earnings: American Express, Netflix, Morgan Stanley
-10:00 a.m. ET: Parliamentary Budget Officer releases long-term projection comparison and report costing 2018 Fall Economic Statement
-Cabinet retreat continues in Sherbrooke, Que.
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.
Advertisement