Nov 27, 2018
The Daily Chase: Unifor's Dias takes GM fight to Ottawa; Scotia opens bank earnings
By Noah Zivitz
General Motors’ restructuring remains our top story. Unifor National President Jerry Dias was spitting nails when he addressed workers who were put on notice yesterday in Oshawa, Ont. vowing “one hell of a fight” to keep the 65-year-old plant open. Today, he takes that fight to Ottawa, where he’ll talk strategy with Prime Minister Justin Trudeau.
Some framing for our coverage:
-Dias said he’ll tell the PM “we have to use every trick, every tool — we’re going to have to use all of the power of government.” But what tools are at their disposal?
-Dias said that in September 2016, GM promised not to close or sell any of its Canadian plants. We’ll chase a labour lawyer to find out what kind of wiggle room is typically baked into master agreements.
MAPLE LEAF TEAMS WITH FEDS, PROVINCE ON $660M PLANT
The news came just a few hours after GM’s restructuring was unveiled. Maple Leaf Foods is planning to build a $660-million high-tech poultry processing plant in London, Ont. The feds and Ontario will chip in $54.5 million for the project, which Maple Leaf estimates will yield 300 construction jobs; 1,450 direct jobs, and 1,400 indirect positions. The downside to the story is that three aging plants will be taken out of service over the next couple years, with an unspecified number of workers affected. It’s another great case study in business investment flows.
SCOTIA KICKS OFF BANK EARNINGS SEASON
Bank of Nova Scotia just opened earnings season with $8.7 billion in full-year profit, while adjusted fourth-quarter profit was essentially in line at $1.77 per share. 2018 hasn’t been kind to Scotiabank, with its stock down 13.6 per cent YTD — underperforming its Big Five peers by a wide margin as it got swept up in NAFTA uncertainty. Looking ahead to 2019, CEO Brian Porter said in a statement his bank is especially optimistic about the outlook for its footprint in Pacific Alliance countries. Scotia also announced a restructuring of its Caribbean operations, including the sale of its banking ops in nine non-core markets in the region.
TRUMP THREATENS IPHONE TARIFFS
Shares of Apple remain under pressure after U.S. President Donald Trump threatened to apply import tariffs to iPhones as part of his broader trade dispute with China. Direct quote: “Maybe. Maybe. Depends on what the rate is. I mean, I can make it 10 per cent and people could stand that very easily.” We’ll assess how this sets the stage for Trump’s eagerly-awaited meeting with China’s president in Buenos Aires later this week.
OTHER NOTABLE STORIES
-Legislation to end rotating Canada Post walkouts received royal asset late yesterday and will take effect at noon ET. The Canadian Union of Postal Workers says it will “explore all options” to fight back against the intervention. We’ll chase CUPW.
NOTABLE RELEASES/EVENTS
-Notable earnings: Bank of Nova Scotia, Alimentation Couche-Tard, Salesforce.com
-Notable data: S&P/Case Shiller U.S. home price index, U.S. consumer confidence
-9:00 A.M. ET: CMHC CEO Evan Siddall, Ontario Economic Development Minister Todd Smith, Toronto Mayor John Tory speak at Canada Innovation Hub launch event in Toronto
-10:00 a.m. ET: Ensign Energy Services' hostile takeover offer for Trinidad Drilling expires
-10:00 a.m. ET: Parliamentary Budget Officer releases report "Cost Estimate of a Reduction in the Federal Corporate Income Tax Rate"
-1:00 p.m. ET: Unifor National President Jerry Dias meets with Prime Minister Justin Trudeau in Ottawa
-1:30 p.m. ET: Finance Minister Bill Morneau delivers remarks to Calgary Chamber of Commerce
-2:25 p.m. ET: International Trade Diversification Minister Jim Carr delivers keynote at Edmonton Global luncheon, plus media avail
-3:30 p.m. ET: Economic Development Minister Navdeep Bains participates in fireside chat in Richmond, B.C., and holds media avail
-4:00 p.m. ET: Foreign Affairs Minister Chrystia Freeland addresses Senate Committee on Foreign Affairs and International Trade
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.
