WestJet CEO Ed Sims is making it clear he’s sick of dealing with short-termism in the public market. “When you're constantly being asked every three months to reevaluate whether every individual strand of that strategy is profitable in its own right, it can encourage short-term thinking and a transactional approach to the way that we build our fares and the way we look after our 25 million guests every year,” he told us yesterday afternoon. We’ll consider the signal this sends to WestJet’s rivals, and whether the three-month cycle will drive more privatizations.
STOCKS BOUNCE
Sentiment has stabilized this morning after yesterday’s punishing session on Wall Street. What changed overnight? Maybe a realization the selling was overdone, particularly since the next round of tariff hikes don’t take effect until next month. Or maybe it was U.S. President Donald Trump saying last night he has “a feeling [negotiations are] going to be very successful.” Meanwhile, from mules to diapers -- the U.S. Trade Representative’s office has released a 142-page report listing imports targeted for the next wave of tariffs.
POT RESULTS
CannTrust is first out of the gate today, defying expectations with a surprise net profit in the first quarter, albeit with revenue falling short of expectations. Tilray and Aurora Cannabis will also report later in the day, with analysts expecting both to report losses. Does it matter? BNN Bloomberg's David George-Cosh will tee up themes to watch.
OTHER NOTABLE STORIES
-Murray Edwards is getting the least love of any director at Canadian Natural Resources. Almost eight per cent of votes were withheld from supporting his re-election to CNRL’s board of directors at the latest annual meeting.
-High Liner Foods is a stock to watch after the seafood company slashed its quarterly dividend to five cents per share from 14.5, saying the extra cash flow will help pay down debt.
-Worth keeping an eye on Acreage Holdings shares today. As our Bloomberg partners pointed out yesterday, the company’s early shareholders will be free to sell shares today as the post-IPO lockup expires.
-Aphria has announced another round of management changes. Perhaps most notably, President Jakob Ripshtein will step down next month. The company also appointed Hain Celestial Group Veteran James Meiers as COO for Aphria Leamington.
-In a rare move for a major telecom company, Vodafone has slashed its dividend while citing revenue weakness and high costs associated with spectrum auctions.
-Shares of Bayer have been down as much as 8.3 per cent in Europe after yet another legal defeat tied to the Roundup product it inherited in the takeover of Monsanto.
-The International Energy Agency is warning of a “growing mismatch” in investment trends and achieving targets under the Paris Agreement as an uptick in spending on oil and gas and coal propped up global energy investment last year.
NOTABLE RELEASES/EVENTS
-Notable earnings: Aurora Cannabis, CannTrust, Tilray, DHX Media, Power Corp., Aimia, TransAlta, WSP Global, High Liner Foods
-Notable data: Teranet/National Bank Canadian home price index
-8:00 a.m. ET: Ontario Housing Minister Steve Clark discusses province's housing supply action plan at Toronto Board of Trade
-9:00 a.m. ET: Pembina Pipeline holds investor day in Toronto
-9:30 a.m. ET: Transport Minister Marc Garneau addresses Senate Transport and Communications Committee on Bill C-48 (Oil Tanker Moratorium Act)
-2:00 p.m. ET: Air Canada Deputy CEO and CFO Michael Rousseau participates in fireside chat at RBC Capital Markets conference in Toronto
-3:10 p.m. ET: U.S. President Donald Trump discusses energy infrastructure and economic growth at Cameron LNG Export Facility in Hackberry, Louisiana
-3:30 p.m. ET: Foreign Affairs Minister Chrystia Freeland, Mexico Economy Secretary Graciela Márquez Colín hold media avail in Toronto
-3:30 p.m. ET: Finance Minister Bill Morneau attends Question Period in the Senate
-10:00 p.m. ET: CP Rail CEO Keith Creel addresses Bank of America Merrill Lynch conference in Boston
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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