Former justice minister and attorney general Jody Wilson-Raybould today will deliver her side of the story in the political scandal surrounding SNC-Lavalin. She’s expected to open with a 30-minute prepared statement before lawmakers on the House of Commons Justice Committee take turns probing the circumstances surrounding the alleged PMO pressure tactics. The political stakes are significant; but does it matter for investors? We’ll gather perspective. Worth pointing out that on the day of The Globe’s original report about the scandal, SNC shares slipped just 1.7 per cent.
ELECTION YEAR BUDGET OPTIONS
BMO Chief Economist Doug Porter notes the federal government’s fiscal balance is showing a “remarkable pace of improvement,” with a $324-million surplus for the first nine months of this fiscal year — which begs the question of whether Finance Minister Bill Morneau will have a surprise up his sleeve on March 19. “Suffice it to say that Ottawa has plenty of room to manoeuvre to cut the deficit, spend on new programs, or (gasp!) cut taxes,” Porter wrote in a note to clients. We’re chasing him.
BROOKFIELD CEO ON BREXIT
Bruce Flatt sat down with our Bloomberg partners for a rare interview this morning in Berlin, and made it clear he’s looking through the noise surrounding Brexit. “This is a long game, we invest for many, many years. We make investments assuming you’re going to have issues,” he said. “We assume everything will work out in the long term and I’m quite positive it will – in one direction or the other.” Watch for highlights from the interview on The Street.
MICHAEL COHEN VS. TRUMP
The president’s former Fixer is going to lambaste Donald Trump when he addresses U.S. lawmakers today, accusing him of being “a racist…a conman…a cheat”, who “ran for office to make his brand great…he had no desire or intention to lead this nation – only to market himself…” He will also say he doesn’t have direct evidence of collusion with Russia. Full prepared remarks are attached.
OTHER NOTABLE STORIES
-Laurentian Bank’s first-quarter adjusted profit came in 31 cents below the average estimate at $0.98/share. The bank also said it will cut 350 jobs (10 per cent of workforce) in the next year through a mix of attrition/early retirement/layoffs.
-National Bank’s first-quarter profit came in four cents shy of the average estimate at $1.50/share. Earnings in its financial markets unit tumbled 17 per cent.
-Alberta Finance Minister Joe Ceci delivers the province’s fiscal third-quarter update this afternoon amid dramatically improved oil prices. Western Canada Select is trading at US$43.50/barrel, compared to US$21.93/barrel at the time of Ceci’s last fiscal update on Nov. 30.
-Nutrien announced late last night that it has agreed to purchase Australia-based Ruralco for $4.40/share (AUD).
-Bausch Health is paying US$195 million for certain gastro assets owned by Synergy Pharmaceuticals, which landed in Chapter 11 bankruptcy protection. In a statement, Bausch CEO Joseph Papa said his company is “now pivoting to offense”.
-CAPREIT is just a fascinating housing case study. Quarterly results last night show the company’s occupancy rate at 98.9 per cent, and it was able to boost monthly rent rates 14.1 per cent on suite turnovers during the fourth quarter.
-Weight Watchers shares are tanking in pre-market trading, down more than 30 per cent after the company’s 2019 profit forecast came in woefully short of the average estimate.
-Boeing is raking in a couple of big contracts in Vietnam against the backdrop of U.S. President Donald Trump’s visit to the country. Bamboo Airways is ordering 10 Dreamliners, at a US$3-billion list price. And Vietjet is ordering 100 737 MAX jets (list price: US$12.7 billion).
NOTABLE RELEASES/EVENTS
-Notable earnings: National Bank, Laurentian Bank, Green Growth Brands, TransAlta, Torstar, Medmen Enterprises, High Liner Foods, Lowe's, Best Buy, TJX
-Notable data: Canadian CPI, U.S. factory orders
-10:00 a.m. ET: U.S. Federal Reserve Chair Jerome Powell testifies before House Financial Services Committee
-10:00 a.m. ET: U.S. Trade Representative Robert Lighthizer addresses House Ways and Means Committee re. U.S.-China trade
-10:00 a.m. ET: Michael Cohen to testify before U.S. House Oversight Committee (background on scope of hearing here)
-1:30 p.m. ET: Alberta Finance Minister Joe Ceci releases third-quarter fiscal update, holds news conference (embargoed briefing at 11:00 a.m. ET)
-3:15 p.m. ET: Former Attorney General Jody Wilson-Raybould to address House Justice Committee
-4:15 p.m. ET: Justice Minister David Lametti addresses Senate Legal and Constitutional Affairs committee hearing re. Bill C-58, an Act to amend the Access to Information Act and the Private Act
-U.S. President Donald Trump, North Korea Leader Kim Jong Un hold summit in Vietnam
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