Jun 19, 2017
BNN's Daily Chase: Activist takes aim at HBC, Morneau talks cannabis with finance ministers
By Noah Zivitz
ACTIVIST INVESTOR TO TAKE AIM AT HBC: REPORT
Canada’s oldest retailer could have an activist on its hands. The Wall Street Journal is reporting Stamford, Connecticut-based Land and Buildings has amassed a 4.3 per cent stake in Hudson’s Bay Co., and will deliver a letter today urging the company to review options to capitalize on the value of its real estate holdings. HBC’s recent struggles are well documented. Its stock has lost almost one third of its value this year. And earlier this month it took matters into its own hands with a plan to slash 2,000 jobs. Now, coming less than 72 hours after the retail world was reminded of Amazon’s disruptive force, Land and Buildings’ anticipated shot across the bow will serve as another reminder that legacy retailers either have to adapt and evolve or face the wrath of investors.
CLEAN UP ON AMAZON-WHOLE FOODS
Still plenty of runway for analysis on Jeff Bezos’s US$13.7-billion bid to expand his empire into the grocery aisles. How will Wal-Mart respond? How will Canadian grocers defend their turf? First opportunity for us to hear directly from the Canadian incumbents could happen next week when Empire Company reports earnings.
MORNEAU MEETS COUNTERPARTS IN OTTAWA
Finance Minister Bill Morneau will sit across from his provincial and territorial counterparts today in Ottawa. On the official agenda: trade with the U.S.; guarding against money laundering, terrorist financing, tax evasion and tax avoidance; and, taxing cannabis. Shouldn’t come as a shock if other hot-button issues like carbon taxes and pipelines also surface in the conversations. On the former, can’t wait for our conversation at 10:10 a.m. ET with Saskatchewan’s Kevin Doherty.
BNN Advisor
Vancouver: Housing concerns cross generations
Winnipeg and Saskatchewan: The loonie and U.S. protectionism weigh on Central Canada
Yellowknife and Whitehorse: The hurdles of northern living and aboriginal issues
SALES IN GTA INTENSIFY
The sales chill across Greater Toronto housing is intensifying. Realosophy's John Pasalis said in a tweet this morning GTA home sales sank 47 per cent last week. If there's reason for a bit of hope, it could be the growth in inventory is slowing, with new listings up 21 per cent last week.
JOHN PAULSON JOINS VALEANT'S BOARD OF DIRECTORS
Three months after Bill Ackman staged his exit from Valeant's board of directors, one of America's other best-known hedge fund managers is stepping in. The drugmaker announced today John Paulson joined its board on June 14. "His experience will be especially valuable as we continue to execute on our transformational strategy to turnaround Valeant," said Chairman Joseph Papa in a statement. Paulson & Co. is Valeant's largest shareholder, with a 5.7% stake.
OTHER NOTABLE STORIES
-Remains to be seen whether Bombardier manages to generate any sales and headlines at the Paris Air Show. Boeing has already signed a memorandum of understanding to sell 10 of its new 737 Max 10 jets to leasing firm BOC Aviation. The deal is worth US$1.25 billion at list price. GE Capital Aviation Services has also converted 20 existing orders to the new 737 Max model.
-Home Capital’s daily update late Friday showed its high interest savings account balance slipped below $100 million on June 15.
-Cara Operations said late Friday it will buy back up to 10 per cent of its shares.
-Dalhousie University's mid-year food price report is struggling to reconcile official inflation data with actual prices in grocery stores. "CPI seems inaccurate...with several price spot-checks around the country, food inflation in Canada could in fact be much higher than what is being reported by Statistics Canada." We'll get more insight on the disconnect with Dal's Sylvain Charlebois on The Business News.
NOTABLE RELEASES/EVENTS
-8:00 a.m. ET: New York Federal Reserve President Bill Dudley delivers speech
-4:15 p.m. ET: Closing news conference in Ottawa after finance ministers’ meeting
-Paris Air Show starts
-SelectUSA Investment Summit underway in D.C. (Notable speakers: U.S. Commerce Secretary Wilbur Ross at 8:15 a.m. ET; Ross in conversation with GM CEO Mary Barra and GE CEO Jeff Immelt at 10:15 a.m. ET. Full agenda.
-Unifor holding rallies in five cities to push for softwood deal with U.S.
-U.K. begins Brexit negotiations with the European Union
-U.S. President Donald Trump to meet with tech executives at the White House
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN'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.bnn.ca/subscribe.
