Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Michael Medline's turnaround plan at Sobeys appears to be gaining traction. The grocer's parent company, Empire Co., posted adjusted EPS this morning that breezed past expectations as fiscal first-quarter earnings rose 18.9 per cent. Medline says the company has "a level of optimism not seen in the business for some time." We'll assess the new CEO's performance thus far, and the road ahead as Empire faces competitive threats (ie, Amazon) and legislative risks (ie, higher minimum wage rates).

ROOTS FILES FOR IPO

Canadians will soon have a chance to own a piece of Roots. The iconic retailer has filed for an initial public offering, and the preliminary paperwork paints the picture of a profitable firm with an ambitious plan to grow sales on the back of international expansion. The company earned a little more than $8 million in fiscal 2016 on $282 million in sales. Roots wants to see that top line reach as high as $450 million by fiscal 2019. E-commerce will play a role in getting there. So will broadening its footprint, with a stated plan to set up shop in new U.S. and Asian markets. We’ll have more details on its strategy, plus insight on whether investors should be tempted to buy into the IPO.

ED CLARK WARNS TRUMP WILL BE A FACTOR IN AMAZON HQ2 DECISION

Ed Clark, the former TD CEO and now-advisor to Premier Kathleen Wynne, says Ontario is entering the HQ2 sweepstakes “realistically”, knowing there’s a big wild card in the White House. Clark told BNN U.S. President Donald Trump will be a factor in Amazon’s decision; while going on to point out he doesn’t know where the company will come down on that – knowing it would be a “major political statement” to choose Canada as the home for its second headquarters. Watch for the full interview on BDAM, and see it here at your convenience. 

One piece of news from late yesterday: Toronto, Mississauga, Brampton and other regional leaders announced they’re banding together to make unified Ontario bid for HQ2.

RUBIN QUESTIONS NEED FOR NEW PIPELINES

Jeff Rubin, the former CIBC economist who famously called for $200-oil, is arguing in a new report against the claim that building pipelines to tidewater will unlock higher prices for Canadian producers. He also notes it’s “curious” to see pipelines being approved at a time when major players are fleeing the oil sands. “Regulatory approvals, even elusive ones at the US presidential level, are no substitute for viable economics,” he wrote. “At current prices for WCS, the greenfield projects that would be needed to supply new pipelines could not be financed in today’s weak oil markets.”   

OTHER NOTABLE STORIES:

-North Korea is ramping up the rhetoric again. The country’s Korea Asia-Pacific peace committee said in a statement “the four islands of the [Japan] archipelago should be sunken into the sea.” It went on to say the United States should “be beaten to death like a rabid dog” in retaliation for the latest round of UN sanctions.

-The Bank of England left its benchmark interest unchanged today in a 7-2 vote, while noting "some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target."

NOTABLE RELEASES/EVENTS

-Notable earnings: Empire Co., Oracle

-Notable data: Canadian new housing price index, U.S. CPI

-7:00 a.m. ET: Bank of England releases rate decision

-8:30 a.m. ET: Natural Resources Minister Jim Carr delivers keynote and holds media avail at Canadian Council of Forest Ministers meeting

-9:30 a.m. ET: Transport Minister Marc Garneau discusses Transportation Modernization Act before Standing Committee on Transport Infrastructure

-10:00 a.m. ET: Alberta Energy Minister Margaret McCuaig-Boyd holds media call on meetings in Asia

-10:15 a.m. ET: Finance Minister Bill Morneau delivers speech in Mexico City

-11:00 a.m. ET: Morneau holds media avail in Mexico City

-3:30 p.m. ET: Alberta Premier Rachel Notley and NWT Premier Bob McLeod hold media avail in Edmonton

-U.S. Energy Information Administration to release international outlook report 

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.