Oct 27, 2017
BNN's Daily Chase: Trudeau vows to carefully examine Aecon takeover;
By Noah Zivitz
Justin Trudeau is vowing to scrutinize the $1.45-billion takeover of Aecon Group by China Communications Construction Company. “Canada, as a general rule, is open to investment,” the prime minister said yesterday afternoon. “But we have to make sure that it’s in the best interest of Canadians…[and] also aligned with our concerns around security and safety.” We’ll sit down with Aecon CEO John Beck at 8:45 a.m. ET this morning to gauge his plan for winning regulatory approval.
KINDER MORGAN VERSUS BURNABY
The frustration is palpable. Kinder Morgan says it’s asking the National Energy Board to intervene after failing to get the necessary permits from Burnaby for its Trans Mountain expansion project. "The City’s failure to act in a timely manner raises serious issues of jurisdiction that we are compelled to bring to the Board’s attention," Kinder Morgan said in a press release. "While we await the NEB’s determination, as always, our door remains open to the City of Burnaby and we would welcome the opportunity to discuss a solution." We're trying to line up the NEB and Burnaby's mayor for interviews.
TECH EARNINGS BONANZA
Tech goliaths will set the tone for the markets today after Amazon, Alphabet, Microsoft and Intel sailed past profit estimates late yesterday. Amazon is leading the way in pre-market trading with shares up more than seven per cent after the ecommerce’s sales surged 34 per cent in the third quarter. The recently-completed Whole Foods takeover contributed $1.3 billion to Amazon’s top line.
TMX BUYING TRAYPORT
TMX Group announced this morning it's buying Trayport from the Intercontinental Exchange for $931 million. TMX is simultaneously selling its Natural Gas Exchange and Shorcan businesses to ICE for $339 million.
MORNEAU STILL FACING FALLOUT FROM CONFLICT CLAIMS
The finance minister announced during yesterday’s question period that he intends to donate any paper profit he’s logged on his shares in Morneau Shepell since the election in 2015. Meanwhile, Ethics Commissioner Mary Dawson says she has concerns and will follow up with Morneau after NDP MP Nathan Cullen cried foul over the finance minister’s involvement with Bill C-27.
OTHER NOTABLE STORIES:
-Saputo is bulking up in Australia with a friendly agreement to buy dairy producer Murray Goulburn Co-Operative for $1.29 billion.
-Mattel shares are trading almost 20 per cent lower in the pre-market after the toymaker reported a big drop in third-quarter sales, suspended its dividend, and warned it won’t hit its full-year sales forecast amid fallout from the Toys “R” Us bankruptcy filing.
-The Wall Street Journal is reporting CVS Health has tabled a proposal to buy Aetna for more than US$66 billion as a defensive move amid expectations that Amazon wants to make a push into the pharmacy sector.
TSX RECORD WATCH
Intraday: 15,943.09 (Feb 21, 2017)
Closing: 15,922.37 (Feb 21, 2017)
NOTABLE RELEASES/EVENTS
-Notable earnings: Domtar, Norbord, Cameco, Precision Drilling, Imperial Oil, Exxon Mobil, Chevron, Merck
-Notable data: U.S. GDP, U.S. consumer sentiment
-2:45 p.m. ET: Justin Trudeau discusses changes to Canada Child Benefit and holds media avail in Saint-Bruno-de-Montarville, Quebec
-3:30 p.m. ET: Sears Canada workers hold rally in Hamilton, Ontario
-Apple starts taking orders for iPhone X
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.
