Feb 12, 2018
BNN's Daily Chase: U.S. futures rise; Restaurant Brands earnings
By Noah Zivitz
Futures are pointing to a strong open at the start of trading in New York after last week’s violent swings. The Dow Jones Industrial Average climbed out of a 500-point hole on Friday to close with a 330-point gain, leaving it 5.2 per cent lower for the week. The 10-year U.S. Treasury yield rose as high as 2.89 per cent today amid persistent inflation fears which will either be inflamed or tamed on a couple of occasions this week with U.S. President Donald Trump poised to release his 2019 budget proposal today and CPI scheduled for Wednesday.
The TSX, meanwhile, has closed lower in nine of the last 10 sessions, for a cumulative loss of 7.4 per cent.
SCOTIABANK TO ACQUIRE JARISLOWSKY FRASER
One of the most recognized names in Canadian wealth management is being swallowed up by a big bank. Jarislowsky Fraser is being acquired by Bank of Nova Scotia for $950 million, to be paid mostly in stock.
AECON STRETCHES DEADLINE TO CLOSE $1.5B SALE
Aecon is stretching the deadline to close its takeover by China Communications Construction Company's overseas investment arm to March 30 to allow time for a national security review of the deal by the federal cabinet.
RESTAURANT BRANDS AIMS TO SHAKE TIMS TENSIONS
Make it five straight quarters of flat or falling same-store sales at Tim Hortons. The closely-scrutinized gauge of sales at stores open more than a year inched up 0.1 per cent in the fourth quarter, while overall sales at the chain rose 2.4 per cent. Coming up on the company's conference call at 8:30 a.m. ET we'll be keen to hear what CEO Daniel Schwartz has to about the bad press that's engulfed the chain amid tension with franchisees, who've also been trying to offset the impact of Ontario's higher minimum wage.
SUNCOR GOES SHOPPING
Almost one year since Suncor Energy clinched its takeover of Canadian Oil Sands, the oil sands titan is once again boosting its stake in Syncrude by paying $920 million for Mocal's five-per-cent stake in the massive oil sands joint venture. The purchase boosts Suncor's ownership to 58.74 per cent.
OTHER NOTABLE STORIES:
-Oil has climbed back above US$60 per barrel after closing on Friday below that threshold for the first time this year.
-Canadian Press is reporting Ontario will use Shopify’s technology as the backbone for the province’s cannabis sales online.
-Airbus shares are falling this morning after the plane maker (that’s taking control of Bombardier’s CSeries) disclosed engine problems affecting some of its A320 neo jets.
-Yet another cannabis exchange-traded fund is coming to market today, with Evolve Funds’ SEED set to begin trading on the TSX
NOTABLE RELEASES/EVENTS
Notable earnings: Restaurant Brands International, TMX Group, Sherritt International
U.S. President Donald Trump expected to release his infrastructure plan
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.
