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MORNING NEWS CALL

REUTERS

Canada Edition

Tuesday, November 21, 2017

TOP NEWS

? NAFTA nations lock horns on U.S. auto demands as fifth round ends Negotiators from the United States, Mexico and Canada square off on Tuesday for the last time in a fifth round of talks to rework the North American Free Trade Agreement, with stalemate brewing on a contentious proposal to ramp up regional content for autos. ? Lowe's quarterly comp sales, profit top estimates Lowe's Cos reported higher-than-expected comp sales and profit, helped by lower costs as well as higher demand for emergency supplies and rebuilding material due to hurricanes battering several regions in the United States. ? U.S. sues to stop AT&T buying Time Warner, says would hike rates The U.S. Department of Justice sued AT&T on Monday to block its $85.4 billion acquisition of Time Warner, saying the deal could raise prices for rivals and pay-TV subscribers while hampering the development of online video. ? Drug firm Concordia overcharged Britain's health service with 6,000 pct price rise Drug company Concordia overcharged Britain's health service millions of pounds for an essential thyroid drug by abusing its position as the only supplier, the country's Competition and Markets Authority said. ? Bain says WPP accepts $1.35 billion tender offer for Japan partner Asatsu-DK Bain Capital said its $1.35 billion tender offer for advertiser Asatsu-DK has been accepted by ADK's 25 percent shareholder and partner WPP, in an about-face for WPP that heralds an end to a soured relationship.

BEFORE THE BELL

Stock futures pointed to a higher opening for Canada's main stock index as oil prices rose with traders looking forward to an OPEC meeting next week at which major crude exporters are expected to extend production cuts. U.S. stock indexes looked set to open higher, with upbeat results from retailer Lowe's and cyber security firm Palo Alto helping pre-market sentiment. European stocks and the euro were lower amid the governing crisis in Germany. Gold advanced, as focus turned to the minutes of a November Federal Reserve meeting due Wednesday.

STOCKS TO WATCH

? Bombardier Inc (BBDb). The company said on Monday it priced $1 billion worth of seven-year bonds at par with a final yield of 7.5 percent per year, underscoring strong demand for the deal partly slated to retire debt maturing in 2019. The final yield of the offering, which came in $100 million more than initially expected, is at the tight end of the 7.5 to 7.75 percent range it had used when marketing the deal. The company plans to use most of the proceeds to retire notes with a coupon of 4.75 percent due in 2019 and the rest for general corporate purposes. ? Concordia International Corp (CXR). The drug company overcharged Britain's health service millions of pounds for an essential thyroid drug by abusing its position as the only supplier, the country's Competition and Markets Authority (CMA )said. The National Health Service spent 34 million pounds on liothyronine tablets last year, up from 600,000 pounds a decade ago, after the company increased the price per pack by almost 6,000 percent from 4.46 pounds to 258.19 pounds. The CMA has been targeting drugs companies over the prices they charge for certain drugs. The regulator can fine a company up to 10 percent of its annual worldwide group turnover for breaking competition law. ? Potash Corp of Saskatchewan (POT). Rio Tinto, Canada's Wealth Minerals and Chinese private equity firm GSR Capital are considering a bid for a stake in Chilean lithium producer SQM, banking sources told Reuters. Canada's Potash Corp of Saskatchewan must divest its 32 percent stake in the Chilean company as part of its merger with rival Agrium. Given SQM's market capitalisation of around $15 billion, according to Reuters data, this would give a value to the stake of $4.8 billion. ? TransCanada Corp (TRP). The company has started initial excavation work at the site of an oil spill on its Keystone pipeline in South Dakota but has not yet pinpointed where the leak came from, a state official said on Monday. The 590,000 barrel per day Keystone pipeline, which links Alberta's oil sands to U.S. refineries, was shut down on Thursday after a 5,000 barrel spill. Calgary-based TransCanada is working through the clean-up process, said Brian Walsh, environmental scientist manager for the South Dakota Department of Environment and Natural Resources.

MORNING NEWS CALL - CANADIAN EDITION

Novembe r 21, 2017

INSIGHT

Canada weed stocks come off high as challenges loom before legalization Canada's marijuana stocks, which have surrendered some of the potent gains that pushed them to record highs this month, face a bumpy ride in 2018 that could purge smaller players, as the country moves to allow recreational use of cannabis in July.

ANALYSTS' RECOMMENDATION

? Bombardier Inc (BBDb). JP Morgan raises rating to overweight from neutral based on increased confidence that the company's turnaround is taking hold and on the potential for upside over the next 12-18 months. ? TransCanada Corp (TRP). CIBC raises price target to C$75 from C$70 saying that the Nebraska PSC decision to approve the Mainline Alternative route for KXL is a major regulatory milestone for the project.

ECONOMIC EVENTS

0830 Wholesale trade mm for Sep: Expected 0.3 pct; Prior 0.5 pct

COMPANIES REPORTING RESULTS

Nov 21: George Weston Ltd (WN). Expected Q3 earnings of C$2.15 per share Grenville Strategic Royalty Corp (GRC). Expected Q3 earnings of break even per share Medicure Inc (MPH). Expected Q3 earnings of 12 Canadian cents per share

Nov 22: Metro Inc (MRU). Expected Q4 earnings of 66 Canadian cents per share

CORPORATE EVENTS

09:00 George Weston Ltd (WN). Q3 earnings conference call 10:30 Aveda Transportation and Energy Services Inc (AVE). Q3 earnings conference call

EXDIVIDENDS

Cascades Inc (CAS). Amount C$0.04 Fiera Capital Corp (FSZ). Amount C$0.18 Inter Pipeline Ltd (IPL). Amount C$0.14 Keyera Corp (KEY). Amount C$0.14 Lassonde Industries Inc (LASa). Amount C$0.61 Parkland Fuel Corp (PKI). Amount C$0.10

(All analysts' estimates are according to Thomson Reuters I/B/E/S)

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MORNING NEWS CALL - CANADIAN EDITION

PICTURE OF THE DAY

Novembe r 21, 2017

Children protest against the Saudi-led coalition outside the U.N. offices in Sanaa, Yemen November 20. REUTERS/ Khaled Abdullah

(Compiled by Nivedita Balu and Erum Khaled in Bengaluru)

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