TOP NEWS
• Pandemic fears grow as China virus toll rises to nine
Authorities in China and beyond stepped up efforts to control an
outbreak of a new flu-like coronavirus as the death toll rose to nine
with 440 confirmed cases, while suspicion grew that the virus crossed to
humans from animals.
• Airlines scour the world for scarce 737 MAX simulators
Airlines are scrambling to book time in 737 MAX training facilities as
far afield as Fiji, Iceland and Panama, operators said, after Boeing
recommended pilots be trained in one of the few simulators replicating
the latest model.
• J&J misses revenue estimates as blockbuster drugs disappoint
Johnson & Johnson narrowly missed quarterly revenue estimates as
sales of its blockbuster psoriasis medicine Stelara and cancer drug
Imbruvica fell short of expectations.
• Democrats to make opening arguments in Trump impeachment trial
The Republican-controlled U.S. Senate will hear opening arguments in
President Donald Trump's impeachment trial, beginning up to six days of
presentations on the question of whether Trump should be removed from
office.
• BP's Looney goes all-in on climate goals and explores overhaul
Change is afoot at BP. Incoming Chief Executive Bernard Looney plans to
expand the company's climate targets and is considering overhauling the
structure of the oil and gas major in one of the biggest shake-ups in
its 111-year history.
BEFORE THE BELL
TSX index futures were little changed, ahead of monetary policy rate decision from
BoC and inflation data scheduled for release. Global stocks and Wall Street futures rose as investors’ fears surrounding
coronavirus outbreak eased with China’s response to containing a likely pandemic. Oil prices fell, after International Energy Agency forecast market surplus of one million barrels per day
in H1 2020. The euro weakened against the U.S. dollar, ahead of ECB meeting. Gold pared
losses.
STOCKS TO WATCH
• Bombardier Inc (BBDb).
Shares in French train manufacturer maker Alstom jumped,
hitting their highest in almost two years, after a report of a
potential approach by its Canadian peer Bombardier to combine the firm's
rail business. Bloomberg said on Tuesday that the companies had held
preliminary talks about a rail deal in the past few
months, citing sources. It added that a rail deal was only one option
Bombardier was looking into as the firm, which last week warned its 2019
profits would be lower than expected, exits some of its underperforming
businesses and shakes up its portfolio.
ANALYSIS
'Death
Cross,' growth abroad threaten U.S. dollar
Storm clouds are gathering over the U.S. dollar, threatening a two-year
rally in the currency that has squeezed corporate profits and angered
President Donald Trump. Dollar bullishness in future markets stands at
its lowest level in more than a year-and-a-half,
according to the most recent data from the Commodity Futures Trading
Commission measuring the net dollar amount of bets on a rising
greenback.
ANALYSTS' RECOMMENDATION
• Lundin Mining Corp (LUN).
National Bank of Canada raises target price to C$9.25
from C$8.75, citing the company’s strong balance sheet, continued
consistent operating results and advancement in low-cost Brownfield
expansion initiatives.
• Spin Master Corp (TOY).
CIBC cuts target price to C$36 from C$46, reflecting the company’s
materially reduced management guidance for Q4, poor momentum and
visibility into 2020.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 CPI inflation mm for Dec: Expected 0.1%; Prior -0.1%
0830 CPI inflation yy for Dec: Expected 2.2%; Prior 2.2%
0830 CPI BoC core yy for Dec: Prior 1.9%
0830 CPI BoC core mm for Dec: Prior -0.2%
0830 CPI mm SA for Dec: Prior 0.1%
0830 Core CPI mm SA for Dec: Prior 0.1%
0830 CPI median for Dec: Prior 2.4%
0830 CPI trim for Dec: Prior 2.2%
0830 CPI common for Dec: Expected 1.9%; Prior 1.9%
0830 CPI NSA for Dec: Prior 136.4
0830 CPI yy SA for Dec: Prior 2.16%
0830 New housing price index for Dec: Expected 0%; Prior -0.1%
0830 Wholesale trade mm for Nov: Expected 0%; Prior -1.1%
1000 BoC rate decision: Expected 1.75%; Prior 1.75%
COMPANIES REPORTING RESULTS
January 22:
Rogers Communications Inc (RCIb). Expected Q4 earnings of C$1.02 per share
January 23:
No major companies are scheduled to report for the day.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 Rogers Communications Inc (RCIb). Q4 earnings conference call
EXDIVIDENDS
There are no major exdivs for the day.
(All analysts' estimates are according to I/B/E/S Refinitiv data.)
|