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Home , Magna International, Thomson Reuters

MORNING NEWS CALL

TOP NEWS • Trump ousts Sessions, vows to fight Democrats if they launch probes President Donald Trump forced out his attorney general on Wednesday and threatened to fight back if Democrats use their new ma- jority in the U.S. House of Representatives to launch investigations into his administration and finances. • China Oct crude imports rise to all-time high on record teapot buying China's crude oil imports rose to all-time high on a daily basis in October, supported by record demand from private refiners and healthy margins, customs data showed. • Bombardier to sell off units for $900 mln, to cut 5,000 jobs Bombardier Inc said it would sell two of its units for $900 million and cut about 5,000 jobs, as the Canadian plane and train maker reins in costs and focuses on its core transportation and business jet units. • Car parts maker Magna tops profit estimates, lowers 2018 outlook Canadian auto parts maker Inc topped estimates for quarterly profit while trimming its 2018 total sales forecast on the back of a dip in its units that produce car frames and complete vehicles. • adds nearly 200k wireless subscribers, profit rises 10 pct Telus Corp's third-quarter profit rose 10 percent, the Canadian telecom company said, as it signed up more subscribers to its wireless services.

BEFORE THE BELL Stock futures for ’s main index and Wall Street’s major indexes fell, as investors await rate decision of Federal Reserve at its policy meeting. Major European shares rose, supported by strong results that soothed concerns about slowing corporate earnings and Asian indexes traded mostly higher. Gold prices fell as the U.S. dollar recovered its losses after the U.S. midterm election re- sults. Oil prices pared gains. Data on housing sector are scheduled for release later in the day.

STOCKS TO WATCH • Bombardier Inc (BBDb). The company is selling off its turboprop program and another non-core division to focus on its transporta- tion and business jet units, the Canadian plane and train maker said as it reported a key profit measure that beat analysts' estimates. Bombardier said it expects around $900 million in net proceeds from the sale of the turboprop program to Longview Aviation Capital and its business aircraft flight and training activities to CAE Inc. The company said it forecast 2019 revenue to grow by 10 percent to $18 billion or more, driven by better deliveries of its Global 7500 business jet. For the quarter ended, the company reported $267 mil- lion in earnings before interest and taxation, compared with $133 million in the same period a year earlier, which were restated due to accounting changes. Analysts on average were expecting EBIT to be $245.90 million, according to I/B/E/S data from . Net profit of $149 million, compared with a net loss of $100 million last year when the company was making heavy investments in various segments including planes. • Corp Ltd (CTCa). The diversified retailer reported a 16.5 percent rise in quarterly profit, helped by higher sales at its retail segment and the inclusion of newly acquired Helly Hansen's operations to its earnings. Net income rose to C$231.3 million or C$3.15 per share, in the third quarter ended, from C$198.5 million, or C$2.59 per share, a year earlier. • Magna International Inc (MG). The auto-parts maker reported an 8.2 percent rise in quarterly profit, helped by higher sales in its complete vehicles segment. Sales at the segment, which includes vehicle assembling services for automakers like rose 48.3 percent to $1.39 billion. The company's light vehicle production increased 4 percent in North America, its largest market. Net income attributable to Magna rose to $554 million or $1.62 per share in the third quarter ended Sept. 30, from $512 million or $1.38 per share, a year earlier. Total revenue rose to $9.6 billion from $8.9 billion in the year ago quarter. • Financial Corp (MFC) & Inc (SLF). Two of Canada's biggest insurers on Wednesday posted third- quarter earnings that surpassed market expectations, helped by sales growth in Asia. Manulife said earnings per share, excluding one -off items, were C$0.75 in the third quarter, compared with C$0.53 a year ago. Analysts on average expected earnings of C$0.67 per share, according to IBES data from Refinitiv. Sun Life reported earnings per share, excluding onetime items, of C$1.20 in the third quarter, compared with C$1.05 a year ago. Analysts had on average forecast earnings of C$1.17, according to IBES data from Refini- tiv. • Telus Corp (T). The company reported a 10 percent rise in quarterly profit, as the telecom services provider added more wireless customers in a fiercely competitive market. Net income rose to C$447 million ($341.40 million) or 74 Canadian cents per share, in the third-quarter ended Sept.30, from C$406 million, or 68 Canadian cents per share, a year earlier. Total operating revenue rose to C$3.77 billion from C$3.40 billion.

ANALYSIS U.S. political gridlock may create investment opportunity Investors hope the split between Republicans and Democrats controlling the U.S. Congress will open up opportunities to pick new winners and losers because some government policies will be harder to predict.

ANALYSTS' RECOMMENDATION • Corp (ABX). Canaccord Genuity raises price target to C$17.50 from C$17 to reflect increasing confidence into Bar- rick’s longer-term production profile following the merger with Randgold Resources. • Home Capital Group Inc (HCG). RBC raises target price to C$20 from C$16 after the company reported third-quarter earnings per share ahead of estimates driven by higher-than-forecast non-interest income. • Ltd (L). CIBC cuts price target to C$69 from C$82 to account for the spinout of Choice Properties REIT.

ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0815 House starts, annualized for Oct: Expected 200,000; Prior 188,700 0830 new housing price index for Sep: Expected 0.1 pct; Prior 0.0 pct

COMPANIES REPORTING RESULTS November 08: Algonquin Power & Utilities Corp (AQN). Expected Q3 earnings of 11 cents per share ARC Resources Ltd (ARX). Expected Q3 earnings of 21 Canadian cents per share Bombardier Inc (BBDb). Expected Q3 earnings of 2 cents per share Brookfield Asset Management Inc (BAMa). Expected Q3 earnings of 7 cents per share Canadian Tire Corporation Ltd (CTCa). Expected Q3 earnings of C$2.85 per share CI Financial Corp (CIX). Expected Q3 earnings of 59 Canadian cents per share Inc (EMA). Expected Q3 earnings of 70 Canadian cents per share Hydro One Ltd (H). Expected Q3 earnings of 34 Canadian cents per share Ltd (IPL). Expected Q3 earnings of 39 Canadian cents per share Magna International Inc (MG). Expected Q3 earnings of $1.51 per share Power Corporation of Canada (POW). Expected Q3 earnings of 77 Canadian cents per share Power Financial Corp (PWF). Expected Q3 earnings of 82 Canadian cents per share Profound Medical Corp (PRN). Expected Q3 loss of 4 Canadian cents per share

2 Quebecor Inc (QBRb). Expected Q3 earnings of 51 Canadian cents per share Ritchie Bros. Auctioneers Inc (RBA). Expected Q3 earnings of 17 cents per share Stantec Inc (STN). Expected Q3 earnings of 55 Canadian cents per share Telus Corp (T). Expected Q3 earnings of 72 Canadian cents per share TMX Group Ltd (X). Expected Q3 earnings of C$1.25 per share

November 09: Boralex Inc (BLX). Expected Q3 loss of 28 Canadian cents per share Enerplus Corp (ERF). Expected Q3 earnings of 80 Canadian cents per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 08:00 Bombardier Inc (BBDb.TO). Q3 earnings conference call 08:00 Hydro One Ltd (H.TO). Q3 earnings conference call 08:00 Corp (K.TO). Q3 earnings conference call 08:00 Magna International Inc (MG.TO). Q3 earnings conference call 08:00 Manulife Financial Corp (MFC.TO). Q3 earnings conference call 09:00 CI Financial Corp (CIX.TO). Q3 earnings conference call 09:00 Russel Metals Inc (RUS.TO). Q3 earnings conference call 09:00 Stantec Inc (STN.TO). Q3 earnings conference call 09:30 Telus Corp (T.TO). Q3 earnings conference call 10:00 Cott Corp (BCB.TO). Q3 earnings conference call 10:00 Frontera Energy Corp (FEC.TO). Q3 earnings conference call 10:00 Sun Life Financial Inc (SLF.TO). Q3 earnings conference call 10:00 Tricon Capital Group Inc (TCN.TO). Q3 earnings conference call 10:30 Superior Plus Corp (SPB.TO). Q3 earnings conference call 11:00 Brookfield Asset Management Inc (BAMa.TO). Q3 earnings conference call 11:00 Pason Systems Inc (PSI.TO). Q3 earnings conference call 11:00 Peyto Exploration & Development Corp (PEY.TO). Q3 earnings conference call 11:00 Quebecor Inc (QBRb.TO). Q3 earnings conference call 11:00 Tourmaline Oil Corp (TOU.TO). Q3 earnings conference call 13:00 Canadian Tire Corporation Ltd (CTCa.TO). Q3 earnings conference call 16:00 WSP Global Inc (WSP.TO). Q3 earnings conference call

EXDIVIDENDS Canadian Utilities Ltd (CU). Amount C$0.39 CU Inc (CIU_p). Amount C$0.28 Genworth MI Canada Inc (MIC). Amount C$0.51 Pivot Technology Solutions Inc (PTG). Amount C$0.04

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

3 PICTURE OF THE DAY

Canada's Prime Minister Justin Trudeau receives a standing ovation as he stands to deliver a formal apology over the fate of the MS St. Louis and its passengers, in the House of Commons on Parliament Hill in Ottawa, , Canada, November 7. REU- TERS/Chris Wattie

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