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TOP NEWS • Bombardier burns more cash than expected on ramp up in jet production Canadian plane and train maker Bombardier used more cash than analysts had expected in the third quarter as it ramped up production of its flagship Global 7500 business jet and pushed back some train deliveries. • Scrapped Chile APEC summit throws up new hurdle for U.S.-China trade deal Leaders from the and China encountered a new obstacle in their struggle to end a damaging trade war on Wednesday, when the summit where they were supposed to meet was canceled because of violent protests. • Fiat Chrysler and Peugeot plan to create world's No.4 carmaker Fiat Chrysler and Peugeot owner PSA plan to join forces through a 50-50 share swap to create the world's fourth-largest automaker, they said, triggering a new wave of consolidation in the car industry. • Thomson operating profit tops Wall Street estimates , parent of the Reuters , reported higher-than-expected quarterly operating profit and affirmed its 2019 and 2020 estimates. • 's reports quarterly profit on higher crude prices Canadian oil producer Cenovus Energy reported a quarterly profit compared to a loss a year earlier, as it benefited from higher crude prices because of government-imposed production curbs and a tight leash on costs.

BEFORE THE BELL Futures for Canada’s main stock index and Wall Street’s main stock indexes were lower, along with European shares after a report said Chinese officials continue to harbor doubts about whether they could strike a comprehensive long-term trade deal with the U.S. In Asia, China stocks ended lower on weak manufacturing data, while Japan’s Nikkei closed higher after the U.S. Federal Reserve's rate cut buoyed the market mood. Gold prices climbed as the U.S. dollar weakened. U.S. crude prices fell on a much larger-than-expected build in domestic crude stocks. Investors will look out for Canada’s August gross domestic product, which is due later in the day.

STOCKS TO WATCH Deals Of The Day • Bombardier Inc (BBDb). The company said it had agreed to sell its aerostructures business to Spirit AeroSystems for more than $700 million in cash and debt. As part of the deal, Bombardier will sell two aerostructure facilities - the Belfast plant and another in Morocco - along with a smaller repair plant in Dallas comes as the Canadian company sheds its commercial aviation business to focus on its higher-margin business jets and rail divisions. Analysts have previously said a deal would be strategic for Spirit, an aerospace components maker, as it diversifies its customer base away from Boeing. The deal would include the assumption of liabilities, including obligations.

Results • Bombardier Inc (BBDb). The company used more cash than analysts had expected in the third quarter as it ramped up production of its flagship Global 7500 business jet and pushed back some train deliveries. Bombardier free cash flow usage for the quarter ended Sept. 30 rose 84% to $682 million, compared with a year earlier. The company, however, said its free cash flow usage for the year would remain around $500 million. Bombardier also missed estimates for its most-watched measure of earnings, hurt by higher costs. Earnings before interest and taxation was $143 million for the quarter, below analysts' estimates of $157.15 million. • Cenovus Energy Inc (CVE). The company reported a quarterly profit compared to a loss a year earlier, as it benefited from higher crude prices because of government-imposed production curbs and a tight leash on costs. The company said average realized crude sales price was C$54.94 per barrel in the third quarter of 2019 compared with C$49.38 per barrel in the same period a year earlier, partially due to higher crude-by-rail volumes, which resulted in increased sales to the United States. The company reported a net profit of C$187 million, or 15 Canadian cents per share, for the third quarter, compared with a loss of C$242 million, or 20 Canadian cents per share, a year earlier. Total production fell 9.5% to 448,496 barrels of oil equivalent per day(boe/d) from 495,592 boe/d as the company stuck to the mandatory production curtailments. • Inc (SU). The company on Wednesday reported third-quarter profit just shy of estimates as weak business environment and higher operating and transportation expenses dented the second-largest Canadian oil and gas producer's margins. The company narrowed its full-year total production outlook range to 780,000 – 790,000 barrels of oil equivalent per day (boepd) from 780,000 – 820,000 boepd. In the third quarter ended Sept. 30, it produced 762,300 boepd, up from 743,800 boepd in the year-ago quarter. Suncor said its production rose due to higher output at Syncrude and the ramp-up of Fort Hills and Hebron oil facilities in 2018. Net profit fell to C$1.04 billion or 67 Canadian cents per share in the quarter, from C$1.82 billion or C$1.12 per share last year. • Thomson Reuters Corp (TRI). The parent of the Reuters News agency, reported higher-than-expected quarterly operating profit and affirmed its 2019 and 2020 estimates. The company posted single-digit sales increases in the third quarter in each of its three largest divisions, Legal Professionals, Corporates and Tax & Accounting Professionals. Operating profit rose to $262 million, or 27 cents a share, from $173 million or 12 cents a share a year ago, reflecting the revaluation of warrants the company holds in , which the has agreed to buy. Thomson Reuters affirmed its 2019 and 2020 sales and earnings outlook, which it had raised in August. Revenue rose 10% to $1.41 billion in the quarter, slightly below estimates. Thomson Reuters reported a net loss of $44 million, or 9 cents per share, versus a profit of $302 million, or 39 cents per share, a year ago.

POLL Oil prices face pressure as global economy slows Oil prices are likely to be pressured this year and next as low demand from a slowing global economy and a surge in U.S. shale output offset support from OPEC production cuts and Middle East supply risks, a Reuters survey shows.

ANALYSTS' RECOMMENDATION • Genworth MI Canada Inc (MIC): CIBC cuts target price to C$56 from C$57 following the company’s third-quarter earnings that were below expectations on higher-than-expected mortgage delinquencies. • Maple Leaf Foods Inc (MFI): cuts target price to C$35 from C$42.50 following the company’s third-quarter results that fell significantly short of consensus views. • Inc (QBRB). Scotiabank raises target price to C$37 from C$36 expecting cable/telecom EBITDA growth driven by wireless EBITDA growth, favourable revenue mix shift and cost management.

ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0830 GDP mm for Aug: Expected 0.2%; Prior 0.0% 0830 Producer prices mm for Sep: Expected 0.2%; Prior 0.2% 0830 Producer prices yy for Sep: Prior -1.0% 0830 Raw materials price mm for Sep: Prior -1.8% 0830 Raw materials price yy for Sep: Prior -6.0% 0830(approx.) Average weekly earnings for Aug: Prior 2.73%

COMPANIES REPORTING RESULTS October 31: Aecon Group Inc (ARE). Expected Q3 earnings of 58 Canadian cents per share Atco Ltd (ACOx). Expected Q3 earnings of 57 Canadian cents per share BCE Inc (BCE). Expected Q3 earnings of 92 Canadian cents per share Bombardier Inc (BBDb). Expected Q3 loss of 3 cents per share Canadian Utilities Ltd (CU). Expected Q3 earnings of 37 Canadian cents per share Cenovus Energy Inc (CVE). Expected Q3 earnings of 20 Canadian cents per share Inc (CSU). Expected Q3 earnings of $7.71 per share Crescent Point Energy Corp (CPG). Expected Q3 earnings of 6 Canadian cents per share Encana Corp (ECA). Expected Q3 earnings of 14 cents per share Fairfax Financial Holdings Ltd (FFH). Expected Q3 earnings of $5.56 per share Activewear Inc (GIL). Expected Q3 earnings of 54 cents per share Norbord Inc (OSB). Expected Q3 loss of 3 cents per share Snc-Lavalin Group Inc (SNC). Expected Q3 earnings of 26 Canadian cents per share Thomson Reuters Corp (TRI). Expected Q3 earnings of 19 cents per share Vermilion Energy Inc (VET). Expected Q3 earnings of 4 Canadian cents per share Whitecap Resources Inc (WCP). Expected Q3 earnings of 8 Canadian cents per share

November 01: Corp (CCO). Expected Q3 earnings of 1 Canadian cent per share Fortis Inc (FTS). Expected Q3 earnings of 66 Canadian cents per share Ltd (IMO). Expected Q3 earnings of 59 Canadian cents per share Corp (PPL). Expected Q3 earnings of 60 Canadian cents per share TC Energy Corp (TRP). Expected Q3 earnings of 98 Canadian cents per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Bombardier Inc (BBDb). Q3 earnings conference call 0800 BCE Inc (BCE). Q3 earnings conference call 0830 Snc-Lavalin Group Inc (SNC). Q3 earnings conference call 0830 Gildan Activewear Inc (GIL). Q3 earnings conference call 0830 MEG Energy Corp (MEG). Q3 earnings conference call

2 0900 Thomson Reuters Corp (TRI). Q3 earnings conference call 0900 Encana Corp (ECA). Q3 earnings conference call 0930 Suncor Energy Inc (SU). Q3 earnings conference call 1000 Great-West Lifeco Inc (GWO). Q3 earnings conference call 1000 Canadian Utilities Ltd (CU). Q3 earnings conference call 1100 Methanex Corp (MX). Q3 earnings conference call 1100 Inc (CGO). Q4 earnings conference call 1100 Cogeco Communications Inc (CCA). Q4 earnings conference call 1100 Equinox Gold Corp (EQX). Q3 earnings conference call 1100 Pretium Resources Inc (PVG). Q3 earnings conference call 1100 Alamos Gold Inc (AGI). Q3 earnings conference call 1100 Norbord Inc (OSB). Q3 earnings conference call 1100 Vermilion Energy Inc (VET). Q3 earnings conference call 1100 Ballard Power Systems Inc (BLDP). Q3 earnings conference call 1100 Cenovus Energy Inc (CVE). Q3 earnings conference call 1100 Whitecap Resources Inc (WCP). Q3 earnings conference call 1130 Atco Ltd (ACOx). Q3 earnings conference call 1130 Sandstorm Gold Ltd (SSL). Q3 earnings conference call 1200 Crescent Point Energy Corp (CPG). Q3 earnings conference call 1700 Open Text Corp (OTEX). Q1 earnings conference call

EXDIVIDENDS Bank of (BMO). Amount C$1.03 Inc (EMA). Amount C$0.61

(All analysts' estimates are according to I/B/E/S Refinitiv data.)

3 PICTURE OF THE DAY

Demonstrators and tuk-tuk drivers take part in anti-government protests in Baghdad, Iraq, October 30. REUTERS/Thaier Al-Sudani

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