MORNING NEWS CALL Edition Monday, November 20, 2017

TOP NEWS • Nebraska to decide fate of controversial Keystone XL pipeline Nebraska regulators will announce their decision on Monday on whether to approve TransCanada’s Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. • Canada, Mexico to question U.S. auto content demands at NAFTA talks Canada and Mexico will not make counterproposals to U.S. demands for tougher NAFTA automotive content rules but instead will offer rebuttals and pepper American negotiators with technical questions on Monday, people familiar with the talks said. • Marvell Technology to buy Cavium for $6 billion Chipmaker Marvell Technology Group said it would buy smaller rival Cavium in a deal valued at about $6 billion as it seeks to expand its networking equipment business. • Toshiba gains breathing room with $5.4 billion share issue to overseas investors Toshiba's planned $5.4 billion new share issue to overseas investors is set to provide it with most of the funds it needs to avoid a delisting - a quickly arranged deal that underscores both the weakness of its finances and the allure of its chips unit. • Trump open to dropping healthcare provision in Senate tax bill -aide U.S. President Donald Trump would not insist on including repeal of an Obama-era health insurance mandate in a bill intended to enact the biggest overhaul of the tax code since the 1980s, a senior White House aide said on Sunday.

BEFORE THE BELL Futures for Canada's main stock index were little changed, as oil prices eased ahead of an OPEC meeting next week. U.S. stock futures were little changed, after markets ended on a sour note in the previous week as investors weighed the fate of the Republi- cans' tax overhaul plan. European stocks had a dull start after the German government’s coalition talks failed, and the euro fell. Gold slipped on a strong U.S. dollar as political and economic uncertainty in the United States weighed on sentiment.

STOCKS TO WATCH • Canadian National Railway Co (CNR). The company plans to extend a major hiring spree into next year as Canada's biggest freight railroad scrambles to handle surging shipments and fill vacancies, a company official said on Friday. The hiring blitz, which has added 3,500 workers through this year and calls for at least 2,000 more in 2018, follows significant job cuts in 2015 and 2016 and reflects a resurgent economy and stiffer competition from . The 5,500 new hires in Canada and the United MORNING NEWS CALL - CANADIAN EDITION November 20, 2017

States would represent nearly one-quarter of CN's workforce, and include roughly 1,700 new positions.CN has also seen a surge this year in the volume of sand being shipped for use in fracking shale rock to produce oil and gas. • Katanga Mining Ltd (KAT). Glencore said it had identified material weaknesses in the internal controls for financial reporting at the company, in which the London-listed miner has a majority. Glencore nominated three new directors to the board of Katanga, which operates mines in Democratic Republic of Congo. It said the review did not have a material impact on Glencore's consolidated income or cash flow and said it would take steps in Katanga's copper department to strengthen accounting practices. There would be no changes to the anticipated timing of the commissioning of the Whole Ore Leach project at Katanga in Congo, where it mines copper and cobalt. • TransCanada Corp (TRP). Nebraska regulators will announce their decision on whether to approve the company’s Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone sys- tem spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expan- sion. The stakes are big. President Donald Trump, a Republican, has made Keystone XL’s success a plank in his effort to boost the U.S. energy industry. Environmentalists have made the project a symbol of their broader fight against fossil fuels and global warming.

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 • Quebecor Inc (QBRB). Barclays cuts target price to C$27 from C$53 to reflect 2-for-1 stock split. • Enerflex Ltd (EFX). raises target price to C$19 from C$18.50 expecting booking momentum to continue in 2018.

ECONOMIC EVENTS No economic indicators are scheduled for release.

COMPANIES REPORTING RESULTS Nov 20: Aveda Transportation and Energy Services Inc (AVE). Expected Q3 loss of 2 Canadian cents per share

Nov 21: George Weston Ltd (WN). Expected Q3 earnings of C$2.12 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

CORPORATE EVENTS 12:00 Sangoma Technologies Corp (STC). Q1 earnings conference call

EXDIVIDENDS Gluskin Sheff + Associates Inc (GS). Amount C$0.25 Financial Corp (MFC). Amount C$0.21 Olympia Financial Group Inc (OLY). Amount C$0.17

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

2 MORNING NEWS CALL - CANADIAN EDITION November 20, 2017

PICTURE OF THE DAY

An ancient statue is partly submerged under water at an archaeological site, following flash floods which hit the area, at the village of Dion, Greece November 18. REUTERS/Alexandros Avramidis

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