TOP NEWS • China trade team still preparing to go for talks after Trump cranks up pressure China said that a delegation is still preparing to go to the United States for trade talks, after U.S. President Donald Trump dramatically increased pressure on Beijing to reach a deal, saying he would hike tariffs on Chinese goods this week. • Fed up Canada tells U.S. to help with China crisis or forget about favors Canada is leaning on the United States to help settle a dispute with China, which has started to block imports of vital Canadian com- modities amid a dispute over a detained Huawei executive. • Air Canada reports first-quarter surprise profit Air Canada reported a quarterly adjusted profit while analysts were expecting a loss, driven by higher passenger traffic and its acqui- sition of the Aeroplan loyalty program. • Occidental tweaks $38 billion Anadarko bid to remove shareholder vote Occidental Petroleum increased the cash component of its $38 billion bid to acquire Anadarko Petroleum on Sunday, removing a re- quirement for any deal to receive the approval of Occidental's shareholders. • Facebook 'labels' posts by hand, posing privacy questions Over the past year, a team of as many as 260 contract workers in Hyderabad, India has ploughed through millions of Facebook pho- tos, status updates and other content posted since 2014.

BEFORE THE BELL Futures for Canada's main stock index fell after U.S. President Donald Trump threatened to raise tariffs on China, triggering a glob- al rout in risky assets. U.S. stock index futures slumped, in line with global markets. China’s major indexes fell the most in over three years. Yen and gold gained after investors were prompted to sell riskier assets and boost safe-havens. Oil prices tumbled.

STOCKS TO WATCH • Air Canada (AC). The airline reported a quarterly adjusted profit while analysts were expecting a loss, driven by higher passenger traffic and its acquisition of the Aeroplan loyalty program. The company said traffic rose 4.2 percent while passenger revenue per available seat mile increased 4.5 percent in the first quarter from a year earlier. It reported an adjusted net income of C$17 million, or 6 Canadian cents per share, in the first quarter, compared to a loss of C$26 million, or 10 Canadian cents per share, a year earlier. Analysts' on average were expecting the company to post a loss of 18 Canadian cents.

COLUMN Trump blows up trade complacency, commodities to feel pain U.S. President Donald Trump has just given commodity markets a reminder that stormy waters can blow up quite quickly even if the voyage ahead was looking like smooth sailing.

ANALYSTS' RECOMMENDATION • Black Diamond Group Ltd (BDI). CIBC raises price target to C$2.50 from C$2.25, citing the company’s first quarter results were in line with expectations. • Bonavista Energy (BNP). CIBC cuts rating to underperform from neutral, saying that the company’s first quarter operational results saw production and cash flow come up slightly short of expectations. • Toromont Industries Ltd (TIH). CIBC cuts price target to C$68 from C$70, reflecting on the company’s soft first-quarter results and its guidance on the construction sector.

ECONOMIC EVENTS No economic indicators are scheduled for release.

COMPANIES REPORTING RESULTS

May 6: Air Canada (AC). Expected Q1 loss of 18 Canadian cents per share Bausch Health Companies Inc (BHC). Expected Q1 earnings of 85 cents per share Cargojet Inc (CJT). Expected Q1 earnings of 26 Canadian cents per share Gibson Energy Inc (GEI). Expected Q1 earnings of 34 Canadian cents per share Hudbay Minerals Inc (HBM). Expected Q1 earnings of 3 cents per share

May 7: Element Fleet Management Corp (EFN). Expected Q1 earnings of 18 Canadian cents per share Freehold Royalties Ltd (FRU). Expected Q1 earnings of 3 Canadian cents per share George Weston Ltd (WN). Expected Q1 earnings of C$1.35 per share Intact Financial Corp (IFC). Expected Q1 earnings of 60 Canadian cents per share Kinross Gold Corp (K). Expected Q1 earnings of 2 cents per share MEG Energy Corp (MEG). Expected Q1 loss of 2 Canadian cents per share TORC Oil & Gas Ltd (TOG). Expected Q1 earnings of 3 Canadian cents per share WestJet Airlines Ltd (WJA). Expected Q1 earnings of 30 Canadian cents per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Bausch Health Companies Inc (BHC). Q1 earnings conference call 0830 Air Canada (AC). Q1 earnings conference call 1030 Air Canada (AC). Annual Shareholders Meeting 1100 Great Canadian Gaming Corp (GC). Q1 earnings conference call 1130 Cargojet Inc (CJT). Q1 earnings conference call

EXDIVIDENDS There are no major exdividends for the day.

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

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A missile lands as smoke rises during Israeli air strikes in Gaza City, May 5. REUTERS/Mohammed Salem

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