TOP NEWS • In world first, UK approves Pfizer-BioNTech COVID-19 vaccine Britain approved Pfizer's COVID-19 vaccine, jumping ahead of the United States and Europe to become the West's first country to formally endorse a jab it said should reach the most vulnerable people early next week.

• RBC profit beats estimates on capital markets strength, lower provisions Royal Bank of reported a small rise in quarterly profit that beat analysts' expectations, driven by strength in its capital markets unit and reduced provisions to cover potential loan-losses from the COVID-19 pandemic.

• U.S. House seen approving bill blocking Chinese firms from U.S. markets The U.S. House of Representatives is expected to pass legislation this week that could prevent some Chinese companies from listing their shares on U.S. exchanges unless they adhere to U.S. auditing standards, congressional aides said.

• Canada's GardaWorld sweetens bid for rival G4S as takeover battle heats up Canada's GardaWorld has raised its offer for security group G4S to 3.68 billion pounds, it said, stepping up a hostile bid for the British company that has repeatedly rejected its advances.

• Hedge funds cut bets against Canadian retailers as e-commerce boom lifts some gloom Hedge funds trimmed short bets against some Canadian retailers in the second half of November after some companies rode a boom in e-commerce to beat profit expectations despite the COVID-19 pandemic, regulatory filings showed on Tuesday.

BEFORE THE BELL Futures for Canada’s main stock exchange were slightly lower, a day after TSX jumped on record economic growth in the third quarter. Oil prices fell, as investors awaited decision from OPEC+ on output. U.S. stock futures pulled back, a day after major indexes ended at record highs, though United Kingdom’s approval of Pfizer- BioNTech COVID-19 vaccine boosted the market sentiment. Asian equity markets ended little changed and fears surrounding a no-deal Brexit kept European shares muted. Gold rose to over a one-week high on hopes for an additional U.S. economic stimulus, while the U.S. dollar steadied.

STOCKS TO WATCH Results: (RY). The bank reported a small rise in quarterly profit that beat analysts' expectations, driven by strength in its capital markets unit and reduced provisions to cover potential loan-losses from the COVID- 19 pandemic. The lender set aside C$427 million in the fourth quarter, as economic disruptions from the pandemic raised the possibility of defaults. The amount was far lower than analysts' expectation of C$798.75 million, and down 14% from a year earlier. Total net income rose to C$3.25 billion for the quarter ended Oct. 31, or C$2.23 per share, from C$3.21 billion, or C$2.19 per share, a year earlier. On an adjusted basis, the bank earned C$2.27 per share, higher than analysts' average estimate of C$2.05 per share, according to Refinitiv data.

In Other News • Aurora Inc (ACB) & Canopy Growth Corp (WEED). Canadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, two industry consultants said in a report released on Tuesday. Depending on the pace of legalization, the market for European cannabis could grow at a compound annual rate of 52% for the next five years, hitting $3.1 billion in sales by 2025, research firm Brightfield Group and consultancy Hanway Associates said.They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - and Canopy Growth - in trimming spending outside North America. "Though they remain a tremendous force in Europe, forward momentum among (Canadian) liquidity providers will slow in the future, especially in newer or smaller markets," the consultants said, adding this would give more room for European players.

• Corp Ltd (CTCa), Inc (DOL) & Aritzia Inc (ATZ). Hedge funds trimmed short bets against some Canadian retailers in the second half of November after some companies rode a boom in e- commerce to beat profit expectations despite the COVID-19 pandemic, regulatory filings showed on Tuesday. The number of short trades as a percentage of total traded volume for Canadian Tire fell to just 2% for the second half of November, from approximately 7% for the first half of last month, data in the filings reviewed by Reuters showed. Short positions against Dollarama fell to 20.7%, from 21.7%, over the same period, while also falling in Aritzia to 20.1%, from 31.4%, the data showed."The theory behind shorting these companies is fairly simple but it has been a losing trade since the March low," said Jesse Gamble, senior vice president and portfolio manager at -based Donville Kent Asset Management.

COLUMN Skipping a year and landing in 2021: Mike Dolan Part of the reason major investors seem slightly weary about their rosy market outlooks for 2021 is that they have been talking about and planning for little else since March. It's like the markets effectively skipped over 2020 on a bridge provided by central banks and governments and have been gradually pricing a policy and vaccine- supported rebound ever since. Both are meeting forecasts so far.

ANALYSTS' RECOMMENDATION • Blackberry Ltd (BB). CIBC raises target price to $8 from $5.50, after the company announced a multi-year, global agreement with Amazon Web Services to develop and market its intelligent vehicle data platform, IVY.

• (BNS). CIBC raises target price to C$72 from C$70, citing the company’s positive results on credit, capital and expenses.

ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0830 Labour productivity rate for Q3: Prior 9.8%

COMPANIES REPORTING RESULTS December 02: Descartes Systems Group Inc (DSG). Expected Q3 earnings of 14 cents per share (NA). Expected Q4 earnings of C$1.52 per share Royal Bank of Canada (RY). Expected Q4 earnings of C$2.05 per share Tecsys Inc (TCS). Expected Q2 earnings of 8 Canadian cents per share

December 03: Canadian Imperial Bank of Commerce (CM). Expected Q4 earnings of C$2.52 per share Toronto-Dominion Bank (TD). Expected Q4 earnings of C$1.28 per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Royal Bank of Canada (RY). Q4 earnings conference call 1000 Forage Orbit Garant Inc (OGD). Annual Shareholders Meeting

2 1300 National Bank of Canada (NA). Q4 earnings conference call 1700 Descartes Systems Group Inc (DSG). Q3 earnings conference call

EX-DIVIDENDS Alimentation Couche-Tard Inc (ATDa). Amount C$0.08 Atco Ltd (ACOx). Amount C$0.43 Franco-Nevada Corp (FNV). Amount $0.26 Great-West Lifeco Inc (GWO). Amount C$0.43 Ltd (IMO). Amount C$0.22 Inc (SU). Amount C$0.21

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

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A full moon is seen behind buildings at night in Ashkelon, southern Israel, December 1. REUTERS/Amir Cohen

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