Morning News Call Canada

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Canada Edition Monday, April 26, 2021

TOP NEWS • Frustrated Canada presses White House to keep Great Lakes oil pipeline open Canada is pushing on several diplomatic fronts against the U.S. state of Michigan's efforts to close a cross-border oil pipeline, the second such dispute since Joe Biden became U.S. president in January, complicating the governments' efforts to work together to lower carbon emissions.

• Shippers push for CP Railway to win bidding war for Kansas City Southern North America's freight rail customers, from grain shippers to logistics companies, are pushing for Canadian Pacific Railway to win a bidding war for Kansas City Southern over rival Canadian National Railway, eyeing stronger competition and swifter service.

• Moderna vaccine to be reviewed for WHO emergency listing on April 30 - WHO spokesman Moderna's COVID-19 vaccine will be reviewed on April 30 by technical experts for possible WHO emergency-use listing, a World Health Organization spokesman told Reuters.

• Health Canada finds Astrazeneca COVID-19 vaccines from Baltimore plant safe, of high quality Canada's health department said on Sunday the 1.5 million doses of the Astrazeneca COVID-19 vaccine imported from Emergent BioSolutions' Baltimore facility were safe and met quality specifications.

• Canadian government to intervene to end potential Montreal port strike The Canadian government will intervene to end a potential strike at the country's second-largest port, the labour minister said on Sunday, as the clock ticked down to a walkout by Montreal dockworkers.

BEFORE THE BELL Canada's main stock index futures fell, weighed by a drop in oil prices, as investors awaited a first-quarter earnings update from Canadian National Railway later in the day. Futures tracking the Nasdaq 100 index were down, pressured by technology shares taking a hit ahead of first-quarter earnings results this week. European stocks were little changed at the start of a busy week of corporate results and economic data. Japan’s Nikkei closed in the green, following gains from travel-related stocks, while Chinese stocks reversed course to close lower on profit-taking. Gold prices held firm, supported by a weaker U.S. dollar ahead of the U.S. Federal Reserve's meeting this week.

STOCKS TO WATCH • Brookfield Business Partners LP: The company is exploring options including the sale of a minority stake in Westinghouse Electric Co that could value the U.S. nuclear power developer and servicer at as much as $10

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DATA IS JUST 1 THE BEGINNING ~ MORNING NEWS CALL - CANADIAN EDITION A ril 26, 2021 billion including debt, people familiar with the matter said on Friday. Brookfield Business Partners has hired investment banks to engage with potential buyers for a minority stake in Westinghouse, the sources said, requesting anonymity as the discussions are private.

• Canadian Pacific Railway Ltd & Canadian National Railway Co: North America's freight rail customers, from grain shippers to logistics companies, are pushing for Canadian Pacific Railway to win a bidding war for Kansas City Southern over rival Canadian National Railway , eyeing stronger competition and swifter service. Rail customers' lobbying of the regulator, U.S. Surface Transportation Board (STB), is so far lopsided in favor of CP, which announced its combination with KCS on March 21. CP says that 416 rail shippers have written to STB in support. As of Friday, the STB had posted at least 135 letters regarding CP's bid, many of them supporting it and others urging full scrutiny of any merger with KCS. Separately, Canadian Pacific Railway on Saturday welcomed a favorable regulatory decision related to its proposed merger with Kansas City Southern, on the same day that Kansas City said its board has determined that a competing offer from Canadian National Railway could be expected to lead to a "superior proposal."

INSIGHT As Bank of Canada turns hawkish, investors retool for higher rates outlook Investors in Canada are shunning interest-rate sensitive stocks, seeking inflation protection and betting on a steeper yield curve as the Bank of Canada leads global central banks in shifting to a more hawkish stance.

ANALYSTS' RECOMMENDATION • Precision Drilling Corp: Evercore ISI raises target price to C$37 from C$35, saying the company is benefiting from an improving land drilling market along with a growing macro picture of oil and gas industry.

ECONOMIC EVENTS No economic indicators are scheduled for release.

COMPANIES REPORTING RESULTS April 26: Canadian National Railway Co: Expected Q1 earnings of C$1.24 per share

April 27: Capstone Mining Corp: Expected Q1 earnings of 10 cents per share First National Financial Corp: Expected Q1 earnings of 89 Canadian cents per share First Quantum Minerals Ltd: Expected Q1 earnings of 19 cents per share FirstService Corp: Expected Q1 earnings of 46 cents per share TFI International Inc: Expected Q1 earnings of 68 cents per share

CORPORATE EVENTS (All timings in U.S. Eastern Time) 1630 Canadian National Railway Co: Q1 earnings conference call

EX-DIVIDENDS COGECO Inc: Amount C$0.54 Cogeco Communications Inc: Amount C$0.64

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

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DATA IS JUST 2 THE BEGINNING ~ MORNING NEWS CALL - CANADIAN EDITION A ril 26, 2021

PICTURE OF THE DAY

Firefighters work to extinguish a wild gorse fire in the Connemara region of County Galway near Inverin, Ireland, April 25. REUTERS/ Clodagh Kilcoyne

(Compiled by Nachiket Tekawade and Pooja Kesavan in Bengaluru) Refinitiv 3 Times Square, New York, NY 10036 To subscribe for The Morning Newscall newsletter click here Please visit: Refinitiv for more information. For questions or comments about this report, contact: [email protected] Privacy statement

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DATA IS JUST 3 THE BEGINNING ~