TOP NEWS • Canada government to help provinces fight coronavirus outbreak -source The Canadian government will announce a series of measures to help provinces across the country deal with the worsening coronavirus outbreak, a government source said on Tuesday. • Business travel sector to lose $820 billion in revenue on coronavirus hit -industry group The global business travel sector is expected to take a revenue hit of about $820 billion, with China accounting for nearly half of the losses, as corporates curb travel plans in the face of the coronavirus epidemic, an industry body said on Tuesday. • Britain fires with both barrels: emergency rate cut and budget boost The Bank of England slashed interest rates by half a percentage point and announced support for bank lending just hours before the unveiling of a budget splurge designed to stave off a recession triggered by the coronavirus outbreak. • Energy, service sectors brace for debt restructuring wave Plunging oil prices and the economic fallout from the global coronavirus outbreak are setting the stage for a potential wave of debt restructurings and bankruptcies, especially in the energy and services sectors, according to company advisers and analysts. • Brookfield halts sale of Australian coal port due to coronavirus - sources Brookfield Asset Management has put the $2 billion sale or potential listing of its coal export terminal in Australia on hold due to travel restrictions amid the spread of coronavirus, two sources said.
BEFORE THE BELL Canada’s main stock index futures fell, as oil prices slipped pressured by Saudi Arabia's plans to boost oil production capacity and weakened demand. Wall Street futures were lower, as worries about the global economic impact of the fast spreading coronavirus continued to weigh on investor sentiment. European shares rose after the Bank of England slashed interest rates by half a percentage point. In Asia, Japan’s Nikkei ended lower. The U.S. dollar declined against the Japanese yen and Swiss franc, while gold prices rose.
STOCKS TO WATCH • Air Canada (AC). The company said on Tuesday it will suspend its service to and from Italy, as the country imposed a nationwide lockdown to stem the spread of the coronavirus. "Due to Italian government regulations and ongoing health and safety concerns, Air Canada will suspend its service between Canada and Italy as of March 11," the company said in an email statement to Reuters. Affected customers will be notified and offered travel options, including a full refund, the airline said. • Brookfield Asset Management Inc (BAMa). The company has put the $2 billion sale or potential listing of its coal export terminal in Australia on hold due to travel restrictions amid the spread of coronavirus, two sources said. Running a sale and listing process had become impossible given travel bans due to the global outbreak, the sources said, declining to be identified because they were not allowed to talk to the media. The decision makes the Dalrymple Bay Coal Terminal the largest and most high profile corporate transaction in Australia to fall victim to the volatile financial market conditions sparked by the epidemic. • Kirkland Lake Gold Ltd (KL). The Toronto-listed company will shut two gold projects in Australia's Northern Territory by the end of the month, after it deemed their operations surplus, media said. Kirkland will wind down its Cosmo mine and Union Reefs processing plant near the remote, coastal city of Darwin by the end of the month, the Australian Broadcasting Corporation (ABC) said. Kirkland Lake said it would have to let approximately 250 employees go in a letter to workers on Tuesday, obtained by the ABC. The broadcaster added that the firm had been in the final stage of permitting for an underground mine at Union Reefs.
ANALYSIS U.S. farmers still dependent on trade aid after China deal As U.S. President Donald Trump touted the signing of a U.S.-China trade deal in January, he told cash-strapped farmers they would soon need bigger tractors and "a little more land" to meet additional Chinese demand for U.S. agricultural goods.
ANALYSTS' RECOMMENDATION • Bonterra Energy Corp (BNE): Scotiabank cuts target price to C$2 from C$5.50, following the company lowering its 2020 capital program and suspending its dividend in response to the recent crash in oil prices. • Suncor Energy Inc (SU). JPMorgan cuts target price to C$33 from C$43, saying high degree of oil price exposure weighs on the company's earnings.
ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0830 Capacity utilization for Q4 : Expected 80.7%; Prior 81.7% 1200 TR IPSOS PCSI for Mar: Prior 53.97
COMPANIES REPORTING RESULTS March 11: Altius Minerals Corp (ALS). Expected Q4 earnings of 10 Canadian cents per share American Hotel Income Properties REIT LP (HOT_u). Expected Q4 earnings of 1 cent per share Baylin Technologies Inc (BYL). Expected Q4 loss of 4 Canadian cents per share CanWel Building Materials Group Ltd (CWX). Expected Q4 earnings of 2 Canadian cents per share Conifex Timber Inc (CFF). Expected Q4 loss of 32 Canadian cents per share CRH Medical Corp (CRH). Expected Q4 earnings of 4 cents per share Dorel Industries Inc (DIIb). Expected Q4 earnings of 4 cents per share Evertz Technologies Ltd (ET). Expected Q3 earnings of 26 Canadian cents per share Fortuna Silver Mines Inc (FVI). Expected Q4 earnings of 6 cents per share IPL Plastics Inc (IPLP). Expected Q4 earnings of 8 cents per share Linamar Corp (LNR). Expected Q4 earnings of ₹ C$1.23 per share Painted Pony Energy Ltd (PONY). Expected Q4 loss of 2 Canadian cents per share Rocky Mountain Dealerships Inc (RME). Expected Q4 earnings of 8 Canadian cents per share Stella-Jones Inc (SJ). Expected Q4 earnings of 39 Canadian cents per share
March 12: AutoCanada Inc (ACQ). Expected Q4 earnings of 17 Canadian cents per share Cervus Equipment Corp (CERV). Expected Q4 loss of 19 Canadian cents per share CES Energy Solutions Corp (CEU). Expected Q4 earnings of 3 Canadian cents per share Docebo Inc (DCBO). Expected Q4 loss of 6 cents per share Empire Company Ltd (EMPa). Expected Q3 earnings of 44 Canadian cents per share Ero Copper Corp (ERO). Expected Q4 earnings of 17 cents per share High Arctic Energy Services Inc (HWO). Expected Q4 loss of 6 Canadian cents per share KP Tissue Inc (KPT). Expected Q4 earnings of 19 Canadian cents per share Medical Facilities Corp (DR). Expected Q4 earnings of 21 cents per share Neo Performance Materials Inc (NEO). Expected Q4 earnings of 14 cents per share NFI Group Inc (NFI). Expected Q4 earnings of 66 cents per share PFB Corporation (PFB). Expected Q4 earnings of 31 Canadian cents per share Pipestone Energy Corp (PIPE). Expected Q4 earnings of 1 Canadian cent per share Premium Brands Holdings Corp (PBH). Expected Q4 earnings of 75 Canadian cents per share ProntoForms Corp (PFM). Expected Q4 loss of 1 cent per share Quebecor Inc (QBRb). Expected Q4 earnings of 60 Canadian cents per share STEP Energy Services Ltd (STEP). Expected Q4 loss of 25 Canadian cents per share Transat AT Inc (TRZ). Expected Q1 loss of 50 Canadian cents per share Valeura Energy Inc (VLE). Expected Q4 earnings of break even per share
CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Titanium Transportation Group Inc (TTR). Q4 earnings conference call 0900 Airboss of America Corp (BOS). Q4 earnings conference call 0900 Green Organic Dutchman Holdings Ltd (TGOD). Q4 earnings conference call 1000 Bird Construction Inc (BDT). Q4 earnings conference call 1000 Conifex Timber Inc (CFF). Q4 earnings conference call 1000 Greenbrook TMS Inc (GTMS). Q4 earnings conference call 1000 Morneau Shepell Inc (MSI). Q4 earnings conference call 1000 Stella-Jones Inc (SJ). Q4 earnings conference call 1000 Wesdome Gold Mines Ltd (WDO). Q4 earnings conference call 1100 Rocky Mountain Dealerships Inc (RME). Q4 earnings conference call 1130 Parex Resources Inc (PXT). Q4 earnings conference call 1300 Timbercreek Financial Corp (TF). Q4 earnings conference call 1700 Evertz Technologies Ltd (ET). Q3 earnings conference call 1700 Linamar Corp (LNR). Q4 earnings conference call 1800 IPL Plastics Inc (IPLP). Q4 earnings conference call
EX-DIVIDENDS Canadian Western Bank (CWB). Amount C$0.29 Cascades Inc (CAS). Amount C$0.08 Enerflex Ltd (EFX). Amount C$0.11 Franco-Nevada Corp (FNV). Amount $0.25 Gildan Activewear Inc (GIL). Amount $0.15 Pinnacle Renewable Energy Inc (PL). Amount C$0.15 Velan Inc (VLN). Amount C$0.03
(All analysts' estimates are according to I/B/E/S Refinitiv data)
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Chris Moore, who lost his daughter Danielle in the Ethiopian Airlines 737 MAX crash one year ago, protests at Transport Canada's headquarters in Ottawa, Ontario, March 10. REUTERS/Patrick Doyle
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