MORNING NEWS CALL - Thomson Reuters

[Pages:3]MORNING NEWS CALL

TOP NEWS

? Restaurant Brands names Burger King boss Jose Cil as CEO Restaurant Brands International named Jose Cil, the current head of its Burger King business, as its chief executive officer, replacing Daniel Schwartz. ? U.S. will seek extradition of Huawei CFO from Canada The U.S. Justice Department said on Tuesday it will pursue the extradition of the chief financial officer of China's Huawei's, arrested in Canada in December. ? Procter & Gamble second-quarter sales beat estimates Procter & Gamble Co reported quarterly revenue that beat Wall Street estimates, driven by strong demand for beauty and fabric care products. ? United Tech 4th-quarter profit rises 73 percent Industrial conglomerate United Technologies Corp reported a 72.8 percent rise in quarterly profit, as the company benefited from a favorable tax rate and the acquisition of aero parts maker Rockwell Collins. ? Comcast revenue beats on lower-than-expected video losses Top U.S. cable services provider Comcast Corp reported quarterly revenue above analysts' estimates on Wednesday, buoyed by lower-than-expected video subscriber losses and growth in its broadcast television and theme parks businesses.

BEFORE THE BELL

Futures for Canada's main stock index rose, as oil prices gained on optimism after China and Japan said they would use fiscal stimulus to boost economic growth in the face of trade protectionism and faltering global demand. U.S. stock futures traded higher, a day after Wall Street's major indexes fell over a percent each on global growth concerns. Major European markets were up, but weak earnings put a cap on gains. Asian markets fell after a report said Trump administration rejected an offer from China for preparatory trade talks. The U.S. dollar held near a three-week high and gold prices edged higher. Canada's retail sales data for November is scheduled for release.

STOCKS TO WATCH

Moves ? Restaurant Brands International Inc (QSR). The company named Jose Cil, the current head of its Burger King business, as its chief executive officer, replacing Daniel Schwartz. Cil, who has been with Burger King for 18 years and its president since 2014, will be tasked with improving global sales for the company's three brands - Tim Hortons, Popeyes and Burger King, the company said. Restaurant Brands also said it expects fourth quarter comparable sales to rise 2.2 percent in Canada and 1.9 percent globally at its Tim Hortons chain.

In Other News ? Aphria Inc (APHA). U.S. cannabis retailer Green Growth Brands said on Tuesday it would make a second all-stock takeover bid for the company, valuing the pot producer at about C$2.35 billion. Green Growth said it would offer 1.5714 shares for each Aphria share, representing a premium of about 25 percent to Aphria's closing price on the last trading day before its first hostile bid. Based on Green Growth's close on Tuesday, the offer values Aphria shares at about C$9.40 each, compared with its closing price of C$9.43.

Aphria said separately the terms of Green Growth's latest offer were "substantially identical" to the unsolicited proposal on Dec. 27, and urged shareholders to take no action until its board decides on the matter.

ANALYSIS

Trump won't soften hardline on China to make deal-advisers As much as U.S. President Donald Trump wants to boost markets through a trade pact with China, he will not soften his position that Beijing must make real structural reforms, including how it handles intellectual property, to reach a deal, advisers say.

ANALYSTS' RECOMMENDATION

? Alacer Gold (ASR). National Bank of Canada raises rating to outperform from sector perform, saying that the company's 2019 guidance was delivered largely as expected.

ECONOMIC EVENTS (All timings in U.S. Eastern Time)

0830 Retail sales mm for Nov: Expected -0.6 pct; Prior 0.3 pct 0830 Retail sales ex-autos mm for Nov: Expected -0.4 pct; Prior 0.0 pct

COMPANIES REPORTING RESULTS

January 23: Canadian Pacific Railway Ltd (CP). Expected Q4 earnings of C$4.21 per share January 24: Rogers Communications Inc (RCIb). Expected Q4 earnings of C$1.08 per share

CORPORATE EVENTS (All timings in U.S. Eastern Time)

1630 Canadian Pacific Railway Ltd (CP). Q4 earnings conference call

EXDIVIDENDS

Cogeco Inc (CGO). Amount C$0.43 Cogeco Communications Inc (CCA). Amount C$0.52 Royal Bank of Canada (RY). Amount C$0.98 (All analysts' estimates are according to I/B/E/S Refinitiv data)

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PICTURE OF THE DAY

Water flows around ice, formed on the American Falls in Niagara Falls, New York, due to subzero temperatures, viewed from the Canadian side, in Niagara Falls, Ontario, Canada, January 22. REUTERS/Moe Doiron

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