Just when we thought the turmoil at Rogers Communications Inc. couldn’t get any wilder, this happens: Edward Rogers announced close to midnight last night that he’s going to force out five of the telco’s directors, including the person who just hours earlier was appointed chairman of the board after Mr. Rogers was ousted. In the statement, which confirmed earlier reporting by Bloomberg News, Mr. Rogers said he has “lost confidence” in the company’s current board. An accompanying email included endorsements for Mr. Rogers strategy from Alan Horn and Phil Lind, two long-time Rogers insiders who worked closely with the company’s founder. Where is this leading? Who knows. But we’ll have reaction from investment professionals and governance experts.
WHAT ABOUT THE SHAW DEAL?
The fiasco at Rogers arguably couldn’t come at a worse time, as the company’s proposed takeover of Shaw Communications awaits final approvals. Investors are signaling concern the deal could be at risk: Shaw shares have closed lower in eight straight sessions, and are currently sitting almost $5 below the takeout price.
DAY OF RECKONING…OR DAY OF OPPORTUNITY?
Derek Holt’s call on BNN Bloomberg this week for eight rate hikes from the Bank of Canada by the end of 2023 prompted plenty of discussion about the implications for households carrying heavy debt burdens. But what about the outlook for non- or under-leveraged Canadians? Pattie has addressed this in a piece that can be found at BNNBloomberg.ca. And we got a little extra colour this morning on how consumers are faring: Statistics Canada is estimating retail sales fell 1.9 per cent last month after a 2.1 per cent increase in August.
AID AND REOPENING IN NEXT PHASE OF COVID RECOVERY
Still plenty to discuss about the federal government’s pivot in the distribution of aid to households and businesses. We’ll keep gathering reaction from the businesses that will make the cut, and those that won’t. And we’ll frame it against the still-evolving reopening strategies across the country, including in Ontario – where it’s being reported by CTV News that Premier Doug Ford will announce plans to gradually roll back public health measures at a news conference today.
ALL-TIME HIGHS IN THE MARKET
The S&P/TSX Composite Index closed at a record again yesterday, and is now into a 12-session winning streak. And the S&P 500 also was pushed to a record yesterday, for the first time since September. All this as the world wrestles with the prospect of transitory inflation that will be longer lasting than many presumed.
OTHER NOTABLE STORIES
- China Evergrande Group shares rose as much as 7.8 per cent overnight after the debt-laden property developer made an interest payment on a U.S. dollar bond ahead of a rapidly approaching deadline.
- Shares of Snap Inc. collapsed after the social media company failed to live up to third-quarter revenue expectations, despite a 57 per cent year-over-year surge in revenue. In the release, CEO Evan Spiegel flagged "significant headwinds" such as Apple's change to privacy settings in the iOS platform that has been causing headaches for the company's ad business.
- Intel isn't getting rewarded for raising its full-year profit forecast as other blemishes distract from that rosier view. For instance, the company's client computing group saw revenue fall in the third quarter "due to industry-wide component shortages", and the third-quarter profit forecast is light compared to the average estimate.
NOTABLE RELEASES/EVENTS
- Notable data: Canadian retail sales
- Notable earnings: Corus Entertainment, American Express
- 8:30: Toronto Mayor John Tory makes announcement alongside Long-Term Care Minister Rod Phillips
- 10:00: Ontario Superior Court resumes hearing Cineworld-Cineplex case
- 14:00: Ontario premier Doug Ford, Deputy Premier and Health Minister Christine Elliott, Associate Minister of Digital Government Kaleed Rasheed, and Chief Medical Officer of Health Dr. Kieran Moore make announcement on province’s plan for reopening
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