Here are five things you need to know this morning
Tariff uncertainty returns: We are seeing a return of uncertainty from U.S. tariff policy – particularly when it comes to Canada. Speaking to reporters in the Oval Office after signing executive orders yesterday, U.S. President Donald Trump said the tariff on auto imports from Canada could be increased. Last month the U.S. imposed a 25 per cent tariff on all automobile imports. Meanwhile, Bloomberg News is reporting the Trump administration is considering whether to reduce certain tariffs targeting the auto industry. The report says one measure would spare automobiles and parts already subject to tariffs from facing additional duties from levies on steel and aluminum imports. Another option being studied would fully exempt auto parts that comply with the Canada-U.S.-Mexico trade pact.
Companies flag tariff toll: Meanwhile, more U.S corporations say the White House’s tariff policies are hurting their businesses. Late yesterday, PepsiCo, Chipotle Mexican Grill and Southwest Airlines all cut their financial forecasts – for sales, profit or both. Each pointed to economic uncertainty as the reason. PepsiCo cited “global trade uncertainty”, and Chipotle said its customers are voicing worries about tariffs and the U.S. economy.
Hudson’s Bay liquidation: It looks like Canada’s oldest company is about to disappear. In a court filing as part of its restructuring process, Hudson’s Bay disclosed it will start liquidating the six stores it previously planned to keep open. The company says it’s unlikely it will find a buyer for the remaining locations. The company filed for creditor protection last month amid ongoing financial challenges. Barring a last-minute reprieve, this will mark the end of Hudson’s Bay’s 355-year history in Canada.
$2.2 billion takeover: A rather low-profile Canadian company that operates in a niche in the healthcare industry is being bought by a giant U.S. shipping firm. Vaughan, Ontario-based Andlauer Healthcare Group has agreed to be bought by UPS in a $2.2 billion dollar transaction. AHG provides specialized transportation and logistics solutions to the healthcare sector, with nine distribution centres and 22 branches across Canada.
Rogers working on sports deal: Rogers Communications is working on a possible deal involving its sports properties. On yesterday’s quarterly conference call, chief financial officer Glenn Brandt said the company has had “significant interest from various institutional investors” when it comes to Rogers’ sports assets. Later in the day at the company’s annual general meeting, chief executive officer Tony Staffieri said Rogers “sees a clear path to monetize” its sports assets and “unlock their unrecognized value.” The telecom giant has a deal in place to raise its stake in Maple Leaf Sports and Entertainment to 75 per cent. It also owns the Toronto Blue Jays baseball team, and the Sportsnet television network.
