Norfolk Southern's (NSC) cost-reduction efforts to drive the bottom line are impressive. The company's shareholder-friendly measures also raise optimism about the stock.
Canadian National (CNI) announces a replacement of its current CEO aiming to revive the company's fortunes by addressing the current problems.
Stocks Rise as Trump Tariff Plan Faces Opposition (WSJ) North Korea Floats Scrapping Nukes, Opening Door to U.S. Talks (BBG) Tariff Plan Creates Rift in the GOP (WSJ) Florida state Senate votes against arming most classroom teachers (Reuters) U.S. primaries start with Democratic push in Texas (Reuters) Stock Bulls in Trump Country Are Freaking Out Their Brokers (BBG) Trump Facing ‘Dow Vigilantes’ in Stock Market Verdict on Tariffs (BBG) Megabanks Get One Big Win in Senate Rollback Bill (WSJ) Fights erupt, 12 arrested ahead of white nationalist's speech in Michigan (Reuters) Uber Spent $10.7 Billion in Nine Years. Does It Have Enough to Show for It? (BBG) A Frenchman Demands $1.5 Million After Sexting His Assistant (BBG) Kobe Steel CEO to Resign Over False-Data Scandal (WSJ) SpaceX Puts Satellite in Orbit as Florida Sleeps (BBG) Does America Really Need Another Light Beer? Corona Thinks So (WSJ) OPEC Beware: Asia Favoring U.S. Shale Oil (BBG) CVS Readies $44 Billion Bond Sale (WSJ) New Powers Come With Pressure for Europe’s Central Bank (WSJ) Overnight Media Digest WSJ - The Committee on Foreign Investment in the U.S. ordered Qualcomm Inc to delay its annual shareholder meeting by 30 days to give CFIUS time to review Singapore-based rival Broadcom Ltd's proposed $117 billion takeover of the chip maker.on.wsj.com/2H8EX8n - HCR ManorCare Inc, one of the largest skilled nursing home chains in the U.S., filed for bankruptcy protection as part of a deal in which its landlord, Quality Care Properties Inc, will take control of the company. on.wsj.com/2HbECSp - U.S. President Donald Trump said he would consider attending the opening of the new U.S. embassy in Jerusalem later this year, a move likely to affect Palestinians who see the embassy as an obstacle to a peace deal. on.wsj.com/2H9lvIA - Republican Senator Thad Cochran of Mississippi said he would resign on April 1 due to poor health after more than four decades in Congress, opening a second Senate seat in the conservative state. on.wsj.com/2H8Kyvj - 3M Co said Chief Executive Inge Thulin will step down from that position in the summer as the company splits its CEO and chairmanship roles. on.wsj.com/2H9QaW6 - The founding family of Nordstrom Inc experienced their second setback in trying to take the company private on Monday, when a special committee of the board rejected their roughly $8 billion buyout offer as too low. on.wsj.com/2H9eAiO FT - Sports Direct International Plc has increased its Debenhams Plc stake to 29.7 percent, which is just under the threshold at which it would be required to make a formal takeover offer. - UK newspaper publisher Trinity Mirror Plc is changing its name to Reach after it agreed to buy Express Newspapers from Northern & Shell last month. - UK’s Financial Conduct Authority fined a former Deutsche Bank AG trader 180,000 pounds for attempting to manipulate the Libor interest rate benchmark. They also banned him from working in any regulated financial activity. - UK Prime Minister Theresa May proposed an overhaul of the national planning policy framework, admitting that the housing shortage was reinforcing inequality, adding that young people were “right to be angry” that they weren’t able to buy their own property. NYT - Nordstrom Inc's long, winding attempt to move into private ownership took another turn on Monday. A special committee of the retailer's board rejected a roughly $8.4 billion offer from the Nordstrom family to buy the company, saying the price was too low. nyti.ms/2H8DTRY - Qualcomm Inc, one of the world's largest chip makers, has spent the last four months fending off a hostile takeover from Broadcom Ltd , a Singaporean rival. The fate of the proposed takeover now rests with a little-known committee of top White House administration officials who meet in secret, wielding power to kill the biggest multibillion-dollar global deals. nyti.ms/2H9eJTt - A record low 26.5 million people watched Sunday night's telecast, a nearly 20 percent drop versus last year. It also represents a startling drop off: As recently as four years ago, the Academy Awards had an audience of 43.7 million viewers. nyti.ms/2Hbyd9Z - Paul Ryan, the Republican House speaker, criticized U.S. President Donald Trump's proposed steel and aluminum tariffs on Monday, saying they could lead to a damaging trade war. nyti.ms/2H8Zlq9 Canada THE GLOBE AND MAIL ** U.S. President Donald Trump's advisers say he does not want to spare Canada and other U.S. allies from punishing tariffs on steel and aluminum – but are also suggesting individual companies can apply for exemptions and no final decision has been made, adding to mounting confusion over the President's looming trade attack. tgam.ca/2FTnO34 ** Bombardier Inc is raising C$638 million ($491.60 million) in its first share issue in more than three years, taking advantage of recent sharp gains in the plane and train maker's stock to beef up its balance sheet. tgam.ca/2FtnTwx NATIONAL POST ** Canada's biggest export market for oil, the United States, is set to dramatically ramp up its own oil exports and reshape the global oil trade in the next five years. "We see there is huge investment going on in this part of the United States – in Texas," the International Energy Agency's executive director Fatih Birol told reporters on Monday as CERA Week organized by IHS Markit, a major energy conference in Houston, kicked off. bit.ly/2HazY70 ** Canadian National Railway Co is searching for a new chief executive officer after it announced on Monday that Luc Jobin would be leaving the role of president and chief executive of CN immediately – a move that comes less than two years after he stepped into the position. bit.ly/2H9z6j4 Britain The Times - The Financial Conduct Authority was warned last year that Beaufort Securities, the failed broker that faces fraud charges in the United States, was not acting in the best interests of its 14,000 clients. bit.ly/2H4B6sQ - The Pensions Regulator has expressed concerns that Melrose Industries Plc's proposed takeover of GKN Plc could have a "detrimental impact" on the covenant of the engineering group's pension schemes. bit.ly/2H4nMov The Guardian - European aerospace manufacturer Airbus SE has warned it would have to consider its position in Britain without imminent clarity over customs rules after Brexit. bit.ly/2Hb1lhr - Fears of the first full-scale tariff war since the 1930s have been raised by the head of the World Trade Organisation, in a direct warning to U.S. President Donald Trump that his proposed levies on steel and aluminium will trigger a domino effect that will lead to global recession. bit.ly/2H8cxLX The Telegraph - British Prime Minister Theresa May promised investors that the City of London would not lose its status as a finance hub post-Brexit. bit.ly/2H7ZfPo - The chief executive officer of Trinity Mirror Plc has said he is "not in the slightest bit concerned" about a review by competition watchdogs of his plans to slash costs following the publisher's takeover of the Star and the Express newspapers. bit.ly/2H4yqLO Sky News - Carmaker Aston Martin is considering whether to snub the London stock market and pursue a listing in New York. bit.ly/2H98a2S - The water supply has returned to the plants of Jaguar Land Rover and Cadbury, which had both been hit by a shortage that had affected much of the country. bit.ly/2H8w6ni The Independent Cash-starved government departments are unable to fund Theresa May's pledge to scrap the public sector pay cap, a new analysis has warned. ind.pn/2H7mskD
United Parcel Service's (UPS) decision to expand its Express Service is aimed at facilitating the delivery of urgent shipments in markets offering high-growth potential.
United Parcel Service's (UPS) decision to expand its Express Service is aimed at facilitating the delivery of urgent shipments in markets offering high-growth potential.
Union Pacific's (UNP) two dividend hikes in three months reflect the company's increased financial prosperity, following the introduction of the new tax law.
Canadian National Railway (CNI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Authored by Nick Cunningham via OilPrice.com, Higher drilling costs could threaten the recent surge in United States shale production. Halliburton said last week that its earnings could be negatively impacted because of bottlenecks related to the supply of frac sand used in shale drilling. The Wall Street Journal reported that Halliburton’s shares were briefly halted on February 15 after Halliburton’s CFO Chris Weber told an audience at the Credit Suisse Energy Summit that the company’s first quarter earnings could take a hit by a whopping 10 cents per share. The reason, he said, was because of delays by Canadian rail companies that would slow the delivery of frac sand. Halliburton saw its shares drop by more than 2 percent on a day that saw broader gains to the S&P 500. Frac sand is integral to growing shale production, increasingly so these days with more and more sand pumped down into a well. Shale drillers have credited the heavy doses of sand with squeezing out more oil and gas from the average well. Demand for frac sand surged from 34 million tons in 2012 to 61.5 million tons in 2014. Consumption fell in the ensuing years as drilling dried up when oil prices collapsed, but frac sand consumption surpassed previous highs in 2017 as drilling resoundingly came back. In 2018, frac sand demand is expected to top 100 million tons, according to Rystad Energy. “Right now, the market is really stretched thin,” says Thomas Jacob, a senior analyst at IHS Markit, told the FT in December. “Everyone is running at full capacity.” Much of the frac sand has come from places like Wisconsin, which produces “northern white sand” that is hard and round, helping to create porous fractures in shale wells. It is high quality, but expensive, particularly because it has to be shipped by rail to Texas shale fields. The FT reported that frac sand could cost $120 per short ton on at the Texas well head in 2017, essentially triple what it costs at the mine in the northern U.S. That led to new investment in frac sand mining in Texas, where “brown sand” could be produced. The quality was not as good, with finer grains, but Texas brown sand could cost a third less than its northern cousin, and it is located much closer to drilling operations. But as the mines in Texas are still in the process of coming online, the U.S. shale industry’s dependence on far away suppliers continues. And because drilling is ramping up, and the average shale driller is using more proppant than ever before, sand supplies are feeling the strain. “During the fourth quarter, we also saw cost inflation in sand and trucking. The price of sand escalated over the last few months of 2017,” Jeff Miller, Halliburton’s President and CEO, told investors on an earnings call in January. “[B]ut I believe that increasing sand capacity, particularly from localized mines combined with our supply chain strategy will reduce the cost throughout 2018.” He went on to try to reassure investors. “Now, these headwinds were anticipated, are transitory, and are not a surprise at this point in the cycle,” Miller said. The effects could wear off as new mines startup close to the action in the Permian. “We're using local sand with a few customers in the Permian and I believe this will become an increasing trend as additional capacity is activated. Therefore, sand cost should go down in 2018 as regional sand mines come on line and capacity is increased,” Halliburton’s CEO Jeff Miller said last month. “This will not happen overnight, but we are working with our customers and suppliers to ensure that we can provide desired profit at a reasonable cost.” In the meantime, drilling operations could face some obstacles. The WSJ reported that Evercore ISI warned in a research note that “customer frustration is rampant given the impact to production. Most other pressure pumpers will likely see similar headwinds, further hampered by the cold weather Texas experienced in January.” Canadian National Railway Co. said that it halted all new frac-sand shipments for a week in Minnesota and Wisconsin during some brutally cold winter weather It will be a while before the impact on oil production, if any, becomes clear. But Halliburton’s warnings indicate some near-term problems for shale drillers.
Authored by Irina Slav via OilPrice.com, Canadian oil producers can’t get a break. First it was the pipelines - there are not enough of them to carry the crude from Alberta’s oil sands to export markets. This pipeline capacity problem has been forcing producers to pay higher rates for railway transportation, which has naturally hurt their margins in no small way. Now, there is a shortage of rail cars as well. The situation is going from bad to worse for Canadian producers who can’t seem to catch a break. Canadian railway operators are fighting harsh winter weather and finding it hard to supply enough cars to move both crude oil from Alberta and grain from the Prairies. The harsh weather is just the latest factor, however. Before that, there was the 45-percent surge in demand for rail cars from the oil industry, Bloomberg reports, citing Canadian National Railway. The surge happened in the third quarter of last year, and Canadian National’s chief executive Ghislain Houle says that it took the company “a little bit by surprise.” This surprise has led to “pinch points” on the railway operator’s network, further aggravating an already bad situation. As a result, crude oil remains in Alberta and prices fall further because Alberta is where the local crude is priced, Bloomberg’s Jen Skerritt and Robert Tuttle note. In fact, Canadian crude is currently trading at the biggest discount to West Texas Intermediate in four years, at $30.60 per barrel. The blow is particularly severe as it comes amid improving oil prices elsewhere driven by the stock market recovery. The light at the end of the tunnel is barely a glimmer. Despite federal government support for the Trans Mountain pipeline expansion project, it is still facing obstacles that may result in it never seeing the light of day. The project that would boost the current pipeline’s capacity from 300,000 bpd to 890,000 bpd, accommodating much of the increased Alberta bitumen production, is being challenged in court and Kinder Morgan has yet to collect even half of the necessary permits to proceed with it. There are no other major pipeline projects in Canada that have been approved. Meanwhile, the news from the research front is not good, either. Back in September, media outlets reported on an accidental discovery that could make transporting bitumen by rail much safer by turning the crude into pellets. This would minimize the danger of a spill but, some said at the time, would increase transportation costs. Canadian national Railway is also working on its own bitumen pellet technology it calls CanaPux, but for now it has not yet been commercialized, perhaps for the same reason of cost. Yet bitumen pellets, some observers note, could be the best solution to the current conflict between Alberta and British Columbia. The latter is doing everything it can to stall Trans Mountain’s expansion citing environmental concerns. Alberta stopped importing B.C. wines in retaliation. But bitumen pellets are safe, their creators say, so B.C. would have nothing to worry about. And yet, like grain, these pellets would need rail cars to transport them should this option be chosen despite cost considerations. Canadian National says it plans to hike its capex to $2.6 billion this year in response to the shortage. The effect of the surprise jump in demand for railcar capacity from the oil industry should also subside eventually. The only question is how much all these factors would hurt Canada’s oil production growth in the meantime.
The Zacks Analyst Blog Highlights: Broadcom, Canadian National, CVS Health, Aflac and DXC Technolog
Top Analyst Reports for Broadcom, Canadian National & CVS Health
Sing along with MPs - listen out for "all of us command” instead of "all thy sons".
MY COUNTRY TIS OF XHE: Canadian National Anthem Revised With Gender-Neutral Language.
Here are reader suggestions, I am aggregating this information, do not think of these as independent recommendations from me: Canada: A Story of Challenge by J. M. S. Careless For Canada, read “A Fair Country” by John Ralston Saul, “Clearing the Plains” by James William Daschuk, and pretty much any of Pierre Berton’s books. I […] The post What is stochastically the best book to read about Canada? appeared first on Marginal REVOLUTION.
High fuel and labor costs affect Canadian National's (CNI) Q4 results. The dismal performance of Forest Products, Grain and Fertilizers plus Petroleum and Chemicals is also a spoiler.