MORNING NEWS CALL

TOP NEWS

• China confident it can clinch U.S. trade pact, Trump demands "real deal"

China expressed confidence that it can reach a trade deal with the United States, despite fresh warnings from President Donald

Trump that he would revert to more tariffs if the two sides cannot resolve their differences.

• Saudi Arabia works on convincing Russia to join oil cuts

Saudi Arabia sought to persuade Russia to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the

price of crude and prevent another global glut.

• Hudson's Bay posts wider 3rd-qtr loss on higher expenses, JV losses

Canadian department store chain Hudson's Bay reported a wider third-quarter loss as depreciation and amortization expenses rose

and joint venture losses increased.

• Oil producer Canadian Natural sets lower 2019 budget

Canadian Natural Resources forecast 2019 capital budget about C$1 billion lower than last year, blaming a lack of market access for

its oil and "dysfunctional" government processes.

• ECB policymakers debate new ways out of easy money: sources

European Central Bank policymakers are debating ways to wean the euro zone off years of easy money, floating ideas such as a new

kind of multi-year loans and staggered increases in interest rates, sources told Reuters.

BEFORE THE BELL

Stock futures for Canada's main stock index rose ahead of Bank of Canada's interest rate decision. World stocks fell to one-week

lows as flattening U.S. yield curve and a still rumbling trade war between the U.S. and China caused concerns about a possible U.S.

recession. Oil slipped over abundance in crude supply. The U.S. dollar and gold prices edged lower.

STOCKS TO WATCH

Results

• Hudson's Bay Co (HBC). The department store chain reported a wider third-quarter loss as depreciation and amortization expens-

es rose and joint venture losses increased. The owner of the Saks Fifth Avenue luxury retailer reported a net loss from continuing

operations of C$124 million, or 52 Canadian cents a share, for the three months ended Nov. 3, compared with a loss of C$116 million,

or 64 cents, a year earlier. Including Hudson's Bay's European operations, which are in a joint venture with Austrian rival Signa Hold-

ing, the company posted a net loss of C$164 million, or 69 Canadian cents a share, narrowing from C$243 million, or C$1.33 a share,

a year earlier.

In Other News

• Enbridge Inc (ENB) & TransCanada Corp (TRP). Two major pipelines of the companies carrying oil from Canada to the United

States were hit by weather-related disruptions on Tuesday, the latest hit to Canada's oil industry just days after the Alberta govern-

ment announced forced cuts in crude production. A number of lines on the Enbridge Mainline system, which carries crude and other

liquids, were hit by power outages in the Western Canadian province of Saskatchewan due to severe weather, the company said

Tuesday. TransCanada Corp's 590,000 barrel-per-day crude Keystone pipeline was also shut due to the outage, according to a ship-

per on the line and traders.

• Canadian Natural Resources Ltd (CNQ). The company’s forecast on 2019 base budget about C$1 billion lower than last year,

blaming a lack of market access for its oil and "dysfunctional" government processes. The company expects 2019 base capital pro-

gram of C$3.7 billion, with maintenance capital targeted at about C$3.1 billion. The Calgary-based oil and gas producer expects 2019

production to be between 1.03 million barrels of oil equivalent per day (boe/d) and 1.1 million boe/d. "Canadian Natural will monitor

the impact over time of curtailment on prices as well as the progress of the two export pipelines (Keystone XL and Trans Mountain

Expansion) in the final stages of approval," Executive Vice-Chairman Steve Laut said.

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COLUMN

U.S. oil reserves rise to record despite production boom: Kemp

U.S. crude oil reserves hit record levels at the end of 2017, as annual reserve additions outstripped production for the eighth time in

nine years, government data published last week shows.

ANALYSTS' RECOMMENDATION

• Bank of Montreal (BMO). Barclays cuts price target to C$103 from C$105, reflecting on a modest drop in their 2019 estimates.

• Dollarama Inc (DOL). Desjardins raises rating to buy from hold, saying that consumer proposition is resonating with consumers.

• Thomson Reuters Corp (TRI). National Bank of Canada raises price target to C$73 from C$69, citing an elevated organic growth

outlook for 2020.

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

0815 Reserve assets total for Nov: Prior 82,088 mln

1000 BoC rate decision: Expected 1.75 pct; Prior 1.75 pct

COMPANIES REPORTING RESULTS

December 5:

Hudson's Bay Co (HBC). Expected Q3 loss of 43 Canadian cents per share

Laurentian Bank of Canada (LB). Expected Q4 earnings of C$1.26 per share

National Bank of Canada (NA). Expected Q4 earnings of C$1.52 per share

December 6:

Canadian Western Bank (CWB). Expected Q4 earnings of 77 Canadian cents per share

Dollarama Inc (DOL). Expected Q3 earnings of 42 Canadian cents per share

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

0800 Roots Corp (ROOT). Q3 earnings conference call

0830 Hudson's Bay Co (HBC). Q3 earnings conference call

0900 Major Drilling Group International Inc (MDI). Q2 earnings conference call

1000 Adf Group Inc (DRX). Q3 earnings conference call

1100 Laurentian Bank of Canada (LB). Q4 earnings conference call

1300 National Bank of Canada (NA). Q4 earnings conference call

1700 Evertz Technologies Ltd (ET). Q2 earnings conference call

EXDIVIDENDS

Altius Minerals Corp (ALS). Amount C$0.04

Alimentation Couche-Tard Inc (ATDb). Amount C$0.10

Computer Modelling Group Ltd (CMG). Amount C$0.10

Resolute Forest Products Inc (RFP). Amount $1.50

Franco-Nevada Corp (FNV). Amount $0.24

(All analysts' estimates are according to Thomson Reuters I/B/E/S)

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PICTURE OF THE DAY

Andrea Nicole Arita, 10, from Honduras, part of a caravan of thousands from Central America trying to reach the United States, crawls through a hole under a border wall to cross illegally from Mexico to the U.S in Tijuana, Mexico, December 4.