MARKET RECAP at 4 pm ET

Wall Street ended higher with the S&P

500 briefly hitting the 5,000-point
Coming Up
milestone for the first time, as investors
parsed through corporate earnings, a
roughly in-line jobs report, and remarks
from Fed policy makers on interest
rates. Gold prices fell, weighed down
by a strong dollar and higher Treasury
yields. Oil prices climbed on wider
Middle East tensions.

STOCKS Close Chng % Chng Yr-high Yr-low

DJIA 38,728.91 51.55 0.13 38,783.62 31,429.82

Nasdaq 15,793.72 37.07 0.24 15,770.68 14,477.57

S&P 500 4,997.91 2.85 0.06 4,999.89 4,682.11
Toronto 20,919.64 -49.54 -0.24 21,250.90 18,692.06
FTSE 7,595.48 -33.27 -0.44 7,764.37 7,404.08
Eurofirst 1,921.72 -0.52 -0.03 1,930.97 1,839.45
Nikkei 36,863.28 743.36 2.06 36,984.51 32,693.18
Hang Seng 15,878.07 -203.82 -1.27 17,135.12 14,794.16

A file photo shows bottles of Pepsi at a grocery store in Pasadena, California, July 11, 2017.
TREASURIES Yield Price
REUTERS/Mario Anzuoni
10-year 4.1521 -14 /32
2-year 4.4561 -2 /32
5-year 4.1154 -8 /32 PepsiCo is expected to post a rise in participate in a moderated question-
30-year 4.3550 -26 /32 fourth-quarter revenue, helped by and-answer session before the 14th
resilient demand for its sodas and Annual Tarrant County Transportation
FOREX Last % Chng snacks at a time when customers have Summit, in Hurst, Texas.
Euro/Dollar 1.0776 0.05 largely cut back on pricier items.
Dollar/Yen 149.29 0.75 Investors will look out for volume Mexico's national statistics agency is
Sterling/Dollar 1.2616 -0.07 growth, comments on pricing actions set to report industrial output likely
Dollar/CAD 1.3455 -0.06 and any disruption to business due to fell 0.1% in December after a 1.0% fall
USD/CNH (Offshore) 7.2145 0.03 the conflict in the Middle East. in November. On a year-on-year basis,
it is expected to rise 2.0%. Separately,
COMMODITIES ($) Price Chng % Chng Catalent, which helps manufacture Brazil's statistics agency IBGE is
Front Month Crude /barrel 76.47 2.61 3.53 Novo Nordisk's popular weight-loss expected to show service sector likely
Spot gold (NY/oz) 2033.39 -0.83 -0.04 drug Wegovy, is set to release its grew 0.7% in December, after rising
Copper U.S. (front month/lb) 3.71 -0.0245 -0.66
second-quarter results before markets 0.4% in the previous month. On a
CRB Index Total Return 314.42 3.74 1.21
open. Investors will focus on any yearly basis, services activity in the
S&P 500 Price $ Chng % Chng updates on its annual outlook, its country likely shrank 1.7%.
quarterly performance as well as how
GAINERS
Ralph Lauren Corp 171.83 24.69 16.78 the contract manufacturer is preparing LIVECHAT-REUTERS GLOBAL
Monolithic Power Systems Inc 737.07 91.66 14.20 for future bookings amid surging MARKETS FORUM
Walt Disney Co 110.53 11.39 11.49 demand for newer weight-loss drugs. Market Recap and Week ahead with
LOSERS Jamie McGeever, Reuters markets
PayPal Holdings Inc 56.13 -7.11 -11.24
Federal Reserve Bank of Dallas columnist. (0900 ET/1400 GMT) To join
Snap-On Inc 266.03 -28.47 -9.67
Fleetcor Technologies Inc 265.10 -26.89 -9.21
President Lorie Logan is scheduled to the conversation, email here
Market Monitor
The benchmark S&P 500 index
advanced slightly but traded close to
the 5,000-point milestone, as investors
reacted to earnings reports, a roughly
in-line jobs report and remarks from
policymakers on interest rate cuts. "In
what appears to be a sleepy day there
are some things under the surface.
There's more of a risk-on appetite.
Semiconductors continue to show
leadership. We've had such
outperformance in megacaps, investors
are looking for other opportunities,
even in technology they're going down
the market cap scale,” said Keith
Lerner, co-chief investment officer at
Truist Advisory Services in Atlanta.
Shares of Walt Disney jumped 11.49%
after the media giant's profit beat Wall
Street estimates and it announced a $3
billion share repurchase plan, a 50%
dividend increase, a gaming Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, February 7.
investment and plans for an ESPN REUTERS/Brendan McDermid
streaming service in 2025. The Dow
Jones Industrial Average rose 0.13%
to 38,728.91, the S&P 500 gained The dollar rose after data on Brent futures closed up 3.28% at
0.06% to 4,997.91 and the Nasdaq unemployment benefits again pointed $81.81 a barrel. U.S. West Texas
Composite gained 0.24% to to a resilient U.S. labor market, Intermediate crude climbed 3.55% to
15,793.72. reinforcing the Federal Reserve's $76.48 per barrel.
message that interest rates are unlikely
Treasury yields rose as traders waited to be cut in the near term. The initial Gold prices slipped, hurt by a stronger
on key inflation data that may give claims data still points to a robust U.S. dollar and elevated bond yields as
further clues on when the Federal labor market that has kept the dollar hopes for an early interest rate cut from
Reserve is likely to begin cutting strong, said Thierry Wizman, global FX the U.S. Federal Reserve diminished,
interest rates. Traders are waiting for and interest rates strategist at while palladium extended its decline on
the consumer price index (CPI) for Macquarie in New York. The dollar a dim long-term demand outlook. "The
January on Tuesday, after data last index was last up 0.08% at 104.15. reality on the ground is that the U.S.
week showed that jobs gains were economy continues to be fairly firm and
much higher than expected last month Oil prices gained more than 3% on that means that the Fed has very little
while wages increased by the most in concerns of a broadening conflict in the latitude at this stage to start cutting
nearly two years. Ahead of that, the Middle East after Israel rejected a rates," said Bart Melek, head of
government on Friday will release CPI ceasefire offer from Hamas. Israeli commodity strategies at TD Securities.
revisions for the past calendar year. forces bombed the southern border city "For gold to rally, we have to start
These recalculated seasonal of Rafah after Prime Minister Benjamin seeing evidence that the economy
adjustments last year surprised traders Netanyahu rejected a proposal to end indeed is slowing down in a material
by showing that price pressures were the war in the Palestinian enclave. The way and that inflation is trending lower
greater in late 2022 than previously market is holding its breath on what the on a sustained basis," Melek added.
thought. The Treasury Department sold next potential fallout could be," said Spot gold edged 0.05% lower to
$25 billion in 30-year bonds at a high John Kilduff, partner with Again Capital $2,033.14 per ounce, while U.S. gold
yield of 4.360%. The bid-to-cover ratio LLC. Attacks on shipping by Iranian- futures fell 0.18% to $2,048 per ounce.
was 2.40. Benchmark 10-year notes backed Houthi rebels continued to Spot palladium shed 0.71% to
fell 14/32, yielding 4.1521%. Two-year disrupt global oil trading, he added. $888.298 per ounce.
notes lost 2/32, to yield 4.4561%.

2
Top News
Arm shares soar as AI-fueled boom
brightens growth prospects
Arm Holdings shares surged, powered
by strong forecasts on demand for its
technology to design chips for artificial
intelligence features. The surge would
put the British chip designer's market
value at more than $100 billion as
investors gobble up the stock as
another way to bet on AI. "Arm is riding
on the coattails of demand for Nvidia's
technology, particularly its datacentre
systems," said Susannah Streeter,
head of money and markets at
Hargreaves Lansdown. "The market is
starting to have a better handle on their
business model and how that aligns
with some of the bigger chip design
trends over the next few years," said
analyst Ben Bajarin from Creative
Strategies. "Today's ginormous jump in
valuation is an indication that investors
are not fearing the end of the IPO
lockup. Sentiment indicates that any
post-lockup sales could be well said she expects additional stress on company ended 16.78% higher at
absorbed by the market," said Michael banks and some financial losses from $171.83.
Ashley Schulman, chief investment weakness in the U.S. commercial real
officer at Running Point Capital. The estate market, but banking regulators Tapestry lifts 2024 profit forecast on
shares of the company ended 47.89% are working with banks to address China demand rebound, strong
higher at $113.89. these risks. margins
Tapestry raised its annual profit
NYCB gets third credit downgrade Ralph Lauren rides strong holiday forecast, betting on full-price sales of
as CRE exposure worries spill to demand, China rebound to post its premium handbags as well as early
Europe upbeat results signs of a demand recovery in key
New York Community Bancorp faced Ralph Lauren beat profit expectations market China. After a softer start to the
its third credit-rating cut while defaults for the 14th straight quarter, driven by year owing to cautious spending in
worries from exposure to the robust holiday demand for its pricey North America, the company saw its
beleaguered U.S. commercial real cashmere sweaters, coats and cocktail sales in China and Europe rising 19%
estate (CRE) took its toll on lenders in dresses in the U.S. and a strong and 11%, respectively, in the quarter.
Europe and Asia. Morningstar DBRS rebound in China, sending its shares Revenue at Tapestry's Coach brand
downgraded NYCB's credit rating due higher. Ralph Lauren's sales surged rose 6%, boosted by a near-doubling in
to "outsized" exposure to CRE. Rating more than 30% in China, building on sales of its Tabby handbags over last
agencies Fitch and Moody's have the 20% increase seen in the prior year. This offset declines of 6% and
already cut their ratings. Analysts have quarter. Net revenue at Ralph Lauren 4%, respectively, in its Kate Spade and
for months warned that CRE-tied climbed 6% to $1.93 billion in the fiscal Stuart Weitzman brands. Net sales
borrowers are at the risk of defaulting third quarter, beating LSEG rose to $2.08 billion in the second
on loans due to high interest rates and expectations of $1.87 billion, while quarter ended Dec. 31, edging past
low occupancies. The week-long sell- adjusted per-share profit of $4.17 analysts' average estimate of $2.06
off in NYCB shares has soured surpassed estimates of $3.54. It also billion. It now expects fiscal year 2024
sentiment on banks both in the U.S. raised annual gross margin growth adjusted earnings per share of $4.20 to
and abroad while stirring worries over outlook to roughly 140-180 basis points $4.25, compared to $4.10 to $4.15 per
global contagion from CRE exposure. in constant currency, compared to the share it forecast earlier. The shares of
U.S. Treasury Secretary Janet Yellen 120-170 basis point increase it had the company ended 6.54% higher at
previously forecast. The shares of the $42.99.

3
Spirit Airlines calls speculation
about its future 'misguided
narrative'
Spirit Airlines dismissed speculation
about its future as a "misguided
narrative," saying the ultra-low-cost
carrier has boosted liquidity to survive
even if its proposed merger with
JetBlue fails to close. The company
said it is making changes to its network
and "right sizing" labor costs to boost
earnings. It expects to start generating
cash in March and operate with a
positive cash flow from the second
quarter. The company is also
assessing options for debt that is due
to mature in 2025 and 2026, it said. It
reported an adjusted loss of $1.36 per
share for the fourth quarter, compared
with analysts' average estimate of a
loss of $1.46 per share, according to
LSEG data. Separately, the Federal
Aviation Administration said it will
investigate the collision between two
JetBlue Airways planes on the tarmac
at Boston Logan Airport that damaged
both planes but caused no injuries. To
read more, click here
Google rebrands Bard chatbot as
Gemini, rolls out paid subscription
Google renamed its Bard chatbot after
the new artificial intelligence that is
powering it, called Gemini, and said
consumers can pay for better
reasoning capabilities as it vies with
Microsoft to win subscriptions. U.S.
customers can subscribe for $19.99 a
month to access Gemini Advanced,
which includes a more powerful Ultra
1.0 AI model, the company said.
Subscribers will receive two terabytes
of cloud storage that typically cost
$9.99 monthly, and they will soon gain
access to Gemini in Gmail and
Google's productivity suite. The
company said Android users can opt
into Gemini as the default digital aide
on their phones, accessing it through
an app, the power button or by saying
"Hey Google."
Oil producer ConocoPhillips beats
profit estimates, boosts output
ConocoPhillips beat Wall Street
estimates for fourth-quarter profit,
helped by higher production in the U.S.
Permian Basin and a recent
acquisition. Fourth-quarter production
rose 8.2% to 1.9 million barrels of oil
equivalent per day (boepd), at the top
end of its previous forecast, also
helped by a 79,000 boepd increase in
Permian output. The production
increase countered lower total average
realized price, which tumbled 18% to
$58.21 per barrel of oil equivalent in
the quarter. Conoco also expects
higher adjusted operating costs of
about $9 billion this year, up from $8.4
million in 2023. The company forecast
2024 total capital expenditure in the
range of $11.0 billion to $11.5 billion, in
line with last year's spending. It
expects to return a minimum of $9
billion to shareholders in 2024,
compared with $11 billion last year.
ConocoPhillips posted adjusted fourth-
quarter earnings of $2.40 per share,
topping analysts' average estimate by
31 cents, according to LSEG data.
Kellanova tops quarterly estimates
on higher prices for snacks, frozen
food
Kellanova topped Wall Street estimates
for quarterly sales and profit, as
demand for its ready-to-eat pop-tarts
and other convenience foods held
steady in the face of increased prices.
Kellanova's product prices rose by
8.1% in the reported quarter, pushing
its organic quarterly volumes down
1.2%. The company reported net sales
of $3.2 billion in the fourth quarter.
Analysts were expecting sales of $3.08
billion, according to LSEG data.
Analysts said the results were "better
than feared" after the company also
maintained its 2024 outlook provided in
August. The company also announced
restructuring plans for its North
American frozen supply chain network
and European cereal supply chain
network to drive productivity. It reported
an adjusted profit of 78 cents per share
for the quarter, surpassing analysts'
expectations of 74 cents per share.
PayPal tumbles as flat profit growth
forecast in 2024 clouds strategy
shift
PayPal shares fell after it forecast a flat
adjusted profit for 2024, disappointing
4
investors who had hoped the payments
firm's newly appointed CEO will
reignite its growth. Wall Street analysts
said the outlook will weigh on shares in
the near term but the new initiatives
would likely bear fruit in time and
benefit the company. "It's clear that
2024 will be more of a transition year
than we were expecting, with
previously targeted operating leverage
coming after 2024. We expect pressure
on the stock as estimates come down,"
J.P.Morgan wrote in a note. "PayPal
continues to confront the twin
challenges of market share and
customers' loss in its branded PYPL
wallet business," analysts at Evercore
wrote in a note. Analysts at
Morningstar said management's
outlook suggests the road towards
improving growth and profitability will
be longer than expected. The shares of
the company ended 11.24% down at
$56.13.
Harley-Davidson forecasts 2024
motorcycle revenue below estimates
Harley-Davidson forecast full-year
revenue for its motorcycle segment to
be flat to down 9% from a year earlier,
largely below analysts' expectations, as
a cutback in consumer spending
pressured demand for its iconic
vehicles in North America. "We
recognize that the overall macro
environment, including high interest
rates, add complexity to our customers'
decisions to purchase discretionary
products," Harley-Davidson CEO
Jochen Zeitz said on a call with
analysts. The company, however, beat
profit expectations for the fourth
quarter. The company's global
motorcycle shipments fell 13% in the
fourth quarter, compared to a year
earlier due to dealers maintaining lower
inventory amid slow demand. Retail
sales globally were also down 11%, led
by a 9% fall in North America. Analysts
expected a full-year revenue rise of
0.43% in the motorcycle segment. The
company's sales from motorcycles and
related products fell about 14% to $792
million in the quarter, missing analysts'
expectations of $880.2 million. The
company's profit of 18 cents per share
came in much above analysts
estimates of 4 cents.
Hindu women travel in a tuk-tuk with a child after casting their votes during a general election, in Tando Allahyar, Sindh, Pakistan, February 8.
REUTERS/Yasir Rajput
Insight and Analysis
Fed policy shift needs a farewell to
'elevated' inflation
As they navigated the onset of the
COVID-19 pandemic Federal Reserve
officials had a steady progression of
descriptions for inflation, first saying it
remained too low, then calling its rise
transitory and later citing "broader"
price pressures. In September 2021,
they settled at last on "elevated." That
final word is also likely the final hurdle
between policymakers and interest rate
cuts which likely won't begin until
"elevated" is dropped from the Fed's
policy statement in favor of a new
phrase acknowledging inflation was
closing in on the central bank's 2%
target.
BREAKINGVIEWS-Meta enters the
dividend multiverse of madness
One of the world’s most inventive
companies just enlisted a centuries-old
financial confidence trick. Just ahead of
its 20th anniversary, Meta Platforms
said last week that it would start paying
a quarterly cash dividend to
shareholders. The recipients of the
money pushed the market value of
Facebook’s owner up by 20% the
following day, perhaps considering the
decision a symbol of financial
discipline. They should, however, see it
for what it is: a distraction. Meta’s
dividend places the social media giant
led and controlled by Mark Zuckerberg
in a storied group.
5
US bank lobbyists ranks swell to
post-crisis high amid regulatory
pushback
The number of big bank Washington
lobbyists is the highest since the 2007-
09 global financial crisis, driven by
hiring among midsize lenders which
are facing new rules and tougher
oversight after last year's turbulence,
new lobbying data shows. At the end of
2023, 486 federal lobbyists were
working on behalf of banks with $50
billion or more in assets and seven
trade groups, according to a Reuters
analysis of data provided by
OpenSecrets, a nonpartisan political
transparency group.
CANADA
Market Monitor COMING UP

Statistics Canada is likely to indicate

Canada's main stock index ended difficult to predict. It is usually a good that the country's economy added
lower, weighed down by the idea to take it with a grain of salt 15,000 net jobs in January, compared
communication services sector, while because big swings in one direction to just 100 jobs in the previous month.
investors remained cautious ahead of can quite easily reverse the next The unemployment rate likely
the key domestic employment data due month", said Brian Madden, chief increased to 5.9% in January, from
later this week. investment officer at First Avenue 5.8% in the previous month.
Investment Counsel Inc. "The cold
The Toronto Stock Exchange's S&P/ reality of economic data - resilient
TSX composite index fell 0.24% to growth in the U.S., high inflation, wage TSE's S&P/TSX composite Price C$ Chng % Chng
20,919.64. inflation is now causing the market to
GAINERS
rethink how soon we are going to get Colliers International Group Inc 162.74 14.35 9.67
Telecom firm BCE lost 3.75%. The these interest rate cuts", Madden Enerplus Corp 20.84 1.57 8.15
communication services sector fell added. Birchcliff Energy Ltd 5.35 0.25 4.90
1.93% to 170.96. LOSERS
Lightspeed Commerce Inc 19.90 -6.43 -24.42
The U.S. dollar fell 0.04% against the
Bombardier Inc 44.45 -7.66 -14.70
"Canadian employment is notoriously Canadian dollar to C$1.3457. Fairfax Financial Holdings Ltd 1237.55 -166.85 -11.88

Top News
Canada's housing bulls risk
upending Macklem's inflation battle
plans
After a year-long slump, Canada's
housing market is showing early signs
of recovery, and realtors say pent-up
demand, chronic shortage of homes, a
spike in rents and hopes of an interest
rate cut may fuel a rally in the sector
that could reignite inflation. With most
factors beyond the central bank's
control, the only lever the Bank of
Canada (BoC) can pull is through
monetary policy, although Governor Tiff
Macklem explicitly said on Tuesday
that interest rates alone can't "fix"
higher shelter cost, which is the biggest
contributor to inflation. Yet, bringing
down interest rates from a 22-year high
of 5% early could spark a frenzy in the
A file photo shows a for sale sign outside a home in Toronto, Ontario, December 13, 2021.
housing market that the central bank
REUTERS/Carlos Osorio
would want to avoid. Some buyers are
already coming out of hibernation. A
three-bedroom townhouse listed for now because demand is a lot higher the month and surged 37% from a year
C$828,000 last month in Newmarket, a than in the fall," Pasalis said. Pasalis, earlier, data showed on Tuesday.
thriving town outside Toronto, received like five out of six of the real estate Meanwhile, annual rents in December
40 offers and sold for C$1.06 million, brokers Reuters spoke to, sees a rose by 8.6% compared with a year
said John Pasalis, whose Realosophy rebound in the housing market. For ago, and January was already showing
Realty marketed the property. "All of instance, home sales in January in and signs of another uptick, further
these multiple offers ... are working around Toronto jumped almost 10% on supporting housing demand.

6
Canada's Bell to cut 4,800 jobs in
latest round as ad dollars dry up
Canadian media and telecom firm Bell
will cut 4,800 positions, parent
company BCE said, in its largest
workforce restructuring in nearly 30
years to rein in costs in an uncertain
economy. The company last year cut
1,300 jobs, shuttered six radio stations
and sold another three as revenues
dried up at its legacy phone and news
business. "We continue to face a
difficult economy and government and
regulatory decisions that undermine
investment in our networks, fail to
support our media business in a time of
crisis and fail to level the playing field
with global tech giants," BCE CEO
Mirko Bibic said in a statement. BCE,
which also reported its fourth-quarter
results, said it plans to reduce costs by
over C$1 billion in 2024-25, including a
minimum of C$500 million in 2024.
Muddy Waters shorts Canada's
Fairfax Financial, alleges asset value
manipulation
Short seller Muddy Waters has placed
bets against the shares of Canadian
insurer Fairfax Financial alleging
manipulation in its asset values. Fairfax
currently has a short interest of 0.65%
of free float worth C$203.81 million,
with short sellers having made over
C$21 million in paper profits so far
today, according to data from Ortex.
The Canadian company's insurance
business has struggled to remain
profitable even after the hurricane-
related catastrophes in 2017, Muddy
Waters wrote in a research note. "This
underperformance pressured Fairfax
into becoming aggressive in pulling
accounting levers starting in 2018," the
short seller said. "We find that Fairfax
has consistently manipulated asset
values and income by engaging in
often value destructive transactions to
produce accounting gains," it added.
Fairfax disagreed with the report, while
assuring shareholders it "has prepared
its financial statements and reporting in
accordance with all applicable
accounting principles". In its most
recent third-quarter earnings report,
Fairfax reported a profit that more than
doubled to C$1.19 billion, compared
with C$582.7 million a year earlier. Net
premiums written also grew 4.8%,
while gross premiums written also rose
5% in the quarter. Shares of the
company sank 11.88% to end at
C$1237.55.
Thomson Reuters' adjusted EPS
beats expectations, AI boosts
results
Thomson Reuters reported higher-than
-expected quarterly profit, helped by
lower costs and demand for AI-
enhanced products for legal and other
professional clients. The company
reported adjusted fourth-quarter
earnings of 98 cents per share. Wall
Street expected 90 cents per share,
according to LSEG data, and a year
ago, the comparable figure was 75
cents a share. Revenue rose 3% to
$1.8 billion, largely in line with analyst
estimates, according to LSEG data.
Generative AI, deployed across
Thomson Reuters' product portfolio, is
expected to play a bigger role in results
this and upcoming years, executives
said. The company said it expected to
end its $1 billion share buyback by the
end of the second quarter and will
increase its annualized dividend by
10% to $2.16 per share.
Bombardier free cash flow forecast
short of expectations, shares fall
Canada's Bombardier forecast 2024
free cash flow, a metric watched
closely by investors, that was below
analysts' estimates and its shares
tumbled. The Montreal-based
planemaker said it expected free cash
flow of $100 million to $400 million for
the year, falling well short of the $552
million, on average, expected by
analysts, according to LSEG data. The
company did forecast stronger 2024
revenue as private jet deliveries rise.
The company reported a lower fourth-
quarter adjusted net income of $135
million, down from $205 million a year
earlier, amid lingering supply snags.
On a per share basis, adjusted profit
was $1.37, one cent below Wall Street
expectations. Revenue rose 15.3% to
$3.06 billion in the quarter through
7
December, beating estimates of $2.88
billion, helped by higher deliveries and
record revenue from aftermarket
services. The company’s shares fell
14.7% to C$44.45.
Shale producer Devon Energy in bid
to acquire Enerplus -sources
U.S. oil and gas producer Devon
Energy has approached Enerplus, a
peer with a market value of C$4 billion,
with an acquisition offer, people familiar
with the matter said. There is no
certainty that Devon and Enerplus will
negotiate a deal, the sources said,
requesting anonymity because the
matter is confidential. Devon's
proposed acquisition terms could not
be learned. Devon declined comment.
Enerplus did not immediately respond
to a request for a comment. "Any
potential transaction for Enerplus would
need to reflect the quality of their
remaining core inventory in the
Bakken," said Mark Viviano, managing
partner and lead portfolio manager at
Kimmeridge Energy Management. The
activist investment firm is the second-
largest Enerplus shareholder with a
3.82% stake, per LSEG data.
Canada regulator orders Trans
Mountain to address deficiencies
after B.C. flooding
The Canada Energy Regulator (CER)
has ordered the Trans Mountain
pipeline expansion project to address
environmental deficiencies and
noncompliances found following
flooding near Abbotsford, British
Columbia, the regulator said. CER
officers conducted an inspection and
found that Trans Mountain was not
properly maintaining a watercourse
isolation, wildlife fencing, soil
coverings, and dewatering pump and
sump locations, the CER said in a
statement. The order was issued on
Jan. 31 and requires Trans Mountain to
take a number of measures to address
the problems, including investigating
the root cause and implementing a
water management plan for that
section of pipeline. "We will continue to
follow up with the company to ensure it
complies with the Inspection Officer
Order.
WEALTH NEWS
ECONOMIC NEWS
US weekly jobless claims stay low
despite high-profile layoff
announcements
The number of Americans filing new claims
for unemployment benefits fell slightly more
than expected last week, pointing to
underlying labor market strength despite a
recent surge in announced layoffs, mostly in
the technology industry. Initial claims for
state unemployment benefits dropped 9,000
to a seasonally adjusted 218,000 for the
week ended Feb. 3. Unadjusted claims
dropped 31,192 to 232,727 last week amid
sharp declines in filings in California, Ohio,
Oregon, New York and Pennsylvania. The
number of people receiving benefits after an
initial week of aid, a proxy for hiring, fell
23,000 to 1.871 million during the week
ending Jan. 27, the claims report showed.

MONETARY POLICY
Fed's Barkin: Need more time before supporting rate cuts
Federal Reserve Bank of Richmond President Thomas Barkin said the central bank has time to decide what’s next for
monetary policy while it waits for further assurance that inflation is indeed falling back to target.

DISNEY’S INVESTMENTS
Disney's investment in Epic Games signals the company has to 'be there'
In 2017, Epic Games was among a handful of companies selected to participate in Walt Disney's Accelerator incubator
program, where the game company's founder held ambitions of incorporating the entertainment giant's well-known characters
into his digital playground.

PRIVATE EQUITY EARNINGS

Apollo's quarterly earnings jump 31% on management fees, annuities business
Apollo Global Management said its fourth-quarter adjusted net income jumped nearly 31%, driven by growth in management
fees and earnings from its retirement services business.

EXPANSION
Citizens fast-tracks wealth and private bank growth with new hires, office
Citizens Financial Group said it had hired two executives in senior positions to accelerate the growth of its wealth management
and private banking business after opening its first private banking office in Boston.

EMPLOYER DEALS
Employer deals earn BofA more than $10 billion in deposits, investments
Bank of America has brought in $10.5 billion in deposits and investments in the last four years after making deals with
companies to provide financial services to their employees, the lender said.

PROBE
Goldman Sachs faces probe over fees charged for futures trading- Bloomberg News
Wall Street investment bank Goldman Sachs is facing an investigation over fees it charges for futures trading, Bloomberg
News reported, citing people familiar with the matter.

8
KEY RESULTS
Company Name* Quarter ET Smart Estimates EPS Estimates** Year Ago Rev Estimates (mln)

Catalent Q2 BMO -$0.02 -$0.02 $0.67 $1,013.02

PepsiCo Q4 BMO $1.72 $1.72 $1.67 $28,400.18

*Includes companies on S&P 500 index. **Estimates may be updated or revised; release times based on company guidance or past practice.

All analysts' estimates are according to LSEG IBES data.

The Day Ahead - North America is compiled by Nachiket Tekawade and Haritha K P in Bengaluru.

For questions or comments about this report, email us at: TheDay.Ahead@thomsonreuters.com.

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