MORNING NEWS CALL TOP NEWS BEFORE THE BELL STOCKS TO WATCH. REUTERS Canada Edition Thursday, November 9, 2017

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1 MORNING NEWS CALL REUTERS Canada Edition Thursday, November 9, 2017 TOP NEWS TransCanada reports profit for third quarter TransCanada reported a third-quarter profit compared with a loss a year ago, when the pipeline operator took an after-tax goodwill impairment charge of C$656 million. Canadian insurers Manulife, Sun Life beat earnings forecasts Two of Canada's biggest insurance companies reported third-quarter earnings on Wednesday that beat market expectations, benefiting in part from strong growth in Asia. TPP trade deal talks reach critical point at Asia-Pacific summit Talks on pushing ahead the Trans Pacific Partnership (TPP) trade deal without the United States reached a critical point as ministers from the 11 countries discussed a proposed agreement in principle. Luxury apparel maker Canada Goose's revenue rises 34.7 percent Luxury apparel retailer Canada Goose Holdings reported a 34.7 percent rise in revenue, helped by growth across all its markets. In Beijing, Trump presses China on North Korea and trade U.S. President Donald Trump pressed China to do more to rein in North Korea and said bilateral trade had been unfair to the United States, but praised President Xi Jinping's pledge that China would be more open to foreign firms. BEFORE THE BELL Stock futures pointed to a lower opening for Canada's main stock index as investors assessed results of companies and awaited monthly housing data. U.S. stock futures were lower as investors brace for the unveiling of the U.S. senate s tax-cut bill. The U.S. dollar remained in negative territory, while gold prices edged higher and palladium reached its highest since European shares dipped as a slew of Q3 earnings triggered sharp moves across sectors. Oil markets steadied, helped by supply cuts by major exporters. STOCKS TO WATCH Results Canada Goose Holdings Inc (GOOS). The company reported a 34.7 percent rise in revenue, helped by growth across all its markets. The company reported comprehensive income of C$38.4 million, or C$0.33 per share, from C$19.6 million, or C$0.20 per share. The company's revenue rose to C$172.3 million from C$127.9 million. Canadian Tire Corp Ltd (CTCa). The retailer reported a 5 percent rise in quarterly retail sales on higher demand for its products and services. Net income attributable to the retailer rose to C$176.6 million, or C2.59 per share, from C$176.4 million, or C$2.44 per share, a year earlier. The company's retail sales rose to C$3.70 billion from C$3.52 billion. Manulife Financial Corp (MFC). and Sun Life Financial (SLF). Two of Canada's biggest insurance companies reported thirdquarter earnings on Wednesday that beat market expectations, benefiting in part from strong growth in Asia. Canadian insurance companies are expanding rapidly in Asia, selling products to the rapidly growing middle class. The strategy is helping the firms drive growth and diversify from domestic markets where competition is intense. Manulife said on Wednesday that earnings per share, excluding one-off items, rose to C$0.53 from C$0.49. Analysts had, on average, forecast earnings per share excluding one-off items of C$0.52. Manulife reported net income, excluding one-off items, of C$1.1 billion, up from C$996 million the year before. But it set aside C$240 million to cover the impact on its property and casualty reinsurance business from damage caused by hurricanes Harvey, Irma and Maria. Sun Life reported earnings per share, excluding one-off items, of C$1.05, compared with C$1.04. Analysts had, on average, forecast earnings, excluding one-off items, of C$1.01 Canadian cents per share. Sun Life reported underlying net income, excluding one-off items, of C$643 million, up from C$639 million a year ago. Underlying net income at its Asian business increased to C$90 million from C$80 million a year ago. "Asia really is the fastest growing of our four businesses driven by strong economic and demographic growth with people moving up into the middle class seeking what our industry has to offer," Chief Executive Dean Connor said in an interview. He also said Sun Life was considering further acquisitions in the region.

2 Magna International Inc (MG). The auto parts maker s profit topped analysts' estimates, helped by higher sales in North America, and the company raised its full-year sales forecast. It now expects 2017 total sales of $38.3 billion to $39.5 billion, compared with its previous forecast of $37.7 billion to $39.4 billion. Sales in North American, which makes up bulk of its total sales, rose 14.2 percent to $2.50 billion in the third quarter, lifting up its total sales by 7.3 percent to $9.50 billion. On an adjusted basis, the company reported a profit of $1.37 per share, beating the average analyst estimate of $1.32. Net income attributable to Magna was flat at $503 million. However, on a per-share basis it rose to $1.36 from $1.29 a year earlier as the latest quarter saw a drop in the number of shares outstanding. Telus Corp (T). The company s third-quarter profit missed analysts' estimates as it spent more to expand its wireless services. Telus is facing rising competition in western Canada from cable rival Shaw Communications, which has rolled out new internet and television products and is also building up a low-cost wireless business. Telus said operating expenses rose 3.6 percent in the quarter. Excluding one-time items, the company reported a profit of 66 Canadian cents per share, missing the average analyst estimate of 69 Canadian cents per share. The company said net income attributable to shareholders rose to C$367 million, or 62 Canadian cents per share, or 59 Canadian cents per share, a year earlier. Operating revenue rose 4 percent to C$3.37 billion. TransCanada Corp (TRP) The company reported a third-quarter profit compared with a loss a year ago, when the pipeline operator took an after-tax goodwill impairment charge of C$656 million. The Calgary-based company's net income attributable to shareholders was C$612 million ($482 million), or 70 Canadian cents per share, in the quarter ended Sept. 30, compared with a loss of C$135 million, or 17 Canadian cents per share, a year ago. Revenue fell to C$3.24 billion from C$3.63 billion. In Other News Cameco Corp (CCO). The company said on Wednesday it would suspend production from the McArthur River mine in Saskatchewan, the world's biggest uranium mine, and the Key Lake mill by the end of January because of low uranium prices. It also said it would cut its annual dividend to $0.08 per common share in 2018 from C$0.10 and temporarily reduced its workforce at the operations by about 845 workers. The operations' current workforce is 1,055. The global uranium industry is in a six-year tailspin, dating back to the 2011 tsunami that caused Japan to shutter all of its nuclear reactors, some of which have since restarted. Goldcorp Inc (G). Renaissance Oil, the oil firm co-founded by the chairman of the Canadian gold miner wants to aggressively expand in Mexico in coming years, including a potential joint venture with state-owned Pemex, the company's director Ian Telfer, said in an interview on Wednesday. It wants to grow its portfolio of projects in Mexico, aiming to reach up to 30 in the next five years he said. Renaissance currently operates five onshore oil and gas projects in Mexico, having won four at auction in late 2015, plus a tie-up with Russian producer Lukoil announced earlier this year. It is the only publicly listed oil company outside Mexico focusing exclusively on the country's oil patch. Telfer said Renaissance was determined to gain a foothold in Mexico's newly opened market, adding that the firm was happy to pay more than it would have liked - or "retail" rates - to acquire the onshore blocks it won. Further consolidation is likely in the gold industry, "probably in the mid-sector more than at the top," he said, adding that a major driver is a lack of major discoveries. Amid recent speculation that he might retire, Telfer, 71, was quick to squash rumors he might leave Goldcorp or Renaissance anytime soon. INSIGHT Trump's $250 billion China 'miracle' adds gloss to 'off-kilter' trade President Donald Trump can return to the United States claiming to have snagged over $250 billion in deals from his maiden trip to Beijing. Whether those deals live up to the lofty price tag is another question altogether. ANALYSTS' RECOMMENDATION CGI Group Inc (GIBa). CIBC raises target price to C$76 from C$75 as they estimate the company to be well positioned to benefit from the shift to digitization and expect faster growth in emerging areas such as robotic process automation, AI and cyber. Industrial Alliance Insurance (IAG). Desjardins ups target to C$63 from C$61 on positive Q3results and an increase in dividend. Granite Real Estate Investment Trust (GRT_u). RBC raises target to C$52 from C$51 as the company Q3 performance was in line with expectation. ECONOMIC EVENTS 0830 New house price index for Sep: Expected 0.2 pct; Prior 0.1 pct 2

3 COMPANIES REPORTING RESULTS Nov 9: Brookfield Asset Management Inc (BAMa). Expected Q3 earnings of 17 cents per share Canada Goose Holdings Inc (GOOS). Expected Q2 earnings of 21 Canadian cents per share Canadian Solar Inc (CSIQ). Expected Q3 earnings of 26 cents per share Canadian Tire Corporation Ltd (CTCa). Expected Q3 earnings of C$2.70 per share CanWel Building Materials Group Ltd (CWX). Expected Q3 earnings of 17 Canadian cents per share Chartwell Retirement Residences (CSH_u). Expected Q3earnings of 9 Canadian cents per share CI Financial Corp (CIX). Expected Q3 earnings of 53 Canadian cents per share Enerplus Corp (ERF). Expected Q3 earnings of 10 Canadian cents per share Equitable Group Inc (EQB). Expected Q3 earnings of C$2.01 per share Extendicare Inc (EXE). Expected Q3 earnings of 39 Canadian cents per share High Arctic Energy Services Inc (HWO). Expected Q3 earnings of 5 Canadian cents per share Innergex Renewable Energy Inc (INE). Expected Q3 earnings of 15 Canadian cents per share Intelgenx Technologies Corp (IGX). Expected Q3 earnings of 1 cent per share Inter Pipeline Ltd (IPL). Expected Q3 earnings of 39 Canadian cents per share Magna International Inc (MG). Expected Q3 earnings of $1.32 per share Paramount Resources Ltd (POU). Expected Q3 loss of 30 Canadian cents per share Pengrowth Energy Corp (PGF). Expected Q3 loss of 5 Canadian cents per share Quebecor Inc (QBRb). Expected Q3 earnings of 81 Canadian cents per share Ritchie Bros. Auctioneers Inc (RBA). Expected Q3 earnings of 13 cents per share Secure Energy Services Inc (SES). Expected Q3 earnings of 4 Canadian cents per share Sphere 3D Corp (ANY). Expected Q3 loss of $1.32 per share Stantec Inc (STN). Expected Q3 earnings of 53 Canadian cents per share Stars Group Inc (TSGI). Expected Q3 earnings of 48 cents per share Strad Energy Services Ltd (SDY). Expected Q3 earnings of break even per share Telus Corp (T). Expected Q3 earnings of 69 Canadian cents per share TMX Group Ltd (X). Expected Q3 earnings of C$1.04 per share TransCanada Corp (TRP). Expected Q3 earnings of 70 Canadian cents per share Wesdome Gold Mines Ltd (WDO). Expected Q3 earnings of 3 Canadian cents per share Wheaton Precious Metals Corp (SLW). Expected Q3 earnings of 15 cents per share Nov 10: Boralex Inc (BLX). Expected Q3 loss of 20 Canadian cents per share CAE Inc (CAE). Expected Q2 earnings of 24 Canadian cents per share Emera Inc (EMA). Expected Q3 earnings of 72 Canadian cents per share Gluskin Sheff + Associates Inc (GS). Expected Q1 earnings of 21 Canadian cents per share Grande West Transportation Group Inc (BUS). Expected Q3 earnings of 3 Canadian cents per share Hydro One Ltd (H). Expected Q3 earnings of 36 Canadian cents per share Obsidian Energy Ltd (PWT). Expected Q3 loss of 5 Canadian cents per share Onex Corp (OCX). Expected Q3 earnings of 26 Canadian cents per share Power Corporation of Canada (POW). Expected Q3 earnings of 67 Canadian cents per share Power Financial Corp (PWF). Expected Q3 earnings of 73 Canadian cents per share CORPORATE EVENTS 08:00 Kinross Gold Corp (K). Q3 earnings conference call 08:00 Manulife Financial Corp (MFC). Q3 earnings conference call 08:00 Magna International Inc (MG). Q3 earnings conference call 08:00 Uni Select Inc (UNS). Q3 earnings conference call 08:30 Exchange Income Corp (EIF). Q3 earnings conference call 08:30 Knight Therapeutics Inc (GUD). Q3 earnings conference call 3

4 08:30 Stars Group Inc (TSGI). Q3 earnings conference call 09:00 Gibson Energy Inc (GEI). Q3 earnings conference call 09:00 Canada Goose Holdings Inc (GOOS). Q2 earnings conference call 09:00 New Flyer Industries Inc (NFI). Q3 earnings conference call 09:00 Russel Metals Inc (RUS). Q3 earnings conference call 09:00 Stantec Inc (STN). Q3 earnings conference call 09:00 Torex Gold Resources Inc (TXG). Q3 earnings conference call 10:00 Cott Corp (BCB). Q3 earnings conference call 10:00 Cascades Inc (CAS). Q3 earnings conference call 10:00 Just Energy Group Inc (JE). Q2 earnings conference call 10:00 Northland Power Inc (NPI). Q3 earnings conference call 10:00 Osisko gold royalties Ltd (OR). Q3 earnings conference call 10:00 Quebecor Inc (QBRb). Q3 earnings conference call 10:00 Sun Life Financial Inc (SLF). Q3 earnings conference call 10:00 Tricon Capital Group Inc (TCN). Q3 earnings conference call 10:30 Superior Plus Corp (SPB). Q3 earnings conference call 11:00 Brookfield Asset Management Inc (BAMa). Q3 earnings conference call 11:00 Enerplus Corp (ERF). Q3 earnings conference call 11:00 Telus Corp (T). Q3 earnings conference call 11:00 Tourmaline Oil Corp (TOU). Q3 earnings conference call 11:00 TransCanada Corp (TRP). Q3 earnings conference call 12:00 Pan American Silver Corp (PAA). Q3 earnings conference call 14:00 Canadian Tire Corporation Ltd (CTCa). Q3 earnings conference call 16:00 CI Financial Corp (CIX). Q3 earnings conference call 17:00 Great Canadian Gaming Corp (GC). Q3 earnings conference call EXDIVIDENDS There are no major exdivs for the day. (All analysts' estimates are according to Thomson Reuters I/B/E/S) 4

5 PICTURE OF THE DAY Protesters hold banners reading "Freedom Political Prisoners, We are Republic" as they gather in Sant Jaume square at a demonstration during a partial regional strike in Barcelona, Spain, November 8. REUTERS/Albert Gea (Compiled by Nivedita Balu and Erum Khaled in Bengaluru) For questions or comments about this report, contact: morning.newscall@thomsonreuters.com To launch a Co-branded Morning News Call from your firm, contact: morning.newscall@thomsonreuters.com For more information about our products: thomsonreuters.com/products_services Or send us a sales enquiry at: thomsonreuters.com/products_services/financial/contactus/ NEWS ACCESS MADE EASY Reuters Top News page displays a range of market and sector-specific subjects including: US, Europe and Asian companies, fixed income, credit, the global economy, emerging markets, corporate finance and industry sectors. To access Reuters Top News -- Thomson ONE: Click News tab, Select Front Page from top right, Click Top News Thomson Reuters. All rights reserved. This content is the intellectual property of Thomson Reuters and its affiliates. Any copying, distribution or redistribution of this content is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. 5