MORNING NEWS CALL

TOP NEWS

• G7 leaders set to clash with combative Trump over tariffs, trade

Leaders of the Group of Seven rich nations are set to clash with a combative U.S. President Donald Trump when they pressure him to

lift sanctions on steel and aluminum they fear could lead to a trade war.

• Airbus set to close deal for majority stake in Bombardier CSeries

Airbus is set to close a deal to take a controlling stake in Bombardier's CSeries jetliner program, effective July 1, the companies said,

in a move expected to kickstart the European planemaker's ability to put its marketing and cost-cutting muscle into the Canadian

plane program.

• Canada clears major hurdle in legalizing recreational marijuana

Canada's Senate on Thursday voted to legalize recreational marijuana, clearing a major hurdle that puts the country on track to be-

come the first Group of Seven nation to permit national use of the drug.

• Apple warns suppliers of lower parts orders for new iPhones - Nikkei

Apple has asked its parts suppliers to manufacture about 20 percent fewer components for iPhones in the second half of 2018, the

Nikkei on reported, sending the iPhone maker's stock down.

• Verizon names former Ericsson chief as new CEO

Verizon Communications named Chief Technology Officer and former Ericsson boss Hans Vestberg as its new Chief Executive, say-

ing he will replace current CEO Lowell McAdam on Aug. 1.

BEFORE THE BELL

Futures for Canada's main stock index fell as oil prices dropped on waning Chinese demand and soaring U.S. production, offset-

ting Venezuelan and Iranian supply worries and OPEC-led production cuts. U.S. stock index futures were lower, as concerns over a

global trade war ahead of G7 talks this weekend and expectations of monetary tightening by major central banks weighed on investor

sentiments. European shares were down on weak German economic data and Asian equities ended in the red. The U.S. dollar

was set for its biggest weekly drop in eleven weeks. Spot gold price was up.

STOCKS TO WATCH

• Bombardier Inc (BBDb). Airbus is set to close a deal to take a controlling stake in Bombardier's CSeries jetliner program, effective

July 1, the companies said, in a move expected to kickstart the European planemaker's ability to put its marketing and cost-cutting

muscle into the Canadian plane program. Bombardier will now own about 31 percent, while Investissement Quebec, the investment

arm of the province of Quebec, will hold a 19 percent stake. Bombardier raised its guidance for 2018 consolidated earnings before

interest and tax by $100 million to a range of between $900 million and $1 billion, to reflect the separation of the CSeries jetliner pro-

gram. Bombardier also said it cut its revenue guidance by $500 million to $16.5 billion to $17 billion. The company added that its

CSeries results will no longer be consolidated in its results from July 1. Separately, Canadian workers who assemble Bombardier's

turboprops and the company's new top-of-the-line business jet have threatened to go on strike as early as June 23, unless a negotiat-

ed wage deal is reached, the union chairman of their Toronto plant said on Thursday.

• Enbridge Inc (ENB). Oil producer BP complained to Canada's National Energy Board (NEB) regulator about Enbridge's implemen-

tation and then abrupt reversal of new rules for shipping crude on its Mainline pipeline system, NEB documents showed on Thursday.

The NEB said in a letter on Thursday to BP and Enbridge that it would establish a process to hear comments from both companies

and anyone else this month. "Unnecessarily injecting uncertainty in how services would be provided to shippers .. is shocking and

egregious," said Jennifer Geggie, vice-president of global oil Americas at BP Products North America, a subsidiary of BP, in a June 6

letter to the NEB.

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MORNING NEWS CALL

INSIGHT

Why Canada's pot legalization won't stop black-market sales

Jake Rowinski, a 20-year-old University of Toronto student, buys marijuana every week from one of the many self-described

"medical" dispensaries in downtown Toronto. The illegal store sells openly to customers ranging from budget-minded recreational

users like Rowinski to silver-haired grandmothers treating legitimate ailments. "Nobody really cares at this point," Rowinski said out-

side the shop, near the city's financial district.

ANALYSTS' RECOMMENDATION

• Canadian Western Bank (CWB): Barclays raises target price to C$38 from C$37 on improving Western Canada outlook, with Al-

berta, Saskatchewan, and British Columbia all showcasing positive loan growth.

• Saputo Inc (SAP). CIBC cuts target price to C$50 from C$51, citing obstacles to near-term earnings growth including unfavourable

commodity prices, a competitive Canadian market, higher operating costs and the possibility of negative fallout from trade.

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

0815 House starts annualized for May: Expected 218,000; Prior 214,400

0830 Capacity utilization for Q1: Prior 86.0 pct

0830 Employment change for May: Expected 17,500; Prior -1100

0830 Unemployment change for May: Expected 5.8 pct; Prior 5.8 pct

0830 Full time employment change for May: Prior 28,800

0830 Part time employment change for May: Prior -30,000

0830 Participation rate for May: Prior 65.40 pct

COMPANIES REPORTING RESULTS

Jun 8:

No major companies are scheduled to report for the day.

Jun 11:

No major companies are scheduled to report for the day.

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

0845 Enghouse Systems Ltd (ESL). Q2 earnings conference call

0900 Major Drilling Group International Inc (MDI). Q4 earnings conference call

1700 B2Gold Corp (BTO). Annual Shareholders Meeting

EXDIVIDENDS

Rogers Communications Inc (RCIb). Amount C$0.48

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

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MORNING NEWS CALL

(Compiled by Debanjan Bose in Bengaluru) For more information about our products: http://thomsonreuters.com/products_services Or send us a sales enquiry at: http://thomsonreuters.com/products_services/financial/contactus/

PICTURE OF THE DAY

A protester approaches a flare at a protest march during the G7 Summit in Quebec City, Quebec, Canada, June 7. REUTERS/Yves Herman