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U.S. bank earnings a mixed bag as Canadian sector looks south

America's largest banks reported better-than-expected earnings growth in the first quarter of 2017, but a closer look at results reveals a mixed bag of hits and misses.

U.S. banks were looking to rebound from a gloomy first quarter a year ago, when falling oil prices and unfavourable trading conditions weighed on results. Since then, the arrival of U.S. President Donald Trump has brought bold promises of deregulation and tax reform to accompany rising interest rates, creating a wave of bullish optimism on Wall Street.

Several of Canada's largest banks are looking to the U.S. market to help propel their own earnings growth, as the Canadian economy remains sluggish.

But it's not all smooth sailing in the U.S. markets. There is growing uncertainty about the Trump team's ability to deliver on its promises in a timely fashion, or even at all. Story (James Bradshaw and Christina Pellegrini)



Former PM Stephen Harper joins Silicon Valley venture capital firm 8VC as adviser

Former prime minister Stephen Harper has taken an advisory role with 8VC – a San Francisco-based venture-capital firm – in his latest public venture since walking away from politics last year.

Privately held 8VC was started in 2015 and counts well-known venture capitalists Drew Oetting and Joe Lonsdale among its founders. The firm invests in early-stage tech companies and manages in the region of $1.5-billion (U.S.), according to Forbes. Story (Niall McGee)



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DAILY DEALS

Brookfield Business Partners LP is pumping its international experience and growth plans into a $540-million deal to buy Loblaw Cos. Ltd.'s Canadian gas station network amid rampant industry consolidation. Story (Jacqueline Nelson)



China is creating a consortium, including state-owned oil giants and banks and its sovereign wealth fund, that will act as a cornerstone investor in the initial public offering of Saudi Aramco, people with knowledge of the discussions told Reuters. Story (Reuters)



Verizon Communications Inc. needs to make a splash, and fast. The U.S.'s largest wireless carrier by subscribers has had a busy start to the year, but it hasn't been enough. Story (WSJ, subscription required)



Shanghai-listed Shandong Tyan Home said on Wednesday its negotiations with Barrick Gold Corp to buy the Canadian operator's 50-per cent stake in Kalgoorlie mine have ended without a deal, citing new capital and acquisition rules in China. Story



ELSEWHERE IN FINANCE



Wells Fargo & Co.'s new chief executive officer, Tim Sloan, just survived his biggest test yet, when a board investigation found he wasn't to blame for the bank's notorious account scandal. But his next is just days away: Persuading investors not to expel much of the board. Story (Bloomberg)



There's an expanding bad-debt crisis in India. There's also a related spectacle surrounding the owner of a failed airline with $1.4 billion in unpaid loans. No prizes for guessing which makes for healthier television ratings. Story (Bloomberg)

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