Jan 20, 2020
The Daily Chase: Canadians' debt woes mount; one-on-one with Darryl White
By Noah Zivitz
With just two days to go until the Bank of Canada’s next rate decision, a new survey is painting a dire picture of household finances in this country. Fifty per cent of respondents to a MNP survey said they’re within $200 of insolvency, and nearly the same proportion said they’re not confident they’ll be able to cover expenses without taking on more debt. We’ll evaluate how this might factor into the central bank’s thinking ahead of Wednesday’s rate decision and CTV Chief Financial Commentator Pattie Lovett-Reid will share advice on managing distressed personal finances.
IN CONVERSATION WITH DARRYL WHITE
Everything above sets quite a backdrop for Amanda Lang’s interview today with BMO CEO Darryl White. We’ll address that bank’s drive to improve efficiency and get his view on the state of the economy and credit quality. Watch for the interview this afternoon on Bloomberg Markets. Worth pointing out that analyst Mike Rizvanovic at Credit Suisse recently told clients he thinks BMO and Royal Bank of Canada are “best positioned” to capture cost-cutting benefits this year.
TSX ON A ROLL
The S&P/TSX composite index has strung together five straight days of gains and notched record closes in each of those sessions. Pot producers including Aurora Cannabis, Cronos Group and Canopy Growth are among the top gainers over that stretch. Meanwhile, Bombardier is Bay Street’s worst performer in the last week after plunging 38 per cent amid Thursday’s kitchen sink-style release.
HUAWEI CFO HEARING
More than one year since her arrest in Vancouver, the extradition hearing for Huawei Chief Financial Officer Meng Wanzhou begins today. Recall she was apprehended in December 2018 at the behest of American authorities to face fraud charges tied to alleged violations of sanctions against Iran. The four-day hearing in B.C. Supreme Court boils down to a test of double-criminality, with potentially profound consequences for Canada-China relations. We’ll set the table today and look forward to updates throughout the week from the CTV News and Bloomberg teams in Vancouver.
OTHER NOTABLE STORIES
-Canam Group today announced a consortium of Quebec-based investors have agreed to acquire its Canadian operations in a deal worth approximately $840 million.
-The International Monetary Fund today trimmed its global economic forecasts for 2020 and 2021 while pointing to “negative surprises” in some emerging markets, including India (whose GDP outlook for this year has been slashed to 5.8 per cent from 7.0 per cent)
NOTABLE RELEASES/EVENTS
-Notable data: Teranet/National Bank Canadian home price index
-11:00 a.m. ET: Cabinet meeting resumes
-1:00 p.m. ET: Huawei CFO Meng Wanzhou extradition hearing begins in Vancouver
-Canadian Payroll Association releases annual study on Canadians' financial wellness
-International Energy Agency releases report "The Oil and Gas Industry in Energy Transitions"
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.
