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Noah Zivitz

Managing Editor, BNN Bloomberg

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Canada’s largest housing market has come roaring back, with the Greater Toronto Area’s average home price reaching a record high of $930,869 last month as sales soared 84 per cent month-over-month. Let’s keep in mind that the previous record was set in April 2017, back when bubble fears were running rampant immediately prior to round after round of government and regulatory intervention. Now, the local real estate board says pent-up demand is being unleashed as COVID-19 lockdown measures are eased. It’s also warning policymakers against any moves that could have the effect of further stoking demand.   

BRUTAL TIME FOR PIPELINES

Remarkable sequence of events over the span of a little more than 24 hours. First came Dominion Energy and Duke Energy’s decision to scrap the long-delayed Atlantic Coast Pipeline. Then, the Dakota Access Pipeline was ordered offline and drained as a result of a lapse in environmental permitting. And then, yesterday evening, a U.S. Supreme Court maintained a lower court’s order that blocked construction of the Keystone XL pipeline south of the border. TC Energy has indicated this will delay work on the controversial project until at least next year, meaning the pipeline that’s been championed by Donald Trump since he took office could time out if Joe Biden prevails in November.

GETTING SET FOR FISCAL UPDATE

We’ll gather some insight today on what to expect from Finance Minister Bill Morneau’s economic and fiscal update tomorrow. Manulife Investment Management Chief Economist Frances Donald and Business Council of Canada Chief Executive Goldy Hyder speak with Greg Bonnell at 1 p.m. ET, and BMO Chief Economist Doug Porter, whose team recently drew up a list of all the hot topics that Morneau likely won’t address (like the plan for reining in the deficit), joins us at 2:30 p.m. ET. 

STOCKS STALL

After yesterday’s rally that saw the Nasdaq climb to an all-time high, global equities have turned lower today – with all the major European indices in the red and futures pointing to a drop at the start of trading in New York. Our Bloomberg partners are pointing to disappointing industrial production data out of Germany and a marked-down economic outlook from the European Commission as catalysts.

OTHER NOTABLE STORIES

-Cineplex announced plans today to raise $275 million in an offering of convertible unsecured subordinated debentures. Proceeds are earmarked for debt repayment. We’ve confirmed with Cineplex that this will satisfy the financing clause to secure extended covenant relief from the company’s lenders, as recently foreshadowed in the company’s latest quarterly results.

-Le Château warned last night of “material uncertainties that cast significant doubt” about its future, which has the effect of putting it in default on the terms of some loan arrangements. The Canadian retailer also said it expects normal operations won’t resume before 2022.

-Shares of Novavax soared in pre-market trading after the biotech company announced it’s been awarded US$1.6 billion by the U.S. government to speed up development of its COVID-19 vaccine.

-TikTok is in the news on a couple of fronts: U.S. Secretary of State Mike Pompeo told Fox News last night the Trump administration is “looking at” banning the video app; meanwhile, the app’s owner is withdrawing it from Hong Kong as a result of China’s new security legislation.

NOTABLE RELEASES/EVENTS

-Notable earnings: Just Energy

-9:00 a.m. ET: Parliamentary Budget Officer releases report "Costing a guaranteed basic income during the COVID pandemic"

-11:00 a.m. ET: Federal cabinet holds virtual retreat

-2:00 p.m. ET: Facebook CEO Mark Zuckerberg expected to participate in meeting with civil rights groups leading ad boycott

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