Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Aurora Cannabis’s recreational pot sales plunged 33 per cent in its fiscal first quarter, with the company – much like Canopy Growth yesterday  –  pinning the blame on “the slow pace” of retail store openings in this country. Aurora warned of “near term challenges” to achieving adjusted profitability and so it’s taking measures into its own hands by halting production on a facility in Denmark and deferring work at Aurora Sun in Medicine Hat, Alta. to save almost $200 million in capital costs. Shares are slipping in pre-market trading in New York and we’re looking forward to speaking with Executive Chairman Michael Singer in Commodities.

TSX GOES 10-FOR-10

The TSX Composite Index made it ten straight winning sessions yesterday en route to yet another record close despite being weighed down by names like Enbridge and those two aforementioned pot producers. Should point out the TSX is still a few sessions away from matching its 2019-best streak of 13 straight gains in January.

DEBUNKING CARNEY'S INFAMOUS 'DEAD MONEY' CALL  

It’s been more than seven years since then-Bank of Canada Governor Mark Carney called on Corporate Canada to put their wads of “dead money” to work. But it’s really not that simple, according to a top Bay Street economist. In a recent note to clients, CIBC’s Benjamin Tal noted corporate cash piles are presently at or near record highs (depending on the ratio you’re looking at) and that anyone expecting a tidal wave of spending as soon as trade uncertainty is cleared up is likely going to be sadly mistaken. Tal will join us on Bloomberg Markets today to explain.

KUDLOW LIFTS TRADE SENTIMENT

Global stocks and U.S. futures are in positive territory after White House Economic Advisor Larry Kudlow talked up progress on a Phase One trade deal with China, saying the two sides are “down to the short strokes.” However, as SocGen Strategist Kit Juckes told clients this morning, “if those include a downhill putt towards the creek at Augusta National, that’s not much comfort.”

OTHER NOTABLE STORIES

-Crescent Point Energy is selling some of its Saskatchewan infrastructure assets for $500 million. Proceeds will go toward debt repayment and share buybacks. 

-Anyone wanting to take their cue from the world’s most famous investor, take note: Warren Buffett’s Berkshire Hathaway has opened a new position in Restoration Hardware.

-Hong Kong’s government acknowledged its economy is heading for recession amid months of social unrest. We’ll keep this in mind for names like Canada Goose whose sales have suffered as a result.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian international securities transactions, CREA existing home sales, U.S. retail sales

-1:30 p.m. ET: Alberta Premier Jason Kenney delivers speech to Rural Municipalities of Alberta fall convention in Edmonton 

-2:00 p.m. ET: U.S. President Donald Trump delivers speech “on honesty and transparency in healthcare prices”

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.