The Bank of Canada has maintained its benchmark interest rate at 0.25 per cent: no surprise there. The bank also described the downturn in Canada as the most severe since the Great Depression, albeit less severe than previously forecast: no big surprise there either. But there’s plenty of intrigue in today’s policy announcement, including something that looks an awful lot like a conditional commitment (“The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the two per cent inflation target is sustainably achieved”) and a commitment to continue buying Government of Canada bonds at a rate of at least $5 billion per week. We’ll have plenty of analysis throughout the day, plus an interview with Governor Tiff Macklem at 3 p.m. ET.

APHRIA, AURORA DEAL TALKS FIZZLE OUT

David George-Cosh delivered the scoop for BNNBloomberg.ca late yesterday afternoon on the two big Canadian pot producers recently breaking away from merger negotiations. From what George-Cosh learned, it was disagreement over executive compensation and board composition that scuttled the talks, with no clear indication of whether the two sides will get back to the table. He will have more insight today on the motivation to combine and what the investment community is saying about his reporting.

MODERNA VACCINE ENTHUSIASM 

The biotech company’s shares have been up almost 20 per cent in pre-market trading after Phase 1 test results for its COVID-19 vaccination revealed encouraging production of antibodies in a small sample size of 45 healthy adults, albeit with a range of side effects. Next up: a far more robust, and crucial, Phase 3 study involving 30,000 people that’s slated to begin on July 27.

DAKOTA ACCESS PIPELINE REPRIEVE

The U.S. Court of Appeals has postponed the day of reckoning for the Dakota Access Pipeline by granting a stay of a lower court’s ruling, meaning the controversial project doesn’t have to be drained and taken offline for now. It’s temporary relief designed to give the court more time to consider the matter, which boils down to a dispute over environmental permitting for the project.

OTHER NOTABLE STORIES

-Cineplex confirmed this morning that it has closed the $275-million offering of convertible debentures that was key to securing extended covenant relief from the company’s lenders.

-Goldman Sachs shares are zipping higher in pre-market trading after the Wall Street titan flexed its muscle in the second quarter. Results released this morning show revenue soared 41 per cent in the period, helped by record performance in investment banking and the strongest haul for fixed income, currency and commodities (FICC) in nine years.

-Our Bloomberg News partners are reporting Cirque du Soleil is poised to accept a rival bid from a group of creditors instead of sticking with the stalking horse offer presented by existing shareholders a few weeks ago.

-Apple has prevailed in a legal fight over a proposed 13 billion-euro Irish tax bill that had been ordered by the European Commission.

-Another sign of retail pain today: Burberry’s shares are sliding in London after the luxury brand said same-store sales plummeted 45 per cent in the most recent quarter and forecast a 20 per cent slump in the current quarter. The company also indicated it’s planning to cut approximately 500 jobs.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian manufacturing sales, U.S. industrial production

-Notable earnings: Cogeco, Goldman Sachs, UnitedHealth

-1000: Bank of Canada releases interest rate decision and monetary policy report (plus 1100 news conference)

-2:00 p.m ET: U.S. Federal Reserve releases Beige Book

-OPEC+ Joint Ministerial Monitoring Committee holds virtual conference

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