Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

After almost eight long weeks without a single official comment on the state of the economy, the Bank of Canada is about to break its silence. Tomorrow’s rate decision is widely expected to keep the benchmark lending rate unchanged at 1.75 per cent, but there’s no shortage of experts suggesting the central bank will set the groundwork for looser policy in the statement. Worth noting Friday’s blockbuster GDP headline has tempered expectations for a cut in October, with those odds now sitting at 46.7 per cent as opposed to 59.9 per cent last Thursday.

CRESCENT POINT ENERGY ASSET SALES 

Almost one year to the day since debt-heavy Crescent Point appointed Craig Bryksa as its permanent CEO and telegraphed a plan to pursue “significant” asset sales, the company made good on that strategy today by announcing the sale of its Uinta Basin holdings and some Saskatchewan assets for $912 million. Crescent Point says it’s still pursuing additional divestments and touts today’s transactions as putting it in a “strong position” to repurchase its shares.   

CMHC CEO TOUTS HOUSING “TWEAK”

Don’t want to read too much into it, but can’t help but think Canada Mortgage and Housing Corporation CEO Evan Siddall was attempting to send a clear message to B-20 critics with his tweet this morning that touts the newly-launched First-Time Home Buyer Incentive as “the ‘tweak’ to help people disadvantaged by the stress test.”

AIR CANADA VS. ONEX-WESTJET

Air Canada is casting doubt on Onex’s proposed takeover of WestJet, warning in a letter to the Canadian Transportation Agency that the private equity firm’s “opaque” structure could eventually put WestJet offside with foreign ownership rules. “The uncertainty and flexibility of co-investor participation introduces significant risk that non-Canadian co-investors will have control-in-fact of WestJet following the transaction,” wrote Air Canada’s general counsel in a letter dated Aug. 15.  We’re gathering reaction.

STOCKS DRIFT LOWER

Futures are pointing to a weak open in New York amid yet another speed bump for China-U.S. trade progress. Bloomberg News is reporting the two sides are “struggling” to set the schedule for the next batch of official talks. There’s also some Brexit uncertainty for investors to contend with, as Prime Minister Boris Johnson raises the prospect of a snap election on Oct. 14 if Parliament votes to force a postponement rather than no-deal secession.

OTHER NOTABLE STORIES

-Huawei is fighting back against the most recently-reported claims of IP theft, calling the allegations false and making claims of its own that the U.S. has orchestrated a campaign to “disrupt [Huawei’s] normal business operations”. Full statement here.

-Harvey’s is hopping on the faux meat bandwagon, announcing today it will offer Lightlife’s plant-based burger nationwide. Reminder that Lightlife is owned by Maple Leaf Foods.

-SmileDirectClub set the price range for its initial public offering at US$19.00-US$22.00/share. At the high end, the IPO would raise US$1.29 billion.

NOTABLE RELEASES/EVENTS

-Notable data: ISM U.S. manufacturing index

-1:00 p.m. ET: Alberta Finance Minister Travis Toews and Janice MacKinnon hold news conference in Edmonton to discuss panel report on Alberta’s finances

-B.C. Transportation Ministry starts accepting applications from ride-hailing services

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.