Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Barrick Gold is nudging up its dividend as bullion’s rally propelled a profit surge in the second quarter. The miner’s net income rose 84 per cent, while adjusted earnings more than doubled – and trounced expectations – at US$0.23 per share. It wasn’t a flawless quarter, as production slipped and costs rose amid COVID-19 containment efforts; but Barrick says it’s still on track to meet its full-year production forecast: meaning more opportunity to cash in on gold’s record-breaking rally this year.

TOP MALL OWNER REPORTEDLY IN TALKS WITH AMAZON

What’s that old saying about keeping your enemy closer? Seems apropos as The Wall Street Journal reports Simon Property Group is in talks with Amazon.com Inc. to potentially snap up some of the store space that’s been vacated by the very department store chains that Amazon has crushed. According to the report, the discussions are about the possibility of Amazon converting those spaces to fulfillment centres.

CANOPY IMPRESSES

Shares of Canopy Growth have been up close to 10 per cent in pre-market trading in New York after the big pot producer posted a narrower loss than expected in its fiscal first quarter, at $92 million in adjusted EBITDA. Net revenue, meanwhile, jumped 22 per cent year-over-year. Is this a sign that the overhaul orchestrated by CEO David Klein is paying off? We’ll address that this morning, and look forward to speaking with Klein at 2:30 p.m. ET.

CANADIAN NATURAL BUYING PAINTED PONY

There was no better option left for Painted Pony Resources after several years of weak natural gas prices. “This sustained period of low adjusted funds flow, as well as Painted Pony’s limited ability to access external markets on an accretive basis, has deprived Painted Pony’s asset base of the capital necessary to fund meaningful development,” it said this morning. And so it’s selling itself to Canadian Natural Resources for 69 cents per share (while also dishing off $350 million in debt). For its part, CNRL is framing the acquisition as an opportunity to “leverage synergies” without much impact to its balance sheet.

TENSION WITH CHINA OVER HONG KONG

We’re seeing yet another ramp-up in China-U.S. tension after Beijing announced sanctions against 11 Americans in a tit-for-tat move following the Trump administration’s sanctioning of 11 Chinese officials on Friday for “fundamentally undermining Hong Kong’s autonomy.” Canada has also spoken out, as foreign affairs minister François-Philippe Champagne joined his Five Eyes counterparts yesterday in expressing their “deep concern” over the impact of the National Security Law imposed by China.

OTHER NOTABLE STORIES

-With Republicans and Democrats at loggerheads over stimulus, U.S. President Donald Trump did precisely as expected Saturday when he took matters into his own hands by extending the payroll tax holiday until the end of the year and also ensuring the continuation of jobless benefits (albeit at a lower rate).  

-Berkshire Hathaway’s second-quarter net profit rose almost 90 per cent even amid close to US$11 billion in impairment charges. Warren Buffett’s big conglomerate also said it spent a record US$5.1 billion on share buybacks in the quarter.

-Alstom says there were “unexpected and negative developments” in Bombardier’s rail business, based on its review of the Montreal-based company’s most recent results (which even Bombardier admitted last week were “significantly below expectations”). The French transportation giant says it’s still convinced of the merit for buying that unit, but that it will take this most recent disclosure by Bombardier into consideration in discussions as the two sides continue working toward closing their deal.

NOTABLE RELEASES/EVENTS

Notable data: Canadian housing starts

Notable earnings: Barrick Gold, Martinrea, Canopy Growth, Tilray, Nutrien, Dorel Industries, Marriott International, Simon Property Group

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.