Dec 17, 2020
The Daily Chase: Bitcoin's climb continues; Apollo's Great Canadian bid on thin ice
By Noah Zivitz
Bitcoin is pushing even higher today, rising as much as 11.8 per cent to US$23,712 per coin. In an interview with Bloomberg Television, Guggenheim Investments Chief Investment Officer Scott Minerd said his firm thinks it could eventually hit US$400,000 thanks to “rampant money printing”, which was evident again yesterday as the U.S. Federal Reserve made it clear the days of easy money are here to stay for quite some time. We’ll assess the outlook for Bitcoin and how investors – institutional and retail – should be thinking about dabbling in it.
737 MAX NEARS GREEN LIGHT
Transport Canada confirmed this morning that it has signed off (or, in industry lingo, “validated”) Boeing’s changes to the 737 Max jet. But this is by no means an immediate green light for the planes that were grounded after two fatal crashes. Indeed, Transport Canada describes today’s decisions as a first step in what’s going to be a “complex” path to having the maligned jet program back in Canadian skies.
APOLLO’S CASINO PLAY ON THIN ICE
Apollo Global Asset Management's attempt to buy Great Canadian Gaming for $39 per share suffered a couple of serious blows late yesterday. First, influential proxy advisor service Institutional Shareholders Services recommended its clients reject the bid, while pointing to some questionable aspects in the timing and approval process. Then, just a few minutes later, top shareholder CI Global Asset Management (which holds 14.11 per cent of the casino operator's shares) said it would vote against the private equity firm's offer. The obvious question today is what Apollo’s next move will be.
737 MAX NEARS GREEN LIGHT
The Globe and Mail is reporting Transport Canada today will announce that Boeing’s maligned 737 Max jet is being cleared to return to service in this country. According to the report, the go-ahead will be contingent on additional training for pilots and could see the planes flying again in the new year. A spokesperson for Transport Minister Marc Garneau hasn’t yet responded to our request for comment.
LOOKING BACK ON TECH’S 2020 DOMINANCE
From Bay Street, where Shopify powered the TSX and the info tech sector delivered returns miles ahead of the other subgroups, to the flashier FAANGs … and even the fascination with Tesla’s every move: there’s no disputing the tech industry asserted its dominance in this historic year. The Open will go in depth this morning on the year that was and what’s ahead, including with perspective from former Cisco Systems CEO John Chambers.
OTHER NOTABLE STORIES
-Boston Pizza Royalties Income Fund has announced a special one-time distribution of $0.20 per unit. The company said the payout is being made in part because it would face a higher tax rate if it sits on the cash.
-Interesting announcement from Amazon this morning: it’s ramping up service to Iqaluit, and says Prime customers in the Nunavut capital can now receive deliveries in as little as three days, versus the previous target delivery range of 15-20 days.
-Lastly, and amazing that this is even necessary, but Health Canada published a warning late yesterday against buying counterfeit COVID-19 vaccines being sold over the Internet and through other unauthorized sources.
NOTABLE RELEASES/EVENTS
-Notable data: Teranet/National Bank home price index, U.S. initial jobless claims, U.S. building permits and housing starts
-Notable earnings: BlackBerry, FedEx
-7:00 a.m. ET: Bank of England releases interest rate decision
-8:50 a.m. ET: Prime Minister Justin Trudeau makes virtual announcement alongside Newfoundland and Labrador Premier Andrew Furey, Intergovernmental Affairs Minister Dominic LeBlanc, and Natural Resources Minister Seamus O’Regan
-9:00 a.m. ET: Deputy Prime Minister and Finance Minister Chrystia Freeland addresses International Forum of the Americas’ Montreal conference
-900: U.S. Food & Drug Administration meets to discuss emergency use authorization for Moderna's COVID-19 vaccine
-B.C. Finance Minister Selina Robinson to deliver economic and fiscal update
-OPEC+ Joint Ministerial Monitoring Committee holds virtual meeting
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.
