Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Bitcoin is steady (relatively speaking) this morning after yesterday’s chaotic trading as a host of factors  -- including leverage, technicals and a harsh tone from the People’s Bank of China – created the conditions for a rout. We’ll explore where this leaves the institutions that had warmed up to tokens, what this does for sentiment among those that hadn’t, and the broader impact for mainstream acceptance.

STATE OF CANADA’S FINANCIAL SYSTEM

If the Bank of Canada has concerns about potential spillover risks emanating from the country’s red-hot housing markets and high household debt levels, we’re likely to hear about it today with the release of the central bank’s annual Financial System Review. We’ll break the news at 10 a.m. ET and will have live coverage of Governor Tiff Macklem’s news conference at 11 a.m. with analysis from C.D. Howe Institute Senior Fellow Ed Devlin.

IN CONVERSATION WITH CPPIB CEO

We’ve got John Graham on the network today for the first time since he took over from Mark Machin as head of the Canada Pension Plan Investment Board. The backdrop for today’s conversation is a record full-year return of 20.4 per cent  just posted by the country’s largest pension fund. Don’t miss Graham live on Bloomberg Markets at 1 p.m. for what promises to be an insightful discussion about the investing landscape and macro risks on the horizon.  

THE HOCKEY ECONOMY

Can you imagine what the atmosphere would be like in Edmonton, Winnipeg, Toronto or Montreal these days if not for COVID? With game 1 in the books for the Jets and Oilers, and with the Leafs and Habs opening their series tonight, we’ll keep chasing compelling stories from the small business owners who might be struggling to survive and wondering what could have been if their doors were fully open to the public during the Stanley Cup playoffs. Plus, The Open will check in with the play-by-play voice of the Habs on TSN, Bryan Mudryk, shortly before 9 a.m. to set the scene. Should point out as well there are reports the Ontario government will map out its sector-by-sector strategy for reopening the economy after June 2, when the stay-at-home order is scheduled to expire.

CP DIGS IN ON KANSAS CITY SOUTHERN DEAL

Canadian Pacific Railway has released the letter sent by its CEO, Keith Creel, to Kansas City Southern’s board of directors today, urging them to reverse course and step back from their recent determination that CN Rail’s sweetened proposal is superior. In the letter, Creel also made it clear that he’s not going to get baited into what he calls a “destructive” bidding war. We’ll keep tabs on further developments in this takeover battle.

OTHER NOTABLE STORIES

• Shares of Cisco Systems are slumping in pre-market trading after the tech bellwether’s fiscal third-quarter profit and revenue beats were overshadowed by a tepid forecast for the current quarter (compared to expectations) and management’s warning about “supply chain challenges which we expect will continue.”  
• Lumber snapped a seven-day losing streak yesterday, rising almost 5 per cent after tumbling 24 per cent in just over a week.

NOTABLE RELEASES/EVENTS

• Notable data: StatsCan EI report, U.S. initial jobless claims
• Notable earnings: Lightspeed POS
• 8:40 a.m.: Canadian Pacific Railway CEO Keith Creel addresses BofA conference
• 9 a.m.: Parliamentary Budget Officer releases costing note on proposed luxury goods sales tax
• 10 a.m.: Bank of Canada releases Financial System Review (11 a.m. news conference)
• 12 p.m.: Shaw Communications shareholder vote on sale to Rogers Communications
• 3 p.m.: Ontario Premier Doug Ford makes announcement
• 5 p.m.: Deadline for Canadian Pacific Railway to respond to Kansas City Southern regarding Canadian National's "superior" proposal
• Economical Insurance holds third and final special meeting on demutualization
• White House hosts second virtual summit on semiconductor shortage

Editor’s note: The original version of today’s Daily Chase erroneously stated that John Graham succeeded Mark Wiseman as chief executive of CPPIB. In fact, Graham succeeded Mark Machin, who was Wiseman’s successor. We regret the error.