Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

If one of the world’s most influential investors, who just happens to be based in Canada, warns that market “disruption” is inevitable, how strongly will that message resonate with investors who have made a habit of propelling stocks to all-time highs? “We are close to 11 years into this economic cycle. I don’t think economic cycles have been repealed; there will be a recession,” Brookfield Asset Management CEO Bruce Flatt told Amanda Lang in an exclusive interview. He said Brookfield has plenty of dry powder to “capitalize” when/if markets turn, and that he’s more cautious today than he was in 2009, because back then everyone knew they were buying assets at 50 cents on the dollar. Lots to sift through and lots to bounce off our guests today.

CATALYST SEES PROGRESS IN HBC TALKS

“Indications of positive progress,” to be precise. But still no sign that HBC’s special committee is willing to abandon its support of the $10.30/share takeover offer from the group led by Chairman Richard Baker. As such, Catalyst Capital has set 5:00 p.m. ET today as the deadline for HBC to agree that its $11/share offer is, or could become, a superior proposal. It’s also warning it won’t “tolerate any negotiations in bad faith.”

AURORA CEO WARNS OF ‘CARNAGE’

Terry Booth sure has a way with words. The CEO of Aurora Cannabis told BNN Bloomberg “you’ll see some carnage in the production area when people are growing it for $4 and $5 per gram.” He also warned that his peers who perhaps assumed money was growing on trees in the sector are going to be “in a world a hurt” after banks previously “threw money around like it was spaghetti.” Read all about it here.

LINE 3 UP AND RUNNING IN CANADA

The Canadian portion of Enbridge’s Line 3 replacement project is operational. First oil was shipped yesterday on the $5.3-billion pipeline that runs between Hardisty, AB and Gretna, MB with a capacity of 390,000 barrels per day. Meanwhile, the U.S. portion of the Line 3 replacement remains stalled. Nonetheless, as Avenue Investment Management’s Bryden Teich told Paul Bagnell this morning on The Street, “take this as a small victory” for an industry that’s craving additional pipeline capacity.

OTHER NOTABLE STORIES

-Home Capital Group today set the terms for its previously announced substantial issuer bid. Shareholders are being provided a range of $34.15 to $37.25 per share to decide whether they’re willing to sell any/all of their shares.

-Mark Carney will soon become the United Nations’ special envoy on climate action and finances, with the task of bringing “the impacts of climate change to the mainstream of private financial decision making.”

-China’s Zijin Mining has agreed to buy TSX-listed Continental Gold in a $1.4-billion deal worth $5.50 per share.  

-Husky Energy has cut its capital spending budget for the next two years by $500 million; CEO Rob Peabody says that combined with growth projects underway, Husky is poised for “significant” free cash flow growth. Husky also reduced its oil price assumptions due to “changing market conditions.”

-Centerra Gold is halting operations at its Kumtor Mine after reporting two workers missing subsequent to a “significant rock movement.”

NOTABLE RELEASES/EVENTS

-Notable data: ISM U.S. manufacturing index

-Ontario hosts Council of the Federation meeting in Toronto

-9:30 a.m. ET: Financial Accountability Office of Ontario releases year-end report on provincial spending

-10:00 a.m. ET: Newmont Goldcorp holds conference call to discuss 2020 forecasts

-10:00 a.m. ET: Husky Energy holds conference call

-U.S. Trade Representative to announce outcome of investigation into France's Digital Services Tax

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.