Canada's economy added 952,900 jobs last month -- well ahead of the median estimate for 700,000. It was the second straight month of significant growth, while the unemployment rate slipped to 12.3 per cent. In instant analysis, RBC Global Asset Management Chief Economist Eric Lascelles told us the headline figure was a "pleasant surprise", but joined us in pointing out the quality of job creation was suspect, with nearly an even split between full-time and part-time work. We’ll have plenty of analysis throughout the day and we’ll be sure to frame the data against the ongoing debate about Canada Emergency Response Benefit versus Canada Emergency Wage Subsidy effectiveness – particularly after Dream Office REIT CEO Michael Cooper pounded the table for the federal government to wean Canadians off their “addiction” to CERB. Read all about it here.
GRILLING SUPERMARKET EXECS
The chief executives of Sobeys parent Empire Co. and Metro, as well as the president of Loblaw, will be in the virtual hot seat today as lawmakers on the House Industry Committee question the industry heavyweights on their recent decisions to wind down so-called “hero pay” for front-line workers. Remains to be seen how the industry can possibly win the public relations fight over this issue. We’ll keep an eye on it.
COVID-19 IMPACT
It’s evident in a bunch of retail stories this morning, most recently with food court giant MTY Food Group. It posted a 22 per cent plunge in second-quarter revenue and swung to a loss (due in part to a significant impairment charge) as lockdown measures batter the fast-food conglomerate. Some notable commentary on COVID-19 behavioural changes from the company’s CEO in the release: “While our locations are now gradually re-opening, overall customer traffic remains affected by various local regulations and changes in consumer behavior resulting from work-from-home policies as well as new habits created by shelter-in-place measures that were in effect for a considerable amount of time.”
OTHER NOTABLE STORIES
-DavidsTea is not wasting time on its pledge to turn its focus to retail and wholesale. The company announced late yesterday it will close 82 stores in Canada and all 42 of its U.S. outlets. And it may not be done. CFO Frank Zitella said negotiations are underway with landlords for the 100 remaining stores and that DavidsTea may ultimately decide to terminate those leases in Canada.
-We'll watch shares of Aritzia at the open after the retailer reported a 43 per cent plunge in first-quarter revenue, and swung to a loss, as a result of COVID-19. The silver lining: Aritzia said its e-commerce revenue jumped more than 150 per cent from the time it was forced to close its stores.
-The International Energy Agency has fine-tuned its demand outlook, now pegging this year’s drop at 7.9 million barrels per day, compared to its previous call for an 8.1m bpd plunge. It’s warning, however, that recent “disturbing” COVID-19 flare-ups are creating downside risk.
NOTABLE RELEASES/EVENTS
-Notable data: Canadian labour force survey
-Notable earnings: Shaw Communications
-12:00 p.m. ET: Industry Minister Navdeep Bains and Procurement Minister Anita Anand hold news conference at GM's Oshawa plant to discuss made-in-Canada solutions in fight against COVID-19
-2:00 p.m. ET: Empire, Loblaw, Metro execs address lawmakers (advisory: https://www.ourcommons.ca/DocumentViewer/en/43-1/INDU/meeting-28/notice)
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
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