Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

CannTrust’s interim chief executive says the scandal-plagued pot producer is “fully capable of exorcising the demons” that pushed it offside with the federal regulator and led to the ouster of his predecessor and the company’s chairman. “We feel very comfortable that we can separate from that which plagued us … and move forward with full compliance with Health Canada,” Robert Marcovitch told BNN Bloomberg's David George-Cosh. He also shed some light on dismissal discussions with the former executives and what the future holds for CannTrust (which we learned this morning includes a formal review of strategic alternatives). Watch for the full interview at 10:30 a.m. ET.

FED DAY

The market is convinced today’s rate decision in the U.S. is a slam dunk, with the only question being whether the Federal Reserve will lower its target range for the federal funds rate by a quarter or half point. The true potential for drama comes afterward, with whatever U.S. President Donald Trump has to say about the policy move. We’ll watch for dissent in the Fed’s decision, and will also consider the spillover effect for Canada.

CANADIAN GDP SLOWS

The Canadian economy decelerated in May albeit while outperforming expectations, according to data released by Statistics Canada this morning. GDP rose 0.2 per cent (compared to 0.3 per cent in April) amid growth in key sectors like construction (+0.9 per cent) and manufacturing (1.2 per cent). Meanwhile, there was clear weakness in services sectors like wholesale trade and retail.

INVESTORS SHAKE OFF IPHONE SLUMP

Profit fell and iPhone revenue dwindled in the latest quarter, but growth in Apple’s wearables and services units – plus an impressive fiscal fourth-quarter revenue forecast – was enough to offset any unease about the company’s flagship product. Shares are up more than four per cent in pre-market trading in New York. This morning we’ve got perspective on Apple’s strategy to diversify and what’s in the pipeline.

 OTHER NOTABLE STORIES

-Genworth MI Canada was one of the top percentage gainers on the TSX in early trading after the mortgage insurer’s second-quarter operating profit beat expectations as premiums written rose and new delinquencies slowed.

-Molson Coors will be on our radar today after the beer maker posted a 22 per cent slump in second-quarter profit as sales slumped. CEO Mark Hunter is pointing to “unfavourable weather and weak industry demand”.

-TC Energy is selling some of its Ontario power plant assets for $2.9 billion. Proceeds will go toward funding the company’s capital program.  

-Shares of General Electric are moving higher after the industrial conglomerate boosted its full-year profit outlook.  Worth noting the stock has rallied almost 45 per cent this year.

-Equitable Group could be a stock to watch after reporting record adjusted profit, double-digit loan growth, and a plan to raise its dividend at least 20 per cent per year for the next half-decade.  CEO Andrew Moor joins us at 1:20 p.m. ET.

NOTABLE RELEASES/EVENTS

-Notable earnings: Encana, Great-West Lifeco, Sun Life Financial, CGI, Torstar, Spin Master, Kinross Gold, Seven Generations Energy, Cargojet, Element Fleet Management, General Electric, Molson Coors, Qualcomm

-Notable data: Canadian GDP

-2:00 p.m. ET: U.S. Federal Reserve releases interest rate decision (plus 2:30 p.m . ET news conference)

-2:00 p.m. ET: U.S. President Donald Trump meets with Mongolia’s president at the White House (watch in case he comments on Fed decision)

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.