Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The controversy that has engulfed CannTrust Holdings is looking even worse today after The Globe and Mail’s report on an alleged internal email that appears to document the chairman and CEO’s awareness of unlicensed production. “We dodged some bullets” was the message from CannTrust’s director of quality and compliance, according to the Nov. 16, 2018 email cited by The Globe that seems to answer some of the basic who-knew-what-and-when questions. Now the question is how CannTrust’s special committee and Health Canada will respond. CannTrust has not yet responded to BNN Bloomberg's request for a statement on the Globe’s report.

COUCHE-TARD PLACES ITS POT BET

The convenience store giant is pairing up with Fire & Flower in an investment arrangement that gives Couche-Tard an initial 9.9 per cent stake in the cannabis retailer (plus board representation), with warrants that could ultimately boost the ownership stake to 50.1 per cent. Couche-Tard CEO Brian Hannasch says the deal “enables us to leverage their leadership, network and advanced digital platform to accelerate our journey in this new and flourishing sector.” Fire & Flower presently has a network of 23 pot stores in Alberta, Saskatchewan and Ontario.

IN CONVERSATION WITH JJ RUEST

We’re looking forward to speaking with the chief executive of CN Rail, fresh off reporting record second-quarter profit and sales amid a booming crude-by-rail business. Watch for that interview with Jean-Jacques Ruest on Bloomberg Markets today.

BIG TECH SCRUTINY

After facing a political lashing in Congressional hearings last week, now the biggest names in technology are facing a sweeping antitrust review by the U.S. Department of Justice, which wants to determine if competition is being stifled. Shares of Facebook, Amazon and Google are trading modestly lower in the pre-market. Separately, the U.S. Federal Trade Commission today confirmed Facebook will pay a US$5-billion penalty to settle charges over users’ privacy protection. Facebook is also paying US$100 million to settle charges with the U.S. Securities and Exchange Commission.

OTHER NOTABLE STORIES

-Shoppers Drug Mart was the growth driver for Loblaw in the second-quarter, with same-store sales rising four per cent (compared to 0.6 per cent growth at Loblaws stores). Quarterly revenue and profit were in line with analyst expectations.

-Caterpillar is shaping up as a laggard this morning after warning full-year profit will slip toward the lower end of its forecast range. The company’s oil and gas business line was a notable weak spot in the second quarter (sales down 11 per cent).

-Boeing reported a hefty loss this morning (US$5.82/share), which comes as no surprise after the company disclosed a US$4.9-billion charge tied to the 737 Max groundings. CEO Dennis Muilenburg today said “this is a defining moment for Boeing.”

-BCE’s Bell Media division (which owns BNN Bloomberg) is buying the French-language V conventional television network from Groupe V Media.

NOTABLE RELEASES/EVENTS

-Notable earnings: Suncor, Loblaw, Agnico-Eagle Mines, A&W Revenue Royalties Income Fund, Boeing, Caterpillar, Facebook, Tesla, Ford, AT&T, UPS, Freeport-McMoran, Norfolk Southern

-Notable data: U.S. new home sales

-Former Special Counsel Robert Mueller testifies before U.S. House Judiciary Committee (8:30 a.m. ET) and Intelligence Committee (12:00 p.m. ET)

-10:00 a.m. ET: U.S. House Financial Services Committee holds hearing on BB&T-SunTrust deal

-11:00 a.m. ET: Boris Johnson expected to deliver first remarks as U.K. prime minister outside 10 Downing Street

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.