Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

CannTrust Holdings shares plumbed new depths yesterday after the scandal-plagued cannabis producer disclosed its licences have been suspended by Health Canada (albeit while allowing the company to continue with certain cultivation and harvesting activities). Have to  keep in mind CannTrust voluntarily halted sales and shipments on July 11, so it’s worth considering the practical implications of yesterday’s events. Specifically:

-Depending on how long the suspensions remain in place, could there be additional job cuts above and beyond the recent 20 per cent workforce reduction? On that front: check out Jon Erlichman’s interview with whistleblower Nick Lalonde, who says the suspensions are “just not fair” to CannTrust employees.

-What are the implications for CannTrust’s strategic review and potential asset sales? If you missed it, check out ex-Canopy chairman Bruce Linton’s comments yesterday on BNN Bloomberg about how that process could play out.

And from a symbolic standpoint, we’ll assess how this will resonate across the cannabis industry.

BOEING GROUNDINGS FUEL INFLATION

Canada's consumer price index rose 1.9 per cent last month, a slight moderation from July. One thing that really stands out in StatsCan's release: Air transportation prices jumped 10.3 per cent year-over-year, which the statistics agency says was "largely related" to the ripple effect from Boeing 737 Max groundings.

ANOTHER SPEED BUMP FOR TRANS MOUNTAIN

In a decision yesterday, the B.C. Court of Appeal told the province to reconsider its environmental approval of the Trans Mountain expansion project strictly because it was based on a National Energy Board recommendation that was later quashed by the Federal Court of Appeal. We’ll chase reaction

FED DAY

The U.S. Federal Reserve is widely expected to cut its target range for the federal funds rate today, with the only uncertainty for market participants seemingly being whether it’ll be a quarter- or half-point reduction. Can chairman Jerome Powell strike the right tone to satisfy investors? Can he manage the risk of dissent within the FOMC? And how will the American president respond? We’ll keep track this afternoon.  

OTHER NOTABLE STORIES

-Global oil prices are little changed this morning after sliding yesterday amid signs the timeline for restoring Saudi crude output could be significantly shorter than originally feared.

-FedEx shares are down more than 10 per cent in pre-market trading after the shipping company cut its full-year profit forecast while pinning the blame on trade tension and weaker economic conditions.

-European Commission President Jean-Claude Juncker isn’t showing any flexibility on Brexit, saying today “whatever happens, the United Kingdom will leave the European Union on the 31st of October – with or without an agreement.”

NOTABLE RELEASES/EVENTS

-Notable data: Canadian CPI, U.S. building permits and housing starts

-8:00 a.m. ET: NDP Leader Jagmeet Singh in Sudbury, ON to discuss head-to-toe health care plan

-8:30 a.m. ET: Liberal Party Leader Justin Trudeau makes announcement in Fredericton

-9:00 a.m. ET: International Energy Agency Executive Director Fatih Birol holds press webinar to discuss recent developments in oil markets

-9:00 a.m. ET: Conservative Party Leader Andrew Scheer makes announcement in Hamilton, ON

-12:15 p.m. ET: Alberta Premier Jason Kenney holds media call from New York

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

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.