The Big Three: CannTrust halts sales; ATB CEO calls for B20 easing; Barry threatens U.S. Gulf Coast
CannTrust Holdings has suspended all sales and shipments as the compliance controversy that’s engulfed the pot producer enters another phase. The voluntary hold is being described as a “precaution” while Health Canada officials review the company’s facility in Vaughan, Ont. Keep in mind: that’s a different site than the one where unlicensed production was discovered by the federal regulator. CannTrust’s board of directors has also established an independent committee to review the foul-up that’s sent its shares into a nosedive, with the stock down another 10 per cent in New York pre-market trading and at least one more analyst downgrade this morning.
ATB CEO WANTS B-20 EASED
The head of a major Canadian financial institution says it’s time to consider relaxing the B-20 mortgage stress test. “Let’s look at the conditions as they change and look at the potential of reducing the size of that stress test from 200 basis points to perhaps something a little smaller,” ATB Financial CEO Curtis Stange told BNN Bloomberg yesterday, breaking ranks with other finance chiefs who have been supportive of the guideline that took effect at the start of last year.
Earlier this week, we reported on angry Aimia shareholders who called out the loyalty plan operator over alleged “irregularities” at its recent annual meeting. Today, The Open will hear from Aimia’s top shareholder. Christopher Mittleman, chief investment officer of Mittleman Brothers, will share his perspective on the AGM and outlook for the company after warning earlier this week that Aimia shouldn’t assume continued support from its largest shareholder (which, it should be noted, has a seat in the board of directors).
OTHER NOTABLE STORIES
-Some relief in Toronto's rental market: Urbanation reports the city's vacancy rate edged up to 1.5% in the second quarter from 0.3% a year earlier for purpose-built rental properties completed since 2005. But it's coming at a cost, as the average rent reaches record heights.
-More evidence of the damage from global tariff tension in China’s latest trade data, which show imports and exports fell in June. Beyond the headline figures, check out the 31.4 per cent plunge in imports from the U.S.
-Shares of Anheuser-Busch InBev have been down as much as 3.6 per cent in Europe amid reports it’s struggling to price the highly-anticipated IPO of its Asian unit.
-Daimler shares fell as much as 4.5 per cent after yet another (!) profit warning
-U.S. President Donald Trump tweeted his disdain for cryptocurrencies last night, saying he’s “not a fan of bitcoin” and arguing Facebook’s Libra “will have little standing or dependability.”
-We’re keeping our eye on Tropical Storm Barry as it barrels toward Louisiana, with hurricane warnings and watches now in effect and certain areas facing up to 25 inches of rainfall.
-Aritzia could be a stock to watch in Toronto after the retailer posted a 31.5 per cent surge in first-quarter net income late yesterday, alongside a 7.9 per cent gain in same-store sales.
-10:00 a.m. ET: Employment Minister Patty Hajdu in Thunder Bay, Ont. to discuss support for young Canadians facing barriers to employment (plus avail)
-11:00 a.m. ET: Prime Minister Justin Trudeau and Natural Resources Minister Amarjeet Sohi meet with workers at Trans Mountain terminal in Edmonton (plus avail)
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.