Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Constellation Brands is asserting its influence at Canopy Growth Corp., with the alcohol conglomerate’s chief financial officer selected as the next chief executive officer of Canada’s largest cannabis producer. David Klein will take over as Canopy CEO on Jan. 14, replacing Mark Zekulin, who assumed the helm after Bruce Linton was fired in the summer. Klein’s appointment comes a little more than a year since Constellation closed its $5-billion investment in Canopy and after a string of disappointing quarters that sent the company’s shares into a tailspin. Today, we’ll explore what investors and consumers should expect from Klein, and how much this is about Constellation protecting its own investment.

IN CONVERSATION WITH DAVID DODGE

With the guessing game in full swing over who will become the Bank of Canada’s next governor when Stephen Poloz steps down in June, today we’ll get insight from someone who has lived through the transition process. Ex-BoC Governor David Dodge joins Jon on The Open to discuss Poloz’s accomplishments and who could fit the bill as his successor. We’ll also get his perspective on the legacy of ex-U.S. Federal Reserve Chair Paul Volcker, who has passed away at the age of 92.

SETBACK FOR BAKER'S HBC BID

Influential proxy advisor firm Institutional Shareholder Services is recommending Hudson’s Bay Company shareholders reject the $10.30/share privatization offer from a group led by HBC Chair Richard Baker. “Given that significant defects have been identified with the sale process, shareholders cannot be confident they are receiving maximal available value for their shares,” ISS said in its report, which HBC this morning is attempting to poke holes in as “fundamentally flawed”. No word yet from fellow advisory service Glass Lewis. We are bracing for an onslaught of HBC news this week, with quarterly results due tomorrow and the Ontario Securities Commission resuming its hearing of a complaint from rival bidder Catalyst Capital on Wednesday.

CREDIT CARD DEBT CLIMBS

It’s not quite the day reckoning (yet), but there are cracks in foundation of Canada’s consumer debt market. A new report from TransUnion shows non-mortgage delinquency rates rose a quarter of a percentage point to 5.54 per cent in the third quarter, and total credit card debt rose above $100 billion. “While Canada is not expected to slip deep into a recession through 2020, any significant economic headwinds or downturn would likely put credit cards at a higher risk for increased delinquency rates relative to other major credit products,” said a TransUnion official in the release.  Check out Pattie Lovett-Reid's perspective in her blog at BNNBloomberg.ca

OTHER NOTABLE STORIES

-A pair of M&A transactions in the oncology sector this morning. Sanofi is buying Synthrox for US$2.5 billion and Merck is buying ArQule for US$2.7 billion

-GFL Environmental, which was recently in the spotlight after pulling the plug on a hotly-anticipated initial public offering, this morning announced plans to raise US$750 million in a pair of debt offerings, plus $300 million in a share sale to existing investors. Proceeds are earmarked for M&A and debt repayments.

-Total exports from China unexpectedly fell 1.1 per cent in November, while shipments to the United States plunged 23 per cent in the latest evidence of the pinch from their tariff feud, and less than a week away from the next scheduled escalation.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian building permits and housing starts

-10:00 a.m. ET: Ontario Financial Accountability Officer releases provincial economic and budget outlook

-11:30 a.m. ET: Alberta Premier Jason Kenney addresses Canadian Club in Ottawa (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.