Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Canopy Growth is demonstrating more symptoms of the growing pains afflicting Canada's cannabis industry. Its adjusted second-quarter loss more than doubled and net revenue trailed off. The pot producer's quarter was marred by almost fifty million dollars in charges related to returns and an inventory writedown; meanwhile, expenses jumped 48 per cent year-over-year. Despite all of that, CEO Mark Zekulin said he believes headwinds are “short-term” in nature. Investors might think otherwise, with shares under pressure in pre-market trading. We’ll speak with Zekulin this morning on Commodities.

And, related: worth pointing out Paige Ellis caught up with Torys LLP’s new managing partner, Matt Cockburn, and discussed the firm’s view on the cannabis sector. Watch for that interview on BNN Bloomberg and BNN Bloomberg.ca

MACNAUGHTON ON HUAWEI CFO FALLOUT

Former Ambassador David MacNaughton says Canada’s dispute with China over the detention of Huawei CFO Meng Wanzhou needs to be fixed as part of U.S. trade negotiations with China. “As the Americans are working with the Chinese on trying to improve their trading relationship, we have reminded them frequently that this issue has to be solved as part of any kind of agreement that happens between China and the United States,” he told BNN Bloomberg, adding “it’s not fair” for Canada to be paying the entire price for detaining Meng at the Americans’ behest. See the full interview here. 

IN CONVERSATION WITH MICHAEL MCCAIN

I think it’s safe to say the CEO of Maple Leaf Foods isn’t going to be following in Doug Suttles’ and Encana/Ovintiv’s footsteps. “I’m a hardened, ardent, dedicated Canadian and I will always advocate for the Canadian experience,” McCain told Jon Erlichman in an interview. He also lauded the Canadian government for taking a more “responsible” fiscal approach than the Americans, who he said are enjoying a “near-term benefit on the back of a trillion-dollar deficit.” Watch for the full interview, including his views on the “tectonic shift in consumer behaviour” this morning on The Open.

TSX ON A ROLL

The Composite Index closed at a record yesterday and is riding a nine-session winning streak; names like Stantec (+21.7 per cent), Home Capital Group (+20.9 per cent), and Enerflex (+15.8 per cent) have been star performers over that stretch. We’ll watch if the TSX can make it ten-for-ten today.  

GOVERNMENT FACES PRESSURE OVER CRTC DECISION

Bell formally petitioned the federal government yesterday to overturn the CRTC’s decision in August to retroactively slash wholesale access rates paid by smaller resellers. Separately, several of the country’s cable companies – including Shaw, Videotron and Rogers – banded together with a petition of their own, asking the feds to order the CRTC to reconsider its ruling. We’re chasing reaction for this story that could gain momentum as Prime Minister Justin Trudeau prepares to unveil his cabinet next week. And standard disclosure: BNN Bloomberg and Bell Canada are owned of BCE.

OTHER NOTABLE STORIES

-Walmart shares are rising in New York after the retailer beat third-quarter profit estimates and said it now expects to register full-year profit growth. CEO Doug McMillon said his company “needs to do more” to improve apparel and general merchandise sales in Canada.

-The Lion King and Spider-Man helped lift Cineplex’s revenue to a record in the third quarter, while adjusted earnings per share exceeded estimates by a wide margin. CEO Ellis Jacob joins us on Bloomberg Markets.

-Freshii will also be on our radar after it reported a 3.7 per cent drop in third-quarter same-store sales late yesterday

-Lots of portfolio managers on our station have called for oil producers to ramp up share buybacks. Suncor is doing precisely that, announcing it will add $500 million to its share buyback program.

-Some noteworthy global economic data this morning, with Germany narrowly dodging a recession and China’s industrial production and retail sales growth slowing in October

NOTABLE RELEASES/EVENTS

-Notable earnings: Aurora Cannabis, Canopy Growth, Brookfield Asset Management, Cineplex, Walmart, Nvidia

-Notable data: China retail sales and industrial production

-10:00 a.m. ET: U.S. Federal Reserve Chair Jerome Powell addresses U.S. House Budget Committee

-10:00 a.m. ET: Parliamentary Budget Officer releases report “Economic and Fiscal Outlook – November 2019”

-4:00 p.m. ET: Barack Obama addresses Montreal Chamber of Commerce

-10:00 p.m. ET: Bank of Canada Governor Stephen Poloz delivers speech in San Francisco (remarks on Bank's website at 2145)

-13F filing deadline

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.