The Canada Emergency Response Benefit era is ending this weekend. Arguably the centerpiece of the government's initial plan to mitigate the economic hit from COVID-19, CERB's $2,000 monthly payout to eligible Canadians also became a lightning rod as some industry leaders said it made it more difficult to bring employees back to work. Now, Canada will begin the transition to a modified employment insurance system as of Sunday, while three new targeted recovery benefits await legislative approval. Yesterday the federal government raised the proposed Canada Recovery Benefit to $500/week, putting it on par with CERB – and winning the support of NDP leader Jagmeet Singh live on BNN Bloomberg. We’ll assess the structure of the new support benefits and the feds’ overall aid-management strategy with this week’s news on extending CEWS and expanding CEBA. Meanwhile, still waiting for details on what will replace CECRA.
VIRUS WATCHI
t’s a big day in Canada’s most populous province, as pharmacies launch COVID-19 testing for asymptomatic individuals. We’ll get a live look at the scene outside a 24-hour Shoppers Drug Mart this morning with one of our CTV News colleagues at CP24. Meanwhile, we had another senior medical practitioner on the station this morning saying it`s time to shut down fitness centers and in-restaurant dining. We`ll get perspective on that from RioCan CEO Ed Sonshine, and we’ll be watching what the prime minister has to say at noon when he addresses reporters alongside Canada’s chief public health officer.
IN CONVERSATION WITH CHINA’S CANADIAN ENVOY
We’re really looking forward to our conversation this afternoon with Cong Peiwu, China’s ambassador to Canada. Count on it being an in-depth discussion about relations between the two countries. Watch for it at 2:15 p.m. ET.
ROGERS DIGS IN ON COGECO
Rogers Communications announced a plan to invest $3 billion in Quebec to advance telecommunications technology in the province. But it comes with a catch. Rogers says the investment will happen `should it be successful` in its attempt to buy Cogeco`s Canadian assets. And so here we have another move in the telco’s attempt to woo Cogeco and its shareholders after the controlling Audet family’s repeated assertions that it will not sell its shares in the cable company. We’ll watch for any reaction from Cogeco and the Audet clan.
CMHC ON HIS HATERS AND HOME PRICES
If you missed it, check out Amanda Lang's interview with CMHC CEO Evan Siddall. In the conversation, he explained the rationale for warning of a “high single-digit” drop in home prices in most markets, acknowledged the haters he’s been known to spar with on Twitter, and spoke about why he’s “really, really” worried about the impact that high debt levels will have on growth in this country.
OTHER NOTABLE STORIES
-Reitmans has reported a 23.5 per cent plunge in second quarter sales and a $74.1-million net loss from continuing operations, with the pandemic's impact clear in the company's release - which also notes all of the retailer’s current employees are taking temporary pay cuts in support of Reitmans' cost-cutting efforts.
-TMX Group announced this morning it’s buying AST Investor Services, which is described as a “leading provider of transfer agency, corporate trust and related services” for $165 million.
-Tourmaline Oil's Topaz Energy spinoff filed for an initial public offering late yesterday, at an initial range of $13-$15 per share. Proceeds to the company are expected to be $217.5 million, while there'll also be a secondary offering of shares held by insiders that's seen grossing $35 million.
-The U.S. is once again poised to impose a ban on TikTok downloads this weekend, pending the outcome of an 11th hour court battle. ByteDance is seeking an injunction on the ban as authorities decide whether to allow to proposed deal with Oracle and Walmart to proceed. A judge has ordered the U.S. to either shelve the download ban or indicate by this afternoon whether it's prepared to argue its merits in a hearing this weekend.
NOTABLE RELEASES/EVENTS
-Notable data: U.S. durable goods orders
-1030: Families Minister Ahmed Hussen discusses support for early learning and childcare at event in Markham, Ont.
-1100: Heritage Minister Steven Guilbeault announces support measures for audio-visual sector
-1200: Prime Minister Justin Trudeau makes announcement in Ottawa alongside procurement minister Anita Anand, chief public health officer Theresa Tam and deputy chief public health officer Howard Njoo
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.
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