Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Global stocks are rallying this morning after China’s state-run media talked up the prospects for equities. The messaging came via the Securities Times, which trumpeted the outlook for a “healthy” bull market. The Shanghai Composite jumped 5.7 per cent, while European indices are firmly in positive territory, as are U.S. futures. It’s making recent reporting by BNN Bloomberg’s Anne Gaviola and David George-Cosh about novice retail investors’ stampede into the market seem all the more relevant.

CRYSTALIZING COVID-19 IMPACT

The Bank of Canada's latest business outlook survey has confirmed what everyone already knows: sentiment across Corporate Canada has collapsed thanks to hte pandemic and still-weak oil prices. There's a similar look to many of the charts illustrating this survey's results, with investment spending and sales expectations are deep in negative territory. Meanwhile, hiring intentions and capacity pressures have eased significantly. The survey was conducted from mid-May to early June.

BERKSHIRE MAKES ITS MOVE

Warren Buffett’s Berkshire Hathaway is paying US$4 billion for a basket of natural gas transmission and storage assets owned by Dominion Energy. Once assumed debt is taken into account, it’s a US$9.7-billion deal -- the largest transaction by Berkshire since it bought Precision Castparts in 2015. We’ll gather insight on why this was the right deal for Berkshire; the symbolism (if any) of adding more assets to the unit run by Canadian Greg Abel, who’s viewed as a top contender to succeed Buffett; and whether we should expect more deals any time soon.

CINEPLEX VS. CINEWORLD

The souring of relations is being formalized in court as Cineworld vows to countersue after Cineplex filed a statement of claim against its former takeover partner Friday. The U.K.-based theatre operator today vowed to “vigorously defend” itself against Cineplex’s allegations and played down the risk of having to hand over $2.18 billion minus the value of CGX shares held by investors. Cineworld also indicated it will file a claim of its own for damages and losses incurred in the takeover process.

OTHER NOTABLE STORIES

-Bellus Health shares are collapsing in pre-market trading in New York after the Laval, QC-based drugmaker reported disappointing results from a Phase 2 trial of a treatment for chronic cough.

-Our Bloomberg partners are reporting European Union officials will hold talks with Gilead Sciences today in an attempt to secure a supply of potential COVID-19 treatment remdesivir. Last week, the U.S. announced an arrangement that will see it scoop up nearly all remdesivir produced over the next three months.

-Bloomberg News' Josh Wingrove noted via Twitter last night that Prime Minister Justin Trudeau has “apparently declined” the invitation to join his NAFTA counterparts at the White House on Wednesday for a trilateral meeting to herald the coming-into-force of the new continental trade deal.

-Fire & Flower and Alimentation Couche-Tard are adding another layer to their existing relationship, with the pot retailer announcing plans this morning to pilot co-located stores with Circle K in Alberta.

-Uber Technologies confirmed our Bloomberg partners’ reporting this morning, announcing it will buy Postmates for US$2.65 billion.

NOTABLE RELEASES/EVENTS

-Notable data: ISM U.S. services index

-10:30 a.m. ET: Bank of Canada releases Business Outlook Survey

-11:00 a.m. ET: Federal cabinet holds virtual retreat

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