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Noah Zivitz

Managing Editor, BNN Bloomberg

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U.S. futures and European stocks are stable this morning after China showed some restraint in the midst of a rapidly-escalating feud with the United States. The People’s Bank of China firmed up the daily yuan reference rate after its currency fell below seven per U.S. dollar ­— a psychologically significant level that was breached yesterday and unleashed market shockwaves that sent U.S. stocks to their sharpest losses of the year, lifted perceived safe havens like gold, lit up warning signals in the bond market, and prompted the U.S. to formally label China a currency manipulator. Now the question is: what happens next? We’ll dissect the market activity and gather insight on the stunning events of the last 24 hours and spillover for the rest of the world.

TORONTO HOUSING HEATS UP

Home sales across the Greater Toronto Area surged 24.3 per cent year-over-year last month and prices moved higher as listing fell, prompting the Toronto Real Estate Board’s CEO to warn that tighter market conditions could push home price growth to “unsustainable levels.” We’ll speak with TREB’s chief market analyst at 10:30 a.m. ET.

M&A ON OUR RADAR

Couple of developments in some unresolved files:

-Group Mach isn’t going away quietly. Late Friday, it unveiled an offer to scoop up 19.5 per cent of Transat’s Class B shares for $14 apiece. In a phone interview with BNN Bloomberg's Paige Ellis over the weekend, Mach’s president said there’s been a “massive response” from shareholders, who otherwise are being offered $13 by Air Canada. This morning, Transat said it has filed a filed a regulatory complaint against Mach.

-Late yesterday, Catalyst Capital upsized its HBC share purchase plan. It’s now looking to scoop up 19.8 million shares (versus 14.8 million previously) as it attempts thwart the privatization bid led by Executive Chairman Richard Baker.

OTHER NOTABLE STORIES

-Aurora Cannabis forecast fiscal fourth-quarter revenue between $100-$107 million. Analysts, on average, were expecting $111.9 million. However, shares are rising presumably because the pot producer says it’s tracking toward positive adjusted EBITDA.

-Just Energy could be a stock to watch after announcing yesterday its CEO, Patrick McCullough, has quit. Director Scott Gahn has been appointed to fill the void – which arose in the midst of a strategic review.

-Shares of Bausch Health are rising in pre-market trading after the company formerly known as Valeant raised its full-year adjusted EBITDA and revenue forecasts. CEO Joseph Papa is also talking up his plan to continue reducing debt in the second half of the year.

-CI Financial has named Kurt MacAlpine its next CEO. He was head of global distribution for WisdomTree Asset Management, and previously served as a partner at McKinsey.  

-Semafo disclosed a recent pit wall failure at its Mana project yesterday. No injuries are being reported, but the company is lowering its production forecast as a result.

NOTABLE RELEASES/EVENTS

-Notable earnings: Martinrea International, Bausch Health, B2Gold, Canaccord Genuity, Maxar Technologies, Mosaic Co., The Walt Disney Co., Papa John's International

-9:30 a.m. ET: Foreign Affairs Minister Chrystia Freeland and British Foreign Secretary Dominic Raab hold media avail in Toronto

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