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Noah Zivitz

Managing Editor, BNN Bloomberg

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The concern about a top China property developer that’s been percolating for weeks has turned into a full-fledged global market event this morning. U.S. futures are pointing to a sharply lower open, while all the major European indices are in the red, and almost every major commodity (other than gold) is trading lower. The selling pressure started in Hong Kong, where the Hang Seng fell the most since July as debt-laden China Evergrande Group faces an imminent repayment obligation and amid speculation that Beijing won’t come to the rescue. We’ll gather insight on the potential far-reaching consequences for the global economy as President Xi Jinping attempts to stamp out excesses.

ELECTION DAY

We’re about to find out if Prime Minister/Liberal Party Leader Justin Trudeau’s election gambit will pay off. Either he secures a new mandate to steer Canada through the COVID-19 recovery and reshape the country’s economy, or we witness one of the biggest backfires in Canadian political history. We’ve got a stellar lineup of guests today to set the scene and discuss the stakes for the economy and your money, including a conversation with former Prime Minister Jean Chrétien at 1 p.m. ET. And later today we’ll carry the CTV News Election 2021 special coverage starting at 6:30pm ET.

THE VOTE’S STAKES FOR MARKETS

It stands to reason that the chief executives of Canada’s largest banks will be eagerly waiting to see how the election turns out, as they face the prospect of being singled out with for a surplus tax if the Liberals are re-elected. And how about the stakes for the telecom industry (of which our parent company, BCE, is included)? The telcos have long been targeted by efforts to stoke competition – and now perhaps most notably with the Conservative Party of Canada’s stated willingness to allow foreign competitors (so long as Canadian operators are granted reciprocal access). We’ll consider that and much more today with guests.

OTHER NOTABLE STORIES

  • Pfizer and BioNTech announced what they’re calling “favourable” antibody results in a Phase 2/3 trial of a lower-dose regime of their COVID-19 vaccine for children between the ages of five to 11. The companies now say they’ll move quickly to seek emergency use authorization in the U.S.
  • As of today, Alberta business owners have to decide between accepting tougher public health restrictions or screening patrons for COVID-19 vaccination or negative COVID tests. Restaurants and retail locations are among the venues that will have to make that decision. 
  • Apple was a big winner at the Emmy’s last night: the Apple TV+ program Ted Lasso won four awards, including outstanding comedy series.
  • The Caisse de dépôt et placement du Québec is paying A$2.3 billion ($2.1 billion) for a stake in a major Australian road network dubbed WestConnex.
  • NFI Group lost 20 per cent of its value in early trading after the Winnipeg-based bus maker slashed its profit and revenue forecasts for this year as it gets squeezed by global supply chain problems.

NOTABLE RELEASES/EVENTS

  • Notable data: Teranet/National Bank home price index
  • 10:00: Ontario Court of Justice hearing on charges against ex-CannTrust directors/execs
  • 10:00: Ontario Superior Court resumes hearing Cineworld-Cineplex case
  • 14:30: Brookfield Asset Management investor day presentation
  • Bombardier, Birchliff among stocks joining TSX Composite Index