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Noah Zivitz

Managing Editor, BNN Bloomberg

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Looks like markets are hunting for direction ahead of the long-anticipated China-U.S. trade talks in Washington, D.C. The high-level negotiations will take place after a dizzying onslaught of headlines this week. Big deal? Partial deal? No deal? We’ll see. Most imminently, the two sides are facing the prospect of a tariff escalation as U.S. levies on US$250 billion worth of Chinese exports are set to rise to 30 per cent on Tuesday.

ROUGH WEEK FOR POT PRODUCERS

It hasn’t been an encouraging week for cannabis investors’ sentiment. After individual case studies in failed M&A (MedMen-PharmaCann), failed supply deals (Aleafia-Aphria) and failed financing (The Green Organic Dutchman), now we have failed forecasts. Quebec-based Hexo delivered a fourth-quarter revenue warning this morning and yanked its full-year forecasts while blaming a laundry list of issues ranging from delays in retail store openings, regulatory uncertainty and “early signs of pricing pressure.” For more on that, check out David George Cosh's piece on stubborn demand for cheap black market pot. Programming note: Commodities has a slew of pot industry execs in its show today, with TGOD CEO Brian Athaide, Sundial Growers’ Torsten Kuenzlen and Trichome’s Michael Ruscetta on deck.

TOP HOUSING PRO WARNS ON CAMPAIGN HOUSING PLEDGES

Royal LePage CEO Phil Soper is warning against campaign pledges that run the risk of juicing demand without also addressing supply shortage. "For example, lowering monthly mortgage payments by stretching repayment over a longer time period looks great on the surface, yet a surge in new buyers could cause prices to escalate, erasing the enhanced purchasing power," he said alongside LePage's latest quarterly home price survey. We’ll elaborate on that when Soper joins BNN Bloomberg's Greg Bonnell in The Real Economy.

DEBATE NIGHT

It’s the official French-language leaders’ debate tonight, representing the second-last major scheduled campaign event (other than the Conservatives’ full platform). No doubt it could Bloc Leader Yves-Francois Blanchet’s time to shine, while the latest Nanos Research data shows a four-point gap between the Liberals and Conservatives.

IN CONVERSATION WITH EXCHANGE INDUSTRY TITAN

Amanda will get unique perspective on capital markets today when she speaks with ex-Nasdaq CEO Robert Greifeld. What a time for the discussion, as the prospect of consolidation periodically boils to the surface (HKEX/LSEG) and after WeWork stepped up as the poster child for how not to go public. Watch for the interview in Bloomberg Markets.

OTHER NOTABLE STORIES

-Constellation Brands is asserting its influence at Canopy Growth as its CFO, David Klein, becomes the pot producer’s chair.

-Shares of Bed Bath & Beyond are surging in pre-market trading after the retailer tapped Target Chief Merchandising Officer Mark Tritton as its next CEO.

-Torex Gold is shooting down M&A speculation, saying late yesterday it “is not in dialogue with or considering” a deal with TMAC Resources.

-Village Farms, which is dabbling in cannabis after making its name in produce, is raising $25 million in a share sale priced at a discount to yesterday’s close ($9.40 versus $10.57). Worth noting VFF shares have plunged 54.7 per cent since March.

-And we’ll continue to keep tabs on fallout from the NBA clash with China. The Nets-Lakers game started as scheduled today in Shanghai; meanwhile, The Los Angeles Times is reporting Beijing “mandated” that neither of the team, or league Commissioner Adam Silver, hold news conferences related to the game.  

NOTABLE RELEASES/EVENTS

-Notable earnings: Delta Air Lines

-Notable data: Canadian new housing price index, U.S. CPI

-China-U.S. trade negotiations in Washington, D.C.

-12:30 p.m. ET: Ontario Finance Minister Rod Phillips addresses Canadian Club in Toronto

-1:30 p.m. ET: Onex holds investor day in Toronto

-8:00 p.m. ET: Federal leaders hold French-language debate in Gatineau, QC

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