Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

It’s shaping up to be another bumpy trading day. After spending most of the overnight hours in positive territory, U.S. futures sagged into the red shortly after 4 a.m. That’s after tech got thumped last week as investors walk away from expensive growth stocks ahead of the U.S. Federal Reserve’s rate decision this week. The Nasdaq’s rout, however, is nothing compared to what’s happening in crypto, where Bitcoin sank 21 per cent over the last week and is down 50 per cent since its November high.

COUNTDOWN TO THE MAIN EVENT

Two more sleeps until the Bank of Canada’s interest rate decision. As of early this morning, the implied probability of a quarter-point increase Wednesday was almost 73 per cent, and markets were pricing in up to seven hikes this year. We’ll keep gathering perspective on the case to raise and what could happen if the bank fails to deliver. And be sure to check out Michelle Zadikian’s roundup for BNNBloomberg.ca on how the rate-hike cycle will affect the economy and your portfolio.

‘WILD WEST’ OF ESG INVESTING

At a time when we’re inundated with announcements from companies touting their environmental, social and governance bona fides, investors are often left to their own devices filtering the legitimate from the so-called greenwashing; and that point was made evident last week when Canada’s securities regulators mapped out new guidance on disclosures. But even that isn’t enough to assuage concerns. Check out Cathy Miyagi’s reporting at BNNBloomberg.ca, and stay tuned for a conversation this afternoon with ESG Global Advisors CEO Sarah Keynes, who warns the flood of interest in ESG has created a “wild west.”

OTHER NOTABLE STORIES

• Teck Resources has staved off a strike at its Highland Valley copper operations. The miner said in a release Saturday that its unionized employees ratified a new five-year labour deal.
• Couple analyst notes catching my eye: Credit Suisse upgraded Boralex to outperform from neutral and nudged up its price target amid a broader view that the “current malaise” facing the renewable sector is overdone. Meanwhile, RBC is expecting Nutrien’s full-year forecasts will exceed the consensus when it reports year-end results next month.
• One of Peloton Interactive’s shareholders is pushing for its chief executive to be ousted. Blackwells Capital (whose stake is reportedly less than five per cent) has called on the fitness equipment maker’s board to fire John Foley and explore a possible sale. Peloton has lost 83 per cent of its value over the last year amid production woes and as the stay-at-home trade has come undone.
• Shares in Kohl’s have been up almost 30 per cent in pre-market trading as Bloomberg News reports two suitors are circling the department store operator. Our partners say Sycamore Partners has reached out to Kohl’s about a possible deal; that comes after Starboard offered US$64 per share.
• Rounding out the flurry of activism: Nelson Peltz’s Trian Fund Management has reportedly taken a stake in consumer packaged goods giant Unilever. Its shares have been up more than five per cent in London this morning.
• Freshii announced a partnership with 7-Eleven this morning that will see some of the fast-food chain’s packaged goods land in approximately 600 convenience stories.
• Enerflex is buying Houston-based Exterran in a US$735-million all-stock takeover that will combine a pair of midstream service providers to the global energy industry.
• Pieridae Energy has wrapped up a strategic review with a stay-the-course plan. The company, which for years has been attempting to bring life to an LNG project in Eastern Canada, said its board looks at numerous options, but opted to remain a standalone company thanks in part to a restructured credit agreement.

NOTABLE RELEASES/EVENTS

• Notable data: Canadian manufacturing sales (December flash estimate)
• Notable earnings: IBM, Halliburton
• 1000: Prime Minister Justin Trudeau leads announcement on early learning and child care (plus avail)
• 1300: Virtual two-day cabinet retreat begins
• 1430: House Standing Committee on Finance holds another hearing on "Inflation in the Current Canadian Economy." Speakers include Scotia Chief Economist Jean-François Perrault