Nov 19, 2020
The Daily Chase: COVID restrictions weigh on markets; Canada, U.K. near trade deal
By Noah Zivitz
The threat – and reality – of stricter public health measures appears to be taking a toll on market sentiment, as major European indices trade lower this morning and futures point to losses at the start of trading in New York. That’s where Mayor Bill De Blasio ordered public school buildings closed as of today and where Governor Andrew Cuomo warned of non-essential closures. In Canada, Ontario Premier Doug Ford was seething in his daily press briefing yesterday, where he intimated that tough new measures are on the way Friday. One bit of encouraging news this morning: new analysis – this time in a peer-reviewed medical journal – showing positive immune response to the COVID-19 vaccine being developed by AstraZeneca and Oxford University.
We’re looking forward to unique insight on COVID-19’s economic impact this afternoon when CN Rail CEO Jean-Jacques Ruest joins us shortly after 2 p.m. ET. And we’ll discuss the federal government’s aid strategy with Employment Minister Carla Qualtrough at 1 p.m. ET.
HOW TO DEPLOY $90B CASH HOARD
CIBC’s estimate of $170 billion in excess cash sitting on household and business balance sheets is still a hot topic. This afternoon, we’ll focus on the $90 billion that consumers are believed to be sitting on. What’s the smartest way to put those funds to use? We’ll check in with personal finance expert (and former BNN/ROBTv host) Bruce Sellery at 4:30 p.m. ET. One thing that’s clear from the latest BNNBloomberg.ca poll is that our audience is torn between waiting for investment opportunities (41 per cent) and opting for straight-up savings (35 per cent).
CANADA NEARING TRADE DEAL WITH U.K.
Our Bloomberg News partners are reporting Justin Trudeau’s government is “on the brink” of clinching a trade deal with the United Kingdom, with time being of the essence since the Brexit transition phase ends at the start of 2021. We’ll chase insight on the sectors that have the most at stake in ensuring friction-free Canada-U.K. trade. We’ll also get perspective on this from Roland Paris, a former senior global affairs advisor to Prime Minister Justin Trudeau.
OTHER NOTABLE STORIES
-Nasdaq Inc. is making a multi-billion acquisition in Canada. The exchange operator this morning announced it’s buying St. John’s-based Verafin – billed as a global leader in anti-financial crime management solutions – for US$2.75 billion in cash. In a release, Nasdaq CEO Adena Friedman said her company is “committed to supporting innovation and growth in St. John’s and Newfoundland and Labrador.”
-L Brands shares have been up more than 15 per cent in pre-market trading after the retailer swung to a third-quarter profit and delivered adjusted earnings way above the average estimate. Same-store sales in the quarter surged 28 per cent, and even CEO Andrew Meslow’s cautious tone about the current quarter isn’t overshadowing impressive Q3 growth figures.
-Norwegian Air has pushed some of its business units into bankruptcy protection while pinning the blame on the Norwegian government’s “decision to withhold further support” amid the pandemic.
NOTABLE RELEASES/EVENTS
-Notable data: U.S. initial jobless claims, U.S. existing home sales
-Notable earnings: Macy's
-8:30 a.m. ET : Moderna CEO Stephane Bancel addresses Bloomberg's New Economy Forum
-9:00 a.m. ET: Parliamentary Budget Officer releases costing note "Eliminating the Registered Retirement Income Fund (RRIF) minimum withdrawal amount″
-10:00 a.m. ET: Prime Minister Justin Trudeau in conversation with Bloomberg TV's Haslinda Amin at APEC CEO Dialogues virtual conference
-10:40 a.m. ET: World Health Organization Director-General Tedros Adhanom Ghebreyesus addresses Bloomberg's New Economy Forum
-11:10 a.m. ET: Environment and Climate Change Canada officials hold technical briefing on federal government's commitment to net-zero emissions by 2050
-12:00 p.m. ET: Imperial Oil holds virtual investor day
-12:15 p.m. ET: Prime Minister Trudeau makes announcement in Ottawa alongside Environment and Climate Change Minister Jonathan Wilkinson, Heritage Minister Steven Guilbeault and Infrastructure Minister Catherine McKenna
-2:00 p.m. ET: BCE CEO Mirko Bibic addresses Public Policy Forum
-3:15 p.m. ET: Prime Minister Trudeau meets with opposition leaders and holds COVID-19 briefing with Chief Public Health Officer Theresa Tam and Deputy Chief Public Health Officer Howard Njoo (NOTE: this is closed to media)
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.
