CRUDE SOARS MOST ON RECORD

West Texas Intermediate prices spiked shortly before 11am ET after U.S. President Donald Trump fanned hope for production cuts by Saudi Arabia and Russia via Twitter, saying “I expect & hope” they could cut output by as much as 15 million barrels. Dow Jones subsequently reported the Kremlin was denying that President Vladimir Putin had spoken with the Saudi Crown prince. Regardless, last I looked, WTI was still up 26.5 per cent after earlier surging 35 per cent (!).

MORNEAU SAYS DEFICIT NOT THE FOCUS

Finance Minister Bill Morneau made it clear on BNN Bloomberg late yesterday afternoon that he has bigger problems to worry about right now than the prospect of a rapidly-ballooning federal deficit. “I’ve been very focused during my time as finance minister to manage our fiscal position … well, that’s not where we are today,” he told Greg Bonnell shortly after unveiling some details of the $71-billion wage subsidy program. Morneau was coy when asked if the spending tied to COVID-19 could put this country’s AAA credit rating at risk; instead, he said he wants to “ensure that we actually have an economy coming out of this.” We’ll continue chasing business leaders’ reaction to the wage subsidy and gather insight on the outlook for Canada’s budget deficit.

IN CONVERSATION WITH DON WALKER

We’re going one-on-one with Magna International’s CEO this afternoon to explore how the pandemic is roiling global supply chains and prompting governments to lean on the private sector to help fill the need for personal protective equipment. Watch for that interview around 3:40 p.m. ET.

OTHER NOTABLE CORPORATE COVID-19 DEVELOPMENTS

-In a reminder that today’s jump in oil prices is small comfort in the grand scheme of things: Cenovus Energy this morning suspended its dividend and unveiled a deeper cut to this year’s capital spending budget alongside $150 million cuts to operational and G&A costs. It’s also scaling back executive compensation, including a 25 per cent cut to CEO Alex Pourbaix’s pay. 

-Shopify suspended its full-year financial forecasts late yesterday due to the virus, and also said thousands of its merchants were terminated last month for price gouging and false claims about face masks and hand sanitizer. Shares are slipping pre-market. Should be pointed out, however, that Shopify also said it expects first-quarter revenue and adjusted profit to be at, or above, the targets it set in February.

-Vail Resorts, whose properties include Whistler Blackcomb, late yesterday said dividend payments are being halted for the next two quarters in a move that will save the company US$140 million. It’s also furloughing the majority of hourly staff in the U.S. and cut this year’s capital budget by as much as US$85 million. 

-Wheaton Precious Metals has abandoned its production forecast for this year as a result of shutdowns implemented by its partners, including Newmont which late yesterday said it’s ramping down operations at Penasquito in Mexico (on government orders). Wheaton also says its dividend policy “remains intact."

-Badger Daylighting warned last night the outbreak “could materially disrupt” its operations, and so it’s withdrawing this year’s EBITDA forecast, cutting executive salaries and says it will reduce staffing levels.

-Cineplex has confirmed its cinemas and other venues will remain closed indefinitely as a result of government orders. At the time of the initial shutdown, Cineplex said the closures would be in place until April 2. The company’s shares are down almost 64% since the end of February, and closed yesterday at less than half the value of the $34/share takeout price by Cineworld Plc.

NOTABLE OTHER CORPORATE NEWS

-Barrick Gold has disclosed that its executive chairman, John Thornton, sold half his stake in the company – while stating he plans to retain, and will “seek to build on”, his remaining stake of 2.642 million shares. 

-Remember in October when WeWork was in full-blown crisis mode and SoftBank stepped in to buy US$3-billion worth of the company's stock from insiders? Overnight, that plan fell through with the Japan-based conglomerate saying conditions for the arrangement hadn't been met. A special committee at WeWork is threatening legal action.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian international trade balance, U.S. weekly jobless claims, U.S. international trade balance, U.S. factory orders, U.S. durable goods orders

-Notable earnings: Walgreens Boots Alliance

-9:00 a.m. ET: Parliamentary Budget Officer releases legislative costing notes, including on lowering minimum RRIF withdrawal rate and increasing maximum Canada Child Benefit payment

-9:30 a.m. ET: Toronto-Dominion Bank annual meeting

-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa

-2:00 p.m. ET: Finance Minister Bill Morneau addresses House Finance Committee (via teleconference)

-5:00 p.m. ET: U.S. Coronavirus Task Force holds briefing at the White House

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.