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Noah Zivitz

Managing Editor, BNN Bloomberg

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Bitcoin and other crypto assets tumbled early this morning after the People’s Bank of China labelled transactions in that space illegal amid a sweeping crackdown. From peak to trough, Bitcoin sank more than six per cent. Related names like Coinbase and Hut 8 Mining have also come under pressure in pre-market trading. We’ll gather reaction.

EVERGRANDE WATCH

There’s no indication at this point that China Evergrande Group made the US$83.5-million coupon payment that was due yesterday. Our Bloomberg News partners are reporting holders of the U.S. dollar-denominated debt “gave no signs” that they received the interest owing. And a short time ago, Bloomberg reported China’s Ministry of Housing and Urban-Rural Development is scrutinizing the company’s bank accounts to ensure funds go toward actually building properties rather than paying creditors. Shares in the debt-laden property developer fell as much as 13.9 per cent in Hong Kong.

MARKETS STEADY

Despite the Evergrande fiasco, despite the crypto crackdown, despite crunch time in U.S. debt limit talks as the end of the fiscal year looms next week, markets are relatively muted this morning with major European indices and U.S. futures trading slightly lower. We’ll have plenty of insight from investment professionals throughout the day. And, on Bay Street, we’ll watch if the energy group can extend its three-session winning streak. Great day to have Eric Nuttall from Ninepoint Partners on Market Call.

EUROPE’S CAUTIONARY EXPERIENCE IN ENERGY TRANSITION

The energy crisis rippling across that continent as the wind fails to blow as expected and natural gas prices surge could serve as a warning signal for any economy attempting to manage a power grid transition. Like Canada. Jameson Berkow has been gathering insight on key takeaways; watch for his reporting online and on air today. And we’re expecting some interesting perspective in The Open, when the president of Vermilion Energy – which has expansive European operations – joins us around 10:30 a.m.

OTHER NOTABLE STORIES

  • Nike’s chief financial officer acknowledged on a call with analysts late yesterday that the apparel giant is “not immune to the global supply chain headwinds”, and so it cut its full-year revenue forecast after reporting a miss in the latest quarter despite booming online sales. Its shares have been down approximately five per cent in pre-market trading.
  • Vail Resorts announced after yesterday’s closing bell that it’s bringing back a dividend, albeit at half the rate it was paying before halting distributions at the onset of the pandemic. It’s also forecasting full-year adjusted profit that could fall far short of the average estimate.
  • In deal watch: Superior Plus has pushed out the timeline for closing its US$240-million acquisition of Kamps. Due to a request for more information from the U.S. Federal Trade Commission, the deal is now seen closing in the fourth quarter instead of the third.

NOTABLE RELEASES/EVENTS

  • Notable data: U.S. new home sales
  • 10:00: Ontario Superior Court resumes hearing Cineworld-Cineplex case
  • 11:00: Ontario Finance Minister Peter Bethlenfalvy and Treasury Board President Prabmeet Sarkaria delivers remarks on 2020-21 public accounts (plus avail)