Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The U.S. Federal Reserve’s first rate cut since 2008 failed to satisfy investors yesterday, disappointed the American president (“as usual, Powell let us down”), and drove a wedge between members of the rate-setting committee. We’ll continue gathering reaction to the move, which Chair Jerome Powell made clear is not the start of a “lengthy cutting cycle”; its implications for markets as stocks stabilize this morning; and the spillover for Canada as the loonie loses more ground against the U.S. dollar. And we look forward to insight from Gluskin Sheff Chief Economist David Rosenberg in Bloomberg Markets. 

EARNINGS BARRAGE

Lots of big Canadian names reporting today. Some early highlights:

-BCE says it’s on track to hit full-year forecasts after beating second-quarter profit estimates. Almost 103,000 new postpaid wireless subscribers were added in Q2 and retail internet customer growth surged 52 per cent year-over-year.

-Shopify shares are rallying in pre-market trading after the company raised its full-year revenue forecast and sailed past second-quarter profit estimates.  

-SNC-Lavalin announced it’s slashing its quarterly dividend to two cents per share (from a dime), while reporting a quarterly loss that’s in line with the company’s warning last week.

-Bombardier’s quarterly cash burn was $429 million; the company also cut its full-year EBIT and revenue forecasts and warned it will burn through half a billion dollars in 2019.

-Canadian Natural Resources says it’s budgeting for the Alberta production curtailments to continue until the end of this year, while adjusted funds flow jumped 18 per cent in the second quarter. It’s also adding $100 million to this year’s capex budget.

OTHER NOTABLE STORIES

-Vancouver’s housing market is no longer in Code Red, according to CMHC’s latest housing market assessment. The formerly red-hot market is now displaying moderate vulnerability, after facing high vulnerability for three years.

-Hudbay Minerals is a notable mover today. Shares were down 20% in early trading after disclosing a major legal setback for its Rosemont project in Arizona.

-Shares of Beyond Meat sank in pre-market trading after the previously-announced secondary offering of shares was priced at a significant discount.

-Pre-election politics and business intersect today in a full-page open letter from Cenovus, MEG Energy, and Canadian Natural’s top executives in a few newspapers. They’re calling on Canadians to urge “leaders of all political stripes to help our country thrive by supporting an innovative energy industry.”  

-New condo sales in the Greater Toronto Area surged 77% year-over-year in the second quarter to near-record levels, according to new data released by Urbanation, which says there’s a “wave of demand” for units priced below $1,000 per square foot.  

-London Stock Exchange Group clinched the well-telegraphed takeover of financial data and trading business Refinitiv in a US$27-billion deal. Refinitiv’s shareholders, which include Thomson Reuters and Canada Pension Plan Investment Board, will own 37% of the combined entity.

-Rayonier Advanced Materials is selling a Quebec plant that it picked up in the takeover of Tembec. Sale price is US$175 million.

NOTABLE RELEASES/EVENTS

-Notable earnings: BCE, SNC-Lavalin, Shopify, Canadian Natural Resources, TC Energy, Baytex Energy, Parkland Fuel, Aphria, Fairfax Financial, Bombardier, Thomson Reuters, Maple Leaf Foods, Gildan Activewear, Open Text, Pembina Pipeline, Royal Dutch Shell, General Motors, U.S. Steel, Verizon, Pinterest, Etsy

-Notable data: ISM U.S. manufacturing index

-7:00 a.m. ET: Bank of England releases interest rate decision

-11:00 a.m. ET: CMHC releases Housing Market Assessment

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.