$343.2 billion. No matter how many times you see or hear the deficit forecast figure for this fiscal year, the shock doesn’t wear off. Likewise, the estimate for $1.06 trillion in federal debt. But as far as the government is concerned, it was a straight forward decision: the feds are spending and borrowing so average Canadians don’t have to. Not only that, but ultra-low interest rates make the country’s debt (which stands at 49.1 per cent of gross domestic product, according to yesterday’s outlook) manageable, particularly with “robust market demand” for Government of Canada issuance. We’ll stress test that view. And if you missed it, here’s a roundup of what some guests had to say about the deficit, and lack of plan to dig out of it, in our coverage yesterday afternoon.

See full fiscal update here

MORNEAU REJECTS AIR CANADA CEO'S PLEA

Finance Minister Bill Morneau made it clear when we spoke with him that the government is in no rush to relax travel restrictions that are contributing to the hardship facing Canada’s airlines. “What we won’t be doing … is changing our approach, which we think will protect our health, in any way that’s inappropriate. Clearly, we have a real challenge south of the border right now and we don’t believe that changing the travel restrictions in a way that creates additional risk would be prudent at this time,” he told BNN Bloomberg's Greg Bonnell. The finance minister also gave no indication that targeted aid for airlines is on the way. We’ve reached out to Air Canada for reaction, particularly in light of CEO Calin Rovinescu’s recent fiery remarks to the Financial Post.

DAKOTA ACCESS PIPELINE LATEST

Energy Transfer LP was compelled late yesterday to clarify its plan for dealing with a judge’s order this week to take the controversial Dakota Access pipeline offline and drained. “We never suggested that we would defy a court order. Rather, DAPL is seeking appropriate relief from that order through the established legal process,” the company said in a release a few hours after one of its spokespeople was quoted as saying “we are not shutting in the line.”

OTHER NOTABLE STORIES

-Torstar confirmed this afternoon that it has received an unsolicited alternative takeover approach that’s subject to due diligence, and which the newspaper publisher says could eventually be a “superior proposal” to the deal that’s already in place for Nordstar at $0.63 per share.

-A pair of significant layoff announcements were made within a few hours of Morneau’s fiscal update yesterday, almost as a reminder of the strains still rippling through Canada’s economy: Via Rail is slashing 1,000 jobs, while indicating there’s no line of sight to travel returning to pre-COVID levels. Meanwhile, Irving Oil is cutting six per cent of its headcount due to current economic conditions. 

-Cineplex has announced the terms for a $275-million financing that’s key to securing extended covenant relief from lenders. In a release last night, the movie theatre operator set the conversion rate at 91.4077 commons shares per $1,000 in convertible debentures principal. And the annual interest rate on the debentures has been set at 5.75 per cent.

-Alstom announced a number of commitments today, including a pair of divestments, in an attempt to win the European Commission’s approval for its proposed purchase of Bombardier’s rail business.

-We’ll watch shares of Torstar after The Globe and Mail reported a competing bid could be in the works for the newspaper publisher, which previously agreed to a takeover at $0.63 per share.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian housing starts, U.S. initial jobless claims

-Notable earnings: Aritzia, Walgreens Boots Alliance

-9:30 a.m. ET: Senate Committee on Social Affairs, Science and Technology tables initial observations on government's COVID-19 response

-1:30 p.m. ET: Shopify Chief Operating Officer Harley Finkelstein in virtual conversation with Governor General Julie Payette on "Entrepreneurship in the time of pandemic"

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