After Canada was stripped of its triple-A rating by Fitch yesterday, a couple of big questions linger: Will the other major ratings agencies follow? And will this light a fire under the government to do more than produce a mere “portrait” of its finances on July 8? Former Parliamentary Budget Officer Kevin Page addressed both this issues when we spoke with him: “If you’re a finance minister right now, there’s a little more pressure on you than there was just 24 hours,” he told us yesterday afternoon. “A few weeks ago, the Prime Minister said it would be a snapshot, now with this downward adjustment in the rating … we need to put something more out there in the window. We don’t want S&P, we don’t want Moody’s to be rethinking our triple-A status.” We’ll gather plenty more insight into the fallout from the downgrade today and in the days building up to the snapshot/portrait/update on July 8.

ROCKY MARKETS

Global stocks are mixed and U.S. futures are pointing to a negative open after yesterday’s sharp declines that even managed to snap the Nasdaq’s eight-day winning streak. COVID-19 infection numbers are persistently worrisome – particularly in the United States, where Texas Governor said his state is facing a “massive outbreak.” In California, Governor Gavin Newsom suggested some residents “have developed a little amnesia” about the pandemic’s threat to public health.

FEDS UNDER PRESSURE TO FREE MENG

A group of 19 influential Canadians, including ex-Supreme Court of Canada justice Louise Arbour and two former ambassadors to the United States, have written to Prime Minister Justin Trudeau to make the case for Justice Minister David Lametti to exercise his power to end Meng Wanzhou’s extradition process. It all comes down to doing what’s believed to be in Canada’s power to secure the release of Michael Spavor and Michael Kovrig. “Of course, it does not sit well with anyone to yield to bullying or blackmail,” the letter reads. “The means chosen by China in this instance to advance its interests are indeed repugnant. However, resisting China’s pressure is no guarantee that it will never be applied again in the future.”

OTHER NOTABLE STORIES

-In this space we’ve been tracking the battle over Enbridge’s Line 5 pipeline in Michigan; early this afternoon, an important development: a Michigan judge has granted a temporary restraining order on the pipeline that’s a crucial conduit for the state’s propane supply. That’s after Michigan’s Attorney General sought the court’s intervention due to concerns about a misaligned screw anchor support.

-BlackBerry posted a US$636-million net loss for the fiscal first quarter late yesterday, thanks largely to a big impairment charge against its Spark security business. On an adjusted basis, the company managed to swing to a profit even as revenue fell year-over-year as auto industry shutdowns hurt its QNX business. Shares are down almost 10 per cent pre-market.

-Canopy Growth and Acreage Holdings announced some changes to their takeover agreement this morning, including a US$37.5-million upfront payment and a reduced call option exchange ratio (.3048 of a Canopy share from .5818 previously). Acreage also announced Kevin Murphy is immediately resigning from his role as CEO (though will remain chairman), and Canopy has agreed to provide Acreage a loan of up to US$100 million.

-Starlight Capital CEO Dennis Mitchell joins us this afternoon to discuss the launch of the Black Opportunity Fund, a new initiative that will fund black businesses and organizations.

-We'll keep an eye on shares of Martinrea International after the Canadian auto parts maker disclosed some covenant relief from its lenders that it says will result in COVID-19’s impact being ignored by its banks. Executive Chairman Rob Wildeboer also described the second quarter as "quite frankly, brutal" and estimated sales fell 55 per cent year-over-year.  

NOTABLE RELEASES/EVENTS

-Notable data: U.S. GDP (Q1 third reading), U.S. durable goods orders, U.S. initial jobless claims

-Notable earnings: Nike

-9:00 a.m. ET: Parliamentary Budget Officer releases report “Provincial Government Liquidity Outlook”

-10:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa

-10:30 a.m. ET: Air Canada holds virtual annual meeting

-4:30 p.m. ET: U.S. Federal Reserve releases results from Dodd-Frank Act stress tests and Comprehensive Capital Analysis and Review

-5:00 p.m. ET: Finance Minister Bill Morneau addresses Corporate Knights' Best Corporate Citizens in Canada virtual gala

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