Apr 6, 2020
The Daily Chase: Global stocks rally as virus toll eases; OPEC+ meeting delayed
By Noah Zivitz
Global stocks and U.S. futures are in rally mode this morning as investors cheer global COVID-19 developments that can only be described as less bad after the daily death toll in New York and some European hot spots came down. We’ll get actionable perspective this morning from the likes of Purpose Investments CEO Som Seif (11 a.m. ET) and BlackRock head of thematic investing Kate Moore (9:30 a.m. ET). Some big picture numbers on the health crisis: there’s been nearly 1.3 million global confirmed cases and almost 70,000 deaths blamed on the virus, according to Johns Hopkins University of Medicine. Canada has logged more than 15,500 cases, resulting in 47 deaths, according to our CTV News colleagues who are doing a spectacular job of tracking provincial and territorial updates.
Despite those numbers, social distancing directives, government lockdown efforts, and countless calls from front line healthcare workers on social media for people to stay home, there are still contrarians. Including The Big Short’s Michael Burry. Jon Erlichman tracked him down and documented their exchange for BNNBloomberg.ca
OPEC+ MEETING DELAYED
The virtual meeting that helped send West Texas Intermediate to a nearly 40 per cent gain over the final two sessions of last week has been postponed. And that’s putting pressure on crude this morning, with WTI falling as much as 10.8 per cent. Our Bloomberg News partners are reporting there could be a meeting of G20 energy ministers on Friday as part of the broader effort to have the United States play a role in the solution to stabilize prices. We’ll follow developments and continue gathering insight on what Canada’s energy sector wants from our federal government. On that note, you won’t want to miss our interview at 4:45 p.m. ET with Newfoundland and Labrador Premier Dwight Ball.
N95 LATEST
Prime Minister Justin Trudeau yesterday said he was looking forward to speaking with U.S. President “in the coming days” after Friday’s stunning disclosure by 3M that the U.S. administration had requested it halt exports of N95 respirator masks to Canada and Latin America. Trudeau added while speaking with reporters yesterday that he’s “confident that we’re going to be able to solve this.”
IN CONVERSATION WITH TD’S CEO
Bharat Masrani joins us this afternoon for an inside look at how Toronto-Dominion Bank is coping with the crisis (keep in mind TD is ubiquitous in New York City), relief for borrowers (note all of the Big Six have unveiled their credit card plans after BMO joined the fray late Saturday) and to share his outlook for the economy. That’s at 3 p.m. ET.
JOBS TRACKER
As Bay Street gears up for the monthly StatsCan Labour Force Survey on Thursday (a day earlier than usual due to Good Friday), we’re keeping tabs on corporate disclosures about furloughs, layoffs, and even some hirings tied to the pandemic. Check it out here, courtesy of our Michelle Zadikian.
NOTABLE CORPORATE DEVELOPMENTS
-Choice Properties REIT today withdrew its 2020 forecasts due to uncertainty stemming from the virus. It also disclosed it will offer tenants 60-day rent deferral on a case-by-case basis.
-Domtar is idling a pair of plants in the United States, resulting in 446 layoffs
-Chorus Aviation is suspending its dividend after the payment that’s scheduled for April 17 and sending home 3,000 employees as a result of the pandemic.
-CAE announced this morning it will suspend dividend payments and share buybacks. It’s also temporarily laying off 2,600 workers.
-MTY Food Group said it has laid off half its workforce and is suspending its quarterly dividend.
-NFI Group is extending temporarily shutdowns of plants and says it’s in talks with banks about covenant relief.
-CT REIT disclosed that tenants representing 2.8 per cent of its rent base didn’t fulfill their obligations on April. The REIT says it’s take a case-by-case approach for those whose financial viability is in doubt.
-In his annual letter to shareholders that was released today, JPMorgan Chase & Co. CEO Jamie Dimon said his bank has run an extremely adverse scenario stress test to measure how it would fare if the U.S. economy shrinks as much as 35 per cent in the second quarter. Dimon says JPM would still be able to weather that storm but that it would likely consider suspending dividend payments.
NOTABLE RELEASES/EVENTS
-10:30 a.m. ET: Bank of Canada releases Business Outlook Survey
-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa
-12:00 p.m. ET: Deputy Prime Minister Chrystia Freeland leads ministerial COVID-19 update
-1:00 p.m. ET: Ontario Premier Doug Ford leads provincial COVID-19 update
-5:00 p.m. ET: U.S Coronavirus Task Force holds briefing at the White House
-First day to apply for $2,000/month Canada Emergency Response Benefit
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.
