BNN Bloomberg has learned HBC is considering closing some stores and aiming to renegotiate leases in an attempt to bolster the company’s performance while simultaneously facing a privatization attempt by its executive chairman. The behind-the-scenes deliberations underscore the magnitude of tumult at Canada’s oldest company. Check out Jon’s Erlichman's scoop at BNNBloomberg.ca
TORONTO HOUSING HEATS UP, TRIGGERING JABS AT OSFI STRESS TESTS
Another month of double-digit sales gains and rising prices in Canada’s largest housing market has triggered another wave of lobbying to loosen mortgage stress tests that took effect at the start of last year. The Toronto Real Estate Board today reported a 10.4 per cent year-over-year jump in June property transactions; meanwhile, listings fell and the average price rose 3 per cent to $832,703. TREB officials took a couple of digs at the OSFI-mandated stress tests in the process. We’ll be on the lookout for reaction from CMHC chief executive Evan Siddall, who hasn’t taken kindly to calls for regulators to back off.
WHAT’S NEXT FOR CANOPY?
Mark Zekulin, the pot producer’s new chief executive, told us yesterday afternoon there was an “unalignment” between Canopy’s board and its now-ousted founder, chairman and co-CEO, Bruce Linton. Zekulin also said the management change doesn’t signal Constellation Brands is tightening its grip on the company. We’ll keep exploring what comes next for the big cannabis producer.
KAWHI WATCH
OTHER NOTABLE STORIES
-Martello Technologies, the company Bruce Linton co-chairs, has put out a statement saying it doesn’t have any explanation for recent market activity. Stock jumped 43 per cent yesterday and another 30 per cent today, as of noon eastern. It’s a penny stock, but worth noting in light of Linton’s affiliation. Our David George-Cosh is poking around on this.
-The 34 workers who had been stuck at Nutrien’s Cory potash mine in Saskatchewan since Tuesday afternoon were brought to the surface late yesterday.
-Our Bloomberg partner Natalie Obiko Pearson has a great feature on Li Ka-Shing’s big bet on a Vancouver-based healthcare startup.
NOTABLE RELEASES/EVENTS
11 a.m. ET: Prime Minister Justin Trudeau makes announcement in Montreal (plus media availability)
1:30 p.m. ET: Natural Resources Minister Amarjeet Sohi addresses Calgary Chamber of Commerce.
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.
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