Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

We often look to HSBC Bank Canada’s results, which land several weeks ahead of Big Six reporting season, for hints at possible storylines to watch when Canada’s largest banks steal the show. This morning, there’s a standout story at HSBC as it disclosed the release of $2 million in funds that had been set aside for potential credit losses, while citing “improvement in forward-looking macro-economic variables, partly offset by an increase in impairment charges from non-performing loans in the energy, transportation and construction sectors.” Granted, the bank’s year-to-date set-asides are $328 million compared to $45 million a year earlier, but the relief in the latest quarter could be a theme to watch for.

STOCKS STABILIZE

U.S. futures are pointing to a muted open after yesterday’s volatile session that saw the S&P 500 fall as much as 2.9 per cent before it, and other major indices, bounced off their lows starting around 1:30pm yesterday. When all was said and done, the TSX and S&P ended up posting their biggest single-day drops since Sept. 23.

PANDEMIC WATCH

Quebec Premier Francois Legault announced late yesterday his government is extending red zone restrictions until Nov. 23, which – among other rules – means the prohibition on in-restaurant dining continues and gyms will remain shuttered in the province’s hotspots. That is, if gym operators abide. Yesterday, 200 industry operators indicated they were planning to resume operations on Thursday, in outright defiance of provincial guidance.

OTHER NOTABLE STORIES

-Shopify is partnering up with TikTok. Initially, the pact will only be available to U.S. merchants and will allow them seek out more buyers for their goods through the wildly popular social media platform

-MEG Energy swung to a net loss in the third quarter and its adjusted funds flow collapsed to $27 million from $192 million a year earlier due in part to scheduled turnaround at some of its facilities. We'll monitor the company's conference call at 830 a.m. ET for any discussion about M&A in the aftermath of the Cenovus-Husky deal.

-Teck Resources’ third-quarter revenue tumbled about 25 per cent and its adjusted profit per share was more than halved (both essentially in line with estimates) as COVID-19 pummeled coal and bitumen prices. The company’s energy unit fared worst of all, swinging to a US$62-million gross loss. Copper was a saving grace for Teck as revenue and profit from that unit increased. 

-BP Plc’s profit nearly evaporated in the latest quarter: just US$86 million in adjusted earnings, compared to $2.25 billion a year earlier, for all the obvious reasons given current energy market conditions.

-Maple Leaf Foods is having supply chain issues in its plant-based protein business. The unspecified setback results in a sharp decline in profitability for the company’s alt-protein unit in the latest quarter. Overall sales, however, rose 6% and adjusted profit per share soared 467%.

-West Fraser Timber swung to a third-quarter profit as sales surged 42 per cent year-over-year amid housing strength and a reno boom that’s driving demand for lumber and plywood.

-To wrap on a lighter note: Toronto-based toy maker Spin Master announced this morning it’s buying Rubik’s Brand Ltd., which of course is responsible for the Rubik’s Cube

NOTABLE RELEASES/EVENTS

-Notable data: U.S. durable goods orders

-Notable earnings: Teck Resources, Maple Leaf Foods, Restaurant Brands International, Cogeco, Element Fleet Management, Microsoft, Caterpillar, Pfizer, Merck, JetBlue Airways, Harley-Davidson, 3M, Advanced Micro Devices, BP

-11:30 a.m. ET: Prime Minister Justin Trudeau makes announcement in Ottawa alongside Social Development Minister Ahmed Hussen, Intergovernmental Affairs Minister Dominic LeBlanc, and Deputy Chief Public Health Officer Howard Njoo

-Toronto Global Forum continues (notable speakers include BMO CEO Darryl White at 12:00 p.m. ET, Rockefeller Foundation President Rajiv Shah at 1:50 p.m. ET)

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.