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Noah Zivitz

Managing Editor, BNN Bloomberg

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Global supply chain problems, and their impact on inflation, remain front and centre this morning. Among the new developments: China’s producer price index just leapt to its highest level since 1995, and the International Energy Agency has bumped up its global oil demand forecasts for this year and 2022 as a result of the energy squeeze that’s been making headlines for weeks. It also delivered this warning: “The higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery.” There was a bit of relief at 8:30 a.m. ET, however, when we learned the U.S. producer price index rose slightly less than expected with a year-over-year gain of 8.6 per cent; excluding food and energy, PPI rose 6.8 per cent. And so, the debate about transitory inflation trends will rage on.

‘IT’S BRUTAL’: VIEWS FROM THE FRONTLINES OF CANADA’S SUPPLY CHAIN

Keep an eye on BNNBloomberg.ca for Temur Durrani’s latest; he spoke with more than a dozen truckers and other transportation industry workers about the challenges they’ve faced since the onset of the pandemic and their roles in keeping shelves stocked amid strained supply chains. These are important voices that we don’t often hear from; and Temur’s reporting should serve as a wake-up call. Watch for a live interview with one of the trucking professionals this morning on The Open.

ARITZIA SETS ITSELF APART

Old fashioned brick and mortar retail was a boon for Aritzia in the latest quarter as revenue from in-store activity nearly doubled year-over-year, and was even up 13.8 per cent compared to two years ago. "Retail has surpassed our most optimistic expectations and is continuing to trend above pre-pandemic levels, now and for the foreseeable future," Founder/Chairman/CEO Brian Hill said in a release. Begs the question of what the secret is to Aritzia's success in an area where so many others have failed. We’ll talk with Hill tomorrow.

OTHER NOTABLE STORIES

  • Canopy Growth is making another move to position itself for the eventual federal legalization of cannabis in the United States. This morning, it announced it has secured the right to buy Wana Brands and will pay the edibles maker US$297.5-million upfront for that privilege.
  • Former Bank of Canada Governor Stephen Poloz is adding another corporate role to his resume: he’s joining Ottawa-based OMNI Conversion Technologies as a director. We’ll speak with Poloz this afternoon.
  • Barrick Gold said this morning it’s on track to hit its full-year production targets despite some choppy output at mines in Nevada.  
  • Just like JPMorgan Chase & Co. yesterday, Bank of America has delivered a mix bag this morning in its third-quarter results. Lending activity in its consumer division fell compared to a year earlier; trading and investment banking revenue climbed. Add it all up though, and BAC shares are rising pre-market. Shares of Morgan Stanley are also rising after the Wall Street titan reported third-quarter revenue jumped more than 25 per cent.
  • Dream Industrial REIT announced a financing after yesterday's closing bell to help fund its acquisition spree. It's raising $250 million in a unit sale priced at $16.50 apiece. Dream also said it's in negotiations to purchase seven assets for approximately $420 million.
  • We’ll watch shares of Whitecap Resources today after the company said it’ll raise its monthly dividend 38 per cent to $0.0225 per share. It also revealed plans for up to $490 million in capital spending next year, compared to this year’s range of $425 million to $435 million.
  • Pattie’s reporting earlier this week about guarding against scams is looking prescient after the Ontario Securities Commission announced late yesterday that charges have been laid against Stephane Gagnon over allegedly bilking Canadians in a scam by promising immediate access to locked-in retirement accounts. The OSC claims Gagnon collected more than $20 million from investors in over a six-year span and “used a significant percentage…for personal expenses”. The allegations haven’t been tested or proven in court.

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian manufacturing sales, U.S. initial jobless claims and producer price index, China CPI and PPI
  • Notable earnings: Bank of America, Wells Fargo, Morgan Stanley, Citigroup, Alcoa, Walgreens Boots Alliance
  • 12:00: U.S. House Energy and Mineral Resources Subcommittee hearing "Impacts of Abandoned Offshore Oil and Gas Infrastructure and the Need for Stronger Federal Oversight"
  • 13:00: Deputy Prime Minister and Finance Minister Chrystia Freeland holds media avail in Washington, D.C. 

Editor’s Note: An earlier version of today’s Daily Chase indicated our interview with Brian Hill is happening today. We apologize for the confusion.