Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Investors who bought into the hype surrounding legalized recreational cannabis use, and held on through licensed producers’ stumbles, are likely hoping for a smoother ride in the upcoming second year of legal consumption. To wit: the Horizons Marijuana Life Sciences ETF is down 56 per cent since Oct. 17, 2018.  In the coming days, we’ll reflect on the growing pains that afflicted the sector (as Avenue Investment Management Partner Paul Gardner said this morning on The Street, “We’re the guinea pigs of the world”) and look ahead to what consumers can expect from the launch of edibles.

INFLATION WATCH

Today’s consumer price index feels especially timely coming in the midst of a federal election campaign largely being fought on cost of living concerns. The total consumer price index rose 1.9 per cent year-over-year in September, matching August’s rate, and coming in a bit lighter than expected. Gasoline was a big factor, as prices slid 10 per cent from Sept. 2018, according to StatsCan.

LIVE ON LOCATION

Some special coverage to watch for today on BNN Bloomberg: Amber Kanwar will be surrounded by tech sector growth names at the annual CIX conference in Toronto, where she’ll be speaking with the likes of Lightspeed CEO Dax DaSilva and BMO Capital Markets Managing Director David Wismer. And we’re going to New York where Bloomberg is putting this country in the spotlight at its Canada Fixed Income Conference. Speakers include National Bank CEO Louis Vachon and Quebec Finance Minister Eric Girard. We’ve got interviews with both of them after their presentations. You can watch the conference live on BNNBloomberg.ca

OTHER NOTABLE STORIES

-Aritzia will be a stock to watch after outpacing estimates in its second quarter amid double-digit revenue and net income gains. CEO Brian Hill is touting “interest from highly relevant celebrities” as a driver in the retailer’s success.

-SIR Royalty Income Fund is slashing its monthly distribution to 8.75 cents/unit from 10.5 cents, pointing to eroding sales at the restaurants its revenue stream is based on (names like Jack Astor’s and Reds, which is a popular Bay Street hangout) as home-delivery options gain popularity and minimum wage hikes drive up menu prices. (NOTE: Adena is chasing SIR’s CEO)

-We’ll keep an eye on the Canadian rail stocks today after Bank of America Merrill Lynch upgraded CN to Buy (citing growth opportunities) and cut CP to Neutral (citing carload pressure)

-Huawei says its smartphone shipments surged 26 per cent in the first nine months of the year, while total revenue rose 24 per cent. Bloomberg points out the company’s results were unaudited.

-Shares of Bank of America are rising in pre-market trading after beating profit expectations in the third quarter. Check out the 27 per cent surge in investment banking fees.

NOTABLE RELEASES/EVENTS

-Notable earnings: Bank of America, Netflix, IBM, CSX, Alcoa, Kinder Morgan

-Notable data: Canadian CPI, Canadian international securities transactions, U.S. retail sales

-8:30 a.m. ET: International Monetary Fund releases Global Financial Stability Report

-9:10 a.m. ET: Anne McLellan delivers remarks on cannabis legalization at Canada 2020 conference in Toronto 

-10:25 a.m. ET: U.S. President Donald Trump meets with Italy President Sergio Mattarella in Oval Office

-12:00 p.m. ET: Trump, Mattarella hold joint news conference at the White House

-Two-day CIX startup conference begins in Toronto

-Bloomberg hosts Canadian fixed income conference in New York (agenda: https://www.bloomberglive.com/bloomberg-canadian-fixed-income-conference-2019/#row-hero)

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.