Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The global race for COVID-19 vaccines and treatments has suffered a setback after Johnson & Johnson paused a study of the COVID-19 vaccine it’s developing due to an “unexplained illness in a study participant.” There are some important unknowns at this point, including whether the individual was receiving J&J’s product or a placebo, and how long it will take to get the process back on track. Shares of J&J are down less than three per cent in pre-market trading, which feels like muted reaction – perhaps because investors are coming to terms with these pauses as a regular occurrence in the development process. Also worth pointing out that the government of Canada has an order in place for 38 million doses of J&J’s vaccine.

CANADIANS’ FINANCES STRETCHED HEADING INTO HOLIDAYS

On a day when we’re going to be bombarded with reminders about how Amazon dominates the retail industry, we’re getting a timely snapshot of Canadians’ finances heading into the most crucial season for retailers. A PwC survey released this morning shows that on average Canadians are planning to spend $1,104 on the holidays, which would mark a 30.7 per cent plunge from last year. Meanwhile, MNP’s latest consumer debt index shows 47 per cent of respondents say they’re within $200 of insolvency – with Canadians who rent their home in particularly vulnerable condition.

AIR CANADA, TRANSAT REVISE DEAL TERMS

Calling it the “best prospect currently available” to ensure its “continued viability”, Transat announced at noon on Saturday that its board has accepted a dramatically scaled-down takeover price of $5 per share (versus $18 previously) from Air Canada. The renegotiated agreement has given Transat the flexibility to line up a $250-million loan via National Bank to help it bridge its way through the pandemic and regulatory approval process for the takeover.

IEA WARNS ON PEAK OIL DEMAND

The International Energy Agency released its flagship World Energy Outlook report today, including a mixed picture for global energy demand thanks to the pandemic. As for oil, the message is clear: “the era of global oil demand growth will come to an end in the next decade,” according to IEA Executive Director Fatih Birol. We’ll go deeper into the dynamics at play and why the IEA sees solar as best positioned to become the “king of electricity.”

IN CONVERSATION WITH STEPHEN POLOZ

The former Bank of Canada governor will share his view on the economic fallout from COVID-19 and policymakers’ race to contain the damage in a conversation today with Amanda Lang and Bloomberg’s Canadian Fixed Income Conference. Watch for that on Bloomberg Markets around 2 p.m. ET.

OTHER NOTABLE STORIES

-The International Monetary Fund moderated its view for the global economic contraction this year, now estimating a 4.4 per cent downturn, compared with its previous call for a 5.2 per cent drop in economic output. Meanwhile, the IMF is calling for a 7.1 per cent contraction in Canada this year, before growth of 5.2 per cent next year.

-JPMorgan Chase & Co.’s profit rose four per cent year-over-year in the latest quarter amid a 60 per cent plunge in provisions for credit losses and a 29 per cent gain in the key fixed income trading unit.

-Walt Disney Co. shares are up almost five per cent in pre-market trading after CEO Bob Chapek unveiled a corporate reorganization late yesterday to further fuel momentum in the company’s streaming operations.

-Hudbay Minerals disclosed on Saturday it’s pausing production at the 777 mine in Manitoba to allow for inspection of the mine shaft after an incident involving the hoist rope and bucket.

NOTABLE RELEASES/EVENTS

-Notable data: U.S. CPI

-Notable earnings: JPMorgan Chase & Co., Citigroup, Delta Air Lines, Johnson & Johnson

-8:30 a.m. ET: International Monetary Fund release World Economic Outlook

-11:30 a.m. ET: Prime Minister Justin Trudeau holds media avail in Ottawa alongside Intergovernmental Affairs Minister Dominic Leblanc, Chief Public Health Officer Theresa Tam, and Deputy Chief Public Health Officer Howard Njoo

-Former Bank of Canada Governor Stephen Poloz and Alberta Premier Jason Kenney speak at Bloomberg Canadian Fixed Income Conference (1140 and 1240, respectively)

-1:00 p.m. ET: Apple holds product launch event

-Newcrest Mining begins trading on the TSX

-Two-day Amazon Prime Day promotion begins

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.