LOW FOR LONGER AND LONGER

Bank of Canada Governor Tiff Macklem isn’t wasting any opportunity to remind the country that cheap money is here to stay for the foreseeable future. “Canadians can be confident that borrowing costs are going to remain very low for a long time,” he told the House Finance Committee yesterday afternoon, adding that the economy is facing a “tough slog”. We’ll dig into the consequences for households (who, let’s not forget, are believed to be sitting on $90-billion cash hoard), and the banks that are bound to be a hot topic next week.       

BANK EARNINGS AHEAD

The Big Six will take the spotlight when they report year-end earnings next week. While Barry Schwartz cautioned on Market Call this week that there’s always the risk of a “wonky” or “kitchen sink”-style quarter at this time of year, some themes become apparent when reviewing analysts’ previews: expectations for loan growth are low, a sharp comedown in loan loss provisions at many of the banks is baked in, and Bay Street is pondering what’s ahead on the other side of COVID – including dividends and M&A. We’ll have a preview on BNNBloomberg.ca and don’t miss our conversation with BMO’s managing director of financials research, Sohrab Movahedi, at 9:10 a.m. ET.

TSX ON A ROLL

The composite index has now strung together six straight winning sessions, matching its longest hot streak since May. Have to go back to November 2019 for a longer stretch of gains. The TSX now sits just 3.3 per cent below its all-time closing high.

BLACK FRIDAY

In ordinary times, this is the day when many retailers traditionally become profitable for the year as shoppers crowd stores. Right now though, as I write this, our Bloomberg Television partners are showing a sad looking exterior shot of Macy’s in Manhattan which feels like an appropriate sign of the times in the COVID era. We’ll get insight on today’s stakes with KPMG Digital Services Leader Peter Hughes at 8:10 a.m. ET, and we’ll speak with Mastermind Toys CEO Sarah Jordan around 1:30 p.m. ET.

OTHER NOTABLE STORIES

-The Globe and Mail is reporting Rogers Communications and Brookfield Asset Management are exploring a potentially significant real estate project in Toronto that could see the Rogers Centre – home of the Toronto Blue Jays – torn down to make way for a new stadium and multi-purpose development. 

-Some notable names from the business community were named to the Order of Canada this morning, including CAE CEO Marc Parent and entrepreneur Denham Jolly.

NOTABLE RELEASES/EVENTS

-11:30 a.m. ET: Prime Minister Justin Trudeau discusses COVID-19 from outside Rideau Cottage

-1:00 p.m. ET: NYSE, Nasdaq trading ends

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.