Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

It’s been another choppy morning, with U.S. futures moving in and out of positive territory, as the deluge of COVID-19 developments continues. Over the weekend, top U.S. infectious disease expert Anthony Fauci warned his country could see up to 200,000 deaths from the virus and President Donald Trump gave up on his Easter target for a return of normalcy. Meanwhile, as of last night Canada’s case count had reached 6,289; and 66 deaths were being blamed on the virus. From a policy perspective, Ontario Premier Doug Ford put price gougers on notice yesterday with an emergency order that includes the threat of potential jail time and fines of up to $10 million for corporations that jack up prices for goods including personal protective equipment and disinfectant wipes.

BRACING FOR ‘BURSTING OF THE CANADIAN CONSUMER DEBT BUBBLE’

That’s the warning from MNP’s president this morning, as the insolvency experts release their latest snapshot of household finances, which shows 49 per cent of respondents saying they’re within $200 of not being able to cover their monthly bills and 34 per cent saying they’re worried about job security. The data was gathered in the first week of March, so we can only imagine how sentiment would have deteriorated in the interim.CTV's Chief Financial Commentator Pattie Lovett-Reid will have more on this for BNN Bloomberg and BNNBloomberg.ca today, and we’ll also weave in the implications of the Big Five banks matching the Bank of Canada’s surprise rate cut Friday with half-point cuts to their prime rates.

OIL CRASH

West Texas Intermediate has been down as much as 7.4 per cent today, pushing it to the lowest level since 2002 amid what Bloomberg News frames as a “broken market” that’s drowning in crude. The price erosion is even more stunning here, with Western Canada Select down almost 87 per cent year-to-date and Alberta Premier Jason Kenney warning of “the largest single contraction of our economy in history” as the province contends with oil and health crises. Kenney also said late Friday he’s planning talks with American officials about potential coordinated measures to insulate the continent’s producers from the Saudi-Russia price war. We’ll explore what that could look like.

AWAITING MORE AID

This was supposed to be Finance Minister Bill Morneau’s day in the spotlight, with the federal budget having been scheduled for delivery. Instead of tabling the government’s most important annual fiscal roadmap, he instead enters the week as the subject of anticipation as the oil and gas and airline industries await support packages to help get them through this crisis. The Globe and Mail is reporting airlines are “seeking all forms of help”, while their unions reportedly pushed Morneau this weekend to clamp down on executive compensation, dividends, and buybacks.  Meantime, the oil patch is reeling and waiting for assistance. Those are the high-profile stakeholder groups, but they’re by no means alone. To wit: this morning the Fitness Industry Council of Canada warned of “massive closures and bankruptcies” in the absence of emergency support from provincial governments.  

OTHER NOTABLE CORPORATE COVID-19 DEVELOPMENTS

-Inter Pipeline today said its monthly dividend is being slashed 72% to four cents per share. It’s also suspending the sale process for its European bulk liquid storage business.

-Cominar REIT withdrew its forecasts late Friday and said it’s not expecting to execute any asset sales this year. Keep in mind our Bloomberg partners previously reported Cominar had enlisted banks to help shop the main Montreal train hub. The REIT also said it’s reducing its construction workforce.

-Freshii today warned of a “material impact” on its business and financial performance as a result of the virus. It also said it has “temporarily streamlined” head office staff as part of its cost-management strategy.  

-Shares of Abbott Laboratories are soaring in pre-market trading after the company launched a new rapid coronavirus test that’s been fast-tracked by the U.S. Food and Drug Administration. 50,000 units are expected to be made available daily as of Wednesday.

-Claire’ Stores has disclosed furloughs affecting the majority of its in-store staff and 250 head office employees.

-Porter Airlines confirmed late Friday afternoon that it arranged $135 million in financing via Export Development Canada.

OTHER NOTABLE NEWS

-Some M&A in the mining sector: Argonaut Gold announced it’s buying Alio Gold in a friendly, all-stock at-market deal. Alio shareholders will receive 0.67 of an Argonaut share for each ALO-TSX share held.

NOTABLE RELEASES/EVENTS

-Notable data: China releases official Purchasing Managers' Index (late tonight)

-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa

-1:00 p.m. ET: Ontario Premier Doug Ford leads provincial COVID-19 briefing

-5:00 p.m. ET: U.S. Coronavirus Task Force hold briefing at the White House

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.