Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

West Texas Intermediate crude oil has traded as high as US$60.95 and New York gasoline futures have spiked almost 6 per cent as a Texas winter blast wreaks havoc with energy infrastructure. As of 6 a.m. ET this morning, almost 4 million customers were without power in the state, according to poweroutage.us. Meanwhile, it’s been estimated that at least 1 million barrels in daily oil production has been shut down as the cold snap stings shale production in the United States, and refineries are being taken offline because of the fragile supply of power in Texas.

STOCKS RISE

Futures are pointing to gains at the start of trading as trading resumes in North America after yesterday’s holidays. All the major Canadian and U.S. indices closed at record highs on Friday; no doubt Shopify will take up even more of the spotlight than usual this week, with the TSX heavyweight scheduled to report quarterly results tomorrow.

NAVIGATING COVID

With just a few months to go before he passes the baton, Dean Connor joins The Open this morning to discuss the pandemic's impact on Sun Life Financial in the latest quarter and all the mitigating levers the life insurer has at its disposal. Don't miss that shortly after 10 a.m. And, this afternoon, we'll hear from GoodLife Fitness CEO David Patchell-Evans, who earlier this month tapped into the Large Employer Emergency Financing Facility for up to $310 million as the pandemic — and waves of public health restrictions— devastate his industry.

Meanwhile, the Canadian Chamber of Commerce today announced the formation and launch of a COVID-19 Recovery Leadership Council, which includes more than a dozen top business leaders, including co-chairs Marc Parent (CAE’s CEO), Cole Pinnow (Pfizer Canada’s president) and Tina Lee (T&T Supermarkets’ CEO). The group will “help develop practical solutions to reduce and ultimately eliminate COVID-19 in Canada,” according to the chamber.

OTHER NOTABLE STORIES

• The Globe and Mail is reporting the federal government is “closing to finalizing” a bailout package for Canada’s airlines, with Deputy Finance Minister Michael Sabia playing a leading role in the negotiations.
• Transat A.T. disclosed this morning that it’s been informed Air Canada will not negotiate an extension of the Feb. 15 outside date to wrap up its takeover agreement. That said, the deal isn’t dead – though it is on more fragile footing since either party can now scrap the arrangement at any time.
• Housing starts in this country surged 23 per cent to an annualized rate of 282,428; representing the hottest pace since September 2007. Montreal was a standout in the month, as work on single detached properties more than tripled.
• Bitcoin traded above US$50,000 per coin this morning as the cryptocurrency’s record-breaking surge continues  
• Constellation Software is halting special dividend payments, and may also “sacrifice” quarterly payouts to shareholders, to help finance deal activity. The strategy was disclosed late yesterday in a letter to shareholders from President Mark Leonard.
• We’ll watch shares of Dorel Industries this morning after the bike maker said yesterday its proposed privatization in a deal led by Cerberus collapsed due to inadequate shareholder support. 
• Dye & Durham is another stock on our radar after the Toronto-based software juggernaut this morning said it plans to raise $500 million in a stock and debt bought deal financing. The stock component is comprised of 3.96 million shares priced at $50.50 apiece. Should also point out the company reported a near-doubling in fiscal second-quarter revenue and adjusted EBITDA on Sunday (yes, really – Sunday).
• Alcanna this morning announced the sale of 19 stores in B.C. for $80.8 million.
• Pot retailer Fire & Flower Holdings today said it’s applying to list its shares on the Nasdq as part of its strategy to expand its brand beyond Canada.

NOTABLE RELEASES/EVENTS

• Notable data: Canadian international securities transactions, Canadian existing home sales 
• Notable earnings: Emera, Dream Industrial REIT, CVS Health
• 2:50 p.m. ET: Canadian Pacific President and CEO Keith Creel addresses Barclays conference
• 13F filing deadline for money managers