Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The price of oil has rallied as much as 3 per cent this morning, climbing above US$71 per barrel, in the wake of U.S. President Donald Trump's decision to re-impose sanctions on Iran. His decision is having a cascading effect across borders and is inflaming tension with Iran, where lawmakers set fire to a paper U.S. flag in parliament today. We'll continue to focus on the implications for the global energy supply chain. And on that front, the Trump administration couldn’t be more clear. “Will the United States resume efforts to reduce Iran’s crude oil sales,” reads one question in a FAQ posted to the Treasury Department’s website. The answer: “Yes.”

VANCOUVER’S MAYOR WARNS THE FEDS

Strong words from Gregor Robertson in our conversation with him yesterday. “It becomes dangerous territory when you’re talking about overriding First Nations … and provinces,” he told BNN Bloomberg about the ongoing battle over the Trans Mountain pipeline expansion, which faces a May 31 deadline to resolve Kinder Morgan’s threat to throw in the towel. We’ll watch for any developments today as Kinder Morgan holds its annual meeting in Houston later this morning. And at 10:00 a.m. ET we’ll get perspective on how the Canada Infrastructure Bank could be deployed by the Feds to achieve their goal of getting the pipeline built.

SHAREHOLDERS LAY INTO WESTJET

At least on paper. Amazing to see the level of dissatisfaction with the company’s board, with mid-to-high single-digit percentage of votes withheld for all directors at yesterday’s annual meeting. The concern about WestJet potentially spreading itself too thin with the Swoop launch and bulked-up fleet is well-established. As is the threat of labour strife. Worth considering how much patience investors will have after seeing the stock plummet 24 per cent so far this year.

HOME CAPITAL CEO STRIKES OPTIMISTIC TONE

Yousry Bissada says the lender, which battled to survive a liquidity crisis last year, is "back ... [and] ready to grow." Be that as it may, the company's first-quarter numbers are replete with reminders of the damage done by last year's turmoil. Profit sank 40 per cent year-over-year. Mortgage originations collapsed to the tune of 50.6 per cent. Today the question is how much faith investors should have in Bissada's growth plan. HCG shares are down 20 per cent year-to-date.

MORTGAGE WARS

While the recent parade of posted fixed-rate hikes has been fetching headlines, check out BMO’s percentage point discount on its five-year variable rate, as flagged by our Bloomberg partner Doug Alexander. We’ll try to tee up the stakes for the spring selling season today.

IN CONVERSATION WITH LARRY FINK

Names don’t get much bigger in the asset management universe. BlackRock Chairman and CEO Larry Fink sits down with Amanda today. Don’t miss it on Bloomberg Markets during the 1300 ET hour, when we’ll also catch up with Conrad Black.

OTHER NOTABLE STORIES

-Kinross shares have been down as much as 14.8 per cent in early trading. The company said late yesterday Mauritania rejected a permit application and wants to hold “mutually beneficial discussions” with the company about its operations in the country.

-Enbridge announced today it will selling minority interests in a basket of renewable power assets to Canada Pension Plan Investment Board for $1.75 billion. Enbridge previously said it’s aiming for $3B in asset sales this year.

-CIBC is taking a stab at pinning a dollar figure on the value of Canada’s soon-to-be legal cannabis market: $6.5 billion.

-Argentina has launched discussions with the International Monetary Fund amid a crisis that’s seen its currency sink almost 10 per cent against the U.S. dollar this month alone. Bloomberg is reporting the South American nation is seeking US$30 billion in support from the IMF.

NOTABLE RELEASES/EVENTS

-Notable earnings: Open Text, RioCan, TMX Group, Torstar, Franco-Nevada, New Flyer Industries

-Notable data: Canadian building permits

-11:00 a.m. ET: Kinder Morgan holds annual meeting Houston

-3:15 p.m. ET: Anne McClellan testifies before Senate Social Affairs Committee

-3:30 p.m. Et: Enbridge holds annual meeting in Calgary

-Ontario election campaign expected to officially begin

Every morning BNN'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.