Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

West Texas Intermediate surged to its highest level since 2014 this morning amid signals OPEC+ is prepared to stay the course. Ahead of today’s full ministerial meeting, the Joint Ministerial Monitoring Committee recommended the cartel and its allies hike output by another 400,000 barrels per day next month. There had been questions heading into today about whether OPEC+ would be compelled to raise output more aggressively amid mounting concern about a supply-demand imbalance. We’ll pay close attention as the energy subgroup remains the star performer for the S&P/TSX Composite Index this year.

CANADIANS CAN’T SHAKE THIRST FOR DEBT

The latest survey from MNP is reminding us that many Canadians can’t resist cheap money. Among the takeaways: 58 per cent of respondents said low rates are offering them an opportunity to buy things they couldn’t otherwise afford, and one out of every five respondents said they’re planning to avail themselves of buy now, pay later financing options. Meanwhile, more than one-third of respondents (35 per cent) said they’re worried that higher interest rates could push them into bankruptcy. 

EVERGRANDE WATCH

Shares of the debt-laden property developer have been halted in Hong Kong amid a report that a deal is in the works to raise cash by selling a stake in its property services division. It comes at a crucial moment after a US$260-million bond that Evergrande guaranteed hit its maturity date yesterday.

HOT POTATOES IN D.C.

Couple of active files that we’ll be tracking today. This morning, U.S. Trade Representative Katherine Tai is fleshing out the Biden Administration’s approach to trade with China, including a vow to “use the full range of tools we have and develop new tools as needed to defend American economic interests,” while also pledging targeted tariff relief. Separately, there are just two weeks to go until the date when U.S. Treasury Secretary Janet Yellen said America is at risk of not being able to pay its bills; U.S. President Joe Biden will deliver remarks today on the urgent need to raise the debt ceiling.

TAX LEAKAGE

The International Consortium of Investigative Journalists has done it again, with another massive release of documents about tax tactics of the rich, famous and powerful. The leak of almost three terabytes of information will no doubt give rise to questions about what governments should do about what is often legal, albeit aggressive, tax planning. Reminder that the Liberals pledged in their election platform to “significantly increase” the Canada Revenue Agency’s resources.

SUN LIFE SEES PROFIT IN AMERICANS’ TEETH

The big Canadian insurance firm announced last night that it’s buying DentaQuest for almost US$2.5 billion. DentaQuest is billed as the second-largest provider of dental benefits in the United States; and Sun Life said the acquisition will immediately boost its earnings. We’ll point out here that Sun Life has underperformed its peers by a wide margin over the last year, with a total return of 22.8 per cent, compared to a 36 per cent gain for Manulife and Great West’s 53 per cent surge.                                                                                           

OTHER NOTABLE STORIES

• Canadian National Railway has scheduled its special meeting of shareholders for March 22 to vote on what it calls TCI’s “dubious…costly and misguided” proposals.
• Tesla shares have been up almost three per cent in pre-market trading on the back of record quarterly vehicle deliveries, as Elon Musk’s company demonstrated resilience despite global supply chain challenges.
• Facebook is under the microscope today after the whistleblower who shared documents with The Wall Street Journal spoke with CBS’s 60 Minutes about what she (a former product manager named Frances Haugen) described as the company’s decision to prioritize “making more money.”
• Surge Energy could be on the move today after announcing it’s buying Fire Sky Energy for $58 million. Surge will issue 11.2 million shares to pay for the deal.
• General Motors is on our radar after The New York Times Dealbook reported Engine No. 1 (which rose to prominence with an activist run at Exxon Mobil) will disclose today that it has taken a stake in GM. Unlike with Exxon, however, Dealbook reports Engine No. 1 is not planning a “bruising battle” with the automaker. 

NOTABLE RELEASES/EVENTS

• Notable data: Canadian building permits
• 9:00: IBM hosts investor briefing
• 10:00: Real Estate Board of Greater Vancouver releases monthly sales
• 10:00: Ontario Superior Court resumes hearing Cineworld-Cineplex case
• 10:00: U.S. Trade Representative Katherine Tai delivers speech on Biden Administration's approach to bilateral trade with China
• 11:15: U.S. President Joe Biden delivers remarks on debt ceiling
• 13:00: Ontario Securities Commission hearing in the matters of Bridging Finance and ex-CEO David Sharpe