Aug 14, 2018
The Daily Chase: Ontario delays in-store pot sales; Morneau to talk steel in Hamilton
By Noah Zivitz
Cannabis won’t be available for legal in-store purchases in Ontario on Oct. 17. Doug Ford’s government yesterday delayed the debut of brick-and-mortar marijuana sales to April 2019 and confirmed BNN Bloomberg’s previous reporting that it will be a private model when up and running. In the meantime, Ontarians will have access to an online portal to stock up on Canada’s legalization date. Which raises a ton of questions about whether the Ontario Cannabis Store’s platform will be able to handle demand. Another twist to yesterday’s announcement was allowing municipalities to opt out. So, with just over two months to go until legal pot sales, the country’s most populous province has ripped up its plan. We’ll assess the stakes for consumers and the industry, and we’ve got an interview with Finance Minister Vic Fedeli this morning.
AS THE WORLD TURNS AT HYDRO ONE
It’s been a little more than a month since Doug Ford got his way at Hydro One, with Mayo Schmidt leaving and the board of directors deciding to resign en masse. And with a deadline looming to announce a new board, this morning the company unveiled its slate of 10 directors. We’ll profile the appointees. But even with that matter resolved, there’s still plenty of unknowns. Like who the new CEO will be. And then there’s the Avista headache, with at least two state regulators extending their reviews of the $6.7-billion takeover as a result of the leadership overhaul. We’ll sift through the company’s earnings which landed with a bottom line beat.
STEEL SAFEGUARDS
There are multiple reports Finance Minister Bill Morneau today will announce the government is launching consultations to determine what it can/should do to avoid having foreign steel flood this country as a result of the punitive American tariffs. We’ll line up reaction to the announcement, which is scheduled for 11:45 a.m. ET in Hamilton, Ont.
TURKEY LATEST
The Turkish Lira is trading higher against the U.S. dollar this morning for the first time in five sessions. President Erdogan was defiant again today when speaking in Ankara and dug in deeper against the U.S., saying Turkey will boycott American electronics. A choice Bloomberg headline: “ERDOGAN: IF THEY HAVE IPHONES, OTHERS HAVE SAMSUNGS”. Later today we’ll speak with the CEO of Valeura Energy, one of the TSX-listed stocks with direct Turkey exposure.
OTHER NOTABLE STORIES
-Tesla announced today its board of directors has formed a three-member special committee that will take the lead on everything related to Elon Musk’s desire to privatize the carmaker.
-DavidsTea is moving into Loblaw, with a deal today that will see packaged tea available at “select” locations soon.
-Home Capital Group swung to a second-quarter profit of $29.6 million. Of course, the year-ago was full blown crisis time at Home Cap. Sequentially, the alternative lender’s net income dipped 14 per cent, while originations rose and provisions for bad loans inched up to $6.5 million.
-Callidus Capital announced late yesterday its executive chairman and CEO Newton Glassman is taking medical leave, will have two "significant" operations in the fall and that tests show "indications of a possible neurological disorder". Callidus separately announced its second-quarter loss widened to $41 million.
NOTABLE RELEASES/EVENTS
-Notable earnings: Canopy Growth, Hydro One (0800 conf call), CAE, Great Canadian Gaming, Enercare, Home Depot
-Notable data: Teranet/National Bank Canadian home price index, China retail sales and industrial production
-11:30 a.m. ET: Natural Resources Minister Amarjeet Sohi holds closing news conference with Nunavut’s deputy premier at Energy and Mines Ministers’ Conference in Iqaluit
-11:45 a.m. ET: Finance Minister Bill Morneau makes announcement and holds avail at ArcelorMittal Dofasco plant in Hamilton, Ont.
-13F filing deadline in the U.S.
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.
