Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The speculative frenzy surrounding BlackBerry and GameStop appears poised to extend into another day, with shares of both jumping again in pre-market trading as the frenzy on Reddit overwhelms Wall Street. Even that social network’s co-founder is getting in on the action. We’ve heard from market professionals, and those who track them closely, that segments of the market are “living in different universes” and that it’s going to “come to a very bad end” for those who are pumping gains entirely detached from fundamentals. But when? And what’s a more conservative retail investor to do? We’ll explore those and other question surrounding this mania today.

IN CONVERSATION WITH CHRYSTIA FREELAND

This one promotes itself: Amanda is speaking with the deputy prime minister and finance minister this afternoon. Major issues that will determine the road ahead for Canada’s economy and its recovery from the pandemic will be covered. Don’t miss it in Bloomberg Markets. Can’t be sure if it will factor into the discussion, but certainly worth pointing out the Canadian Centre for Policy Alternatives’ deep dive on how COVID-19 emergency funding has been allocated and spent (or not); indeed, the analysis shows provinces are leaving billions of dollars on the table.

HIGH STAKES FOR TRANS MOUNTAIN EXPANSION

That’s always been the case, but even more so in the aftermath of Keystone XL’s demise at the hands of U.S. President Joe Biden. We’re looking forward to speaking with National Coalition of Chiefs President Dale Swampy this afternoon about the role Indigenous groups are prepared to play in securing the expansion’s future. We’re also aiming to land former ambassador and ex-TC Energy Director Derek Burney to discuss his well-informed call to action for the federal government – which includes dusting off Energy East.         

IMF BOOSTS GLOBAL OUTLOOK

The International Monetary Fund today raised its estimate for global economic growth this year to 5.5 per cent from 5.2 per cent, thanks to the COVID vaccine rollout and stimulus efforts. But it's not a one size fits all view of the world. Indeed, the IMF slashed its GDP outlook for Canada this year to 3.6 per cent from 5.2 per cent. No country-specific commentary to explain that move, but the IMF did warn that commodity-reliant economies are among those that are "particularly exposed to persistent damages to supply potential."

OTHER NOTABLE STORIES

- The New York Times is reporting that U.S. President Joe Biden tomorrow will declare climate change to be a national security priority in a presidential memorandum and order a full-scale review to determine the scope of an eventual ban on new leases for oil and gas drilling. 

- CI Financial announced yet another acquisition in the U.S. late yesterday. This time, it’s buying Segall Bryant & Hamill, which is billed as an advisor and institutional investment management firm catering to high-net-worth clients. Notably, CI says the deal will double its U.S. asset base to US$46.1 billion. 

- Enerplus was also involved in M&A after yesterday’s closing bell. It’s bulking up in North Dakota with the purchase of Williston Basin operator Bruin E&P HoldCo for US$465 million. Enerplus said the purchase is “materially accretive” and will be financed via a new US$400-million bank loan and a $115-million bought deal share sale.

- Metro’s same-store food sales rose 10 per cent in the latest quarter, and it posted an 11 per cent gain in adjusted profit per share – which wasn’t enough to meet analysts’ expectations. Worth noting however that the company says a labour conflict in its Jean Coutu unit knocked five cents off its earnings per share.

- Leon Black, one of the biggest names in finance, is relinquishing his role as CEO of Apollo Global Management albeit while hanging on to his role as chair. The announcement landed at the same time that Apollo released an independent review detailing Black’s ties with Jeffrey Epstein.

- In addition to earnings and forecasting full-year profit above estimates, Johnson & Johnson this morning teased that results of the Phase 3 study of its COVID-19 vaccine candidate will be released soon.

- Empire Co. says it will book an $11.7-million charge associated with store closures and conversions in its fiscal third quarter as the supermarket operator continues building out its FreshCo brand.

NOTABLE RELEASES/EVENTS

- Notable earnings: CN Rail, Metro, Microsoft, Johnson & Johnson, General Electric, 3M, Starbucks, Advanced Micro Devices, Texas Instruments, American Express, Verizon 

- 8 a.m. ET: International Monetary Fund releases World Economic Outlook update

- 10 a.m. ET: U.S. Senate Commerce Committee holds hearing to consider nomination of Gina Raimondo as commerce secretary

- 10 a.m. ET: Canada Mortgage and Housing Corporation releases report examining mortgage deferrals

- 11 a.m. ET: Deputy Prime Minister and Finance Minister Chrystia Freeland participates in virtual Davos panel alongside BlackRock CEO Larry Fink and Bank of America CEO Brian Moynihan

- 11 a.m. ET: Deputy Finance Minister Michael Sabia addresses House Public Accounts Committee hearing on Canada’s 2020 public accounts

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

- 11:15 a.m. ET: Metro management holds media briefing after annual meeting

- 12:30 p.m. ET: White House press briefing

- 2 p.m. ET: U.S. President Joe Biden delivers remarks on racial equality agenda and signs executive orders