Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

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There’s arguably been no hotter topic of conversation lately than the mountains of cash we’re told Canadian households and businesses are sitting on, and how those funds will be deployed. But one of the country’s most prominent economists is warning the pandemic’s scarring effect means consumers are going to be more inclined to save on the other side of COVID. “The fear of a return of some other pandemic is going to be on our minds,” according to David Rosenberg, who estimates the savings rate could rise from seven to 10 per cent of disposable income. We’ll keep gathering perspective on this crucial issue for the economy. If you missed Rosenberg’s comments, check them out here. 

BEIJING’S CRACKDOWN ON JACK MA’S EMPIRE INTENSIFIES            

Alibaba Group Holdings shares tumbled more than eight per cent in Hong Kong overnight after a Chinese regulator launched an antitrust probe of the online commerce giant. In a statement, Alibaba said it will cooperate with the process, which comes precisely two months to the day since a critical speech by Jack Ma eventually led to the planned record IPO by his Ant Financial being scrapped.

IFFY OUTLOOK FOR U.S. SITMULUS CHEQUES

As expected, Republicans have blocked an attempt to jack up stimulus cheques to US$2,000 from US$600 when the matter went to a vote in the U.S. House of Representatives today. We’ll seek insight on what the next move could be in this chess match and whether the massive COVID relief package can be salvaged. Our Bloomberg News partners are reporting Democrats will try again on Dec. 28.

BUYBACK POTENTIAL FOR CANADA’S BANKS

Our partners at Bloomberg Intelligence have crunched some numbers on the outlook for share buybacks by Canada’s banks, which are still blocked from repurchasing their shares due to COVID restrictions imposed by the Office of the Superintendent of Financial Institutions. According to the BI analysts, the big banks could buy back up to five per cent of their shares (in the case of Toronto-Dominion Bank) whenever they get the go-ahead.

OTHER NOTABLE STORIES

- Building permits recovered smartly in November, with data this morning showing a 12.9 per cent surge in the month and October’s 12.6 per cent drop. Statistics Canada notes permits for residential properties climbed 10 per cent to a record of $6.4 billion last month.

- It feels like we’ve been on U.K.-EU trade deal watch for eons; today, the deal was done. It came together after some late haggling on fishing rights, and will set the stage for a smoother Brexit.

- Transalta will be on our radar after it raised its dividend and announced it’s transferring a basket of assets to TransAlta Renewables in a $439-million arrangement, which includes some construction costs for a wind-energy project in Alberta. Credit Suisse has bumped up its price targets on both companies subsequent to the news.

- One of Canada’s wealthiest families announced some housekeeping this morning. Galen G. Weston is succeeding W. Galen Weston as the controlling shareholder of Wittington Investments, which controls George Weston. Galen G. Weston is also chairman and CEO of George Weston.

- Shares of NFI Group will be on our radar today after the Winnipeg-based bus maker disclosed it negotiated some covenant relief with its lenders.

- RioCan Real Estate Investment Trust, which most recently was in the news for cutting its distribution, announced $45.4 million in sales of air rights at The Well in Toronto and its 5th & Third East Village in Calgary.

NOTABLE RELEASES/EVENTS

- Notable data: Canadian building permits, Canadian monthly estimates of business openings and closures

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.