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Noah Zivitz

Managing Editor, BNN Bloomberg

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Bank of Montreal and Bank of Nova Scotia have swatted down any immediate concern that the COVID-19 Delta variant will derail the Big Six’s recovery from the pandemic. Both lenders beat fiscal third-quarter profit expectations by a wide margin this morning as credit quality improved (including an outright release of provisions by BMO). There are many commonalities in their results (including growth in their Canadian mortgage books). But there’s also divergence; most notably in their capital markets divisions. Full details at BNNBloomberg.ca and throughout our programming day.

HOUSING HEATS UP ON CAMPAIGN TRAIL
We know housing affordability is a top pocketbook issue in this election campaign, and today we got the incumbent party's plan to address the problem. Liberal Party Leader Justin Trudeau has unveiled more than a dozen measures that he said his party will pursue if re-elected, including allowing first-time homebuyers under the age of 40 to save (and withdraw) up to $40,000 tax-free for a down payment. The Liberals are also pledging to double the first-time home buyers tax credit and ban new foreign homeownership for two years. You can see a summary of what the Conservatives, NDP and Bloc have already pledged on housing here.

TRACKING BORROWING TRENDS

Seems fitting that on a day when bank earnings are in the spotlight, we’ve got a new report from TransUnion on Canadian borrowing trends. And there are some signs of restraint, as so-called “super prime” borrowers led the way in applications for credit during the second quarter (+28.5 per cent), while those with the shakiest finances (ie, subprime borrowers) held back, as applications among those borrowers fell 0.7 per cent year-over-year.

COMMODITIES RALLY CONTINUES

Once again, the GLCO screen on the terminal is awash in green numbers as almost every major commodity (other than gold) trades higher this morning. The standout mover today is iron ore, which has been up more than 10 per cent in Singapore. Bloomberg is pointing to some supportive commentary from China’s central bank as being one of the factors lifting prices today. 

OTHER NOTABLE STORIES

  • As of Sept. 13, you’ll need proof of at least one COVID-19 vaccine dose to gain admission to a range of non-essential services and events in British Columbia, including restaurants, fitness centres, movie theatres, concerts and indoor sporting events. Reminder that Quebec’s vaccine passport will take effect on Sept. 1.
  • Dye & Durham shut out analysts from asking questions on the company’s quarterly call late yesterday afternoon, citing the company’s ongoing review of strategic alternatives. CEO Matthew Proud, however, said in his prepared remarks that “the capital market's response to our execution has lagged the performance of the business.” On that note, Dye & Durham’s revenue in the latest quarter surged 494 per cent year-over-year.
  • Som Seif’s Purpose Investments announced late yesterday a tightening of relations with Richardson Wealth Limited, with some advisors joining Purpose outright and Craig Basinger (a BNN Bloomberg regular) named chief market strategist for Seif’s firm.

NOTABLE RELEASES/EVENTS

  • Notable data: Flash Canadian manufacturing sales estimate (July), U.S. new home sales
  • Notable earnings: Bank of Nova Scotia, BMO, Nordstrom, Best Buy
  • 8:00: Liberal Party Leader Justin Trudeau makes announcement in Hamilton, Ont. (plus avail)
  • 10:00: Conservative Party Leader Erin O’Toole makes announcement in Ottawa (plus avail)
  • 10:00: Green Party Leader Annamie Paul holds news conference in Toronto on affordable housing  
  • 10:30: NDP Leader Jagmeet Singh makes announcement in Mississauga, Ont. (plus avail)
  • 14:00: White House COVID-19 Response Team holds White House press briefing