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Noah Zivitz

Managing Editor, BNN Bloomberg

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The TSX Composite reached a new all-time high of 16,696.40 yesterday before pulling back in the last hour of trading and failing to set a new closing record. This morning we’ll dig into the anatomy of what propelled Canadian stocks to their intraday peak, with Shopify by far the most influential contributor.

ONTARIO POT LICENCE TURMOIL

The bumpy rollout of legal recreational cannabis stores suffered another setback yesterday after an Ontario judge ordered a two-week suspension of the licensing process after 11 Ontario lottery winners challenged their recent disqualifications. It boils down to a debate over whether they adhered to the provincial regulator’s timeline for submitting all necessary documentation. Now, the whole process is on hold until Sept. 25. Read all about it here.

HOUSEHOLD DEBT WATCH

If pocketbook issues determine elections, Statistics Canada’s latest national balance sheet and financial flow accounts run the risk of being politicized. And according to today’s numbers, Canadians were carrying a little more than $1.74 of credit market debt for every dollar of disposable income in the second quarter of this year, marking a modest uptick from Q1 when the closely watched ratio sat at 172.83.  

CHINA-U.S. TRADE LATEST

More signs of incremental progress as China and the United States gear up for the next round of trade talks: China is exempting certain American agricultural products (including pork and soybeans) from additional tariffs and nudging domestic companies to buy those commodities. Meanwhile, U.S. President Donald Trump told reporters late yesterday he would “consider” an interim deal along the lines of what our Bloomberg partners reported.

OTHER NOTABLE STORIES

-WeWork has a home for its initial public offering, confirming today its shares will list on the Nasdaq. It also announced some governance changes, including halving the voting clout of existing shareholders to 10 votes per share from 20 and declaring no member of CEO Adam Neumann’s family will sit on its board. We’ll assess whether it’s enough to assuage concerns that had, reportedly, put the IPO’s future in doubt.

-In other IPO news: Smile Direct Club had miserable debut as a public company as its shares plunged almost 28 per cent yesterday.

-Montreal’s Element AI today announced it raised $200 million in a Series B financing via names like the Caisse de dépôt et placement du Québec, McKinsey and Quebec’s government.

-The London Stock Exchange Group this morning officially rejected the unsolicited US$36.6-billion proposal recently tabled by Hong Kong Exchanges and Clearing and said it “sees no merit in further engagement.”

NOTABLE RELEASES/EVENTS

-Notable data: Canadian national balance sheet and financial flow accounts, U.S. retail sales

-9:00 a.m. ET: NDP Leader Jagmeet Singh discusses NDP plan to lower cellphone bills at campaign stop in Toronto  

-9:30 a.m. ET: Liberal Party Leader Justin Trudeau makes policy announcement in Trois-Rivières, QC (plus avail)

-10:00 a.m. ET: Conservative Party Leader Andrew Scheer makes announcement in Mississauga, ON (plus avail)

-11:30 a.m. ET: Ontario Treasury Board President Peter Bethlenfalvy and Finance Minister Rod Phillips make announcement in Toronto on fiscal sustainability

-11:45 a.m. ET: NDP Leader Jagmeet Singh addresses Canadian Club in Toronto 

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