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Noah Zivitz

Managing Editor, BNN Bloomberg

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Another top Bay Street voice is joining the debate over runaway home prices in Canada. TD Chief Economist Beata Caranci warned in a new report this morning that any hasty attempt to douse red-hot markets could backfire with unintended consequences. But she is pointing her finger in one clear direction, and says the Bank of Canada holds the key to the “quickest route” to calming prices and “squeezing out” speculation.

CRUCIAL CRTC RULING AHEAD

The Canadian Radio-television and Telecommunications Commission today will share the outcome of a comprehensive review of the country’s wireless market that it launched last year. The role that mobile virtual network operators play was a central theme of the review. Today, one of the big questions will be how the regulator weighs its desire for competition against ensuring the economics of major capital investments aren’t ruined for the country’s largest telcos (namely Rogers, Telus and Bell, which shares the same ultimate parent company as BNN Bloomberg). We’ll be ready for the news when it breaks at 4 p.m. ET.

TOP EXECUTIVES EXIT SHOPIFY

The S&P/TSX Composite’s star performer is losing three of its top executives in one fell swoop. Shopify CEO Tobi Lutke announced the upcoming exits of Chief Technology Officer Jean-Michel Lemieux, Chief Talent Officer Brittany Forsyth, and Chief Legal Officer Joe Frasca in an online memo, while making it clear that no one is irreplaceable: “We need to remember that everyone will leave at some point and that’s totally OK,” he wrote, while adding Shopify has a “phenomenally strong bench of leaders.” We’ll gather insight on the significance of the departures for the tech darling. This is also a good ICYMI moment to flag star stock picker Cathie Wood’s praise for Shopify in her conversation with Amber Kanwar yesterday morning.

PARADE OF BANK EARNINGS CONTINUES

Wall Street activity continues to be the driver for big U.S. banks. Bank of America posted a record haul from investment banking fees in its fiscal third quarter, while sales and trading revenue jumped 17 per cent. Interesting also to see the payoff from the retail investing boom: BofA says consumer investment assets in its core retail banking unit surged 53 per cent to US$324 billion.

OTHER NOTABLE STORIES

  • Northland Power will be on our radar today after announcing it’s expanding into Spain with the $520-million acquisition of 540 megawatts of onshore renewable assets. It’s raising $900 million in a bought-deal share sale (priced at $44.00 apiece) to finance the deal.
  • Merck announced this morning it’s abandoning the development of two treatments for hospitalized COVID patients. In one case (MK-7110), the decision was based on resource allocation and the development timeline. In the other case, the decision was based on Phase 2 data analysis. Merck is proceeding with a Phase 3 test of another treatment for outpatients.
  • Shaw Communications narrowly exceeded EBITDA and revenue estimates in the second quarter. However, average revenue per user in its wireless operations fell 4.2 per cent, which the company attribution to the expansion strategy for its lower-cost Shaw Mobile brand.
  • Aphria today confirmed overwhelming support for its tie-up with Tilray. Almost 99.4 per cent of shares cast voted in favour of the deal.

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian manufacturing sales, Canadian existing home sales, U.S. initial jobless claims, U.S. retail sales
  • Notable earnings: Bank of America, Citigroup, BlackRock, Charles Schwab, PepsiCo, Delta Air Lines, Alcoa, Rite Aid
  • 9 a.m.: CMHC Minister Ahmed Hussen, Housing Parliamentary Secretary Adam Vaughan, and Toronto Mayor John Tory make "major" housing announcement in Toronto
  • 11 a.m.: Conservative Party of Canada Leader Erin O’Toole holds press conference on “important policy announcement” (technical briefing at 10:30 a.m.)
  • 4 p.m.: CRTC releases comprehensive review of the mobile wireless services market (embargoed briefing at 3:15 p.m.)