Nov 20, 2018
The Daily Chase: Tech worries weigh on markets; Notley warns on WCS discount
By Noah Zivitz
Apple is on the brink of slipping into a bear market as iPhone demand fears put its shareholders – and the tech sector more broadly – on edge. As of the close of trading yesterday, AAPL was sitting 19.9 per cent below its recent peak in October. The share price drop on Monday helped drive down the Nasdaq, with spillover felt beyond that marketplace. To wit: Ottawa-based Shopify sank 11.3 per cent on the TSX, for its worst single-day showing since October 2017. With futures pointing to a weak opening on Wall Street we’ll gauge what it’ll take to turn around sentiment.
NOTLEY WARNS OF “REAL AND PRESENT DANGER”
Alberta Premier Rachel Notley has ramped up the rhetoric in the face of beat-up Canadian oil prices. “Make no mistake, this price gap is a real and present danger to the Canadian economy,” she said yesterday, while announcing she’s tasked a trio of special envoys with identifying ways to narrow that gap on Western Canada Select, which is sitting at US$39.25 per barrel. Today, we’re turning to some industry heavy hitters for insight on what can and should be done, including Canadian Natural Resources Executive Vice-Chair Steve Laut, who joins us at 11:00 a.m. ET for a can’t-miss interview.
CANADA POST STRIKE LATEST
The postal service is warning “long and unpredictable delays” are likely throughout the holidays and into January after its proposal for a cooling-off period fell flat with CUPW yesterday. We should consider if this is a blessing in disguise for brick-and-mortar retail heading into the peak shopping season.
OTHER NOTABLE STORIES
-Mexico’s ambassador to the United States is quoted by McClatchey as saying he expects a “solution or a very clear track” for lifting American metals tariffs will be in place by the time the USMCA is signed later this month. It’s unclear whether the tariff relief would also apply to Canada. (full story here)
-Canadian Tire announced late yesterday it will raise up to $225 million as part of a bought-deal financing in shares of CT REIT.
-A new report by Central 1 Credit Union is predicting a “huge boon” for Northern British Columbia, courtesy of the recently green-lit LNG Canada project, with North Coast unemployment seen plunging to 4.1 per cent in 2020.
-The Montreal Economic Institute estimates Ontario’s minimum wage hike has cost the province more than 56,000 jobs this year.
-PI Financial is being acquired by NG Holdings for over $100 million in cash. PI’s founders will give up their roles as chair and vice chair, respectively, when the firm changes hands.
-Shares of L Brands are down almost five per cent in pre-market trading after the apparel conglomerate slashed its annual dividend in half and forecast fourth-quarter and full-year profits that could miss estimates.
NOTABLE RELEASES/EVENTS
-Notable earnings: George Weston, Lowe's, Gap, Best Buy, TJX, Campbell Soup
-Notable data: U.S. housing starts and building permits
-5:00 a.m. ET: Bank of England Governor Mark Carney addresses U.K. Treasury Select Committee
-10:00 a.m. ET: Auditor General of Canada releases fall report
-12:00 p.m. ET: University of Calgary’s School of Public Policy releases report by Trevor Tombe on Alberta finances
-12:00 p.m. ET: Canada Pension Plan Investment Board CEO Mark Machin delivers speech to Canadian Club in Toronto
-1:00 p.m. ET: Bank of Canada Senior Deputy Governor Carolyn Wilkins discusses monetary policy at luncheon hosted by McGill University (remarks on bank's site at 12:45 p.m. ET)
-5:15 p.m. ET: Bank of Canada Deputy Governor Timothy Lane participates in panel discussion in Toronto about artificial intelligence
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.
