Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Tech stocks remain at the top of our radar today after they dragged down the major North American markets yesterday as traders weighed the outlook for how soon and how aggressively the U.S. Federal Reserve will raise rates. Shopify wasn’t immune to the selling pressure, as its Toronto-listed shares fell the most since Nov. 9, 2020. For now, Nasdaq futures have pared losses but are still pointing to a soft open. A catalyst will land in the second half of the trading day when minutes from the last Federal Open Market Committee meeting are released. Of course, what’s bad for tech is good for financials in this case: the rate-liftoff conversation fuelled interest in bank stocks yesterday, which allowed the S&P/TSX Composite Index to close higher (barely).

CALLING FOR NEW TAX ON HOMES

A research organization funded by Canada Mortgage and Housing Corporation and the federal government is calling for a tax on homes worth more than $1 million. Pointing to an estimated $3.2 trillion in housing wealth that homeowners have accumulated since 1977, Dr. Paul Kershaw is recommending the federal and/or provincial governments implement a progressive (up to one per cent), deferrable tax on homes valued at $1 million and higher. Is this the antidote to the culture of “inequality and complacency” that he describes? We’ll chase deeper insight.

VANCOUVER HOUSING COOLS

But it’s all relative. The Real Estate Board of Greater Vancouver today reported December home sales clocked in at 2,688 – marking a 13 per cent year-over-year drop, and a 21.6 per cent slide compared to November. Nonetheless, the selling activity was 33.4 per cent higher than the region’s 10-year average.

RBC’S TOP INVESTING IDEAS

The equity research team at RBC Capital Markets is out with its top ideas for 2022, and there’s a whole lot of CanCon. From a big telco, to a financial heavyweight, one of two rail giants, and a vehicle-management company that’s been navigating the global semiconductor shortage – those are just some of sectors where RBC looked to Canada for its top recommendations to global clients this year. We’ll dig into the details today.

‘A REAL CRISIS’ FOR EMPLOYERS

David George-Cosh spoke with a couple of HR and labour law experts about the toll that Omicron and the latest wave of public health restrictions is taking on Canada’s employers. While one of them spoke described the situation as a crisis for companies and entrepreneurs struggling to hang on to talent, there’s also an acknowledgment that the current external reality is beyond their control. Check out his reporting at BNNBloomberg.ca, and watch for insight on best practices when Williams HR Law LLP Founder and Managing Partner Laura Williams joins us 8:30 a.m.

OTHER NOTABLE STORIES

• At least one analyst who covers Nutrien is taking Mayo Schmidt’s abrupt exit in stride. RBC’s Andrew Wong told clients any share-price weakness in the aftermath of the CEO switch is an opportunity to buy given the company’s “very strong” fundamentals. Though, like peers, Wong said Nutrien would be well-served to share more information with investors.
• Sticking with analyst action: Roger Read at Wells Fargo upgraded Suncor Energy to overweight today as part of his broad view that booming cash flow will continue to attract investors to the sector.
• Uranium stocks were again among the top gainers on the TSX in early trading. Our market commentator, Andrew McCreath, says today’s political chaos and violent protests in Kazakhstan – the world’s top uranium producer – explain today’s rally.
• Docebo shares sank on the TSX this morning after the Canadian software-as-a-service learning platform announced its top shareholder is planning to sell up to US$200 million of its stake.

NOTABLE RELEASES/EVENTS

• Notable data: Canadian building permits and monthly estimates of business closures and openings
• 930: Real Estate Board of Greater Vancouver releases year-end housing market report
• 1130: Prime Minister Justin Trudeau discusses COVID-19 situation alongside Health Minister Jean-Yves Duclos, Deputy Prime Minister and Finance Minister Chrystia Freeland, Chief Public Health Officer Dr. Theresa Tam, Deputy Chief Public Health Officer Dr. Howard Njoo
• 1215: White House Press Secretary Jen Psaki and Port Envoy to Biden-Harris Administration Supply Chain Disruptions Task Force John D. Porcari hold media briefing
• 1400: U.S. Federal Reserve releases minutes from last meeting
• 1840: BlackBerry Chair and CEO John Chen addresses J.P. Morgan Forum at CES