Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

Teck Resources has pulled the plug on its $20-billion Frontier oil sands mine proposal, and simultaneously served up a warning that Canada needs to figure out once and for all how it plans to balance environmental and economic considerations or risk continuing to scare off investors from this country’s natural resource sector. Simply put by Teck: “Without clarity on this critical question, the situation that has faced Frontier will be faced by future projects and it will be very difficult to attract future investment, either domestic or foreign.” We’ll chase reaction and assess whether the economics of Frontier would have made sense for Teck in the absence of policy uncertainty.

STOCKS TUMBLE

Major European indices are down more than three per cent and futures are pointing to a sharp drop at the start of trading in New York amid mounting unease about the coronavirus’s rapid spread across borders, with particular concern about the situation in countries including Italy and South Korea. The apprehension is also evident in the commodities market, with WTI oil falling nearly four per cent and the price of gold rising more than two per cent to almost US$1,700/ounce. Hunting for an outlier? How about Gilead Sciences. Its shares are up more than five per cent in pre-market trading after a World Health Organization said one of its products, Remdisivir, could be the “only drug right now that we think may have efficacy” in fighting the virus.

BLOCKADE WATCH

Law enforcement moved in on protesters near Belleville, Ont. early this morning. That’s after a midnight deadline for them to back off CN property and take down their blockade came and went without movement. We’ve seen arrests take place in real time on BNN Bloomberg, but without any clear escalation beyond that. We’ll keep tabs on developments and the implications for rail traffic.  

OTHER NOTABLE STORIES

-Cronos Group said this morning it’s delaying the release of quarterly results that were scheduled to be unveiled this Thursday. No detailed reason was given for the decision, though the licensed pot producer said there was a “delay in the completion of its financial statements”.

-Berkshire Hathaway Chairman & CEO Warren Buffett said in his annual letter to shareholders the company is “100 per cent prepared” for the departure of he and his right hand man, Charlie Munger. As further evidence that it could be a two-horse race to succeed them, Buffett said Ajit Jain and (Canadian) Greg Abel will “be given more exposure” at Berkshire’s next annual meeting.

-MTY Food Group dug in its heels this morning, with the chairman of its audit committee saying a whistleblower’s allegations are “baseless.” The fast-food conglomerate also reported a 45 per cent year-over-year surge in total revenue thanks to M&A-driven growth. Same-store sales rose a far more modest 1.5 per cent.

NOTABLE RELEASES/EVENTS

-Notable earnings: Equitable Group, First National Financial, Gibson Energy

-Notable data: Canadian wholesale trade

-Commission of Inquiry into Money Laundering in British Columbia holds hearing for opening statements

-9:00 a.m. ET: CRTC hearing on wireless market resumes in Gatineau, Que. 

-11:30 a.m. ET: Teck Resources CEO Don Lindsay addresses BMO conference 

-To be released before 6:00 p.m. ET ET: Alberta Court of Appeal judgment in carbon tax reference case

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.