Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

It's decision day for the Trans Mountain pipeline expansion. We still don’t know who, how, or when the news will be announced, but more than three years after it first received the National Energy Board's blessing, we'll learn whether the federal government is going ahead with construction of the project that would add 590,000 barrels per day of shipping capacity from Alberta to the B.C. coast. If the government gives the green light, the biggest issues will be the construction timeline, opponents' next steps, and prospective buyers. If the government blocks the project that it purchased, well, we can only imagine the reaction in Alberta.

ACTIVIST WARNS HBC

Land & Buildings is speaking out against the proposed privatization of HBC, saying the offer led by Chairman Richard Baker “materially undervalues” the company. L&B Founder Jonathan Litt is calling on the retailer to launch a “robust” review of strategic alternatives – and he’s also suggesting the Ontario Securities Commission might not look kindly on how the buyout group is framing its ownership stake. Within less than an hour of that warning, an investment vehicle run by Richard Baker said it was calling off the planned purchase of 17.9 million HBC shares from the Ontario Teachers’ Pension Plan. We’re chasing principals.

DRAGHI TALKS UP STIMULUS OPTIONS

European Central Bank President Mario Draghi today made it clear he’s prepared to inject more stimulus into the currency bloc (including via rate cuts), saying in a speech “we are committed and are not resigned to having a low rate of inflation forever or even for now.” The euro fell sharply against the U.S. dollar as Draghi spoke, prompting U.S. President Donald Trump to tweet his displeasure with the ECB.   

MORE FORESTRY CURTAILMENTS  

The production cuts keep coming across the B.C. forestry industry. Late yesterday, West Fraser Timber announced the closure of one mill, and the elimination of a shift at another facility. All told, 210 employees are affected.  The company’s president cited a long list of factors including supply constraints, the pine beetle infestation, and wildfires. Our Commodities team will keep chasing reaction from communities that have been affected by the recent string of curtailments.

OTHER NOTABLE STORIES

-RBC is aiming to capture some of the halo effect from this country’s unprecedented passion for basketball. The bank announced today it has signed up Canadian phenom RJ Barrett as a brand ambassador.

-SNC-Lavalin announced another phase in its restructuring, appointing Nigel White as Executive VP for Project Oversight. Worth noting he’ll be based in London. It also announced a separate tweak to its operational structure involving the Clean Power unit.

-Facebook shares are rising in pre-market trading after the company released details about the “low-volatility” Libra cryptocurrency that it’s hoping to launch in the first half of next year.

-Amazon.com is teaming up with TD and Mastercard to launch a credit card in Canada, with a tiered rewards program for purchases made on Amazon and in Whole Foods stores.

-The Finance Department is formally launching consultations on its plan to change the way stock options are taxed. Details here: https://www.fin.gc.ca/n19/19-066-eng.asp

NOTABLE RELEASES/EVENTS

-Notable data: Canadian manufacturing sales, U.S. housing starts and building permits

-Deadline for federal government's decision on Trans Mountain expansion project

-9:30 a.m. ET: Cabinet meeting in Ottawa 

-10:15 a.m. ET: U.S. Trade Representative Robert Lighthizer testifies at U.S. Senate Finance Committee hearing on new NAFTA

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.