Columnist image
Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

At least one thing is clear from the Speech From the Throne: money is no object right now in the fight against COVID-19. The federal government borrowed a page from former European Central Bank president Mario Draghi with a vow to do “whatever it takes”.

The headline item for our purposes is arguably the plan to extend the Canada Emergency Wage Subsidy to next summer. But there’s so much more to sink our teeth into: like the feds’ strategy for creating more than one million jobs (which former Conservative Party of Canada MP and cabinet member James Moore panned as “a little bit cute of a rounding number” in instant analysis with BNN Bloomberg's Amanda Lang), a commitment for “significant, long-term sustained investment” for nation-wide child care, a clearly-stated desire to tax “extreme wealth inequality” and go after tech giants that aren’t seen paying their fair share. As for the grandiose green agenda that was touted at the time of prorogation, that ended up buried deep in the speech and included themes like improving electric-vehicle affordability and slashing taxes on clean tech companies (meanwhile, the near-complete absence of attention for Canada’s hard-hit oil and gas sector raised the ire of Alberta Premier Jason Kenney). As for the cost of it all, the government says there will be a fall economic and fiscal update.

Our in-depth analysis continues today with the likes of David Rosenberg and former finance minister John Manley. This afternoon, we’ll get opposition reaction when NDP leader Jagmeet Singh joins Amanda Lang. And we’ll also consider what was lacking, including no mention of a rent relief strategy when CECRA ends in less than a week.

BRACING FOR WORST OF COVID

Prime Minister Justin Trudeau didn’t attempt to spin positive on the pandemic in his televised address yesterday: “We’re on the brink of a fall that could be much worse than the spring,” he said. That came after the throne speech showed the government wants everyone to brace for the possibility of more lockdowns: The feds say they’ll plan additional financial support for businesses affected by “short-term closure orders” that might be necessary to prevent outbreaks. We’ll chase reaction from the medical community and gather insight on how the government can best shield business from the impact of the fall surge.

S&P 500 CORRECTION

While the Liberal government’s agenda sucked up most of the oxygen yesterday, stocks were sliding as it became evident that the U.S. Federal Reserve desperately wants to pass the baton to American fiscal policymakers. And this morning, the selling continued – taking the S&P 500 into correction territory with a 10% drop from the recent high on Sept. 2                                                    

STIMULUS FRICTION

While the Liberal government’s agenda sucked up most of the oxygen yesterday, stocks were sliding as it became evident that the U.S. Federal Reserve desperately wants to pass the baton to American fiscal policymakers. U.S. stocks fell sharply, with just 27 names on the S&P 500 closing higher. Meanwhile, the TSX Composite Index posted its biggest single-day drop since early June.            

ELECTION RISK FOR THE MARKET

As if there wasn’t already enough, U.S. President Donald Trump’s refusal yesterday to commit to a peaceful transfer of power if Joe Biden is elected surely adds another layer of uncertainty for investors to consider. We’ll get investment professionals’ reaction.

OTHER NOTABLE STORIES

-BlackBerry shares rose in pre-market trading after the company beat second-quarter revenue and profit estimates. BNN Bloomberg's Jon Erlichman will speak with CEO John Chen at 9:15 a.m. ET.

-Statistics Canada said in a flash estimate this morning that manufacturing sales appear to have decreased 2.0 per cent last month. That’s after gains of 7.0 per cent and 23.0 per cent in the prior to months.

NOTABLE RELEASES/EVENTS

-Notable data: U.S. initial jobless claims, U.S. new home sales

-Notable earnings: BlackBerry, Costco Wholesale

-10:00 a.m. ET: U.S. Federal Reserve Chair Jerome Powell and U.S. Treasury Secretary Steven Mnuchin address U.S. Senate Banking Committee

-12:00 p.m. ET: Alberta Premier Jason Kenney holds media avail

-1:00 p.m. ET: CMHC CEO Evan Siddall among speakers at Bloomberg Canadian Fixed Income conference 

-1:00 p.m. ET: Amazon holds product launch event

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.