Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

It’s a down day (mostly) for stocks overseas, and futures are pointing to a weak open in New York, but for now at least the TSX is still basking in the glory of a new all-time high. The Composite Index rose as high as 16,444.45 yesterday before closing at 16,420.95. For the most part yesterday we focused on stand outs like Canada Goose and Bombardier that posted remarkable percentage gains since the last peak. This morning we’ll sift through laggards like Corus Entertainment, Aphria, WestJet and Aecon to figure out where Bay Street sees value.

And perspective is useful. Notwithstanding yesterday’s record, the TSX is up a measly 1.3 per cent this year.

‘TERRIBLE TIME’ FOR BOOZE CEOs

We went around the world with Canopy Growth CEO Bruce Linton yesterday shortly after the government announced pot will be legal on Oct. 17. And as far as he’s concerned, most booze industry leaders are probably quaking in their boots right now. “I think, for the most part, if you’re the CEO of a beer company or a spirits company, right now it’s a terrible time,” Linton said. “Because at your shareholder meetings, they’re saying, ‘What’s our cannabis strategy?’” Linton, of course, has a leg up, with Constellation Brands in his corner. But as pot goes mainstream, we’ll do more digging on what Constellation’s peers might be up to.

IN CONVERSATION WITH JOHN CHAMBERS

The former Cisco Systems CEO joins us at 10:30 a.m. ET. Keep in mind, Chambers regularly heaped praise on Canada during his time at Cisco. Will be fascinating to hear what he has to say about this country considering everything that’s in the news.

IN CONVERSATION WITH WILBUR ROSS

Our Bloomberg partners will be speaking with U.S. Commerce Secretary Wilbur Ross this morning. Yesterday, Ross caused some waves by saying in Congressional testimony Canadian steel “is not being accused of directly and individually being a security threat.” That would seem to raise more questions about the basis for slapping tariffs on Canada under the guise of national security concerns. We’ll keep tabs on Bloomberg’s interview with Ross and share highlights this morning.

OTHER NOTABLE STORIES

-Equitable Group has slashed its liquidity backstop to $850 million from $2 billion, with CEO Andrew Moor saying he might close out the backstop entirely. Equitable announced the $2-billion facility in May 2017 as a crisis of confidence swept through the alternative lending industry after a run on deposits at Home Capital Group.

-U.S. oil futures have been down as much as 2.8 per cent this morning ahead of tomorrow’s OPEC decision. Saudi Oil Minister Khalid Al-Falih said yesterday every one of his peers who he’s spoken to “agrees that it’s time for us to change course.”

-The loonie is losing more ground this morning, falling as low as 75.04 US. The dollar hasn’t trade below 75c was June 22.

-Tim Hortons says it will invest $100 million to build two warehouse facilities and expand an existing facility in Nova Scotia to bolster its distribution network. (NOTE: I refreshed our chase for Alex Macedo)

-CNOOC’s Nexen division has given the green light to a $400-million expansion at its Long Lake operations.

-Daimler is scaling back its profit forecasts, citing a host of reasons – including trade war crossfire. “The decisive factor is that [lower SUV sales and higher costs] must be assumed because of increased import tariffs for US vehicles into the Chinese market.” We need to assess whether this could open the floodgates to other profit warnings

NOTABLE RELEASES/EVENTS

-Notable data: StatsCan EI report, Canadian wholesale trade

-7:00 a.m. ET: Bank of England releases interest rate decision

-9:30 a.m. ET: Governor General Julie Payette to preside over Royal Assent ceremony for Bill C-45 in Senate chamber

-U.S. Commerce Secretary Wilbur Ross delivers remarks at Select USA summit (opening address at 8:00 a.m. ET, panel on investment success at 9:30 a.m. ET)

-11:15 a.m. ET: Ontario Premier-Designate Doug Ford delivers remarks and takes questions at Pickering Nuclear Generating Station

-11:30 a.m. ET: Environment and Climate Change Minister Catherine McKenna holds media avail in Brussels

-12:45 p.m. ET: Prime Minister Justin Trudeau makes announcement with First Nations leaders in Prince Rupert, plus media avail

-4:30 p.m. ET: U.S. Federal Reserve releases bank stress test results

-OPEC international seminar in Vienna

Every morning BNN'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.