Noah Zivitz

Managing Editor, BNN Bloomberg

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West Texas Intermediate crude oil prices touched the highest level since October 2014 this morning after OPEC+ left the world guessing yesterday, though WTI turned south in mid-morning trading. The standoff between the United Arab Emirates and the rest of the group means there’s no clear path forward on production for the oil-producing nations, leading many experts to wonder if the result will be a surge in prices in the absence of a gradual ramp up in output, or a collapse if it turns into a free for all. We’ll continue chasing top global oil strategists and tracking the market impact after the energy group led the way to a record close for the S&P/TSX Composite Index yesterday.

TORONTO HOUSING MARKET COOLS

For the second straight day, we’re seeing a sign that the pool of potential home buyers in Canada’s largest housing markets may have reached its limit, at least for now. Home sales across the Greater Toronto Area fell seven per cent month-over-month in June (nine per cent when seasonally adjusted) and the average selling price slipped from the record that was set in May. Nevertheless, the local real estate board nudged up its forecasts for this year after a frenzy of activity in the first quarter. We’ll go deep into market dynamics with Toronto Regional Real Estate Board Chief Market Strategist Jason Mercer at 8:10 a.m.  

ANOTHER CHAPTER IN BRIDGING FINANCE SCANDAL

The Bay Street firm that was pushed into receivership amid an Ontario Securities Commission probe is one of the defendants named in a lawsuit tied to the private lender’s most prominent relationship. British Columbia-based G Seven Generations is suing Bridging and financier Sean McCoshen, among others, for allegedly stealing its idea for an Alberta-to-Alaska rail link. Dave spoke with the plaintiff’s CEO and has a detailed account of the allegations at BNNBloomberg.ca. It’s important to point out that none of the claims have been tested or proven in court, and that Dave sought comment from all defendants. Only one got back to him with a statement.  

PORTER AIRLINES PREPARES TO FLY AGAIN

It’s been a long time since those turboprops were put to use. After a lengthy suspension of service during the pandemic, Porter Airlines finally announced yesterday that it will get back to business next month. We’ll speak with Chief Executive Officer Michael Deluce shortly after 9 a.m. about everything that’s happened since the schedule was scrapped and the outlook for demand.

OTHER NOTABLE STORIES

• Stop me if this sounds familiar: legacy problems are resulting in significant cash burn for the owner of Bombardier assets. Only this time, it’s Alstom’s problem to clean up. The French industrial giant today warned that it faces up to 1.9-billion euros in cash burn during the first half of this fiscal year as it attempts to stabilize “challenging legacy projects” in the rail division it acquired from Bombardier in January. Its shares fell as much as 8.2 per cent in France this morning.
• Another major auto maker is warning on the impact of the global semiconductor shortage. Jaguar Land Rover said this morning it expects fiscal second-quarter sales volume will be approximately 50 per cent less than planned and that it foresees chip shortages persisting beyond this year.
• Didi Global is seeing the market impact today from the government crackdown that was written about in this space yesterday. The China-based ride-hailing service’s U.S. depository receipts have been down more than 20 per cent in pre-market trading.

NOTABLE RELEASES/EVENTS

• Notable data: ISM U.S. services index
• 9:30: Transport Minister Omar Alghabra leads announcement in Quebec City on high frequency rail
• 11:00 International Trade Minister Mary Ng meets with U.S. Trade Representative Katherine Tai in Washington, D.C.
• 14:00: Via Rail Chief Executive Officer Cynthia Garneau joins federal ministers and others for announcement on high frequency rail in Trois-Rivières, QC
• 14:45: U.S. President Joe Biden delivers remarks at the White House on COVID-19 response