Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

West Texas Intermediate crude oil has given up the gains that pushed it above US$40 per barrel for the first time since March 6 in the immediate aftermath of OPEC+’s weekend move to extend existing production cuts by one month (sidebar: for the first time that I can remember, Canada got a nod in the press release detailing the decision). WTI turned negative after Saudi Arabia’s energy minister made it clear that the kingdom plans to stop going above and beyond its required output curbs after this month.  

TSX RALLY

The S&P/TSX Composite Index enters the week at a three-month high after Friday’s 326-point surge. The index has now soared 41.2 per cent since the March 23 low and every single one of its members is in positive territory since then, with Metro Inc. ranking as the laggard with its 7.6 per cent gain. How much longer can central banks’ stimulus and hope that economic re-openings will go off without a hitch fuel equities?  We’ll continue addressing that question with market professionals.

IN CONVERSATION WITH FORMER CMHC CHAIR

With less than a month to go before the Canada Mortgage and Housing Corporation’s new insurance requirements take effect, former chairman Robert Kelly joins Jon this morning to share his perspective on the timing of the rule changes – which include tightening debt servicing ratios and credit score requirements, while also limiting borrowing for the purposes of funding down payments, as of Canada Day. And new from this morning: fellow mortgage insurer Genworth MI Canada says it has no plan to match CMHC’s move.

BACKING UP WORDS WITH ACTION

After countless statements from corporations about the need to address racial diversity, we were reminded Friday that words won’t be enough. “We’re going to remember three months, six months from now that you made these bold statements and really hold you accountable to that,” Canadian Association of Urban Financial Professionals president Meryl Afrika told us, warning also that employees and consumers will make “conscious decisions on where and how we move our money in this economy.” We’ll keep the conversation going today with Cisco Canada president Rola Dagher.

OTHER NOTABLE STORIES

-Our Bloomberg News partners are reporting AstraZeneca approached Gilead Sciences last month about a potential merger. No details about the terms of what would likely rank as the healthcare industry’s largest deal are known. Gilead, of course, has been in the spotlight during the pandemic thanks to its potential COVID-19 treatment, remdesivir.

-Superior Plus Corp. will be on our radar today after it announced a $350-million investment by Brookfield Asset Management that the Toronto-based propane distributor says will give it extra flexibility to hunt for deals.

-Demand for medical-gear exports and a 16.7 per cent plunge in imports helped propel China’s trade surplus to a record high in May, according to data released over the weekend.

-We’ll watch shares of PG&E today after the embattled American utility company announced plans to raise US$5.75 billion in an equity offering as part of its plan to eventually get out of Chapter 11 bankruptcy protection.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian housing starts

-8:45 a.m. ET: Economic Development minister Mélanie Joly, Montreal mayor Valerie Plante, Quebec Economy minister Pierre Fitzgibbon hold news conference in Montreal on emergency support for small and medium-sized businesses

-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Ottawa

-Statistics Canada releases study "Inequality in the feasibility of working from home during and after COVID-19"

-World Bank to release updated forecasts for global economy

-New York City expected to begin first phase of reopening economy

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