Noah Zivitz

Managing Editor, BNN Bloomberg

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We're seeing a major strategy reversal today by the world’s largest miner.  BHP Billiton is ready to undo its ill-fated detour into the U.S. shale business -- saying it's "actively" looking to unload those assets. "As I have said previously, the shale acquisitions were poorly timed, we paid too much and the rapid pace of early development was not optimal," said CEO Andrew Mackenzie. The strategic overhaul doesn't end there for BHP. Its controversial potash project in Saskatchewan is also up for grabs. BHP says it's considering selling, delaying, or partnering up on Jansen -- which we'll recall was a point of contention during BHP's failed run at Potash Corporation of Saskatchewan. The backdrop here for all of this is an activist campaign by Elliott Management. We’ll chase principals, BHP shareholders and Brad Wall.

Supporting documentation on today’s news can be found here and here. 

BANK EARNINGS EVE    

We await the start of bank earnings season, which gets underway tomorrow when RBC sets the bar for its peers. We’ll lay the groundwork today; already this morning Avenue Investment Management’s Paul Gardner argued the Canadian banks are “on sale” right now, dismissed the ever-present short thesis, and made the case for why the big bank stocks could rally later this year. 

CANADIAN DEBT BINGE

There’s still no stopping Canadians’ appetite for debt. A new report from TransUnion shows average consumer debt rose across all categories in the second quarter, including a nearly five per cent rise in mortgage balances. TransUnion notes the serious delinquency rate on mortgages dipped from a year earlier. Be that as it may, we’re see some stress in the credit card and auto loan categories.

OTHER NOTABLE STORIES:

-Flagging Philip Cross’s op-ed in today’s FP. He’s exceedingly critical of government’s plan to clamp down on tax loopholes. He even suggests the Finance Department was able to proceed with this proposal because the rest of the government has an “all-consuming obsession” with NAFTA.

-The Ontario Real Estate Association has released a white paper with eight proposals to tighten up industry regulations, including doubling fines for Code of Ethics infractions. We’ll chase OREA. 

-The Globe and Mail is reporting Petronas, which less than a month ago gave up on its massive Pacific NorthWest LNG project, might look to acquire a minority stake in the Royal Dutch Shell-led LNG Canada project.  

-Forget monetary and fiscal policy, Bridgewater Associates Chairman Ray Dalio reckons our collective ability to move beyond conflict will have a greater impact on markets and the economy. See his full post here.

-CGI Group has struck a deal to buy Affecto Plc for $146 million. 

NOTABLE RELEASES/EVENTS

-Notable data: Canadian retail sales

-Donald Trump holds rally in Phoenix (10:00 p.m. ET)

Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN'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.bnn.ca/subscribe.