Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

BMO KICKS OFF BANK EARNINGS 

BMO's U.S. exposure was a drag on earnings in the second quarter. The lender kicked off earnings season today with an in-line adjusted profit and a dividend boost. Wealth Management and Capital Markets delivered double-digit growth — but the bank's substantial stateside operations were a soft spot. And CEO Bill Downe says U.S. business activity lagged expecations in the latest quarter. 

Beyond the array of numbers, here are the storylines BNN will be tracking:

-How/if the bank addresses turmoil at Home Capital Group

-BMO has a lot riding on the U.S. How confident BMO’s U.S. customers are feeling amid all the controversies in D.C. and uncertainty about U.S. President Donald Trump’s ability to execute on his fiscal plan? 

-Should also keep in mind that Bill Downe is heading into the home stretch as CEO. He passes the baton to Darryl White on November 1.

HOME CAPITAL TAKES ANOTHER PIECE OF HOOPP LINE

The embattled lender announced late yesterday it’s taking another $250 million from the $2-billion HOOPP credit line with the intent of putting that draw toward an upcoming debt payment. The latest HCG update also shows high-interest savings account balances were unchanged as of Monday at $115 million. Maybe the gradual ramp-up in marketing that we’ve all witnessed is paying off. And note the Globe’s piece today that underscores the lure of sweeter interest rates being offered up by Home Capital. Begs the important question of whether the CIDC guarantee, plus attractive rates, are enough to woo depositors.

SHELL MIGHT NOT BE LONG CNRL

Barely two months after announcing a $12.7-billion asset sale to Canadian Natural Resources, Royal Dutch Shell might already be laying the groundwork to ditch the shares it’s poised to pick up in the transaction. Reuters is reporting RDS is trying to line up investment bankers to help with the process. One important aspect to point out: the RDS/CNRL deal still hasn’t closed.

Worth keeping in mind what ex-Suncor CEO Rick George told us yesterday about foreign investors’ perception of Canada’s oil patch: “We have not helped ourselves with uncertainty around carbon pricing, uncertainty around policies around pipelines, around getting infrastructure approved – and so we have not made ourselves an attractive place to invest.” CNRL declined to comment on the Reuters report when reached by BNN.

BANK OF CANADA DECISION DAY

The Bank of Canada is holding the line on rates and trying its best to strike a neutral tone. The central bank says this country has adjusted to life with lower oil prices and that recent data has been encouraging. On the downside, the bank is warning about global uncertaimties and ongoing challenges for Canadian exporters. It also says policies aimed at taming red-hot Canadia housing markets haven't had a "substantial cooling effect." Despite the Bank's attempt to balance its message to the markets, traders have been reading between the lines and driving up the Canadian dollar amid hints of hawkishness. 

BNN Advisor

Vancouver: Housing concerns cross generations

Winnipeg and Saskatchewan: The loonie and U.S. protectionism weigh on Central Canada

Yellowknife and Whitehorse: The hurdles of northern living and aboriginal issues

IN CONVERSATION WITH DALLAS FED PRESIDENT

Andrew McCreath sits down with Dallas Fed President Robert Kaplan this morning for a feature conversation about the outlook for the U.S. economy and the plan for tightening monetary policy. The full interview will air on Weekly this Friday. We’ll have highlights today.

MOODY’S CUTS CHINA RATING

Moody’s lowered China’s debt rating one notch to A1. The ratings agency is basing its decision on a belief debt will rise as growth slows. In a sign that another change to the rating isn’t imminent, however, Moody’s bumped its outlook to stable from negative. Some base metals are trading marginally lower on the news. But this assessment from Societe Generale’s Kit Juckes seems to nicely sum up sentiment: “The stable outcome and the fact that rating agencies are more market-following than market-leading, not to mention recent Chinese equity market under-performance, all argue that there's no new news in this move.”

NOTABLE BNN INTERVIEWS

-11:00 a.m. ET: PrairieSky CEO Andrew Phillips

NOTABLE RELEASES/EVENTS

-Notable earnings: BMO (conference call at 2:00 p.m. ET), Lowe's, Tiffany, HP

-Notable data: U.S. existing home sales

-9:00 a.m. ET: Justin Trudeau departs for NATO summit 

-9:00 a.m. ET: PrairieSky Royalty holds investor day meeting in Toronto

-9:00 a.m. ET: Ontario Financial Accountability Officer releases report on province's hydro plan

-9:30 a.m. ET: U.S. Budget Director Mick Mulvaney testifies before House Budget Committee

-9:30 a.m. ET: McDonald's holds annual meeting

-10:00 a.m. ET: Bank of Canada releases rate decision

-10:30 a.m. ET: Finance Minister Bill Morneau holds photo op and media avail in Montreal

-10:30 a.m. ET: Innovation Minister Navdeep Bains announcement at BlackBerry QNX facility in Kanata, Ontario

-12:00 p.m. ET: Navdeep Bains delivers speech in Ottawa on Canada's standing in "global innovation race"

-2:00 p.m. ET: Minutes from last FOMC meeting

-5:00 p.m. ET: Philadelphia Fed President Patrick Harker delivers speech in New York

-Home Capital Group faces $325-million bond maturity date

-Deadline for FBI to hand over documents and recordings related to Comey-Trump communications to U.S. House Oversight Committee

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.