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Noah Zivitz

Managing Editor, BNN

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Make it two for two for Canada's banks. Canadian Imperial Bank of Commerce has matched RBC by topping profit expectations and raising its dividend. CIBC registered nearly double-digit growth in its core Canadian unit during its third quarter. And it started to see the payoff from its stateside expansion as adjusted profit in its U.S. unit soared 76 per cent thanks to the takeover of PrivateBancorp – which CEO Victor Dodig is calling a "pivotal milestone." In terms of how much the bank has riding on housing, its residential mortgage book rose to almost $203.2 billion in the latest quarter. 

BACKLASH MOUNTS FOR MORNEAU’S TAX PLAN

The spectrum of opinion on Finance Minister Bill Morneau’s plan to tighten up tax rules was evident yesterday afternoon on BNN. Deputy Conservative Leader Lisa Raitt stated millions of Canadians would be affected by what she called a “sneaky summer tax.” Meanwhile, Morneau advisor Ken Courtis made the counter-argument, saying there’s been an “explosion” in the use of private corporations for tax purposes. We’ll continue trying to fill out the spectrum of perspectives.

 

Low oil prices continue to weigh on Alberta's finances: Ceci

The latest picture on Alberta's fiscal health shows that weaker oil prices are continuing to weigh on provincial revenues. Alberta Finance Minister Joe Ceci explains how recent measures to address oil's volatility and increased cost-cutting is helping to make the province's financial situation better than many had feared.

WEAK OIL PRICES SQUEEZE ALBERTA’S COFFERS

Rachel Notley's NDP government is bowing to the reality of lower-than-hoped-for crude oil prices. The Alberta government yesterday marked down its resource revenue forecast for this year, but still managed to keep the deficit outlook steady at $10.54 billion by dipping into the fiscal risk adjustment. And the province is also lowering its working assumption for WTI prices this year to an average of US$49 per barrel. Worth considering if the government is setting itself up for another markdown later this year.  

ENERGY EAST ASSESSMENT

The National Energy Board has widened the scope for its second attempt at reviewing TransCanada’s proposed Energy East pipeline. Notably, the regulator said it will take into consideration upstream and downstream greenhouse gas emissions and “the potential market impacts of GHGs reduction targets embedded in laws and policies on the economic viability of the project.”  

Concerns arise over Atlantic salmon in Pacific waters

Several thousand Atlantic salmon from Cooke Aquaculture's fish farm have escaped off of B.C's coast, mixing into Pacific waters. According to John Volpe, associate professor with the University of Victoria, it is too early to know the impacts of mixing the invasive species in with other salmon.

SALMON ON THE LOOSE

The Atlantic salmon that escaped a fish farm in Washington continue causing a stir on the west coast. Late yesterday, Canada’s Fisheries Minister set out to ease nerves. “We are closely monitoring the incident,” Dominic LeBlanc said in a statement. “Our government takes this incident very seriously.” BNN's Andrew Bell will continue exploring the risk for the B.C. fishery industry on Commodities.

OTHER NOTABLE STORIES:

-Fairfax Financial is selling its 97.7 per cent stake in First Capital Insurance to Mitsui Sumitomo for US$1.6 billion. And there could be more to come. Fairfax and Mitsui say they plan to “explore a broad global partnership.” We’ll monitor the conference call at 8:30 a.m. ET and chase principals.

-The Fraser Institute has done the math on how much Canadians spend on taxes versus housing costs. Turns out the average tax bill last year was $35,283 versus $31,069 for housing, food and clothing. 

NOTABLE RELEASES/EVENTS

-Notable earnings: CIBC (7:30 a.m. ET conference call), Tiffany, Sears Holdings

-Notable data: StatsCan EI report, U.S. existing home sales

-8:30 a.m. ET: Fairfax conference call on Mitsui Sumitomo partnership

-10:00  a.m. ET: Toronto Mayor John Tory and Ontario Housing Minister Peter Milczyn make announcement + media avail in Toronto.

-3:15 p.m. ET: Environment and Climate Change Minister Catherine McKenna delivers remarks and holds media avail after Vancouver Board of Trade roundtable

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