Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

OIL STABILIZES 

The price of oil is stabilizing this morning as the market comes to grips with OPEC’s ongoing restraint. Crude tumbled almost five per cent yesterday after the Saudi-led group opted to extend coordinated production cuts for nine months. While the cartel blinks in the turf war it started with U.S. shale producers, one Canadian industry titan told us the latter’s clout isn’t all it’s stacked up to be. “We aren’t panicking at this stage,” Bonterra Energy CEO George Fink told us yesterday afternoon. “I think that the shale production in the U.S. now, the impact of it is maybe being overestimated by some investors in North America.”

BNN's Jameson Berkow will stress test that assertion today and establish Canadian producers’ exposure to shale. Also worth keeping in mind what ex-Suncor CEO Rick George told BNN earlier this week about there being a “gold rush” mentality in the Permian Basin.

AMAZON.COM NEARS $1,000

The ultimate disruptor reached a high of $999 per share in trading yesterday, building on a meteoric rise that’s helped lift U.S. indices into record territory. Forty-six analysts cover the stock. Thirty-nine have buy recommendations. Richest price target is $1,250. A couple of basic questions: Can investors afford not to own Amazon? How will CEO Jeff Bezos continue to satisfy customers? And does Amazon itself have any vulnerabilities that could be exploited either by incumbents or a next-generation disruptor?

KINDER MORGAN: POLITICAL LANDSCAPE 'NOT IDEAL,' BUT WE’RE DOING TMX (WITH A CAVEAT)

The controversial Trans Mountain expansion project is a go. Maybe. Kinder Morgan confirmed its final investment decision on the $7.4-billion pipeline late yesterday -- provided its upcoming IPO is a success. Worth noting that already the bar has been lowered on that offering after shares were priced below the estimated range. Also worth noting that Kinder Morgan is basically suggesting its hand was forced: “While the political climate was not ideal, the process proceeded at this time because the Trans Mountain Expansion Project financing contingency period, as specified in shipper agreements, concludes at the end of May.” We’ll chase the company and gauge investor interest in the IPO.

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

FROM OIL PATCH FINANCIER TO SMASHVILLE

Watch for an interview today on BNN with W. Brett Wilson. The co-founder of FirstEnergy Capital and former Dragon, can now lay claim to being part-owner of a Stanley Cup finalist. Watch for a feature interview with him today on BNN as he discusses making Nashville a hockey hub.

IN CONVERSATION WITH STEVE WOZNIAK

Another big interview to watch for today: Jon Erlichman's conversation with Apple co-Founder Steve Wozniak. We’re looking forward to hearing what he has to say about innovation at Apple, and what he thinks comes after the iPhone in Cupertino.

FACEBOOK CANADA SCOUTING FOR SALES TALENT AFTER 10 FIRINGS

Read Jon Erlichman's scoop on BNN.ca about Facebook Canada seeking to fill the void left on its sales team after ten employees were fired earlier this year following an internal investigation about questionable commissions being claimed.

SCOTIA EXITING MALAYSIA

After months of speculation that a deal was in the works, Cathay Financial Holdings confirmed today it’s buying Scotia’s Berhad operations in Malaysia for US$255 million. For all intents and purposes it looks as though this comes down to divesting a non-core asset. Today we’ll consider how Scotia will put the proceeds to use.

G7 MEETS IN ITALY

European Council President Donald Tusk set the tone this morning, saying he’s expecting the meeting in Italy to be the most difficult G7 summit in years. Most of the comments ahead of the first working session suggest climate, terror and trade will be at the top of the agenda. The power dynamics within the group should be interesting as U.S. President Donald Trump makes his G7 debut (keep in mind how things played out yesterday at the NATO meeting, when he actually shoved one of his peers aside), and Emmanuel Macron is also new to the group.

OTHER NOTABLE STORIES

-Home Capital Group said late yesterday its high interest saving account balance dipped to $111.4 million on Wednesday from $113.3 million on Tuesday.

-Ontario Premier Kathleen Wynne is fighting against a Buy American proposal that could be approved by the state of Texas as early as this weekend, and warning her province is prepared to “appropriately respond” if the proposal becomes law. 

-The U.S. economy was even stronger than originally estimated in the first quarter. GDP rose 1.2 per cent over the three-month period. The original estimate was 0.7 per cent.

-BlackBerry will receive US$940 million from Qualcomm next week in a final arbitration decision. That’s $125 million more than the preliminary amount (which, it should be pointed out, did not include interest and attorneys’ fees.) 

NOTABLE RELEASES/EVENTS

-Notable data: U.S. GDP, U.S. durable goods orders, University of Michigan U.S. consumer sentiment index

-10:30 a.m. ET: Transport Minister Marc Garneau makes announcement in Montreal on zero-emission vehicles

-2:00 p.m. ET: Natural Resources Minister Jim Carr holds media avail in Fredericton after meeting with forestry sector leaders

-3:15 p.m. ET: Former Bank of Canada Governor David Dodge delivers remarks at Senate symposium on Canada 150

-G7 summit begins in Taormina, Italy (6:15 a.m. ET family photo; 7:15 a.m. ET working lunch; 8:10 a.m. ET working session; 9:20 a.m. ET working session)

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.