Dec 11, 2017
BNN's Daily Chase: Bitcoin futures surge in debut; finance ministers meet
By Noah Zivitz
Bitcoin futures surged in the first day of trading on the CBOE, with rampant interest slowing the exchange's website and triggering two trading halts. The January contract rose as high as US$18,850 after opening at US$15,460. Bitcoin, meanwhile, is into another volatile session that nearly pushed it back above US$17,000 in early trading. CBOE CEO Edward Tilly joins us at 10:30 a.m. ET to discuss the first day of trading and respond to criticism levelled at U.S. regulators last week over what some see as a rush to market.
And in a week that’s rich with opportunities for central bankers to opine on bitcoin’s remarkable run, the acting governor of the Reserve Bank of New Zealand said in an interview the cryptocurrency “looks remarkably like a bubble forming.” On Wednesday, outgoing U.S. Federal Reserve Chair Janet Yellen will have a chance to chime in. On Thursday, Bank of Canada Governor Stephen Poloz delivers a speech in Toronto and we also get policy announcements from the Bank of England and European Central Bank that day.
Tangentially, BMO Senior Economist Robert Kavcic takes the cake for best quote on all of this: “Now, the latest ascent of Bitcoin (or Ethereum, Litecoin, etc.) makes the 1990s IPO craze (Pets.com, theGlobe.com, Flooz.com, etc.) look like afternoon tea compared to the raging frat party playing out in the cryptocurrency world,” he wrote in a report to clients late Friday.
FINANCE MINISTERS TO DISCUSS DIVISION OF POT PROCEEDS
Divvying up the federal excise tax on recreational cannabis will presumably be the primary sticking point as the second day of discussions between Finance Minister Bill Morneau and his provincial/territorial counterparts gets underway in Ottawa. Other official agenda items include “improving the available information on corporate ownership in Canada”, a review of the Canada Pension Plan and gender budgeting.
AURORA VERSUS CANNIMED
The takeover battle goes before the Ontario Securities Commission this morning, where the regulator will consider Aurora’s argument against CanniMed’s poison pill (Editor’s note: The OSC clarified to BNN that today’s hearing is strictly procedural). Aurora has claimed it’s getting “overwhelmingly positive” feedback from its target’s shareholders. CanniMed, meanwhile, has said the unsolicited offer from Aurora “makes no sense for our shareholders.” We’ll speak with CanniMed CEO Brent Zettl at 11:50 a.m. ET.
OTHER NOTABLE STORIES:
-TSX record high watch: 16,131.79 is the all-time high set on Nov. 7. The TSX closed on Friday within 35 points of that all-time high. Amazing to see some of the top contributors to the index’s run since then: Valeant Pharmaceuticals (+40.2 per cent), Home Capital Group (+22.9 per cent), Cameco (+16.8 per cent).
-There are multiple reports this morning that GGP has rejected Brookfield Property’s US$14.8-billion takeout offer for the massive American mall owner.
NOTABLE RELEASES/EVENTS
-10:00 a.m. ET: Ontario Financial Accountability officer releases Economic and Fiscal Outlook report
-11:30 a.m. ET: OSC holds hearing re. Aurora Cannabis-CanniMed Therapeutics
-2:30 p.m. ET: B.C. Premier John Horgan announcement re. Site C hydroelectric dam
-Bill Morneau meets with provincial and territorial finance ministers in Ottawa (8:30 a.m. ET photo op, 4:15 p.m. ET closing news conference)
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.
