Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The selling pressure that sent North American markets tumbling on Friday has carried over to global stocks with most of Asia and Europe posting losses this morning. Futures are pointing to a lower open in New York after the Dow Jones Industrial Average went into the weekend with its largest single-day loss since June 24, 2016. The TSX Composite Index, meanwhile, plunged the most since last May, with only 16 members of the index eking out gains. And once again this morning, attention is focused squarely on the 10-year U.S. Treasury yield, last seen at 2.844 per cent. 

Really, the only questions that matters today are: 1. How much further stocks will fall before they stabilize and 2. Where the best buying opportunities are.

FAIRFAX BUYING SOME OF CARILLION'S ASSETS 

Prem Watsa's Fairfax Financial is swooping in to buy some of Carillion's Canadian assets after the construction firm filed for liquidation last month.

CANNABIS STOCKS SINK

The floor came out from under Canada’s cannabis stocks last week, with industry heavyweights like Canopy Growth (-12.8 per cent), Aphria (-10.3 per cent), and Aurora Cannabis (-16.8 per cent) tumbling on Friday after similarly large losses on Thursday and only slightly lesser declines on Monday and Tuesday. Aphria and Canopy are now among the lead laggards since the TSX went into a spiral from its Jan. 4 all-time high. Will be interesting to see what happens next time an issuer tests the market with a share offering.  

YIELD SPILLOVER       

As if the laundry list of regulatory changes wasn’t enough, prospective Canadian homebuyers also need to be mindful of action in the bond market that could export higher rates to this country. Mortgage industry expert Rob McLister joins Jon at 945 to explain how the 10-year U.S. Treasury yield’s march toward 3 per cent might affect your borrowing costs.

OTHER NOTABLE STORIES:

--Aurora Cannabis has struck a deal to acquire as much as 40% of Liquor Stores N.A. via a private placement, with LIQ using proceeds to launch a line of cannabis stores.

-There are multiple reports that the federal government will release its long-awaited long-term plan for reviewing major resources projects later this week.

-Shares of Wells Fargo are under pressure in pre-market trading after the U.S. Federal Reserve clamped down on the bank’s risk management and growth plans.

NOTABLE RELEASES/EVENTS

Notable earnings: Nutrien

Notable data: ISM U.S. services index

11:00 a.m. ET: ECB President Mario Draghi speaks before European Parliament

1:25 p.m. ET: Ambassadors David MacNaughton and Kelly Knight Craft among speakers at Energy Council of Canada conference in Ottawa 

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.