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Noah Zivitz

Managing Editor, BNN Bloomberg

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This weekend brought some relief for supply chain bottlenecks in British Columbia. Trans Mountain announced its pipeline resumed service almost three weeks to the day since the flow of oil was shut down as a result of extreme weather in British Columbia. As well, Canadian National Railway said yesterday that trains are moving again between Vancouver and Kamloops. We’ll gather insight on how long it will take to clear backlogs, which can’t come soon enough for many businesses – including Teck Resources, which this morning cut its steelmaking coal sales forecast and raised its full-year transportation costs estimate as a result of the setbacks in B.C.

INFLATION NATION

Today, BNN Bloomberg and BNNBloomberg.ca begin special week-long coverage of the surging cost of living in this country. From car lots, to gasoline pumps, to grocery aisles, and beyond – we’re all feeling the impact of inflation. Starting with Paige Ellis’ reporting today on this bizarre environment we’re in where used car prices are rising, our coverage will dig deeper into the drivers and what consumers and investors can do to protect themselves. It’s not a coincidence that we’ve scheduled this special for a week when we’ll get a Bank of Canada policy announcement.

SIDDALL ON ‘POLITICAL SUICIDE’ OF TAXING GAINS ON PRIMARY RESIDENCES

Former Canada Mortgage and Housing Corporation Chief Executive Officer Evan Siddall indicated in an interview on CTV’s Question Period yesterday that taxing capital gains on the sale of primary residences could be one of the solutions to this country’s sky-high home prices. But he knows that’s unlikely to come to fruition since it’s “political suicide” and a “step too far” for the finance minister. Instead, he reckons some changes to mortgage insurance parameters could be more palatable for the government. Watch for highlights from that interview today on BNN Bloomberg and more details at BNNBloomberg.ca

COUCHE-TARD LETTING GO OF DUAL-CLASS SHARE STRUCTURE

As of Wednesday, all of the convenience store empire’s Class B shares will be swapped for Class As. This is happening because as of that day, all four of the company’s founders will be 65 years of age, which triggers the share-structure collapse under Couche-Tard’s articles. In the press release announcing the move, Executive Chair (and co-founder) Alain Bouchard said, “as always we will act in the best interest of our shareholders.” We’ll gather perspective on whether that could become more difficult when the shield of super-voting shares is pulled away this week.

BITCOIN STEADIES

After falling as much has 21 per cent on Saturday, the best known cryptocurrency has stabilized (which is a relative term, considering it’s down 28 per cent from its recent November high). As for what caused the rout and how retail holders should respond? We’ll chase reaction and look forward to insight from Scotia Wealth Portfolio Manager Greg Newman in The Street.  

CHINA WATCH

Two major developments on our radar. The People’s Bank of China cut reserve ratio requirements for the country’s banks in a move the central bank said will free up 1.2 trillion yuan (~$240 billion) in lending capacity. Meanwhile, shares in China Evergrande fell as much as 20 per cent overnight as debt-laden property development moves toward a restructuring.

OTHER NOTABLE STORIES

  • The S&P/TSX Composite Index is about to welcome nine energy names into its ranks after S&P Dow Jones Indices announced a rebalancing late Friday afternoon that will also see crypto miner Hut 8, cemetery operator Park Lawn, and electric vehicle maker Lion Electric join the index.
  • Whitecap Resources announced this morning it’s paying $342.5 million in cash and stock in a trio of deals in Western Canada. Whitecap said the acquisitions will add 9,000 barrels of oil equivalent in average daily production next year as well as 345 drilling locations. 
  • Crescent Point Energy is raising its quarterly dividend 50 per cent to $0.045 per share and said it plans to allocate up to $100 million to share buybacks. That news came alongside an upwardly revised production forecast for 2022. 
  • CI Financial announced yet another U.S. deal this morning; this time it’s buying RegentAtlantic Capital, which has US$6 billion in assets under management. As usual, CI didn’t disclose terms.

NOTABLE RELEASES/EVENTS

  • 9:30: Industry Minister François-Philippe Champagne and Merck Canada President Marwan Akar make biomanufacturing announcement in Toronto.
  • 14:00: U.S. President Joe Biden delivers remarks at the White House on prescription drug prices
  • World Petroleum Congress in Houston (runs until Dec. 9) https://www.23wpchouston.com/