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Noah Zivitz

Managing Editor, BNN Bloomberg

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The devastation in British Columbia is adding to already complicated supply chain problems, and there’s no indication of when normal operations will be able to resume at the Port of Vancouver. In a statement late yesterday, the port warned about ongoing vessel delays and disruptions to rail and highway traffic. We’ll keep chasing insight on the ripple effect for the economy and assess the outlook for the insurance industry as severe weather events seemingly become the norm.

D.C. SUMMIT

For the first time in five years, the leaders of NAFTA nations are meeting in person today as U.S. President Joe Biden hosts his counterparts. Officially, Prime Minister Justin Trudeau has said the agenda items include climate change, COVID-19, creating middle class jobs, and migration. Unofficially, you have to imagine the dispute over Enbridge’s Line 5 will come up, as will protectionism in all its forms (which we were reminded of yesterday when the PM panned America’s plan for made-in-America electric vehicle tax credits). Maybe also some friendly ribbing over World Cup qualifying.

A PAIR OF IPOS LIVE UP TO EXPECTATIONS

We’ve got two Canadian companies that managed to rally enough interest in their initial public offerings to price at the high end of their target ranges. Economical Insurance finally (!) reached the finish line last night as its parent company – Definity Financial Corp. – confirmed its IPO priced at $22 per share. Combined with a private placement, the insurer raised $2.1 billion. Meanwhile, Montreal-based Coveo Solutions priced its initial public offering at $15.00 per share, meeting the high end of its target range. The company, whose enterprise software appears to be designed to enhance search results, says the $215.1 million in proceeds will go toward growing its business.

‘TAKE THIS JOB AND SHOVE IT’ … OR NOT

We’ve all heard anecdotes about pandemic-inspired career changes. CIBC’s economics team, however, is questioning whether the numbers match the “take this job and shove it” narrative. In a report this morning, the bank noted that Canada’s voluntary job-change rate is basically unchanged from the average that was posted from 2017 to 2019. It’s a different story in the U.S., where the quit rate has clearly increased – and that factors into CIBC’s prediction that the U.S. Federal Reserve will end up hiking rates more aggressively than the Bank of Canada. We’ll dive into this with CIBC’s Avery Shenfeld at 8:35 a.m.

OTHER NOTABLE STORIES

  • The price of West Texas Intermediate and Brent crude oil are little changed this morning, despite China confirming a release from its strategic petroleum reserve.
  • Nvidia shares are rallying in pre-market trading after the chip maker delivered a blowout quarter, with revenue surging 50 per cent year-over-year to a record US$7.1 billion amid booming demand for its goods in the data centre and gaming sectors. There was a blemish in the quarter, however, as revenue from its automotive technology division fell 11 per cent compared to the prior quarter. 
  • Cisco, on the other hand, is coming under pressure as it contends with what Chief Executive Officer Chuck Robbins called a “very dynamic supply environment.” The bellwether for enterprise spending posted first-quarter results that was merely in line with estimates and forecast second-quarter revenue that could miss expectations.
  • A more than month-long strike by Deere & Co. workers is over after UAW members voted 61 per cent to ratify a contract that includes a 20 per cent wage hike over six years and a US$8,500 signing bonus.
  • Lion Electric is back on our radar this morning after it announced an order for 55 of its electric school buses, contingent on the buyer receiving funding from provincial and federal programs.
  • Shares in Vancouver-based Standard Lithium fell in pre-market trading after Blue Orca Capital revealed a short thesis.
  • Macy's spiked in early trading after reporting a 37.2 per cent surge in third-quarter same-store sales. The department store operator also announced plans for a new curated digital marketplace.

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian international securities transactions and employment insurance report; U.S. initial jobless claims
  • 8:30: Johnson & Johnson hosts business review of its pharmaceuticals business with investors
  • 11:00: Alberta Premier Jason Kenney leads announcement on investments to reduce emissions and diversify the economy
  • ATB Financial releases second-quarter results