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Noah Zivitz

Managing Editor, BNN Bloomberg


Toronto-Dominion Bank is expanding again in the United States; this time it’s a US$1.3-billion all-cash takeover of Cowen — thus ending weeks of speculation after our Bloomberg News partners reported a month ago that talks were underway. Buying Cowen would allow TD to bulk up its investment banking services in the U.S., and will be juggled with the Canadian lender’s even bigger plan to buy First Horizon for US$13.4 billion. We’ll dive into the M&A strategy, regulatory risk, and what TD is doing to keep its capital levels above the required minimum.


Air Canada’s second-quarter revenue almost quintupled to $3.98 billion, but that didn’t quite live up to Bay Street’s expectations as the carrier fights basic supply and demand fundamentals. In today’s release, its CEO said advance ticket sales in the second quarter were at 94 per cent of Q2 2019 levels; yet its capacity was just 73 per cent of what it offered three years earlier. Also of note: its fuel bill surged to $1.45 billion from just $239 million a year earlier. Looking ahead, Air Canada nudged up its adjusted cost per available seat mile forecast (which, it must be pointed out, doesn’t include fuel costs). Kumutha will recap the airline’s financials from a period when Canadians were dealing with chaos at airports, and we’ll get analyst reaction when Helane Becker from Cowen joins us at 10:30 a.m. ET.


It’s a dreary mood this morning, with almost every major commodity and global equity index in the red. Concern about a flare-up in China-U.S. tension as House Speaker Nancy Pelosi heads to Taiwan is weighing on sentiment. Of particular note for the S&P/TSX Composite Index: West Texas Intermediate swung back into positive territory this morning after earlier going into a tailspin that saw it tumble below US$93 per barrel from almost US$102 Friday. Murky demand was blamed for oil’s move yesterday after purchasing managers indices in Europe and China suggested factory activity contracted.  


  • There’s no obvious sign that economic uncertainty is denting demand for Uber Technologies; its second-quarter gross bookings surged 33 per cent, while revenue doubled and it swung to an adjusted profit.
  • Semtech has confirmed it’s in talks to buy Sierra Wireless for US$31 per share, with no guarantee that a deal will be finalized. Sierra Wireless’s Nasdaq-listed stock surged almost 20 per cent yesterday after Bloomberg News reported advanced talks were underway. 
  • Caterpillar shares are drifting lower in pre-market trading despite big gains in revenue (which didn’t quite live up to expectations) and profit in the second quarter. Resource industries were the main growth driver as that revenue jumped 16 per cent year-over-year.
  • CGI said yesterday it repurchased 938,914 of its Class A shares from the Caisse de Dépôt et placement du Québec at a three per cent discount to Friday’s closing price ($106.51 versus $109.80)
  • Pinterest is another mover on our radar after Elliott Investment Management revealed itself to be the social media company’s largest investor, saying it has conviction in Pinterest’s “value-creation opportunity.” The company also released second-quarter results after markets closed yesterday, showing it swung to a net loss, while the number of global monthly active users slipped five per cent from a year earlier.


  • Notable earnings: Air Canada, Definity Financial, Finning International, Sprott, Gibson Energy, Dream Industrial Real Estate Investment Trust, Neighbourly Pharmacy, Restaurant Unlimited, Molson Coors, Caterpillar, Advanced Micro Devices, Uber Technologies, Starbucks, Airbnb, PayPal, BP