Markets are retesting June lows, they should be even lower: Strategist
It’s looking like this week will start the same way the last one ended, with futures indicating there will be losses at the start of trading in New York as recession fears persist. Once again, all roads seem to be leading to the U.S. dollar, which is stirring plenty of movement on the Bloomberg terminal’s FXC screen. Meanwhile, the British pound’s crosses are all the sharpest shade of red (at one point, the GBP was three-and-a-half cents away from parity with the U.S. dollar) as traders fret the new administration’s fiscal policies.
And the S&P/TSX Composite Index heads into today’s opening bell just 152 points above its lowest closing level of the year. By the look of her Twitter feed, Amber Kanwar was gathering research material yesterday for her return to the anchor chair with this ominous picture for central banks across the globe. She’ll guide our coverage of the first full hour of trading starting today.
'SURPRISE' CEO SUCCESSION AT BANK OF NOVA SCOTIA
Brian Porter is retiring as the bank’s president and chief executive at the end of January. His successor is Scott Thomson, who has been serving as the head of Finning International, the Vancouver-based Caterpillar equipment dealer. Granted, he’s been on Scotia’s board of directors since 2016. But in early reaction this morning, Anish Chopra from Portfolio Management Corp. called the decision a “surprise” that runs counter to the industry convention of internal succession. We’ll have plenty more reaction today, and will review how Porter helped to reshape Scotia — and why the bank hasn’t been rewarded by investors.
OECD CUTS OUTLOOK
The Organization for Economic Cooperation and Development has cut its outlook for the global economy for all the obvious reasons. In a report titled “Paying the Price of War,” it said it’s now expecting 2.2 per cent growth next year, down from its earlier call for 2.8 per cent. While it maintained this year’s projection at three per cent, the OECD trimmed its calls for a few countries this year — including Canada.
There are no words that do justice to the devastation caused by Fiona in Atlantic Canada. We’ll keep chasing insight on clean-up costs and what’s ahead for the region’s key industries.
OTHER NOTABLE STORIES
- Hammerhead Resources is going public through a deal with special purpose acquisition company Decarbonization Plus Acquisition Corporation IV (DCRD). In a statement, DCRD Lead Independent Director Jim McDermott lauded Hammerhead’s carbon capture and storage program, and stated “Hammerhead's course defines what will be required to be investible in oil and gas over the next decade.”
- Brookfield confirmed late Friday that it’s going ahead with the spin-off of a 25 per cent stake in its asset management business, which will result in another addition to the Brookfield family of listings.
- Voyager Digital, the crypto platform that filed for bankruptcy protection in July, announced after markets closed Friday that its chief financial officer is quitting so he can pursue other unspecified opportunities.
- Notable data: Canadian wholesale trade early indicator
- Notable earnings: Dye & Durham
- 830: Federal ministers provide update in Ottawa on border measures