BNN’s Daily Chase: U.K. property funds hit with investors’ Brexit fears
The chase by Noah Zivitz:
U.K. property fund suspensions rekindles crisis-era liquidity fears
If there’s a sign of fear stemming from the Brexit vote, it’s the flood of redemption requests hitting U.K. property funds. At least seven of those funds with more than $20 billion in combined assets have frozen trading in the wake of the United Kingdom’s vote to separate from the European Union. There are Canadian connections: one of the funds is operated by a unit of Great-West Lifeco – and, separately, a fund run by BMO shaved its valuation.
A conversation with Canada’s top bank regulator
Jeremy Rudin, Superintendent of Financial Institutions, will speak to BNN on The Close at 4:30 p.m. ET today. We'll discuss OSFI's strategy to make sure Canada's banking system is ready to absorb shocks -- be they from Brexit, a housing downturn, fallout from the oil crash, or who knows what else.
Seven Generation’s $1.3-billion ‘counter-cyclical’ takeover
The motives in yesterday afternoon's big Montney deal seem clear. Seven Generations views the $1.3-billion purchase as an opportunity to consolidate and derive "operational and investment synergies," while Paramount Resources cleans up its balance sheet by offloading $584 million in debt and retains some skin in the game by picking up 33.5 million VII shares. BNN will analyze this and weigh whether other dance partners will emerge with a similar deal strategy. Seven Generations, it should be pointed out, could very well be Canada’s most-loved energy stock: Fifteen buys, no holds, no sells. Its stock has soared 60.4 per cent in the last year, compared with a 3.6 per cent drop for the TSX energy group.
Canada Post pushes back lockout threat
The union representing some 50,000 postal workers says it's rejecting a proposal to undergo binding arbitration in its labour dispute with Canada Post. This comes after Canada Post announced it will push back the 72-hour lockout deadline to Monday at 12:01 a.m. ET. There’s no guarantee of a quick resolution: Canada Post noted last night that the two sides “remain far apart on key issues” and the union filed a complaint with the Canada Industrial Relations Board, alleging Canada Post hasn’t demonstrated good faith. Even if a deal is struck immediately, how quickly will customers who deserted Canada Post return?
B.C. to unlock some real estate data
Who knows what the details will be, but British Columbia Finance Minister Mike de Jong is holding a news conference today to “release data related to real estate transactions.” What will de Jong have to say, today at 1:30 p.m. ET? It’s worth noting that on Monday, he vowed to release specific data on foreign buyers “very soon.”
Blaming regulations for holding back housing supply
The Fraser Institute says abundant regulations are limiting the supply of new homes in Canada and driving up prices in the process. According to the think tank, long wait times to get projects approved "are particularly detrimental." BNN will run through the report's findings and how they should factor into ongoing talks about taming Canada's hottest markets.
Tallying the cost of the Alberta wildfires
The Insurance Bureau of Canada will provide the first estimate of total insured damage caused by the Alberta wildfires at 12:00 p.m. ET.