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Daily Pulse

One of our most accessible tools, this daily comment keeps you abreast of developments on the North American and international financial markets.

Michel Doucet

Michel Doucet
Vice-President and
Portfolio Manager

September 18, 2020

Canada

Shares of Canadian apartment companies dropped after the country’s largest province said it plans to freeze residential rents in 2021. New rules announced Thursday apply to the vast majority of rental units in Ontario. Without the change, owners of rent- controlled apartments, condos and houses would have been able to boost rents by 1.5% next year. The legislation also extends a ban on evictions of small businesses.

Payments company Nuvei Corp. jumped 31% in its trading debut on Thursday, riding the wave of demand for technology shares that has swept the globe in recent months. Montreal-based Nuvei, which supplies payment technology to the retail, travel, gaming and other sectors, is among a cluster of firms benefiting from the shift to e-commerce during pandemic lockdowns. The deal raised $700 million, making it the biggest tech offering in the history of the Toronto Stock Exchange.

United States

The Federal Reserve, which just started a second round of Wall Street stress tests, is considering extending the unprecedented constraints on dividend payments and share buybacks it imposed on the biggest U.S. banks. The Fed said in a statement Thursday that it will decide in the next two weeks whether to prolong the limits, which are scheduled to lapse at the end of the third quarter. Any extension through the end of the year would likely disappoint banks, as JPMorgan Chase & Co. has already indicated it might resume buybacks in the fourth quarter if allowed to by regulators.

Europe

Global Covid-19 infections passed 30 million, according to data from Johns Hopkins University, with the U.S., India and Brazil recording the largest number of cases. London may announce surging virus numbers on Friday, the Evening Standard said, potentially putting the city on track for curbs on socializing. The situation continued to deteriorate in Europe with Germany’s economy minister warning of the impact of further restrictions.

Europe’s primary bond market is on track to set an annual sales record as early as next week, after a coronavirus-fueled borrowing rush. The 2020 syndication tally is less than 20 billion euros ($24 billion) short of last year’s record total due to governments raising funds for stimulus measures and companies boosting cash buffers.

Asia

TikTok-owner ByteDance Ltd. is getting more confident its envisioned alliance with Oracle Corp. will pass muster with China’s regulators, a critical step in the political clash over the popular video app, people familiar with the matter said. While Beijing has asserted its right to block the sale of critical technologies, it is likely to greenlight a deal as long as it doesn’t involve the transfer of the artificial intelligence algorithms that drive TikTok’s service, they said, asking not to be identified discussing a private deal.

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