"Tremendous news"? Or "delaying the inevitable"? Depends who you ask after a weekend strike at CP Rail was averted after the federal labour minister called for a vote on CP's latest offer on the advice of mediators. CP CEO Keith Creel heralded the development as "tremendous news" for the company and Canadian economy. The union bosses have a different view. To wit:
-"CP succeeded in delaying the inevitable ... CP can't hide from us forever" - Teamsters Canada Rail President Doug Finnson
-"The fact that CP thinks their offer has a chance in hell of being ratified shows how out of touch they are with their employees" - International Brothers of Electrical Workers Senior General Chairman Steve Martin
Big questions today are whether workers will fall in line with their unions’ calls to reject CP’s offer and how CP customers will manage the uncertainty.
10-YEAR YIELD WATCH
The 10-year U.S. Treasury yield is on the brink of hitting 3 per cent, last seen at 2.987 per cent. We’ll watch how this plays out for stocks at the open and ask investment pros for their views on interest rate sensitive sectors.
STARS MAKES SPLASH IN SPORTS BETTING
The Stars Group (formerly known as Amaya) made a big splash over the weekend, announcing it will buy Sky Betting & Gaming for US$4.7 billion in cash and stock in a deal that marks a big move for the Canadian gambling company into the sports arena. We're chasing principals.
CANADIANS BLAME KINDER MORGAN
More than half of respondents to a new Angus Reid Institute are pinning blame for the uproar over the Trans Mountain expansion at the pipeline proponent's feet. Fifty-eight per cent of those surveyed said Kinder Morgan "could have done a better job of earning public support for this project and brought much of this [protest] on it itself."
GFL STEERS CLEAR OF IPO
So much for the initial public offering speculation. GFL Environmental announced late yesterday it has brought Ontario Teachers' Pension PLan and BC Partners on board as investors in a recapitalization that values the waste hauler at $5.125 billion. Main question today is why GFL opted against going public. We’re chasing its CEO.
OTHER NOTABLE STORIES
-Aluminum futures slipped this morning after the U.S. indicated it would be prepared to offer some relief on Rusal sanctions if Oleg Deripaska relinquishes control.
-MEG Energy announced today CEO Bill McCaffrey will resign at the end of May.
-Last Thursday we saw U.S. oil futures climb within 44 cents of US$70 per barrel; this morning, West Texas Intermediate has been dipped below US$68
-UBS Group CEO Sergio Ermotti told Bloomberg client activity was “much more muted” in February and March after an “exuberant” January. UBS shares are trading a couple percentage points lower in Europe amid some apparent disappointment over first-quarter wealth management performance
NOTABLE RELEASES/EVENTS
-Notable earnings: Barrick Gold, CN Rail, PrairieSky Royalty, Alphabet, Halliburton, Kimberly-Clark, Hasbro
-Notable data: Canadian wholesale trade, U.S. existing home sales
-9:00 a.m. ET: Parliamentary Budget Officer to release reports "Economic and Fiscal Outlook", "Costing Budget 2018 Measures" and "The Borrowing Authority Act and Measures of Federal Debt"
09:45 a.m. ET: Infrastructure Minister Amarjeet Sohi, Toronto Mayor John Tory make announcement in Toronto
-11:30 a.m. ET: Foreign Affairs Minister Chrystia Freeland holds news conference in Toronto during meeting of G7 foreign affairs and security ministers (1130)
-3:30 p.m. ET:Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins testify before House Finance Committee (1530)
-3:30 p.m. ET: Freeland and Public Security Minister Ralph Goodale hold media avail in Toronto (1530)
-5:15 p.m. ET: France President Emmanuel Macron arrives in D.C. for meeting with U.S. President Donald Trump
-5:10 p.m. ET: Natural Resources Minister Jim Carr delivers keynote at energy conference in Ottawa (agenda: https://www.uottawa.ca/positive-energy/sites/www.uottawa.ca.positive-energy/files/positive_energy_2018_conference-program.pdf)
-Sohn Investment Conference in New York (notable speakers include Jeff Gundlach and David Einhorn)
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
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