One of North America’s most influential auto industry executives has a warning for NAFTA negotiators: don’t screw it up. “I think NAFTA should be a big concern for the U.S., Canada and Mexico,” Magna International CEO Don Walker told BNN ahead of the seventh round of negotiations later this month. “As a company, we can move where we want around the world … I hope that the people who are negotiating it will make the right decisions; but if we get it wrong it could be very bad for Canada and it could be very bad, I think, for the whole trading region.”
Walker also discussed what the future holds for his auto parts empire, the challenges of doing business in Ontario, and his frustration with the company’s trading multiple. Watch for the interview this morning on The Street, or check it out here.
BAY STREET'S BUDGET WISH LIST
We’re planning to roll out results from a survey we conducted this week that gathered insight from top economists, money managers and executives about what they want to see in Bill Morneau’s budget, which will be in the news as the finance minister meets with private sector economists and speaks with the media later today.
INSIDE PREM’S PORTFOLIO
Even Prem Watsa couldn’t win by betting against stocks in the midst of a record-smashing run. Fourth-quarter results from his Fairfax Financial show the company suffered a $449-million loss on its short equity exposure. After balancing out against paper performance, Fairfax emerged with a net loss of $93.7 million on its equity shorts during the last three months of the year. Not the first time markets have worked against Fairfax. In 2016, it booked a $1.2-billion loss on investments because of “fundamental changes in the U.S.” during the fourth quarter (that’s code for Trump). We’ll keep an ear on Fairfax’s call at 8:30 a.m. ET for Prem’s perspective of the world.
REMEMBER LAST WEEK?
This time a week ago, the Dow Jones Industrial Average was coming off its second thousand-point loss in four days. Now, the Dow enters today’s trading session with a five-day winning streak in the books that has seen it climb almost six per cent.
LONGER ROAD TO CANNABIS LEGALIZATION
July 1 definitely isn’t going to be Cannabis Day. Senators have struck an agreement to hold off voting on Bill C-45 until June 7 (or thereabouts). Baking in the time it will take for provinces to get up and running after the bill becomes law, Health Minister Ginette Petitpas Taylor figures it will be August or September before Canadians can legally pick up recreational marijuana.
OTHER NOTABLE STORIES:
-Despite speculation that surfaced yesterday about Enbridge planning to boost its asset-sale plan for this year, the company said today its $3-billion divestiture target remains unchanged. Fourth-quarter profit came in a nickel ahead of estimates at 61 cents per share. Enbridge also said it’s ahead of target for cost savings from the Spectra takeover.
-Still plenty of hurdles ahead, but Kinder Morgan Canada has received the National Energy Board’s blessing to proceed with work at entrance of the Burnaby Mountain tunnel entrance
NOTABLE RELEASES/EVENTS
Notable earnings: Enbridge, Air Canada, Deere & Co, Kraft Heinz, Coca-Cola
Notable data: Canadian manufacturing sales, Canadian international securities transactions, U.S. housing starts, U.S. consumer sentiment
12:15 p.m. ET: Finance Minister Bill Morneau holds media avail in Toronto after meeting with private sector economists
12:15 p.m. ET: Alberta government announces details on recreational cannabis retail strategy
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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