NORTH KOREA CLAIMS SUCCESSFUL FIRST TEST OF INTERCONTINENTAL BALLISTIC MISSILE
Geopolitical hostility is heating up after North Korea claimed it successfully test-fired an intercontinental ballistic missile. U.S. President Donald Trump took to Twitter late last night to condemn the launch: “North Korea has just launched another missile. Does this guy have anything better to do with his life? Hard to believe that South Korea..... ....and Japan will put up with this much longer. Perhaps China will put a heavy move on North Korea and end this nonsense once and for all!,” he wrote.
Recall it was on Friday Trump declared patience with Pyongyang “is over.” For its part, China is urging “restraint.” Inevitably this becomes a top agenda item for the G20 summit later this week. In terms of how it’s playing out in the market today, we’re seeing the price of gold rise half a percentage point after falling almost two per cent yesterday.
RATE EXPECTATIONS
Stephen Poloz has done another interview ahead of next week’s rate decision, and he isn’t attempting to talk down market expectations for a hike. He told Germany’s Handesblatt the Bank of Canada is confident inflation will be “well into an uptrend” by next year. He also shrugged off the impact of higher rates for the housing market, saying there’s a “resilient structure” in this country.
Implied probability of the Bank of Canada raising rates on July 12 remains above 80 per cent. One week ago today the probability was just 38.7 per cent. With just over a week to go before the decision we’ll continue evaluating what higher rates will mean for the economy and your money. Today, CTV's Chief Financial Commentator Pattie Lovett-Reid addresses the implications for your savings.
TFSA CRACKDOWN
Dale Jackson reported in his Personal Investor segment a couple weeks ago that the Canada Revenue Agency is cracking down on big gains being racked up in tax-free savings accounts. In today's Globe and see CRA wants $75 million handed over. We'll chase reaction today to help equip you with the best information you need for TFSA planning purposes.
OIL’S WINNING STREAK AT RISK
Oil futures are narrowly in negative territory after eight straight days of gains that’ve seen crude rally from US$42.53 to US$47.07 per barrel. OPEC output and Friday’s U.S. rig count have been primary drivers. Today’s breather is also slowing the loonie, which is sitting below 77 cents U.S.
TORONTO CONSIDERS TAX ON VACANT HOMES
Toronto City Council today will put the ball in motion for a possible tax on vacant homes in the city. Council is set to discuss an executive committee recommendation that would see the city launch consultations and report back to the executive committee on September 26. We’ll track developments and use this as the basis for teeing up the next batch of GTA home sales data, which is due for release on Thursday.
BNN Advisor
Vancouver: Housing concerns cross generations
Winnipeg and Saskatchewan: The loonie and U.S. protectionism weigh on Central Canada
Yellowknife and Whitehorse: The hurdles of northern living and aboriginal issues
OTHER NOTABLE STORIES:
-Home Capital Group said late Friday it will cease its daily deposit updates. As of Thursday, its GIC base was $12.15 billion, compared with $12.04 billion a week earlier. The next update on its deposits will be released July 17.
-The Quebec government announced on Saturday it would delay the tender call tied to the province’s new generic drug market as a result of “last minute” talks with the pharmaceutical industry.
-A group of First Nations chiefs will be in South Dakota today for a ceremony in demonstration against Keystone XL, Line 3 and Energy East.
NOTABLE RELEASES/EVENTS
-12:00 p.m. ET: International Trade Minister François-Philippe Champagne and New Brunswick Premier Brian Gallant make announcement in Saint John about helping Atlantic Canadian reach new global markets
-12:30 p.m. ET: Transport Minister Marc Garneau makes “major announcement” in Ottawa on trade and transportation corridors
-1:00 p.m. ET: First Nations leaders hold ceremony in South Dakota in opposition to Keystone XL pipeline
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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