Justin Trudeau is speaking out in support of Bill Morneau ahead of the federal government’s fall economic update. “I am so proud of what our government and specifically our finance minister has accomplished over these past two years,” the prime minister said Saturday in Edmonton when asked whether Morneau has done enough to remove the perception of conflict of interview. Trudeau added it’s a “good thing” Morneau is now going “above and beyond” by vowing to sell his shares in Morneau Shepell and put other assets in a blind trust. Today we’ll consider what Morneau will have to do tomorrow when he delivers his fall update to put the public’s focus back on the economy.
TRUDEAU ALSO THROWS SUPPORT BEHIND TRANS MOUNTAIN
The prime minister also faced a barrage of questions about pipelines when he spoke with reporters on Saturday. While he danced around the issue of why he didn’t speak out in favour of Energy East the same way he throws his backing behind Bombardier, he did say Kinder Morgan’s Trans Mountain expansion project is in the “national interest.”
SURVEY SHOWS CANADIANS ILL-EQUIPPED FOR HIGHER RATES
A new survey shows just how fragile household finances are in this country. Forty-two per cent of respondents to an Ipsos survey conducted on behalf of MNP say they aren't confident they can cover basic expenses over the next year without going deeper into debt. An equal proportion say they're within $200 of not being able to cover monthly expenses. “It’s clear that people are nowhere near prepared for a higher rate environment,” said MNP President Grant Bazian in a press release.
LOONIE NEAR TWO-MONTH LOW
The dollar’s recent high near 83 cents U.S. at the start of September seems like ancient history. The loonie is close to slipping below 79 cents today, putting it near its lowest level since Aug. 31. No surprise to see the currency sag as the market dials back expectations for a third straight rate increase from the Bank of Canada. Implied probability of the bank’s benchmark lending rate rising on Wednesday is just 16.6 per cent. A month ago, odds were close to 50 per cent.
HBC HUNTS FOR NEW CEO
Jerry Storch is leaving the retailer at the start of next month, with Executive Chairman Richard Baker taking over an interim basis until a permanent replacement is found. “We are looking to the future with great anticipation as we work on plans to maximize the strength of our leading retail and real estate assets,” Baker said late Friday. Timing is odd, coming right before the holiday rush. Then again, HBC is trying to fend off an activist. So, who knows what really drove Storch out.
OTHER NOTABLE STORIES:
-Canfor says it took a $31.7-million hit in its fiscal third quarter as a result of preliminary U.S. duties. Profit rose from the previous year (regardless of whether you’re looking at net, adjusted, or adjusted operating income) despite contending with a stronger Canadian dollar, hurricanes and B.C. wildfires.
-Eldorado Gold shares are tumbling this morning after the miner cut its production outlook for its Kisladag mine in Turkey.
-Netflix announced it's planning a US$1.6-billion debt offering, with proceeds earmarked for content deals, capex and potential acquisitions.
NOTABLE RELEASES/EVENTS
-Notable earnings: West Fraser Timber, Hasbro, Halliburton
-Notable data: Canadian wholesale trade
-10:00 a.m. ET: New U.S. Ambassador to Canada Kelly Craft to receive letter of credence from Governor General Julie Payette
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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