Here are five things you need to know this morning:
Fed decision day: It’s decision day at the U.S. Federal Reserve, and while the central bank isn’t expected to cut its trend-setting interest rate for the first time in more than four years, they’re certainly getting close. While there’s a non-zero chance the Fed steps off the sidelines today, the market is firmly convinced that the next meeting in September will be the time, so it will be interesting to listen to what Fed officials, including chair Jerome Powell, have to say at their press conference this afternoon.
Canada GDP shows modest May expansion: Canada’s economy grew by 0.2 per cent in May, a slowdown from the 0.3 per cent clocked the month before, but ahead of expectations. Statistics Canada reported this morning that goods-producing industries grew by 0.4 per cent while the service sector expanded by 0.1 per cent. Retail trade shrank by 0.9 per cent, leading the downside. Early numbers for June suggest the economy grew by 0.1 per cent during that month. All in all, the numbers are nothing to write home about, especially given population expansion, but considering the central bank is hoping to see data suggesting the economy is slowly cooling instead of grinding to a halt, maybe a so-so GDP print can be taken as good news, soft-landing wise.
Lion Electric slashing jobs again: EV maker Lion Electric posted quarterly results before the bell today; numbers that showed a continuing slowdown at the company. Revenue was cut in half to $30 million and so was production, with 101 vehicles delivered. All in all the company lost $15 million, which is a big reason why it announced yet another round of layoffs, slashing its workforce by an additional 30 per cent. That works out to about 300 people.
CPKC expecting a rail strike next month: The CEO of Canadian Pacific Kansas City Rail says he is expecting a rail strike next month; a development that is sure to have a negative impact on the company’s outlook, to say nothing of the broader economy. On a conference call with analysts, Keith Creel said the company and its main union are “far apart” in contract talks and a work stoppage is likely by this time next month. Creel made the prediction as the company announced higher-than-expected revenue and profit.
Boeing shares trend higher on new CEO news: Shares of embattled jet maker Boeing are up this morning despite the aerospace giant posting a larger-than-expected quarterly loss and lower revenue. The optimism seems based on the development that the company has named a new CEO, with industry veteran Kelly Ortberg taking the top job.
