Here are five things you need to know this morning
BOC interest rate announcement: The Bank of Canada will announce its latest decision on interest rates Wednesday. The Bank is widely expected to hold rates steady at 2.25 per cent. Since October the BOC has said borrowing costs are in the right place to support an economy impacted by U.S. trade policy. Now, the war in the Middle East has added inflation risks and uncertainty globally. However, analysts are saying it is likely too early to signal any new direction. BNN Bloomberg will have live coverage of the announcement at 9:45 a.m. ET, Governor Tiff Macklem’s news conference at 10:30 a.m. E.T., and expert analysis throughout the day.
U.S. Fed set to update rates: The U.S. Federal Reserve will also make an interest rate announcement today. Like the Bank of Canada, the Fed is expected to hold rates steady, as it navigates a mix of complicated and conflicting forces playing out in the American economy. Futures pricing suggests policymakers won’t consider easing until at least September, more likely October, and even then just a single cut this year. Fed Chair Jerome Powell’s messaging will be closely watched, though this is expected to be Powell’s next-to-last meeting as chair, so markets might be wary of reading too much into his words.
Challenges for Lululemon: Lululemon is forecasting a second straight year of profit declines. The retailer also reported a four per cent drop in fourth quarter revenue in the Americas. The Vancouver-based company has recently been facing backlash for poor quality clothing, and sales have been hit by increasing competition from newer brands. Lululemon did not announce a new CEO, but added the former Levi Strauss CEO to its board.
Couche results slightly below estimates: Alimentation Couche-Tard’s third quarter profit and revenue were higher than a year earlier. However, they came in slightly under analyst estimates. The Quebec-based company says it delivered one of its best quarterly results in over two years, as merchandise and fuel revenue rose in the latest quarter. The convenience store operator says healthy fuel margins and increasing loyalty program engagement are adding to its momentum.
Trans Mountain expansion: Trans Mountain Corp. is planning a series of expansion projects for its main pipeline. The federal government-owned company says this will allow crude oil to flow faster and tankers to carry more volume by 2027. Trans mountain says it already exports 60 per cent of crude exported by tankers to Asia, and the war in the Middle East and the U.S. military action in Venezuela are making the pipeline more valuable.
