Here are five things you need to know this morning
Carney government cements agenda: Prime Minister Mark Carney has secured a majority government after his Liberal Party won three by-elections. The new status has significant implications for business and the economy. In his weekly report, Derek Holt, Vice President and Head of Capital Markets Economics at Scotiabank, said: “The outcome could lend supportive stability to the Canadian dollar and domestic markets while emboldening the Carney administration to more aggressively pursue fiscal, regulatory, investment and trade policies without having to depend upon the fragmented opposition.”
Oil low as traders watch Strait of Hormuz: The price of oil traded lower on signs Washington and Tehran may revive talks following the start of a U.S. blockade of the Strait of Hormuz, with traders tracking a China-linked vessel that may test the new curbs. Brent edged lower to around US$99 a barrel, while West Texas Intermediate was near $97. Bloomberg News is reporting the two sides are in discussions on holding another round of face-to-face negotiations for a longer-term ceasefire.
BNN Bloomberg live from CAPP Conference: As the oil market continues to be roiled by the war in the Middle East, leaders of some of Canada’s biggest oil and gas producers are discussing the state of their industry with investors at a conference today in Toronto. BNN Bloomberg will broadcast interviews throughout the day at the BMO Energy CAPP Symposium. Highlights include Chris Carlsen, President and CEO of Birchcliff Energy, at 1:40 PM E.T., and Brian Schmidt, CEO, Tamarack Valley Energy at 3:00 PM E.T.
United eyes merger with rival American: Shares of United and American Airlines traded higher in the pre-market. Bloomberg News is reporting the CEO of United has floated a possible combination with rival American. According to the report, senior government officials have been pitched the idea, however, it is unclear if an actual process to explore the deal is underway. United and American are among the top four carriers in the U.S.. A combination would create the largest airline on the planet.
JPMorgan cuts forecast: Earnings continue today from the U.S. financial sector. JPMorgan cut its net interest income forecast for the full year. Revenue from debt underwriting in the first quarter also came in lower than the previous year. CEO Jamie Dimon says a complex set of risks including geopolitical tensions, energy price volatility and trade uncertainty threaten to derail JPMorgan’s trajectory. On the upside, the bank posted a record quarter in equities trading with overall revenue and profit also coming in above estimates.
