Here are five things you need to know this morning
Inflation surges in Canada: Canada’s inflation rate surged to 2.4 per cent in March as the Iran war triggered a record increase in gasoline prices. Gas prices jumped by 21.2 per cent on the month, according to Statistics Canada’s report. The inflation data provides the first glimpse into the Iran war’s impact on prices in Canada. The Bank of Canada has signalled that it plans to look through the short-term impact of the oil shock.
Oil surges, stocks dip on Iran tensions: The price of oil is surging, and North American stock markets were set to open in the red after a turbulent weekend in the Middle East cast doubt on the prospects for peace in the region. Iran halted traffic through the Strait of Hormuz, and the U.S. seized an Iranian ship, dimming hopes of a breakthrough in efforts to end the war. West Texas Intermediate surged by more than five per cent in early trading.
Agnico’s Finland push: Toronto-based Agnico Eagle is expanding in Finland with three deals valued at about $3.7 billion. Agnico is buying Rupert Resources in a deal worth about $2.9 billion in cash and stock. Agnico is also acquiring Aurion Resources, as well as B2Gold’s stake in the Fingold joint venture for over $300 million. Agnico says the moves establish Finland as a multi-asset, multi-decade regional platform within the company’s portfolio, with a pathway to become an approximately 500,000-ounce annual gold production hub within the next decade.
Air Canada price target cut: Airlines are feeling the pinch of higher energy prices, and jet fuel shortages. This morning, TD Cowen analyst Thomas Fitzgerald cut his price target on Air Canada to $21 from $23, while keeping his buy rating. On Friday Air Canada announced plans to temporarily suspend daily flights to John F. Kennedy International Airport in New York City. The airline is also stopping service between Salt Lake City and Toronto, and suspending two routes to northern destinations.
Carney says ties to America now a weakness: Prime Minister Mark Carney said in a video address released Sunday that Canada’s strong economic ties to the United States were once a strength but are now a weakness that must be corrected. In the 10-minute address, Carney spoke about his government’s efforts to strengthen the Canadian economy by attracting new investments and signing trade deals with other countries. “The world is more dangerous and divided,” Carney said. “The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression. Many of our former strengths, based on our close ties to America, have become weaknesses. Weaknesses that we must correct.”
