Bank of Canada Governor Tiff Macklem is taking the spotlight today with his latest rate decision a little later this morning. It’s less a discussion of the actual decision than it is about the language that comes with it – the central bank is by all accounts expected to hold again – but more commentary on how the inflationary pressures are playing into the bank’s view are the key. Macklem put a hold on things last meeting, saying the central bank wants to see how eight straight hikes (bringing the benchmark to 4.5 per cent, up from the 0.25 per cent pandemic low), are playing out before the BoC moves again, but left the door open to more increases if inflation doesn’t abate. There’s no press conference this time around, but there is (as always) a statement, so we’ll plumb into that for clues.

MARKETS STABILIZE AFTER POWELL SPOOKS INVESTORS

Looks like a relative calm has settled into equity markets after yesterday’s selloff. Futures for all three of the major indices south of the border are rather placid so far, flat-ish after declining the better part of one-and-a-half per cent yesterday. So, back to the Jay Powell impact – he’s on Capitol Hill for two days of testimony, and yesterday’s remarks reinforced previous commentary, that the U.S. Federal Reserve is ready and willing to keep hiking interest rates if it sees the need in its fight against inflation. Essentially, the Fed chair said the terminal rate – where the hiking rate ends – may be higher than previously outlined, should economic indicators not come into line with its goals.

TAKE-PRIVATE FIGHT AT CANACCORD HEATS UP

A major shareholder over at Canaccord is wading into the fray over management’s proposed take-private transaction. Skky Capital is looking to requisition a special shareholders meeting in hopes of removing a quartet of board members that have refused to endorse the proposal from dozens of executives and employees to buy the firm for $11.25 a share. That special committee says the price is too low, citing an assessment from RBC that pegs Canaccord’s value as much as $15.75 a share, and is exploring strategic alternatives (i.e., a sale of the whole or breaking off the assets in part.) Skky disagrees. It says it owns just shy of nine per cent of the company and says it thinks that’s a mistake and wants the whole company sold in one piece.

GROCERS CALLED TO THE HILL

The heads of Canada’s largest grocers are going to be before lawmakers later today, likely taken to task over food price inflation. You’ve got Michael Medline from Sobeys’ parent Empire, Eric La Flèche from Metro, and Loblaws’ Galen Weston – the latter of whom is also the public face of the company, and thus has drawn some serious ire over climbing food prices. Food price growth hasn’t been abating, in spite of lower overall inflation (food prices are still rising north of 11 per cent, while overall CPI has decelerated to a bit shy of six per cent). In all, it amounts to frustration from consumers – there’s little more visceral than being afraid of keeping food in the fridge – and to be sure, the grocers aren’t charities, but if you look at Loblaw for an example: food same-store sales were up 8.4 per cent in its latest quarter, while basket size declined, indicated people are paying more and getting less.

OTHER NOTABLE STORIES

  • TC Energy’s Keystone Pipeline is going to be under pressure with restrictions for another three months after that 13,000-barrel spill in Kansas – a spill that has cost the company an estimated US$480 million.

NOTABLE RELEASES/EVENTS

  • Notable data: Merchandise Trade Balance, ADP National Employment Report, U.S. Goods & Services Trade Balance, U.S. Job Openings and Labor Turnover Survey
  • Notable earnings: NuVista Energy, Spartan Delta, Nuvei, Peyto Exploration & Development, Crew Energy, Spin Master, Minto Apartment REIT, Vermilion Energy, Linamar, Transcontinental
  • 1000: Bank of Canada Policy Announcement
  • 1000: Fed Chair Powell testifies to House Financial Services Committee on Monetary Policy Report
  • 1400: Beige Book
  • PDAC conference