The Bank of Canada kept its benchmark interest rate unchanged today at 1.75 per cent. Somewhat unexpectedly, it maintained the same key line that “the current degree of monetary stimulus remains appropriate.” So, no clear signal that a cut is coming (as many on Bay Street had predicted). As a result, the Canadian dollar shot higher immediately after the policy announcement was released. In her instant analysis, Manulife’s Frances Donald told us “Governor [Stephen] Poloz is stalling, and he’s stalling as long as he possibly can.”
CANADIANS LIVING PAYCHEQUE-TO-PAYCHEQUE
A new survey by the Canadian Payroll Association shows 43 per cent of working Canadians would have a hard team meeting their financial obligations if their paycheque was delayed by a week, and 40 per cent of respondents said they feel overwhelmed by their debt. The survey also shows the burden is taking a toll on workplace productivity, with almost half or respondents saying financial stress is having an impact on their performance. CTV's Chief Financial Commentator Pattie Lovett-Reid will connect the dots with today’s rate decision.
IN CONVERSATION WITH FRANK GIUSTRA
The recently-minted member of the Order of Canada joined us this morning on The Open. Giustra shared his views on gold (says it’s going to at least US$1,900/ounce amid a “fake monetary-induced market environment.”) He also touched on the future of cryptocurrencies and Lionsgate Entertainment (said a lot of people thought he was “crazy” for attempting to launch a major studio in Canada and that he thinks it will be swallowed up in a takeover “eventually”).
STOCKS RALLY
U.S. futures and most overseas markets are rallying with a pair global hotspots helping to set the tone. Tension has eased (at least a bit, for now) in Hong Kong after leader Carrie Lam formally abandoned the controversial extradition bill that triggered protests in that financial hub. Meanwhile, U.K. lawmakers will vote later today on forcing a Brexit extension if Prime Minister Boris Johnson and the EU can’t come to terms on secession by the end of next month.
OUR 20TH ANNIVERSARY
Today we’re celebrating the two-decade evolution that has made BNN Bloomberg the definitive source for business news in Canada with a special edition of Market Call today at 12 p.m. ET. We’ll have a special panel of guests and we’re digging deep into the BNN Bloomberg/BNN/ROBTv archives for some highlights from the station’s history.
OTHER NOTABLE STORIES
-New data from the Real Estate Board of Greater Vancouver show the benchmark home price in Metro Vancouver slipped to $993,300 last month. Property sales jumped 15.7 per cent year-over-year in August, while total listings rose 13.3 per cent.
-For the second time in less than a month, an affiliate of 3G is selling a significant chunk of its stake in Restaurant Brands International. This time, after a somewhat complicated swap of pre-IPO limited partnership units, 3G will sell 16.96 million shares (reportedly at a discount to yesterday’s close). 3G will be left holding 32.12 per cent of the voting ownership in RBI.
-Ex-Fed Vice Chair Bill Dudley is out with another Bloomberg Opinion piece today that attempts to clear up the controversy from his last piece, which suggested the central bank should flatly state it “won’t bail out” the Trump administration. Today, he admits he was trying to be “provocative” but that he doesn’t think the Fed should try to influence next year’s presidential election.
-Vancouver-based legal industry disruptor Clio today announced a record US$250-million growth stage financing.
-Interfor is closing its Hammond sawmill in British Columbia, while citing log supply challenges and the “disproportionate impact” of softwood duties for cedar producers.
-Worth watching shares of The Green Organic Dutchman today after Aurora Cannabis said it sold the rest of its stake in the company (28.8 million shares at $3.00 apiece)
NOTABLE RELEASES/EVENTS
-Notable earnings: Alimentation Couche-Tard
-Notable data: Canadian international trade balance, Canadian labour productivity, U.S. trade balance
-9:35 a.m. ET: U.S.-China Economic and Security Review Commission holds hearing in Washington on U.S.-China relations
-10:00 a.m. ET: Bank of Canada releases interest rate decision
-12:30 p.m. ET: Assembly of First Nationals holds National Cannabis Summit in Vancouver
-1:30 p.m. ET: Alberta Finance Minister Travis Toews addresses Calgary Chamber of Commerce
-1:35 p.m. ET: Air Canada Deputy CEO and CFO Michael Rousseau presents at Cowen conference in Boston
-2:00 p.m. ET: Federal Court of Appeal announces decision on whether a dozen legal challenges to Trans Mountain Expansion can proceed
-2:00 p.m. ET: U.S. Federal Reserve releases Beige Book
-2:00 p.m. ET (approx.): U.K. Parliament votes on forcing Brexit extension
-Scotiabank two-day Financials Summit begins (CIBC's Victor Dodig at 9:35 a.m. ET, BMO's Darryl White at 10:25 a.m. ET, RBC's Dave McKay at 11:00 a.m. ET, TD's Bharat Masrani at 12:20 p.m. ET, National’s Louis Vachon at 12:55 p.m. ET)
-Barclays CEO Energy-Power conference (speakers include Suncor's Mark Little at 1105)
-Three-day Toronto Global Forum begins
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.
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