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Noah Zivitz

Managing Editor, BNN Bloomberg

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This week has the potential to play a pivotal role in Canadians’ mindset about the economy before the federal election on Sept. 20. Tomorrow, the Bank of Canada will deliver its assessment of economic conditions and confirm whether it intends to stay the course with $2 billion in weekly asset purchases or further taper its quantitative easing program. The following day, Governor Tiff Macklem delivers a speech. He won’t take questions from reporters either day. And on Friday, we’ll get the final pre-election jobs report. We’ll set the scene this morning with National Bank of Canada Chief Rates Strategist Warren Lovely.

ENBRIDGE US$3B GULF COAST PLAY

The Calgary-based pipeline operator announced this morning that it's buying Moda Midstream Operating LLC for US$3 billion in a move that'll expand its footprint in the crucial U.S. Gulf Coast energy gateway. The deal will see Enbridge take ownership of what's being described as the continent's largest crude export terminal. Enbridge said the transaction will be "strongly accretive" to cash flow and earnings per share.

LET’S MAKE A DEAL

Kansas City Southern is ready to negotiate with Canadian Pacific Railway. The announcement was made Saturday, and should come as no surprise after its takeover arrangement with Canadian National Railway was dealt a devastating blow by the U.S. Surface Transportation Board last week. CP has said it will yank its offer (which, at Friday’s closing price, is valued at US$298.48 per share, compared to CN’s US$343.63) if KCS doesn’t accept it by Sunday night.

TSX HOMECOMING

Everything old will soon be new again on the S&P/TSX Composite Index after S&P Dow Jones Indices unveiled upcoming component changes. Most notably, Bombardier and Birchcliff Energy will return to the index on Sept. 20 after both of them were punted in the last couple of years. More on the changes here.

OTHER NOTABLE STORIES

  • Wyloo Metals expressed dismay yesterday with the hurdles it’s running into as it battles with BHP over Norton Resources. In a release, Wyloo said it intends to bypass standard diligence rather than “subjecting itself to a gag order” under the terms of a standstill agreement. (NOTE: We’ll assign chase for Wyloo)
  • China’s economy delivered some encouraging signals overnight, with exports and imports surging well beyond expectations in August (up 25.6 per cent and 33.1 per cent year-over-year, respectively)
  • SmartCentres REIT announced yesterday that its president and chief executive, Peter Forde, has passed away. Executive Chairman Mitch Goldhar has been appointed CEO after having covered for Forde during his medical leave.
  • T-Mobile US is on our radar today after Deutsche Telekom announced a complicated stock swap with Softbank that will see it pick up an additional 65 million shares in the American wireless operator.
  • David Garofalo is flexing his M&A muscle this morning in his roles of chief executive, president and chairman of Gold Royalty. That company announced it’s buying Abitibi Royalties and Golden Valley Mines and Royalties in all-stock transactions. Garofalo, of course, is best known to us as former CEO of Goldcorp and Hudbay Minerals. 

NOTABLE RELEASES/EVENTS

  • 8:30: Liberal Party Leader Justin Trudeau makes announcement in Montreal (plus avail)
  • 8:30: NDP Leader Jagmeet Singh makes announcement in Toronto (plus avail)
  • 10:30: Conservative Party Leader Erin O’Toole makes announcement in Ottawa (plus avail)