Feels like there’s nowhere to hide for Big Tech, as some of the biggest names in the industry come under attack in D.C. and fall under the microscope at a meeting of G7 finance ministers and central bankers. Facebook’s David Marcus faces another grilling today in Washington as he attempts to tame fears about the social media giant’s proposed cryptocurrency. And, in Chantilly, France, the Group of Seven will discuss digital platforms’ clout as a dispute over France’s tax on Big Tech makes headlines. Should note the near-even split to our BNNBloomberg.ca poll yesterday on whether regulatory risk is scaring away investors from the biggest industry names.
INFLATION WATCH
Statistics Canada delivered its latest consumer price index today, with headline inflation moderating (as expected) to 2.0 per cent from 2.4 per cent in May. Beyond the implications for the Bank of Canada, it’s safe to say the cost of living takes on increasing importance in the lead-up to the election (on that front, check out the 17.3 per cent surge in fresh vegetable prices). Separately, the B.C. Utilities Commission opens a public inquiry into runaway gas prices in that province later this morning.
IN CONVERSATION WITH SCOTIA’S HEAD OF CANADIAN BANKING
From mortgage rules to household debt and the general credit environment, we’re looking forward to sitting down with Bank of Nova Scotia’s newly-minted head of Canadian banking this morning. Watch for Jon Erlichman's conversation with Dan Rees at 8:50 a.m. ET on The Open.
OTHER NOTABLE STORIES
-Some M&A in the cannabis industry today, as The Supreme Cannabis Company agrees to buy Truuvera in an all-stock deal valued at $20 million. In a release, Supreme Cannabis said it’s planning to convert Truuvera’s facility in Scarborough, Ont. to a production hub for pot extracts.
-CSX is down more than seven per cent in pre-market trading after the rail company missed on profit and revenue in the second quarter and scaled back its outlook. Noteworthy comments from CEO Jim Foote on the conference call: “The present economic backdrop is one of the most puzzling I have experienced in my career.”
-Also worth pointing out shares of CP Rail jumped to an all-time high yesterday on the back of earnings. Stock is up 33 per cent this year.
-Bank of America is little changed in the pre-market after posting record profit in the second quarter amid double-digit growth in its consumer unit. Meanwhile, FICC and equities trading revenue fell in the quarter and closely-watched net interest income fell short of expectations.
-Tim Hortons is going all-in on fake meat, announcing today it’s adding a pair of Beyond Meat burgers to its menu.
NOTABLE RELEASES/EVENTS
-Notable earnings: Choice Properties REIT, Martello Technologies, Bank of America, Netflix, IBM, Kinder Morgan, Alcoa, eBay
-Notable data: Canadian CPI, Canadian manufacturing sales, U.S. housing starts and building permits
-10:00 a.m. ET: U.S. House Financial Services Committee hearing on Facebook's Libra digital currency
-11:00 a.m. ET: BCUC gasoline and diesel price inquiry begins in Vancouver
-2:00 p.m. ET: U.S. Federal Reserve releases Beige Book
-Two-day Canada-European Union summit begins in Montreal (3:25 p.m. ET: Prime Minister Justin Trudeau photo op at Port of Montreal with European Council President Donald Tusk, European Trade Commissioner Cecilia Malmstrom and International Trade Diversification Minister Jim Carr; 5:30 p.m. ET: Trudeau delivers remarks at Reception for EU delegation )
-G7 finance ministers and central bankers begin two-day meeting in Chantilly, France
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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