Bombardier’s storied history building commercial jets could be nearing an end. Mitsubishi Heavy Industries and Bombardier have confirmed in separate press releases that they’re discussing a deal involving the CRJ regional jet program. Earlier, Air Current reported a sale could be announced as early as June 17 when the Paris Air Show begins (Bombardier has not responded to our request for comment). We'll consider how a transaction would fit with Alain Bellemare's overhaul of the company -- and whether that makeover has served Canadian taxpayers and investors well.
CHINA’S AMBASSADOR NEEDLES CANADA ON HUAWEI
Lu Shaye (who, according to several reports overnight, is about to be dispatched to France) is urging Canada to not be swayed by the Americans on Huawei. “I think the American allegations on Huawei’s national security threat are unfounded and baseless,” he told CTV Power Play, adding Canada is an “independent country and you have institutions [that are] very competent to evaluate the problem.”
UPDATE ON TRANS MOUNTAIN EXPANSION BID
We’re looking forward to an interview this morning with Steve Mason, the managing director and co-founder of Project Reconciliation, which is aiming to buy control of Trans Mountain with support from Indigenous communities in Western Canada. Watch for the interview on The Open as the clock ticks down to the federal government’s decision on whether to green light the expansion later this month.
TORONTO HOUSING HEATS UP
Home sales across the Greater Toronto Area surged 18.9% year-over-year in May and prices rose almost 4%, according new data from the local real estate board (TREB), whose chief analyst is warning price growth will accelerate unless more inventory hits the market.
Markets are building on yesterday’s surge as the prospect of a Fed rate cut looks increasingly likely. Today, our Bloomberg partners will speak with a pair of regional Federal Reserve presidents. We’ll also keep an eye out for any dramatic developments as Mexico’s foreign minister leads a delegation in Washington that’s aiming to stave off the worst of U.S. President Donald Trump’s tariff wrath.
OTHER NOTABLE STORIES
-Empire Co. CEO Michael Medline is talking up the FreshCo conversion strategy in Western Canada, saying in a statement late yesterday shoppers are “responding extremely well” to the discount stores. Empire also identified another half dozen locations that will be converted in B.C.
-Some pre-market movers in the U.S.: Shares of Gamestop are collapsing, down almost 30 per cent after first-quarter sales missed expectations. Salesforce.com, meanwhile, is trading higher after raising its full-year profit forecast.
-Notable earnings: Canaccord Genuity, Campbell Soup
-Notable data: Canadian productivity, ISM U.S. services index
-1:05 p.m. ET: Former Exxon CEO Rex Tillerson addresses KPMG global energy conference in Houston
-2:00 p.m. ET: Finance Minister Bill Morneau addresses Senate National Finance committee
-2:00 p.m. ET: U.S. Federal Reserve releases Beige Book
-2:15 p.m. ET: Economic Development Minister Navdeep Bains addresses Canadian Telecom Summit in Mississauga, Ont.
-2:20 p.m. ET: Alberta Premier Jason Kenney and Saskatchewan Premier Scott Moe participate in panel discussion at Saskatchewan Oil & Gas Recognition Awards Luncheon in Weyburn, SK.
-3:00 p.m. ET: IMF Managing Director Christine Lagarde delivers remarks at American Enterprise Institute in Washington, D.C.
-3:45 p.m. ET: Premiers Kenney and Moe hold media avail in Weyburn, SK
-4:30 p.m. ET: Innovation, Science and Economic Development Canada holds technical briefing for media on next steps for 5G spectrum
-Mexico Foreign Minister Marcelo Ebrard, U.S. Secretary of State Mike Pompeo lead delegations for negotiations in Washington.
-National Business Book Award ceremony in Toronto
-Apple Worldwide Developers Conference in San Jose (runs to Friday)
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.