First Look With Surveillance: Jobs Day, Putin Nuclear
Canada’s three-month streak of job losses was snapped last month. Statistics Canada says the economy added 21,100 jobs in September, slightly outpacing expectations. The details are mixed: unemployment unexpectedly fell to 5.2 per cent, while year-over-year wage growth slowed to that same number of 5.2 per cent — which could be a bit of a relief to Bank of Canada Governor Tiff Macklem, who has been warning about the dangers of a wage-hike cycle exacerbating inflationary pressure.
Over in the U.S., non-farm payrolls rose a smidge more than expected at 263,000 in September; down sharply from August’s hiring pace. However, the labour market tightened as unemployment dipped to 3.5 per cent.
We’ll track how the market absorbs the data and attempts to make sense of how the figures will be interpreted by central banks.
HOPE SPRINGS ETERNAL IN POT SECTOR
It’s a great day for us to have Tilray Brands Chief Executive Officer Irwin Simon lined up, considering how pot stocks caught fire yesterday after U.S. President Joe Biden made it clear he wants to see a lighter touch on cannabis in that country. It was enough to send Tilray's shares up 32.6 per cent, putting that company at the top of the S&P/TSX Composite Index’s leaders board (which may be fleeting after fiscal first-quarter net revenue lagged the average estimate this morning). We’ll get a better sense of what’s happening behind the scenes when Simon joins us at 10:30 a.m. EDT; and no doubt Dave will do plenty of reporting today on how the big Canadian LPs are positioned to dive into the U.S. market once there’s a green light.
DANIELLE SMITH'S UCP
It went all the way to a sixth ballot for Danielle Smith to be elected leader of the United Conservative Party, making her the province's premier-designate. We'll chase reaction from the business community to her Alberta Sovereignty Act proposal, which clearly draws a line in the sand for the feds (albeit while raising some questions about its constitutionality).
Toronto Blue Jays president and Chief Executive Officer Mark Shapiro joins us at 8:50 a.m. EDT ahead of the first game in his club’s wild card series with the Seattle Mariners. Paul will talk with him about how success on the field translates to profit in the books — not bad timing, considering the $300-million stadium renovation that’s in the works. We’ll also find room today to consider the stakes for Rogers Communications Inc.
OTHER NOTABLE STORIES
- Canada’s food-court king just delivered a mixed quarter. On the one hand, MTY Food Group reported a 14 per cent rise in third-quarter revenue, thanks to Canadian operations that benefitted from the return-to-office. On the other hand, MTY said it’s still dealing with “significant supply chain challenges,” as well as labour shortages that the company — whose brands include Manchu Wok, Thai Express, and Cold Stone Creamery — said are preventing some of its franchisees and suppliers from operating normally.
- Teck Resources confirmed it sold 5.6 million tonnes of steelmaking coal in the third quarter, landing toward the bottom end of its recently-revised range. At US$304/tonne, the realized price sank 33 per cent from the previous quarter. It also warned of a negative provisional pricing adjustment of $191 million.
- Twitter shares have been drifting lower in extended trading as the takeover by Elon Musk continues being dogged by doubt. Late yesterday, the timeline for getting the deal done became clearer after a Delaware judge set an Oct. 28 deadline to close the transaction. If that deadline isn’t met, a trial between the parties will begin in November. Earlier yesterday, Bloomberg News reported talks between Twitter and Musk were stalling because of language about his debt financing when he revived the takeover.
- Notable data: Canadian labour force survey, U.S. non-farm payrolls
- Notable earnings: Tilray Brands, MTY Food Group
- 1000: New York Federal Reserve President John Williams discusses economy and monetary policy in fireside chat hosted by The State University of New York
- Informal meeting of European leaders in Prague to discuss support for Ukraine, energy, and the economy