The Big Three: Air Canada versus WestJet; Canadian jobs data; Trump looks to lower drug prices
Air Canada is blatantly trying to pull ticket buyers away from WestJet as its Calgary-based rival faces the threat of a walkout by pilots. "Travellers who may be concerned about the uncertainty resulting from WestJet's strike vote mandate can book Air Canada with confidence," it said in a release yesterday that outlined its plan to add capacity. Worth noting Air Canada wasted no time, publishing its release at 1508 ET - 13 minutes before WestJet's statement about the strike authorization went out. Pilots union says a walkout wouldn’t happen until after the long weekend, which might explain WestJet’s eagerness to promote direct flights next weekend to Vegas for Jets fans.
CANADA UNEXPECTEDLY LOSES JOBS IN APRIL
Canada's economy unexpectedly lost 1,100 jobs last month, defying Bay Street's call for a gain of 20,000 positions. A big chunk of those losses came in Ontario where a new law took effect mandating equal pay for equal work.
Easily the feel-good story of the day, with Winnipeg advancing to the NHL’s Western Conference finals. Lots of ways to apply the BNN Bloomberg lens. Like how billionaire David Thomson played a leading role in bringing the Jets back. Or the involvement of a BNN Bloomberg regular like New Flyer Industries CEO Paul Soubry on the Jets’ board. Or this as a simple case study in how a smaller market can thrive in the right conditions.
IN CONVERSATION WITH DON WALKER
Magna International’s CEO joins us this afternoon. Few executives, if any, have been more outspoken about the cost of doing business in Canada (Ontario, in particular). We’ll get his latest views on Canadian competitiveness and the outlook for NAFTA on Bloomberg Markets later today.
OTHER NOTABLE STORIES
-Cara Operations, fresh off its takeover of The Keg, is changing its name to Recipe Unlimited Corporation. Also released first-quarter results, showing total sales rose almost 15 per cent.
-U.S. President Donald Trump will deliver remarks today on his plan to bring down drug prices in his country. Bloomberg is reporting Trump will map out a multi-faceted plan designed to enhance pharma competition and push down costs. He's scheduled to speak at 2:00 p.m. ET.
-Former U.S. Vice President Al Gore is chiming in on the Trans Mountain debate, saying in a tweet he stands with John Horgan and Gregor Robertson and all Canadians “who are fighting to stop this destructive pipeline”
-Red-hot Nvidia is slipping in pre-market trading. The calayst? Bloomberg is pointing to CFO Colette Kress's warning on a conference call that crypto-related revenue will plunge in the second quarter. Should be pointed out NVDA has more than doubled over the last year.
-Notable earnings: Thomson Reuters, Onex
-Notable data: Canadian labour force survey, U.S. consumer sentiment
-9:00 a.m. ET: Prime Minister Justin Trudeau makes announcement in Lac-Megantic alongside Quebec Premier Philippe Couillard, plus media avail
-9:10 a.m. ET: Bank of Canada Senior Deputy Governor Carolyn Wilkins speaks on panel at Women's Forum Canada in Toronto
-10:15 a.m. ET: ECB President Mario Draghi delivers speech in Florence
-11:45 a.m. ET: U.S. President Donald Trump holds roundtable at the White House with automaker CEOs
-2:00 p.m. ET: Trump delivers remarks on drug prices
-4:30 p.m. ET: Foreign Affairs Minister Chrystia Freeland meets with U.S. Secretary of State Mike Pompeo in Washington
Every morning BNN'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.