The Big Three: Legal pot looms; Enbridge pipeline ruptures; Notley hints at help for energy
There one’s week to go before recreational cannabis becomes legal in Canada, and there’s an all-out hiring spree unfolding across the industry. Based on a review by David George-Cosh, there are currently approximately 700 job postings by the country’s top dozen licensed producers. Between that type of demand for labour, and the thrill of playing a role in a burgeoning industry, it’s no surprise to see why some Canadians are taking the leap of faith. Keep an eye on BNNBloomberg.ca for insight on why everyone from successful lawyers to retail industry veterans are crossing over to cannabis.
ENBRIDGE PIPELINE RUPTURE
For the second time in less than week we’re seeing dramatic pictures of a Canadian energy infrastructure failure. Flames could be seen shooting into the air near Prince George late yesterday after an Enbridge natural gas pipeline ruptured. No injuries reported, no cause has been determined, and an evacuation was ordered for precautionary reasons. Jameson will assess how incidents like this and Monday’s blast at the Irving refinery might impede progress on new projects.
NOTLEY’S NEXT MOVE
Alberta Premier Rachel Notley hinted yesterday that she’s preparing to announce new measures to support the energy industry in the face of a widening gap on Canadian oil prices. “We will have more to say in the weeks to come around other things that we can do to provide more value added opportunities here in Alberta to reduce the amount of volume on rail and in pipe.” We’ll evaluate possibilities.
The U.S. National Hurricane Center is warning Michael has become “an extremely dangerous” Category 4 hurricane, with sustained winds hitting 210 kilometres an hour, and warnings up to a foot of rain could fall in some of the hardest hit areas. We’ll keep tabs on damage to energy infrastructure as it moves across the Gulf of Mexico before making landfall in Florida.
OTHER NOTABLE STORIES
-We’ve got a big waste management deal today. Not too long ago, GFL Environmental was believed to be on its way to an IPO. Then, in April, it switched gears and announced a big recapitalization. Now, those backers are helping give GFL firepower for a takeover of Waste Industries.
-Turns out U.S. Trade Representative Robert Lighthizer made a quick trip to Toronto yesterday for a working dinner with Foreign Affairs Minister Chrystia Freeland. A USTR spokesperson tells Bloomberg it was a “cordial dinner with [Freeland] and her family.”
-Shares of Starbucks rose two per cent yesterday after Bill Ackman’s Pershing Square disclosed a stake in the coffee chain. Worth pointing out this investment could put him on a collision course with another of his holdings. Ackman’s deck on Starbucks trumpets the company’s “wide competitive moat in China.” Recall Tim Hortons recently announced a massive expansion strategy into China.
-BlackPearl Resources is being swallowed up by the Lundin empire, agreeing to be acquired by International Petroleum Corporation in an all-stock transaction.
-Parkland Fuel is paying $1.57 billion for a 75 per cent stake in Caribbean fuel marketer SOL.
-Notable earnings: MTY Food Groups
-Notable data: Building Permits, US Producer Price Index
-9:00 a.m. ET: Tweed, Uber, MADD Canada launch awareness campaign on dangers of driving high
-10:00 a.m. ET: Energy Roundtable Conference in Calgary. Speakers include LNG Canada CEO Andy Calitz, Encana CEO Doug Suttles, Natural Resources Minister Amarjeet Sohi
-10:00 a.m. ET: Background briefing on Mikisew Cree First Nation v. Governor General in Council et al. case
-10:15 a.m. ET: WestJet CEO Ed Sims makes announcement in Calgary on airline’s future in Alberta
-1:00 p.m. ET: Federal government holds technical briefing on cannabis impairment, the labour code, federal workplace policies
-2:00 p.m. ET: U.S. President Donald Trump holds signing ceremony on Drug Prices Act
-6:00 p.m. ET: Jesús Seade, Mexico President-elect Andrés Manuel López Obrador's Chief NAFTA Negotiator, delivers remarks at Wilson Centre in Washington, D.C.
-7:00 p.m. ET: Trump holds rally in Erie, Pennsylvania
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.