Canada's economy slowed precisely as expected in the third quarter. GDP rose 1.3 per cent at an annualized rate in the period. The heavily-indebted Canadian consumer helped lead the way, as consumption rallied in Q3. But business leaders also chipped in with soe heavy lifting, as investment machinery and equipment surged nearly 10 per cent.
CN RAIL CEO ON STRIKE
The chief executive officer of CN Rail says it could take two weeks for service to recover from the eight-day walkout by conductors and railyard workers that rippled across the economy. “This was not your usual labour negotiation,” Jean-Jacques Ruest told us in an exclusive interview, pointing to CN’s critical role in Canada’s economic well-being. Ruest also scoffed at some of the estimates that were tossed around about the strike’s impact on GDP (“I was watching many of these economists’ comments, I think many of them probably don’t understand enough what we do.”), and indicated he’s ready to turn the page: “The future looks bright. This was a significant bump in the road; but, you know, we’re back.”
HEATHER REISMAN SOUNDS OFF ON AMAZON
What an interview yesterday with the chair and founder of Indigo Books & Music on Bloomberg Markets. “Indigo is under huge pressure,” Reisman told Amanda, acknowledging Indigo underestimated the magnitude of the retail revolution when it started a corporate transformation a few years ago – and said Indigo has only done “five per cent” of the change that’s necessary. Why? “There is no competing head-to-head on a commodity product with Amazon,” she said, arguing Jeff Bezos’ e-commerce empire is “anti-competitive on so many levels.” See the full interview here.
LETKO BROSSEAU BLASTS ENCANA MOVE, AGAIN
And this time, the Montreal-based investment firm came armed with a pile of data. In sum, Letko says the potential demand from U.S. index funds that Encana/Ovintiv has been trumpeting as a motivation for re-domiciling will fail to sop up all the shares that would be dumped by existing investors as a result of the move. Suffice to say to say Paul Bagnell’s guest co-host on The Street, Brian Madden, is firmly in Letko’s corner (he referred to the re-domiciling as a “disgrace” and “total abdication of responsibility” before adding some choice words about Encana’s M&A track record).
IN CONVERSATION WITH BRUCE FLATT
Speaks for itself. Watch for Amanda Lang’s interview with the CEO of Brookfield Asset Management today on Bloomberg Markets.
OTHER NOTABLE STORIES
-The TSX Composite Index made it four straight record-breaking sessions yesterday by inching up 0.08 per cent to close at 17,114.52
-We will of course keep tabs on Black Friday today as a crucial gauge of consumer sentiment and the most important catalyst of the year of retailers
-One of the best-known finance newsletters is coming to a close. Dennis Gartman announced today he’ll pull the plug The Gartman Letter after 32 years of his daily musings.
NOTABLE RELEASES/EVENTS
-Notable data: Canadian GDP
-10:30 a.m. ET: Prime Minister Justin Trudeau meets in Ottawa with Mexico Undersecretary for North America Jesus Seade
-11:15 a.m. ET: Deputy Prime Minister Chrystia Freeland meets with Seade
-Bennett Jones holds annual World Cup Business Forum in Lake Louise, AB (speakers include Alberta Premier Jason Kenney at 1320 ET and WestJet CEO Ed Sims)
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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