LOWER FOR LONGER, AND LONGER
There was a time when the prospect of cheap, easy money for years to come would be enough to satisfy investors. Not so any more. Futures are pointing to more losses at the start of trading today, extending the downward trend that took hold yesterday afternoon as U.S. Federal Reserve Chair Jerome Powell made it clear in his remarks to reporters that the world’s largest economy is still on shaky ground. That came after the Fed exercised its recently-modified monetary policy strategy yesterday, with a pledge yesterday to keep rates where they are until inflation is on track to "moderately exceed two per cent for some time." What that means for the dot plots illustrating voting members' intentions is that the Fed appears on track to punt liftoff until sometime after 2023.
NO LOVE LOST
The temperature is rising as Cogeco attempts to fend off its unsolicited suitors. The cable company’s lead director blasted the CEOs of Rogers Communications and Altice USA in a publicly-released letter, accusing them of “bad faith tactics” and indicating Cogeco’s boards will not engage “in a futile exercise” after the controlling Audet family made it clear they have no plan to sell their shares. We will watch for Altice and Rogers’ next move.
CANADA 'MUGGED BY REALITY' ON TRADE
If you missed it, please check out our chat with James Moore from late yesterday afternoon for some of the most sharply-worded, yet non-partisan, commentary on Canada’s standing in the world that I’ve heard in a long time. “The days of being boy scouts in the trade world are over for Canada, and I think that’s a very good thing,” he said, before cautioning that this country “needs to smarten up and toughen up” on the global stage as it deals with “sometimes belligerent governments” – including our two biggest trading partners.
IN CONVERSATION WITH DAVID DODGE
The former Bank of Canada governor joins us this morning to discuss the fiscal road ahead for this country as the government aims to resuscitate the economy while limiting the spread of COVID-19. On that front, Prime Minister Justin Trudeau sounded mighty cautious in his remarks yesterday afternoon after wrapping up a cabinet retreat. He pointed to the recent record single-day case spikes overseas and warned that Canada is “not immune to those trends.”
OTHER NOTABLE STORIES
-Mackenzie Financial and Great-West Lifeco are teaming up to take a 70 per cent stake in Northleaf Capital Partners (albeit with only 49.9 per cent voting interest) at a price of $245 million. The deal is being framed as an opportunity to broaden the two asset-management giants' offerings to investors.
-Nuvei has raised US$625 million after pricing its IPO at US$26 per share, above the target range of US$20-US$22, in the latest sign of hot demand for tech stocks. The Montreal-based payment technology company’s shares will begin trading on the TSX in the days ahead.
-B.C. Premier John Horgan teased on Twitter last night that his government today will reveal a plan to “get people back to work, support businesses and help communities.” We’ll watch for it.
NOTABLE RELEASES/EVENTS
-Notable data: U.S. housing starts and building permits, U.S. initial jobless claims
-Bank of England releases interest rate decision
-9:00 a.m. ET: CP Rail CFO Nadeem Velani addresses J.P. Morgan U.S. All Stars conference
-1:30 p.m. ET: CN Rail CEO Jean-Jacques Ruest addresses Morgan Stanley conference
-1:30 p.m. ET: Alberta jobs, economy and innovation minister Doug Schweitzer holds news conference to province’s plan to diversify its economy and boost investment
-OPEC+ Joint Ministerial Monitoring Committee meets
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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