Foreign Affairs Minister Chrystia Freeland is heading to D.C. today for high-stakes negotiations that could decide NAFTA’s fate. Late yesterday, the PMO said Prime Minister Justin Trudeau had a “constructive” discussion with Donald Trump after the U.S. president made it clear he thinks it would be “easiest” to just leave Canada out and slap tariffs on car imports from this country. Today our coverage comes down to one simple question: What’s Canada prepared to give up in order to avoid that fate and preserve a trilateral trade agreement?

We look forward to discussing the stakes for Canada’s auto industry and reviewing the impact of the U.S.-Mexico agreement on rules of origin and wages with Martinrea Executive Chairman Rob Wildeboer on Bloomberg Markets. And we’ll aim to clear up the confusion over the congressional process via our Bloomberg partners.

MARKETS COUNT ON TRADE PEACE

Investors didn’t seem unnerved by Trump’s harsh words for Canada yesterday. The S&P/TSX Composite Index climbed within 112 points of a record intraday high, shares of the major auto parts makers climbed, and the Canadian dollar closed at its highest level since June 8. We’ll ask market professionals about downside risk if negotiations with Canada falter.

 

SCOTIA, BMO REPORT

Bank earnings season resumed this morning, with Scotiabank raising its dividend after delivering an in-line quarter amid gains in its Canadian and international divisions. Total profit slipped on acquisition costs, while adjusted earnings per share rose five per cent to $1.76, falling one cent short of the average estimate. BMO, meanwhile, beat expectations by a dime and left its dividend unchanged. 

AN INTERVIEW WITH JIMMY CARTER

Really speaks for itself. The former U.S. president joins us on Bloomberg Markets to discuss Canada-U.S. relations, Senator John McCain’s legacy, and more.

DE MINIMIS RELIEF

For the most part this got lost yesterday, but it’s worth pointing out the U.S.-Mexico agreement includes a doubling of the de minimis threshold to US$100. We’ll gauge the outlook for Canada’s willingness to bend on its current duty-free of $20 and the implications for the retail industry.

IN CONVERSATION WITH RICH KRUGER

Tara Weber gets a rare interview today with Imperial Oil CEO Rich Kruger after visiting the oil sands giant’s research lab in Calgary. There’s plenty to cover with him; watch for the conversation this afternoon on BNN Bloomberg.

TESLA VERSUS ONTARIO

An Ontario Superior Court judge has sided with Tesla Inc. in its battle with Doug Ford’s government over the Progressive Conservatives' decision to pull the plug on the province’s EV rebate program while excluding Elon Musk’s company from the grandfathering. A spokesperson for Ontario’s transportation ministry says the government “will make a decision on how to proceed in the coming days.”

OTHER NOTABLE STORIES

-Amazon announced this morning it will launch a monthly Prime membership option in Canada

-SNC-Lavalin announced this morning it will sell its 6.3 per cent stake in the Astoria II power plant in New York. Terms weren’t disclosed.

-Shares of Best Buy are falling in pre-market trading after the electronics retailer forecast third-quarter profit below the average analyst estimate

-The federal government announced late yesterday it approved the Drager DrugTest 5000 for roadside drug testing, with a month and a half to go before recreational cannabis use is legalized

NOTABLE RELEASES/EVENTS

-Notable earnings: Bank of Montreal, Bank of Nova Scotia, Tilray, Best Buy, Tiffany

-Notable data: S&P/Case Shiller U.S. home price index

-11:30 a.m. ET: Imperial Oil hosting tour of new research lab in Calgary 

-1:00 p.m. ET: Natural Resources Minister Amarjeet Sohi makes infrastructure announcement and holds avail in Calgary

-1:00 p.m. ET: Prime Minister Justin Trudeau delivers brief remarks in Longueuil, Quebec

-2:45 p.m. ET: Trudeau holds photo op in Montreal

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.