Global stocks are hunting for direction this morning after another session of big losses in North America on Thursday. China growth concerns are at the forefront after the world's second-largest economy slowed in the third quarter amid what the country's National Bureau of Statistics calls an "extremely complex environment abroad.” Have to point out a trio of the country's top policymakers got out front of the news with statements to assuage investor anxiety. Meantime, there's also the ongoing budget concerns in Italy and international tension over the disappearance of Saudi journalist Jamal Khashoggi for investors to consider. For now, that mix of uncertainty is leaving major European indices modestly lower and U.S. futures are fluctuating in and out of positive territory.
GEARING UP FOR BANK OF CANADA
The Bank of Canada today gets the last major data releases ahead of next week’s rate decision. August retail sales are estimated to have risen 0.3 per cent, while total inflation is anticipated to have increased 2.7 per cent in September. Of course, the bigger picture here is USMCA clearing up some trade uncertainty, but Governor Stephen Poloz also has the hefty discount (US$44.25/barrel as of yesterday) on Western Canada Select oil to consider.
SCHEER KEEPS DOOR OPEN TO UNDOING LIBERALS’ POT PLAN
Less than a week into the era of legal recreational pot in this country, the leader of the Conservative Party of Canada is refusing to say whether he’d undo the legalization if he becomes prime minister. “The Conservative Party will do our due diligence, examine the consequences of this decision, and we’ll examine the reality on the ground,” Andrew Scheer told CTV Power Play’s Don Martin yesterday when asked for a yes/no answer on whether he’d re-criminalize pot if he’s elected as prime minister. “I can tell you that we are watching this very closely.”
OTHER NOTABLE STORIES
-Rogers Communications has raised its full-year adjusted profit forecast range after exceeding third-quarter estimates. The flagship wireless division added 124,000 postpaid subscribers in the latest quarter.
-Canadian Pacific Railway lived up to the hype late yesterday, with record profit, revenue and operating ratio in line with the preliminary numbers it released earlier this month. We’ll sift through the details and parse management comments about crude-by-rail on yesterday’s call and recap Keith Creel’s warning about “ill-advised and not fact-based” opinions about CP’s reliance on China.
-The Globe and Mail is reporting negotiations to remove U.S. tariffs on Canadian steel and aluminum are focused on applying quotas to exports from this country.
-Altagas Canada’s IPO has been priced at US$14.50 per share, below the target range of US$15.50-$18.00.
NOTABLE RELEASES/EVENTS
-Notable earnings: Rogers Communications, Corus Entertainment, Procter & Gamble, Honeywell, Schlumberger
-Notable data: Canadian CPI, Canadian retail sales, U.S. existing home sales, China GDP, China retail sales, China industrial production
-9:15 a.m. ET: Economic Development Minister Navdeep Bains in Hamilton to announce support measures for the steel industry
-11:00 a.m. ET: Finance department releases annual financial report
-11:30 a.m. ET: Bains meets with Unifor members in Oakville to discuss USMCA, plus media avail
-12:00 p.m. ET: Bank of England Governor Mark Carney delivers remarks at Economic Club event in New York
-12:00 p.m. ET: U.S. National Economic Council Director Larry Kudlow delivers remarks at Economic Club event in Detroit
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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