For the third time in less than two days, we're seeing a significant warning about the outlook for oil demand. Today, it's the International Energy Agency that's trimmed its 2020 demand forecast, now seen at 91.7 million barrels per day -- which it notes is on par with 2013 levels -- as a result of uncertainty stemming from COVID-19. The IEA's scaled-back view follows a similar move by OPEC yesterday and BP's warning that demand for oil may have already peaked.
IN CONVERSATION WITH IAN ANDERSON
Those weak oil-demand estimates create a compelling backdrop for when we go one-on-one with the head of Trans Mountain today. Tara Weber will sit down with Ian Anderson for an update on the expansion project’s construction, the outlook for finding a buyer to at least partially take the pipeline off taxpayers’ hands, and his demand outlook for the oil that’ll be flowing through the project. Watch for that shortly after 11 a.m. ET.
TARIFF COUNTERMEASURES
Deputy Prime Minister Chrystia Freeland today is expected to release the federal government's $3.6-billion retaliation against U.S. tariffs on certain aluminum imports. Recall that on Aug. 6, Freeland blasted the reimposed levies as "unwarranted and unacceptable", and tabled a list of products (including washing machines, refrigerators, bicycles, and golf clubs) that could be targeted in dollar-for-dollar countermeasures.
OTHER NOTABLE STORIES
-There was encouraging economic news out of China overnight, with a surprise rise in August retail sales, while industrial production accelerated more than anticipated.
-Mountain Equipment Co-Op is being acquired by Kingswood Capital Management while under the protection of CCAA after being backed into a corner that’s so familiar to Canadian retailers. MEC says a special board committee determined the sale to be the best option after “persistent financial challenges” were “exacerbated” by COVID-19. (NOTE: chase are out for principals)
-Imperial Oil announced last night it is gradually restarting production at its Kearl oil sands mine. That’s after the Alberta Energy Regulator allowed Inter Pipeline to resume service of its Polaris diluent pipeline that had been taken offline as a result of a spill.
-Our Bloomberg News partners are reporting that new watches (including, potentially, a low-cost version to compete with Fitbit) and updated iPad Air are expected to be unveiled at Apple’s product event this afternoon. The next iterations of the iPhone are reportedly on hold until October as a result of the pandemic.
-Loblaw announced this morning that its Shoppers Drug Mart division is investing $75 million in online healthcare provider Maple.
-Steve Cohen, whose now-shuttered SAC Capital was at the center of a high-profile insider-trading probe almost a decade ago, has secured a deal to purchase Major League Baseball’s New York Mets.
NOTABLE RELEASES/EVENTS
-Notable data: Canadian manufacturing sales, Canadian existing home sales
-Notable earnings: Aimia, FedEx
-8:30 a.m. ET: Rogers Communications presents at BMO conference
-9:00 a.m. ET: Second day of Cabinet retreat begins
-9:00 a.m. ET: BCE CEO Mirko Bibic presents at BMO conference
-10:45 a.m. ET: Cogeco Communications CFO Patrice Ouimet addresses BMO conference
-12:00 p.m. ET: Nobel Prize-winning economist Joseph Stiglitz addresses Ontario Chamber of Commerce virtual forum
-1:00 p.m. ET: Apple holds "Time Flies" product launch event
-Sotheby's holds Hip Hop auction
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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