You wouldn’t know a trade war is breaking out looking at the stock market. The Dow Jones Industrial Average is coming off its biggest one-day gain since April 10, and global stocks are trading higher for the most part this morning as traders appear to shake off the threat of verbal conflict when Justin Trudeau hosts his G7 peers in Charlevoix tomorrow.
According to The Washington Post’s latest reporting, U.S. President Donald Trump isn’t pleased about having to go to Quebec and VP Mike Pence is on standby to fill in. Meanwhile, we’ve got Trudeau and French President Emmanuel Macron addressing the media this morning in Ottawa; and Trump will hold a joint news conference with Japan Prime Minister Shinzo Abe in Washington this afternoon. We’ll monitor both for any insight on what to expect at the summit and we’ll also keep tabs on Quebec City, where activists and protestors are expected to mobilize today.
ONTARIO ELECTION
Voters head to the ballot box today, facing a study in contrasts with Andrea Horwath’s NDP and Doug Ford’s Progressive Conservatives running neck and neck. BNN Bloomberg's Jameson Berkow will size up what’s at stake for the economy and business leaders (hello, Mayo Schmidt).
SENATE VOTE ON CANNABIS ACT
Bill C-45 cleared a hurdle yesterday after objections by the Senate Aboriginal Peoples committee were alleviated with pledges made by the federal Indigenous Services and Health ministers. So now we await a final vote on the Cannabis Act in the upper chamber before it goes back to the House. Timing for the vote is anybody’s guess. Anyone interested in a tick tock on the controversial legislation can find it here.
WHO DARES BET AGAINST DOLLARAMA?
It’s got to be one of the most amazing retail stories in this country: Dollarama’s consistent ability to defy street expectations, and gravity for that matter. The stock has more than quadrupled over the last five years, and you’ll be hard pressed to find someone with anything bad to say about it (we’ve tried, for the sake of balance). That said, we’ll see what happens today after the company reported essentially in-line first-quarter earnings per share of $0.92 (analysts were expecting $0.93). Same-store sales growth slowed sharply to 2.6 per cent, with the company citing “poor weather conditions”.
IN CONVERSATION WITH TOP INVESTMENT BANKERS
Fresh off posting more than $1 billion in full-year revenue, thanks in part to the company’s active role in Canada’s burgeoning cannabis industry, Canaccord Genuity CEO Dan Daviau joins Jon at 1015 on The Open. And we’ve also got sound from our Bloomberg partners’ exclusive conversation with Lazard CEO Ken Jacobs. You won’t want to miss his view on the USD’s future as a global reserve currency.
OTHER NOTABLE STORIES
-CP Rail announced today it will invest approximately $500 million in new grain hopper cars.
-Simons is taking over an old Sears store in Montreal, with Cadillac Fairview and Ivanhoe Cambridge announcing the redevelopment plan for CF Fairview Pointe Claire this morning.
-Thomson Reuters announced today it’s planning a US$1 billion share buyback in addition to its existing US$500 repurchase program
-Important questions need to be asked about how Quebec’s securities regulator handled its case against former Amaya Group CEO David Baazov and two co-accused after a Quebec judge pulled the plug on an insider trading trial yesterday.
-Warren Buffett and Jamie Dimon are fed up dealing with the guidance song and dance with Wall Street. In a joint WSJ op-ed, the two heavyweights are calling for companies to "consider moving away" from dishing out quarterly profit forecasts. It's a strong conversation starter.
NOTABLE RELEASES/EVENTS
-Notable earnings: Dollarama, Canadian Western Bank, Saputo
-8:00 a.m. ET: Restaurant Brands International holds annual meeting in Oakville
-9:00 a.m. ET: Dollarama holds annual meeting in Montreal
-9:05 a.m. ET: Prime Minister Justin Trudeau and France President Emmanuel Macron hold joins media avail in House of Commons Foyer
-10:30 a.m. ET: Bank of Canada releases Financial System Review (plus news conference at 1115 – we’ll take it live)
-2:00 p.m. ET: U.S. President Donald Trump holds news conference alongside Japan PM Shinzo Abe in the Rose Garden
Every morning BNN'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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