Yesterday’s relief rally on North American equity markets appears to be fizzling. Futures are down across the board by the better part of two per cent after yesterday’s broad-based rally. Today it appears that there’s some negative sentiment from across the pond souring the mood here in North America – European markets are down about two per cent, led lower by bank stocks in the wake of continued troubles out of Credit Suisse. Of course, rates are also always on the mind, with today’s U.S. Producer Price Index helping to inform how inflation is shaping up for manufacturers and how the U.S. Fed will in turn respond to price pressures at next week’s meeting.


It’s been a long time coming, but later this morning we’ll finally get a definitive answer on whether CP Rail can officially close its US$27-billion acquisition for Kansas City Southern. The U.S. Surface Transportation Board will issue its decision at 11:00 a.m. EDT on the deal, which would mark the first deal to bring together two Class 1 railroads (there are only seven in all) since the STB established new rules on the matter in 2001. CP technically already owns KSC, it’s just been holding it in a trust as the two companies operate independently pending this final approval. Back to a long time coming – the coles notes are this whole saga kicked off back in March 2021, when CP reached a deal to buy KSC (albeit at a lesser US$25 billion.) Then CN Rail swooped in with a US$30-billion bid, which KSC swiftly accepted, before determining the deal had little hope of crossing the finish line due to the STB ruling CN could not use a similar trust due to its size. So, KSC was back in the arms of CP to the tune of US$27 billion, and here we are. I’ve glossed over a lot of details, but those are the basics.


Canada’s liquefied natural gas (LNG) export aspirations are taking one more step towards reality. British Columbia is greenlighting the Cedar LNG project, the largest Indigenous-led infrastructure project in Canada, which would also be the second LNG export facility in Kitimat, along B.C.’s north-west coast. Cedar, which is co-owned by the Haisla Nation and Pembina Pipeline, is planning a $3-billion floating export terminal, with plans to begin shipments to Asia in 2027. The project still requires federal approval and a final investment decision.


  • Back to Credit Suisse – shares are plunging in Europe, down as much as 23 per cent to hit a new record low, after the company’s top shareholder Saudi National Bank said it would not up its stake or provide more assistance to the bank.
  • West Texas Intermediate prices have fallen below US$70 per barrel for the first time since 2021, as concerns over a rising U.S. dollar and the economic fallout of the turmoil in the banking sector threaten demand.


  • Notable data: Housing Starts, Existing Home Sales, MLS Home Price Index, U.S. Retail Sales, U.S. Producer Price Index, Empire State Manufacturing Survey, NAHB Housing Index, U.S. Business Inventories
  • Notable earnings: Alimentation Couche-Tard, Adobe, Franco-Nevada
  • Notable events: U.S. Surface Transportation Board to deliver final ruling on CP Rail’s acquisition of Kansas City Southern (1100)