It’s going from bad to worse for Justin Trudeau’s Liberal government after the Federal Court of Appeal’s decision to quash its approval of the Trans Mountain pipeline expansion. Late last night, Alberta Premier Rachel Notley gave notice she’s yanking her province out of the federal climate plan. “With the Trans Mountain halted, and the work on it halted, until the federal government gets its act together, Alberta is pulling out of the federal climate plan,” she said. “And, let’s be clear: without Alberta, that plan isn’t worth the paper it’s written on.”

Today, the primary question has to be what Trudeau is willing to do about this. Yesterday, former Encana CEO Gwyn Morgan told us the PM should immediately recall parliament and put his constitutional authority to use. We'll explore that option and consider the incredible stakes economically, environmentally, and politically.

DEADLINE FOR A DEAL. MAYBE.

U.S. President Donald Trump appears to be baking in some wiggle room on the deadline for a trade trilateral deal. “Canada’s going to make a deal at some point,” he told Bloomberg News in an interview yesterday. “It may be Friday or it may be within a period of time, but ultimately they have no choice.” We’ll monitor developments as Foreign Affairs Minister Chrystia Freeland works through the details with Robert Lighthizer. We’ve also got sound from Bloomberg’s interview with Trade Diversification Minister Jim Carr and look forward to interviews with two members of Freeland’s advisory council today (Rona Ambrose and Hassan Yussuff).  

LULULEMON BLOWOUT

What a handoff to Calvin McDonald. Lululemon shares were last seen up more than 10 per cent in pre-market trading after the company steam-rolled second-quarter profit expectations on the back of a 25 per cent revenue surge and also jacked up its full-year forecasts. McDonald, the ex-Sears Canada leader, is barely a week into his new role as Lulu's chief executive officer and the obvious topic of conversation today is how we'll maintain momentum.

ANOTHER SUPERMAJOR CUTS OIL SANDS EXPOSURE  

France's Total says it's struck a deal to sell Joslyn oil sands project to Canadian Natural Resources for $225 million. Total and its partners shelved Joslyn in 2014 after the crash in crude prices. The sale cmes after other major players like ConocoPhillips and Royal Dutch Shell backed away from the oil sands. 

 

GWNFA THREATENS TIM HORTONS AMID EQUIPMENT FAILURE CLAIMS

We’ve obtained a letter sent to Tim Hortons by legal counsel for the Great White North Franchisee Association, alleging staff at the coffee-and-doughnut chain have suffered “serious injuries as a result of shattering coffee and tea pots. Injuries include without limitation, burnt thighs, feet, and genitals.” According to the letter, the legal counsel is vowing to hold Tim Hortons’ parent company responsible. We’ve contacted Restaurant Brands International for comment.  

OTHER NOTABLE STORIES

-Aimia announced this morning it has settled a class action lawsuit over changes to its points accumulation rules that were announced in 2006

-Coca-Cola has made a giant move into the coffee sector after announcing it’s buying Costa from Whitbread Plc for US$5.1 billion.

-Amazon.com has inched closer to a US$1-trillion market valuation after a fifth straight day of gains yesterday that pushed it above US$2,000 per share.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian industrial product and raw materials price indices, University of Michigan consumer sentiment index

-9:00 a.m. ET: Ontario Securities Commission hearing to consider settlement with ex-Aston Hill Financial CEO Eric Tremblay over misleading or untrue statements in Amaya insider trading/tipping case (background here: http://www.osc.gov.on.ca/en/Proceedings_soa_20171026_chengb.htm)

10:00 a.m. ET: Prime Minister Justin Trudeau delivers remarks and holds avail in Oshawa at University of Ontario Institute of Technology, Automotive Centre of Excellence

-1:00 p.m. ET: Alberta Finance Minister Joe Ceci releases fiscal update

-2:35 p.m. ET: U.S. President Donald Trump holds signing event in Charlotte for strengthening retirement security 

-4:40 p.m. ET: Trump delivers remarks at fundraising committee reception in Charlotte, NC 

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.