Ottawa to announce $1.6B boost for battered energy patch
Bank of Canada Governor Stephen Poloz isn’t buying into recession warnings, telling CTV News Chief Anchor Lisa Laflamme in an in-depth interview yesterday he doesn’t expect an economic contraction in Canada next year, while warning the country faces risks that he likens to “fender benders” rather than “big events.” On the oil price shock, Poloz said his team is trying to figure out how that will “percolate” through the economy. And he also had some choice words for Donald Trump’s attacks on the U.S. Federal Reserve. Watch for highlights this morning on BNN Bloomberg.
FUNDING FOR THE OIL PATCH
CTV News is reporting the federal government is going to unveil today $1.6 billion in funding measures to support the energy sector. Quite a day for the news to land, with WTI oil prices down per cent at about US$48/barrel. Natural Resources Minister Amarjeet Sohi and International Trade Diversification Minister Jim Carr will make the formal announcement at 11:30 a.m. ET in Edmonton. Question that begs to be asked is whether today’s support will satisfy the sector or, as we’ve heard on this station many times and in the "Build That Pipe" chants at countless rallies, whether it’s just a Band-Aid solution for what truly ails the patch (i.e., lack of new pipeline capacity).
Much like yesterday around this time, futures are pointing to a relatively flat open for the start of trading in New York. We also know that’s a poor indicator of the eventual outcome after U.S. stocks slid more than two per cent yesterday and the TSX suffered a third-straight losing session that pushed the composite index to its lowest close since Sept. 13, 2016.
IN CONVERSATION WITH RON MOCK
We’ll have a feature conversation this morning with the CEO of Ontario Teachers’ Pension Plan, one of the true titans of Canada’s investing landscape (OTPP had $193.9 billion in assets as of the end of June). We’ll go around the world with Mock to gauge his view on the markets and hot spots in the global economy. Don’t miss it at 9:40 a.m. ET.
OTHER NOTABLE STORIES
-Isabelle Courville will replace Andrew Reardon as CP’s chair when he retires at the AGM on May 7.
-TransAlta is forecasting 2019 free cash flow at $270-$330 million. Average analyst estimate is $394.3 million, according to Bloomberg.
-Hydro One and Avista confirmed late yesterday they’ve formally filed a petition asking the Washington Utilities and Transportation Commission to reconsider its decision to block their $6.7-billion deal. The regulator has 20 days to consider its next move.
-Magna International is buying Spain-based VIZA Geca SL to bolster its seating operations. Terms weren’t disclosed. VIZA has 1,100 workers across four facilities, and the company’s clients include the likes of Renault Nissan and VW.
-Notable earnings: FedEx
-Notable data: Canadian manufacturing sales, StatsCan EI report, U.S. housing starts and building permits
-9:00 a.m. ET: Ontario Securities Commission hearing to consider staff settlement agreement with Katanga Mining, its CEO and six former execs and directors
-11:00 a.m. ET: Ontario Premier Doug Ford attends opening ceremony for Amazon’s new office in Toronto
-11:30 a.m. ET: Natural Resources Minister Amarjeet Sohi, International Trade Diversification Minister Jim Carr in Edmonton to announce support measures for oil and gas sector
-2:15 p.m. ET: Alberta Premier Rachel Notley, Finance Minister Joe Ceci, Calgary Mayor Naheed Nenshi, Calgary Stampede Chairman David Sibbald announce support for urban renewal in Calgary
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.