The Big Three: Rosenberg's recession call; markets' negative year; CIBC cuts Whistler energy program
David Rosenberg is warning there’s a debt bomb in Canada that threatens to plunge this country’s economy into a recession next year. “Nothing is inevitable, but the risks of recession for Canada for next year are higher than a lot of people think,” the chief economist at Gluskin Sheff + Associates told Andrew McCreath on Weekly, while pointing to total household debt reaching $2.2 trillion from $1.3 trillion a decade ago. “The lagged impact of these higher rates is going to really start cascading in the next 12 months.” See the Rosenberg interview here.
At least in futures trading, with major U.S. indices essentially flat after falling about two per cent on Friday. Main catalyst of the week lands on Wednesday with the U.S. Federal Reserve’s rate decision, updated forecasts and a news conference.
IN CONVERSATION WITH SNC’S CEO
We’re looking forward to speaking with Neil Bruce today. Recall Quebec’s premier fetched headlines last week with his warning he has “indications” that foreign buyers could be sizing up SNC-Lavalin (whose stock is down 17 per cent this year) for a hostile takeover. Watch out for our interview with SNC’s CEO today on Bloomberg Markets.
FALLOUT FROM WHISTLER MAYOR’S LETTER
CIBC has scrapped the energy program from its upcoming Whistler conference after that city’s mayor called on Canadian Natural Resources to pay up for “climate-related harm” to his community. In terms of damage control, CIBC’s head of investment banking released a short statement underscoring his bank’s commitment to energy clients. Meanwhile, Calfrac’s chair released a lengthy statement late Friday blasting the mayor’s “unjust” strategy.
A story that anyone who travels by plane has a stake in: Transport Minister Marc Garneau today will announce the next step in the government’s plan to introduce new air passenger protection regulations. From the quality of communication, to compensation and managing delays — a lot of sore spots, that just about any traveller can relate to, are expected to be addressed. Watch for it at 11 a.m. ET.
OTHER NOTABLE STORIES
-TransCanada announced this morning it will sell its Coolidge Generating Station for US$465 million.
-Alimentation Couche-Tard and CrossAmerica announced an asset swap this morning. Couche-Tard will sell 192 U.S. stores to its deal partner for US$184.5 million. Meanwhile, CrossAmerica will ship US$184.5 million worth of real estate assets and 17 stores to Couche-Tard.
-Prime Minister Justin Trudeau delivered a fiery defence of his government’s fiscal strategy in an interview with Evan Solomon on CTV’s Question Period. They covered a long list of hot-button issues. Watch for highlights today on BNN Bloomberg.
-S&P Dow Jones Indices announced late Friday that Aritzia and Cronos Group will be added to the TSX Composite Index on Dec. 24, while a half-dozen names are being booted: Advantage Oil & Gas, Dorel Industries, Guyana Goldfields, Paramount Resources, Trican Well Service and Tamarack Valley Energy
-Malaysia has filed criminal charges against Goldman Sachs and a former partner at the bank for their role in facilitating financings at 1Malaysia Development Bank, which has been plagued by a corruption scandal. Goldman said in a statement it will “vigorously defend” itself against what it calls “misdirected” charges.
-Notable earnings: Oracle
-Notable data: Canadian international securities transactions
-11:00 a.m. ET: Transport Minister Marc Garneau announces next step in establishing air passenger protection regulations at Ottawa International Airport (preceded by technical briefing at 10:00 a.m. led by Canadian Transportation Agency CEO Scott Streiner)
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.