Global stocks and U.S. futures have been stable in early trading after yesterday’s seesaw session when a late rally moderated losses that had earlier seen the Dow Jones Industrial Average down as much as 3.4 per cent. It was all about tech, with that sector – and pretty much nothing else – dominating the leader boards for the major markets. At home, the S&P/TSX Composite Index is now into its longest losing streak since February after four straight losing sessions.
UNIFOR-FORD DEAL
The negotiations went into overtime, but it was for a good reason as the union and automaker announced a tentative contract agreement this morning (almost an hour after Anita Sharma broke the news on BNN Bloomberg). Unifor national president Jerry Dias said Ford agreed to invest almost $2 billion in its two Ontario plants under an arrangement that will see its Oakville facility retooled for electric-vehicle production. The agreement is subject to ratification.
THRONE SPEECH EVE
Tomorrow, the Liberal government will map out its vision for dealing with the pandemic and resuscitating the economy. Already, our Bloomberg News partners have learned via a senior government source that it will be a strategy in three phases: tackle COVID-19, commit to supporting Canadians so long as the pandemic is with us, and then deliver on a “resiliency agenda”. The latter two, in particular, are bound to raise questions about the total cost at a time when this country is also bracing for a record deficit. We’ll explore the feds’ fiscal wiggle room and continue gathering insight on what industry and Bay Street wants to hear in the speech.
AUTO TALKS
Unifor and Ford announced late last night they extended the deadline to reach a tentative agreement in their labour negotiations. They had previously been working toward an 11:59 p.m. ET cutoff point before the union’s workers could have walked off the job. Earlier yesterday, Ontario Premier Doug Ford said his province is prepared to contribute “a massive amount” and touted the potential for made-in-Ontario batteries. Sidebar on that subject: we’re looking forward to hearing from former Tesla executive George Blankenship at 10:40 a.m. ET ahead of Elon Musk’s remarks later today on his plans for battery innovation.
POWELL, MNUCHIN TESTIMONY
U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin will discuss their efforts to shore up the U.S. economy in two days of testimony, starting this morning before the U.S. House Financial Services Committee. In prepared remarks, Powell again asserted the Fed’s plan to use its tools “for as long as it takes” and warned of a “highly uncertain” outlook as a result of the pandemic.
CARBON TAX CHALLENGE
The constitutionality of the federal carbon tax is being challenged before Supreme Court of Canada in two days of hearings beginning today. The appeals are the result of mixed lower court rulings in battleground provinces of Alberta, Saskatchewan and Ontario. We’ll set the scene today.
OTHER NOTABLE STORIES
-Oracle shares are slipping in pre-market trading amid some apprehension about whether its plan, with Walmart, to pick up a stake in TikTok’s global operations will pass muster. After some initial enthusiasm, U.S. President Donald Trump indicted yesterday he’ll block the deal if Oracle doesn’t end up with actual control.
-The United Kingdom is tightening up restrictions in an attempt to limit the spread of COVID-19, including with a 10pm closing time for restaurants and pubs. Government officials have also been out today saying they encourage anyone who can work from home to do so.
-Today marks Netflix’s 10-year anniversary of operating in Canada, over which time it’s revolutionized the way we consume content and opened the door to a myriad of rivals (disclaimer: one of those, Crave, is owned by BNN Bloomberg’s parent company). Check out Jon Erlichman's retrospective on Netflix’s impact at BNNBloomberg.ca
NOTABLE RELEASES/EVENTS
-Notable data: U.S. existing home sales
-Notable earnings: Aurora Cannabis, WildBrain, Nike
-7:30 a.m. ET: U.K. Prime Minister Boris Johnson addresses lawmakers on COVID-19
-9:00 a.m. ET: Toronto Region Board of Trade holds virtual Recovery Summit featuring ambassador to China Dominic Barton and ambassador to U.S. Kristen Hillman
-9:30 a.m. ET: Supreme Court of Canada begins hearing carbon tax appeals
-10:30 a.m. ET: U.S. Federal Reserve chair Jerome Powell and U.S. Treasury secretary Steven Mnuchin address U.S. House Financial Services Committee (NOTE: Powell’s remarks are already out: https://www.federalreserve.gov/newsevents/testimony/powell20200922a.htm)
-11:00 a.m. ET: Unifor national president Jerry Dias holds news conference in Toronto to provide update on contract talks with Ford
-4:30 p.m. ET: Tesla holds annual meeting
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.
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