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Noah Zivitz

Managing Editor, BNN Bloomberg

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The Trans Mountain expansion has the green light, but it’s by no means mission accomplished – seemingly for anyone. It was a high wire act for Prime Minister Justin Trudeau as he explained the decision yesterday, attempting to appease supporters of the pipeline and satisfy environmentalists. Today, we’ll focus on the practical, political and legal challenges that could impede construction. And we look forward to Tara Weber’s interview this afternoon with Finance Minister Bill Morneau on the outlook for selling Trans Mountain.  

CANADIAN INFLATION HEATS UP

Consumer prices rose 2.4 per cent year-over-year in May, not only was that above estimates, it was also the hottest rate of inflation since October. Prices rose in almost every category (gasoline was the outlier). The price shock was most evident in produce aisles of grocery stores, as fresh vegetable prices surged 16.7 per cent year-over-year. StatsCan blames that on inclement weather.

FED DECISION DAY

U.S. Federal Reserve Chair Jerome Powell has to thread a needle today. There's pressure to cut rates; but the timing has to be just right -- as does the tone. "The statement will have to include a more dovish tone, but will also be hard-pressed to satisfy market pricing," is how CIBC's head of North American rates strategy framed it in a note to clients yesterday, adding the "easiest" thing to do is remove the word "patient" from the statement.

IN CONVERSATION WITH DARRYL WHITE

After a couple of recent high-profile bearish calls on Canada’s banks, BMO’s CEO isn’t buying the idea his institution needs to aggressively stockpile more cash for sour loans. “It’s not prudent in my mind to wake up one day and say we’re in a brand new world and therefore yesterday we set aside this, and tomorrow it’s going to be that,” Darryl White told BNN Bloomberg's Amanda Lang in an interview. He also shared his perspective on M&A, U.S. banking, the low interest rate environment, and more. See the full interview in Bloomberg Markets at 1:00 p.m. ET today.  

OTHER NOTABLE STORIES

-Shares of Gran Tierra Energy slid in early trading after the company disclosed “temporary operational issues” in a release early this morning.

-Nikkei is reporting Apple has asked suppliers to consider moving up to 30 per cent of China production to Southeast Asia, regardless of whether the U.S.-China trade feud is resolved.

-DavidsTea shares are slipping in pre-market trading after the company reported lower sales and a wider loss in its first quarter.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian CPI

-Notable earnings: Oracle

-Statistics Canada releases population estimates and report "Cannabis-related government revenues: First observations"

-9:30 a.m. ET : U.S. House Ways and Means Committee holds hearing on 2019 trade policy agenda

-10:00 a.m. ET: Parliamentary Budget Officer releases report “Cost estimate of full expensing for depreciable property” 

-10:00 a.m. ET: Acreage shareholder vote on proposed takeover by Canopy Growth

-10:30 a.m. ET: Finance Minister Bill Morneau delivers speech in Calgary (media avail at 12:00 p.m. ET)

-12:00 p.m. ET: Alphabet holds annual meeting in Sunnyvale, California

-1:00 p.m. ET: Shopify holds investor day meeting in Toronto

-2:00 p.m. ET: U.S. Federal Reserve releases interest rate decision and updated forecasts (plus 2:30 p.m. ET news conference)

-2:00 p.m. ET: Trans Mountain CEO Ian Anderson holds media call

-3:00 p.m. ET: Natural Resources Minister Amarjeet Sohi visits Trans Mountain terminal in Edmonton (plus media avail)

-5:00 p.m. ET: Conservative Party of Canada Leader Andrew Scheer delivers keynote on the environment in Chelsea, Quebec

-5:15 p.m. ET: Prime Minister Justin Trudeau departs for visit to Washington, D.C.

-Canadian Business Hall of Fame holds induction ceremony in Toronto

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