Justin Trudeau says he doesn't want to be in the pipeline business for the long term. Problem is, he has to find a willing buyer to make sure that doesn't happen. "We are very confident," he told Bloomberg's Stephanie Flanders, just a few hours after his government announced its blockbuster $4.5-billion nationalization of Kinder Morgan's Trans Mountain, "as this pipeline gets built the business case is certainly strong enough that there will be buyers for this pipeline."

We'll continue to assess that business case - insofar as the private sector is concerned - for a project that had to be saved by the federal government and which still faces vehement opposition in British Columbia.

MORNEAU VICTORY LAP

The Finance Minister heads to Calgary today to tout his Trans Mountain rescue and other moves intended to “secure Canada’s economic future,”as the finance department puts it. His speech was moved to a larger venue, the Big Four Roadhouse at Stampede Park, to accommodate demand from business leaders. BNN Bloomberg's Tara Weber will be there. Watch for her reporting this afternoon.

CP STRIKE

Approximately 3,000 Canadian Pacific Railway conductors and engineers walked off the job at 10:00 p.m. ET, adding more friction to an already embattled industry that’s been wrestling to clear a backlog hampering Canada’s grain sector. The Teamsters Canada Rail Conference says it’s ready to continue negotiating during the strike and will work with mediators to help smooth out differences with CP. It wasn’t all bad news for CP, however, with the company announcing late yesterday it averted a walkout by the 360 maintenance workers represented by the International Brotherhood of Electrical Workers. We’ll track developments and corporate reaction. Notably, Chemtrade Logistics Income Fund is the first company we’ve seen to issue a press release warning of a potential “material impact” on its results if the strike drags on.

SIX FOR SIX

Make it a clean sweep of beats from Canada’s Big Six (someone tell Steve Eisman). National Bank announced a new share buyback this morning and raised its quarterly dividend a couple cents to $0.62 per share after reporting second-quarter profit rose 13 per cent year-over-year. And BMO raised its payout to 96 cents per share while reporting adjusted second-quarter profit reached $1.46 billion amid a 43 per cent surge in U.S. banking profit.

TIMS ALL-DAY BREAKFAST          

Tim Hortons is going to launch all-day breakfast as a pilot in select Ontario locations as the chain aims to fend off McDonald’s in an intense industry battle for your early-morning loyalty. President Alex Macedo revealed the plan in a conversation with The Canadian Press, saying “the demand is loud and clear” while also indicating he’s contemplating launching a kids menu. Question is how this will go over with its franchisees.

ITALY TURMOIL

It’s relative stability in the market today after yesterday’s rout on Wall Street. Major European indices are little changed and futures are pointing to a modest rise at the start of trading in New York as traders continue processing the political uncertainty in Italy, with a successful bond auction helping to soothe investors’ nerves, at least for now.

BANK OF CANADA RATE DECISION

The Bank of Canada is widely expected to keep its benchmark rate unchanged at 1.25 per cent today. Last time we heard from the Bank, it reiterated its mindfulness of Canadians’ sensitivity to higher rates and gave a strong nod to trade conflicts as a threat to the global economy. Hard to imagine its tune will change dramatically today. Watch for breaking coverage at 10:00 a.m. ET on The Open.

And here is some of what the economy has delivered since the bank’s last decision on April 18.

 

OTHER NOTABLE STORIES

-Bank of Nova Scotia announced this morning CFO Sean McGuckin is taking a leave of absence due to an unspecific illness in his family. Chief Accountant Raj Viswanathan will step in as acting chief financial officer.

-Laurentian Bank announced late yesterday it has settled up with the unnamed third-party buyer of ineligible mortgages and will repurchase $115 million worth of those loans, slightly less than previously estimated. Laurentian also estimates it will have to repurchase up to $150 million worth of mortgages from CMHC.

-Walt Disney Co. shares fell almost three per cent yesterday after its ABC division pulled the plug on Roseanne amid the star’s racist tweets. Great case study in management and leadership, with ABC Entertainment President Channing Dungey’s swift decision and Disney CEO Robert Iger tweeting his support.  

-The OECD estimates the global economy will expand 3.8 and 3.9 per cent, respectively, in the next two years. Trade tension and higher oil prices are earmarked as risks to the outlook. Canadian GDP, meanwhile, is pegged at 2.1 per cent this year and 2.2 per cent in 2019, with exports and business investment sees as drivers.

Every morning BNN'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.