By now it’s well-established: Peter Navarro and Larry Kudlow were dispatched to the morning talk show circuit to blast Prime Minister Justin Trudeau who dared to declare Canada “will not be pushed around” during a news conference in Charlevoix, Que. on Saturday. After the name-calling, today the question is what it’ll take to repair Canada-U.S. relations and what the risk is for the economy if the situation continues to devolve. We’ll gather insight today from the likes of former Ambassadors Derek Burney, Bruce Heyman and former Goldman Sachs Asia Vice Chairman Ken Courtis.
THE MARKET REACTION
The Canadian dollar fell as much as 48 basis points against the U.S. dollar in reaction to the blowup. We’ll use this as the starting point for tracking market reaction to the friction.
AUTO THREAT
Almost lost in all the name calling was Trump’s reiteration of his threat to impose tariffs on imports of automobiles into the United States. We’ll look into what the impact could be if Trump follows through.
IN CONVERSATION WITH CALIN ROVINESCU
Watch for Amanda Lang’s interview with Air Canada CEO Calin Rovinescu this afternoon on Bloomberg Markets. The airline is the TSX’s second-best performer over the last five years with a 922 per cent return (second only to Canopy’s 1,129 per cent surge). Lots to discuss, including recent changes to foreign ownership rules, competition and fuel costs.
OTHER NOTABLE STORIES
-Voisey's Bay is getting an extension, with Vale planning to invest $2 billion in an underground mine that will support 1,700 jobs over 15 years upon completion.
-Ivanhoe Mines announced today Chinese conglomerate CITIC is acquiring a 19.9 per cent stake in IVN for $723 million
-AutoCanada is being targeted by an activist. Clearwater Capital released a letter to the dealer's chair, calling for it to review strategic alternatives. Clearwater says it is speaking on behalf of shareholders holding 60 per cent of the float.
-Torstar announced a collaboration with The Wall Street Journal today that will see sample WSJ articles in Torstar dailies starting tomorrow with an even deeper partnership for Torstar’s flagship Toronto Star.
-Canada Pension Plan Investment Board is laying claim today to being the first pension fund to issue Green Bonds
-Bitcoin has been down as much as 13 per cent to US$6,635/coin after a South Korean exchange fell victim to a “cyber intrusion”
-Bombardier and its consortium partners have closed a US$4.9-billion contract to build, operate and maintain an “automated people mover” at LAX
NOTABLE RELEASES/EVENTS
-Notable earnings: DavidsTea
-3:30 p.m. ET: Canada Pension Plan Investment Board CEO Mark Machin speaks before House Finance Committee
-U.S. President Donald Trump in Singapore for meeting with North Korea’s Kim Jong-un
-World Cannabis Congress in Saint John (runs to June 12)
-International Economic Forum of the Americas' Conference of Montreal begins (runs to June 14)
-Starbucks closing Canadian stores in the afternoon "to address implicit bias"
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.
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