It’s shaping up to be a rough open on Wall Street after U.S. President Donald Trump raised the stakes in his trade war with China, threatening to impose additional tariffs on as much as US$400 billion worth of Chinese goods after Beijing’s decision to go tit-for-tat when the initial round was announced last Friday. China has responded this morning with a vow to retaliate “forcefully” if Trump makes good on his latest threat. As of 5:00 a.m. ET, Dow Jones Industrial Average futures were down almost 370 points.
The main questions today are how/if the world’s two largest economies can untangle themselves from this mess, whether investors have been underestimating trade risk, and what the spillover effect could be for the economy.
TSX CLOSE TO RECORD
The TSX Composite Index was the best-performing major North American index yesterday, with a 69-point gain that left it at 16,383.63. It’s now just 38 points shy of a new all-time intraday high, and within 30 points of its record close. We’ll be ready to report on what’s led the way, and what’s been left behind, since the Jan. 4 peak.
NOTE: Record intraday high is 16,421.42; record closing high is 16,412.94. Both were set on Jan. 4, 2018. Grabs attached showing group and member-ranked returns since that date.
BUYING INTO BOMBARDIER’S TURNAROUND
Shares of Bombardier closed above $5 yesterday for the first time since October 30, 2013. Remarkable swing since the early days of 2016 when the stock touched a low of 72 cents and more than a few commentators mused about the prospect of a the plane and train maker landing in CCAA. Now there isn’t a single sell recommendation among the 22 analysts whose research is tracked by Bloomberg. Today we’ll assess whether this turnaround has legs and what the next drivers will be after handing over control of the CSeries to Airbus.
TALKING TRADE WITH CANADA’S LARGEST CHEESE MAKER
Saputo Chairman & CEO Lino Saputo Jr. will share his unique perspective on supply management and trade tension this afternoon on Bloomberg Markets. Don’t miss it at 1:15 p.m. ET.
OTHER NOTABLE STORIES
-Crescent Point Energy announced today VP Ryan Gritzfeldt is being promoted to chief operating officer
-Looks like the Senate called it a night yesterday after Senator Peter Harder tabled a motion urging the upper chamber not to insist on the amendments to C-45 that were rebuffed by the House of Commons. Unclear at this point when debate on the Cannabis Act will resume. We’ll keep track of developments.
-Swoop, WestJet’s new ultra-low-cost carrier, is holding a special ribbon-cutting ceremony today at Hamilton International Airport ahead of tomorrow’s launch. BNN Bloomberg's Jameson will be there. Watch for an interview on The Open with President Steven Greenway.
NOTABLE RELEASES/EVENTS
-Notable earnings: FedEx, Oracle
-Notable data: U.S. housing starts
-8:30 a.m. ET: National Energy Roundtable annual conference in Toronto
-9:30 a.m. ET: Swoop hosts ribbon cutting ceremony at John C. Munro Hamilton international airport
-10:00 a.m. ET: Ontario Premier-Designate addresses his Caucus in Toronto
-10:30 a.m. ET: Minnesota Public Utilities Commission hearing on Line 3 continues (agenda, etc, here: https://mn.gov/puc/newsroom/calendar/#2)
-12:10 p.m. ET: Goldman Sachs CEO Lloyd Blankfein in conversation with Bloomberg Editor-in-Chief John Micklethwait at Economic Club of New York
-1:00 p.m. ET: Foreign Affairs Minister Chrystia Freeland and top NAFTA negotiator Steve Verheul speak before House Standing Committee on International Trade
-1:00 p.m. ET: Ministers scrum in House Foyer after cabinet meeting
-1:30 p.m. ET: Innovation Minister Navdeep Bains makes announcement in Ottawa on digital and data transformation
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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