Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The TSX Composite Index enters this shortened trading week riding an 11-session winning streak that’s put it within 259 points of its all-time high (16,421.42). There’s been only nine negative sessions since the start of April, with the energy (+12.5 per cent) and info tech (7.8 per cent) groups leading the way since then.

CHINA-U.S. TRADE TRUCE

An easing of global trade tension helped drive U.S. stocks higher yesterday. Too bad for Canada, NAFTA is still very much stuck in limbo. Instead, it's China that's getting all the attention after a truce with the United States this weekend, albeit light on specifics. The world's two largest economies agreed to a number of moves designed to cut China's trade surplus with the U.S. But with many details left to be worked out, we're back to the same question of how Trump's top trade officials will juggle the competing files. And have to point out the latest development, with China announcing today it will slash auto import duties to 15 per cent from 25 per cent.

WESTJET STRIKE WATCH

The pilots agreed to hold off until after the long weekend to strike, but there’s no sign they’re going to stampede to the picket line. The union said in a tweet yesterday it’s “committed to reaching an agreement with management”. Meanwhile, WestJet is addressing ticket-holders’ fears via Twitter, writing “it’s business as usual” and stating the union has to provide 72 hours’ notice.

OIL CLIMBS

Oil futures touched a new three and a half-year high this morning, climbing to US$72.72 per barrel with fear over the fallout from the Venezuelan election serving as the catalyst. U.S. Vice President Mike Pence decried Nicolas Maduro’s win as a “sham” and the White House followed that up with another round of sanctions on the country.

NOTLEY BACKS OUT OF PREMIERS MEETING

The Western premiers are meeting in Yellowknife on Wednesday. Rachel Notley will not be there. She announced her decision via Twitter late yesterday, saying it “would be surreal and exceptionally tone deaf for anyone to think we could politely discuss pharmacare and cannabis when one of the players is hard at work trying to choke the economic lifeblood of the province and the country.” There are eight days to go before Kinder Morgan’s deadline for clarity on whether there’s a path forward for the Trans Mountain expansion.

OTHER NOTABLE STORIES

-SNC-Lavalin said this morning it will set aside $88 million to settle two class actions dating back to the company's dark days in 2012.

-A few weeks ago, iChurchill surprised us by announcing it had First Nations' backing to buy the beat-up Churchill rail link. Today, iChurchill said it was backing away from the deal because it wasn't able to see eye-to-eye with the federal government.

-A propos of nothing other than an observation: shares of Aecon are trading near their lowest level since the company announced its takeover agreement with China Communications Construction Company in October. ARE closed at $17.57 on Friday, well below the $20.37/share offer.

-The Ontario Lottery and Gaming Corporation released a statement late Friday addressing recent commentary about what looked to be a steal of a deal for Great Canadian Gaming. OLG said the purchase price for a bundle of assets in the Greater Toronto Area “is only one minor component” of the deal’s financial value. Recall the recently-disclosed purchase price shocked analysts and helped drive up Great Canadian’s stock 26.7% on May 10.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian wholesale trade

-9:00 a.m. ET: Parliamentary Budget Officer releases report "Impact of a Pan-Canadian Carbon Pricing Levy on PBO's GDP Projection"

-10:00 a.m. ET: WestJet CFO Harry Taylor presents at Wolfe Research conference in New York

-10:00 a.m. ET: U.S. Treasury Secretary Steven Mnuchin testifies before U.S. Senate Appropriations Committee

-12:15 p.m. ET: Facebook CEO Mark Zuckerberg addresses European lawmakers in Brussels

-U.S. Commerce Department expected to make final determination on Canadian newsprint countervailing duties

-Master Limited Partnership & Energy Infrastructure Conference in Orlando (runs to May 24)

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.