Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

While trade tension has been stealing everyone’s attention, Bay Street has been on a roll. Seven straight days of gains for the TSX Composite Index. The gains have been humble, to say the least -- ranging from an 8.7-point rise to a 70-point gain. While the winning streak hasn’t been a barnburner, it’s still put the TSX at its highest level since January and within 124 points of its record closing high. This morning we’ll take a closer look at what’s been driving the gains and what’s been left behind.

BERNIER ON THE OUTS WITH SCHEER

Conservative Party of Canada Leader Andrew Scheer has ousted Maxime Bernier from his shadow cabinet. No specific reason being given for the move. At least not officially. What we know as fact is that Bernier is an outspoken critic of Canada’s supply management system. It’s controversial issue at the best of times, and particularly so right now amid high stakes in trade talks with the U.S. and with a federal election looming next year. The Canadian Press is citing an unnamed CPC source who points to a chapter about supply management from Bernier’s upcoming book on his personal website. Bernier, meanwhile, pointed out in a tweet last night that it’s the same chapter that was previously released by his publisher. So, some drama in Ottawa.

FED DECISION

The U.S. Federal Reserve releases new forecasts and a rate decision this afternoon. Investors overwhelmingly expect the target range for the federal funds rate will rise a quarter of a point to 1.75 per cent-2 per cent. We’ll wait to see in the release and chair Jerome Powell’s news conference how much tolerance the central bank has for hot inflation and whether tariffs and broader trade tension are factoring into the equation. And the infamous dot plots will guide investors on how many more rate increases to expect this year.  

TIM COOK INTERVIEW

We’ve got fresh sound today from our Bloomberg News partners’ interview with Tim Cook for The David Rubenstein Show. Watch for highlights from that conversation, in which Apple’s chief executive opens up about his relationship with Steve Jobs and his transition into the CEO role.

OTHER NOTABLE STORIES

-AltaGas announced today it is selling 35 per cent of its stake in Northwest B.C. Hydro Electric Facilities for $922 million to help pay for its WGL takeover.

-U.S. President Donald Trump tweeted crude again today. "Oil prices are too high, OPEC is at it again. Not good!," he wrote.

-Hydro One’s $6.7-billion takeover of Avista cleared another hurdle yesterday, with a Montana regulator giving the deal its conditional blessing. The acquisition still awaits go-aheads in Washington, Idaho and Oregon.

-The Globe and Mail is reporting Shaw Communications is shopping its stake in Corus Entertainment, which Bloomberg data pegs at 39.7 per cent. We’re trying to match and will assess potential buyers. 

-AT&T received a federal judge’s approval yesterday for its US$85-billion takeover of Time Warner. Now focus shifts to next dominoes to drop in industry consolidation – namely, Walt Disney Co’s US$52-billion deal for 21st Century Fox assets, and the prospect of Comcast trying to bust that up.

-Tesla is laying off nine per cent of its workforce, with CEO Elon Musk admitting he can’t achieve his mission “to accelerate the world’s transition to sustainable, clean energy …. unless we eventually demonstrate that we can be sustainably profitable.”

-A new TransUnion report shows Canadians were shouldering $29,181 of non-mortgage debt, on average, in the first quarter of the year.

-The International Energy Agency warns in its new monthly report the oil market “will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption”.

-We’ll find out this morning if Canada will co-host the 2026 World Cup with Mexico and the United States. FIFA’s decision is expected around 8:00 a.m. ET.

-FIFA has selected Canada, the United States and Mexico as co-hosts for the 2026 World Cup

-Shares of Katanga Mining surged 26 per cent yesterday after the company announced in the mid-afternoon it resolved a dispute with its joint-venture partner in the Democratic Republic of Congo.

NOTABLE RELEASES/EVENTS

-Notable earnings: Roots

-Notable data: Teranet/National Bank Canadian home price index

-8:00 a.m. ET: RBC holds investor day in Toronto

-8:45 a.m. ET: CP CFO Nadeem Velani presents at UBS Global Industrial and Transportation conference

-9:30 a.m. ET: Ontario Premier-Designate  Doug Ford meets in Toronto with industry representatives to discuss NAFTA and business competitiveness (photo op + media avail)

-2:00 p.m. ET: Foreign Affairs Minister Chrystia Freeland in D.C. for meeting with U.S. Senate Committee on Foreign Relations (photo op, then media avail)

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

-8:00 p.m. ET: Freeland delivers keynote in D.C. after receiving Foreign Policy’s Diplomat of the Year Award

-FIFA holds vote on host for 2026 World Cup

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.