Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The Trump administration is eyeing another target for tariffs under the auspices of national security concerns. The U.S. Commerce Department confirmed this morning it will probe whether uranium imports should face surtaxes at the border, similar to the Americans’ treatment of steel and aluminum. The matter was brought to the administration’s attention by Energy Fuels and Ur-Energy, two TSX-listed stocks that rallied in early trading.

CABINET OVERHAUL      

Prime Minister Justin Trudeau gave his cabinet a shake today. Notably for our purposes, Amarjeet Sohi is now natural resources minister as Jim Carr moves to international trade. Trudeau acknowledged while speaking with reporters that he was motivated in part by a desire to lessen Canada’s dependence on the U.S.

U.S. AUTO SECTOR WARNS AGAINST TARIFFS   

On the eve of a public hearing that will help inform the U.S. Commerce Department's decision about automotive tariffs, American car makers are banding together in a very public way to warn the White House against going ahead with its threat. "While we understand that you are working to achieve a level playing field for trade to create more jobs, raising tariffs is the wrong approach," reads the open letter from Auto Alliance, which goes on to caution against "misguided U.S. policies." Watch for much more auto tariff coverage on BNN Bloomberg in the coming days.

CSX ON A TEAR

Fresh off reporting a record-low operating ratio for any U.S. railroad, CSX CEO James Foote still isn’t satisfied. “We’ve achieved a lot in a very short period of time; we are from where I believe we can go,” he said on a conference call with analysts that was rich with anecdotes about how he’s still trying to reshape the company’s culture (plus a warning about the prospect of U.S. auto tariffs). We’ll take a closer look today at how Foote is building on the overhaul that was initiated by Hunter Harrison, and how the company’s shareholders have been handsomely rewarded for their work.

TEXAS INSTRUMENTS MANAGEMENT FAILURE

Texas Instruments suffered a major leadership setback late yesterday. CEO Brian Crutcher, who had only been on the job for 37 days, resigned amid unspecified personal behaviour that violated the company’s code of conduct. On Jan 18, when his appointment was announced, TI’s previous CEO praised Crutcher as “an exceptional leader who inspires others and delivers great results” and also trumpeted his “discipline” and “intelligence”. Texas Instruments did its best to offset the news by also giving investors an early look at estimate-beating second-quarter profit and revenue.

OTHER NOTABLE STORIES

-Aecon announced this morning its joint venture with Robert B. Somerville Co. has been awarded a $282-million contract by Enbridge for work in Manitoba on the Line 3 replacement project.

-Imperial Oil CEO Rich Kruger is tearing into Canada, telling The Globe and Mail this country’s regulatory review system “is not world class [and] is not something we can or should be proud of as a country.” He also warned he’s not prepared to spend anything in this country beyond general care of existing assets.

-The European Competition Commissioner just announced a 4.3-billion-euro antitrust fine against Google today over its contracts with Android phone makers.

-Tesla CEO Elon Musk has owned up to his ill-advised tweet earlier this week, issuing an apology to Vern Unsworth early this morning via Twitter.

-And we’ll wait to see if the TSX can again establish new highs today, with the Composite Index sitting 67 points off its intraday record and 48 points shy of its record close.

NOTABLE RELEASES/EVENTS

-Notable earnings: Canadian Pacific Railway, Kinder Morgan, IBM, eBay, Morgan Stanley, Alcoa, American Express

-Notable data: U.S. housing starts, U.S. building permits,

-7:30 a.m. ET: Toronto Mayor John Tory to hold roundtable on Canada-U.S. trade with food and beverage industry executives

-9:00 a.m. ET: Parliamentary Budget Officer releases report “Extended April 2018 Economic and Fiscal Outlook”

-10:00 a.m. ET: Governor General Julie Payette leads swearing-in ceremony at Rideau Hall

-10:00 a.m. ET: U.S. Federal Reserve Chair Jerome Powell testifies before U.S. House Financial Services Committee

-10:00 a.m. ET: U.S. House Ways and Means Subcommittee on Trade holds hearing on the effects of tariffs on U.S. agriculture and rural communities

-10:50 a.m. ET: Prime Minister Justin Trudeau holds media avail at Rideau Hall

-11:30 a.m. ET: U.S. President Donald Trump holds cabinet meeting  

-2:00 p.m. ET: U.S. Federal Reserve releases Beige Book

-Farnborough International Airshow (runs to July 22)

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.