WestJet and the union representing about 1,800 of its pilots have reached an eleventh-hour deal to avert a work stoppage. The two sides said they've struck a tentative agreement to keep planes in the air, ahead of the 3 a.m. MDT deadline, which would've seen most of the airlines operations grind to a halt. While a deal is likely welcome news for both sides ahead of May long weekend, which serves as the unofficial start to the summer travel season, it's not like getting an airline up and running is as easy as flipping a switch. WestJet grounded much of its fleet yesterday to avoid stranding planes and passengers, and its warning that it will take some time to return to normal operations, so flight disruptions are expected as we get into the weekend.
SCOTIA CHANGES CALL, JOINS RATE HIKE CAMP
Scotia Economics is making it official, updating its view of the Bank of Canada's next rate decision and calling a further 25 basis point rate increase at the next meeting. In a note late yesterday, Scotia Chief Economist Jean-François Perrault said that on balance, the central bank can't afford to continue to wait on the sidelines to see how the previous 425 basis points worth of hikes are working through the economy, with inflation still running well above four per cent. Worth noting, Citi's Veronica Clark has already made (and reiterated) the call for 25 bps at this coming meeting, but this move by Scotia makes Perrault and Clark the lone outliers (for the moment – models change, as do calls, and we have a couple weeks to said rate decision.)
CINEPLEX FIRES BACK AT COMPETITION BUREAU
Cineplex is firing back at Canada's Competition Bureau as it hit the theatre operator with a lawsuit over its ticket advertising practices. The theatre operator says the watchdog's allegations are “meritless” and that it expects the suit to be dismissed in short order. The issue here is the online pricing aspect of things – the Competition Bureau says advertised prices don't include a $1.50 booking fee, and as such are misleading to consumers, while Cineplex says it's all laid out pretty clearly, and that customers have the option to buy in person and avoid said fee altogether easily.
OTHER NOTABLE STORIES
- Things are still looking rather grim in Alberta as the province stares down an unseasonably early spate of wildfires through much of its natural gas heartland. As of Friday morning, there are 92 fires burnings, with 25 considered out of control.
- Shares of Deere & Co. are trading higher in the premarket – up as much as 6.6 per cent – after the U.S. heavy equipment maker lifted its outlook in the wake of healthy demand for farm and construction equipment.
NOTABLE RELEASES/EVENTS
- Notable data: Retail Sale, U.S. Quarterly Services Survey
- Notable earnings: Deere & Co., The Children's Place
- Morgan Stanley AGM
- Honeywell AGM
- 1100: U.S. Fed Chair Powell joins a panel on “Perspectives on Monetary Policy” in Washington, DC
- G7 Summit in Hiroshima (May 19-21)
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