U.S. President Donald Trump’s top economic lieutenants did the Sunday talk show circuit in a bid to tame any lingering unease after last week’s market turmoil. “Tariffs are hurting China. China is bearing the entire burden of the tariffs,” White House Trade Advisor Peter Navarro claimed in an interview with CNN (while also stating “technically, we did not have a yield curve inversion.”) Meanwhile, Larry Kudlow told NBC he “sure doesn’t see a recession.” And Trump stoked optimism on Twitter, saying “we are doing very well with China, and talking!” Add it all up (along with the prospect of stimulus in Germany), and futures are pointing to a positive open on Wall Street. Bloomberg Economics Editor Mike McKee ran a reality check on Navarro’s claims this morning on The Street. Check it out on BNNBloomberg.ca if you missed it.

ONTARIO YANKS CANNTRUST PRODUCTS

CannTrust Holdings says the Ontario Cannabis Store is returning “all or substantially all” of the scandal-plagued cannabis company’s products. No specificity from CannTrust on what triggered the return, other than a general statement about not conforming with the Master Cannabis Supply Agreement. We’re in touch with the OCS for details. CannTrust says the value of the products being returned is $2.9 million.

NOTEWORTHY ANALYST CALLS

RBC Capital Markets’ Greg Pardy is teeing up Husky Energy as a prime candidate for privatization. “The beauty contest for energy producers these days revolves around free cash flow generation and distributions to shareholders … Admittedly, Husky is not a great fit in this world,” he wrote in a report to clients, while pointing out Husky has some “gems” in its portfolio and is already “quasi-private” via Li Ka-Shing’s empire. Meanwhile, Credit Suisse Analyst Manav Gupta notes Vermilion Energy’s dividend yield has reached almost 14 per cent and says the international energy producer “is better off making the dividend cut sooner rather than trying to delay any longer.”

IN CONVERSATION WITH JOSE CIL

We have Restaurant Brands International’s CEO this afternoon. From global expansion, to menu innovation, breathing new life into Tim Hortons, and the dicey global economic backdrop. Plenty of ground to cover with Jose Cil at 3:45 p.m. ET in The Close.

OTHER NOTABLE STORIES

- Lot of talk about debt reduction from Precision Drilling today: $136 million so far this year. Up to $150 million targeted for next year. And “well positioned” to hit $400-$600 million cumulative target by end of 2021. The company is also planning to repurchase up to 10 per cent of its shares.

- Bonterra Energy says its emergency response plan is underway to contain and limit the damage from a 40,000-litre pipeline spill in Alberta. Updates are being published here. 

- AGF Management confirmed yesterday merger talks are underway involving Smith & Williamson, a U.K. private client business the Canadian mutual fund manager holds a stake in.

- Catalyst Capital Group says 18.5 million HBC shares (representing 10.05 per cent of the company) have been tendered to its purchase offer of $10.11 apiece.

NOTABLE RELEASES/EVENTS

- 9:30 a.m. ET: Office of the U.S. Trade Representative holds public hearing on investigation of France’s digital services tax

- 11:30 a.m. ET: Prime Minister Justin Trudeau addresses Unifor convention in Quebec

- 1 p.m. ET: Prime Minister Trudeau, Infrastructure Minister Francois-Philippe Champagne, Social Development Minister Jean-Yves Duclos make announcement and hold avail in Quebec