Posthaste: The ever-shrinking Bombardier, Bank of Canada's decision day and who's the king of Bay Street?
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After offloading much of its aircraft business, Bombardier is also making deep cuts in its railway division. The Montreal-based company said Tuesday it’s laying off half its workforce at the Thunder Bay railway plant due to lack of orders and U.S.’s buy-American policies.
Bank of Canada will reveal its decision on interest rates this morning, but governor Stephen Poloz is likely going to make the easier choice of maintaining rates — until at least his counterpart Jerome Powell shows his hand. That could come soon as the U.S. Federal Reserve chairman will give a testimony to Congress at exactly the same time — 10 a.m. ET.
“Will Powell answer the question ‘should I cut or just say no?’ Easing for the wrong reasons could fan financial instability. Not easing and not accompanying such a decision with very cautious guidance could rock the bond market,” Scotiabank analysts said in a note.
It’s Wednesday, so it must be time for some easy listening. In episode 12 of FP’s Down To Business podcast host Geoff Zochodne talks with Wealthsimple CEO and co-founder Michael Katchen about what open banking is, what it will do for consumers and how Canada risks falling behind in this global trend.
Also, FP’s half-yearly Dealmakers list shows RBC Capital Markets as the king of Bay Street — yet again. FP’s periodic look at dealmakers in Canada’s corporate world shows mining was a bright spot, but trade tensions and prospects of higher interest rates sucked the life out of deal flow in the first half of 2019.
Here’s what’s breaking this morning:
- Bombardier to lay off half the 1,100 workers at Thunder Bay railway plant — and union fears more cuts to come
- Bank of Canada may diverge from dovish peers as economy rebounds
- Surging housing starts add fuel to prospect of Bank of Canada raising its economic outlook
- Two top banks slash CannTrust price target in half because of Health Canada probe
- Google cloud deal sends Canada’s Open Text to record high
- The NDP’s new tax-the-rich plan is terrible, even by their standards
- Trade, climate policy on agenda for premiers’ meeting in Saskatoon
- Alberta government seeking feedback on greenhouse gas emissions reduction plan
- Military’s second-in-command to resign, links decision with Mark Norman case
- Canada’s bias meant improper consultations: First Nations challenging pipeline
- Crews rush 46 to hospital after carbon monoxide leak at Winnipeg hotel
- Acacia Mining says it’s worth far more than Barrick offered
- Walmart’s supplier says Chinese factories in ‘desperate’ state
- U.K. Parliament flexes muscle as Johnson doubles down on no-deal Brexit
- Morgan Stanley says Fed to cut half a percentage point in July
- Brookfield plans offer for majority stake in Suzlon
- Bonds fall, stocks drop ahead of Powell testimony
- China warns meat exporters to comply with rules – sources
- Innovation Energy: Tidal power is a promising source of electricity, but faces significant waves of challenges
- Canadian Natural eyeing a piece of Alberta’s $3.7-billion oil-by-rail sale
- If you invest in cannabis, be ready to dodge bombshells — even though sometimes you can’t
- There are good reasons for Trudeau to lobby for Mark Carney to take over as head of the IMF
- David Rosenberg: Signs of a looming U.S. recession are building, if you look beneath the surface
- These relationship red flags are pretty accurate signs you’re headed for a breakup
- Bank of Canada to release its interest rate announcement and monetary policy report at 10 a.m. ET in Ottawa. Governor Stephen Poloz and senior deputy governor Carolyn Wilkins hold news conference to discuss monetary policy report. at 11:15 a.m. ET
- U.S. Federal Reserve chairman Jay Powell testifies before House Financial Services Panel. Federal Open Market Committee meeting minutes at 2 p.m. ET
- Small Business Minister Mary Ng announces an investment through the Women Entrepreneurship Strategy Ecosystem Fund in Montreal
- TD Securities Calgary Energy Conference in Calgary
- Saskatchewan hosts the summer premiers meeting in Saskatoon
- Seth Daniels, founding partner of JKD Capital and a short seller, argues in a talk to the Chartered Financial Analysts Society in Vancouver that the Canadian housing market is not merely in a slowdown but rather at the beginning of a much larger correction
- Corporate Events: DavidsTea Inc. AGM, Cogeco Inc. and Cogeco Communications results, Postmedia Network Canada Corp. results, Aritzia Inc. AGM
Bay Street’s top dealmakers blamed trade headwinds and prospects of higher interest rates for disappointing issuer activity in the first half of the year, but expect the outlook for the second half to be considerably brighter as at least one of the key concerns recedes into the background, writes Julius Melnitzer.
Feel free to send your thoughts, tips and news to Yadullah Hussain at yhussain@postmedia.com — @yad_fpenergy
— With files from The Canadian Press, Thomson Reuters and Bloomberg
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