As far as Donald Trump is concerned, “trade wars are good, and easy to win.” The President of the United States followed up on yesterday’s seemingly unscripted tariff announcement with a tweet this morning that underscores his world view. Meanwhile, Canada is ready to fight his administration if it goes ahead with the double-digit tariffs on steel and aluminum imports. “Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers,” Foreign Affairs Minister Chrystia Freeland said in a statement, in a tone echoed by European Commission President Jean-Claude Juncker, who said EU nations won’t “sit idly” and are readying “WTO-compatible countermeasures.” We’ll keep chasing reaction from industry principals and all coverage will be built around these themes:

            -What does it mean for dynamics in Mexico City at the NAFTA negotiations?

            -How can/should Canada respond if Trump proceeds as threatened yesterday?

            -What does it mean for industry workers?

            -What does it mean for consumers?

            -What does it mean for investors? Look no further than the likes of Stelco (-6.3 per cent), U.S. Steel (+5.8 per cent), Ford (-3 per cent) as barometers in yesterday’s trading activity.  

 

IN CONVERSATION WITH BILL MORNEAU

BNN went in-depth with the finance minister yesterday. On the small tax uproar: “We listened hard.” On the perception the Liberal government is anti-business: “If that’s the perception, I regret that perception.” On the view that Canada is not a great place to do business: “I don’t get that feeling outside the country.” On Canada’s competitiveness: “What I’d want the business community to know is, we’re on this.” Watch for those highlights and more this morning on BNN or at BNN.ca. We’ll also gather reaction from guests today.

CANADIAN GDP

Canada’s economy closed out 2017 pretty much bang in line with expectations. Fourth-quarter output rose 1.7 per cent, masking a weak end to the year as gross domestic product rose just 0.1 per cent in December. Services industries did the heavy lifting in the month, and the sprint to the B20 finish line was evident as real estate agents and brokers’ output surged 5.9 per cent. 

OTHER NOTABLE STORIES:

-Maricann Group announced late last night that it has received formal notice that its underwriters are pulling out of the company’s $70-million financing. CEO Ben Ward says it’s “business as usual…we are fully financed”.

-American Outdoor Brands is tumbling in pre-market trading. Shares down ~15 per cent after the company formerly known as Smith & Wesson forecast Q4 and FY profit way below estimates as the CEO warned “lower levels of consumer firearm demand…may continue for some time.”

-Bank of Japan Governor Haruhiko Kuroda is moving markets today after saying the BoJ will be “thinking about and debating” exiting its stimulus program next year.

NOTABLE RELEASES/EVENTS

-Notable earnings: George Weston, GMP Capital, Sprott

-Notable data: Canadian GDP, U.S. consumer sentiment

-8:00 a.m. ET: Finance Minister Bill Morneau delivers remarks at Montreal Council on Foreign Relations and holds media avail

-11:00 a.m. ET: Justin Trudeau delivers remarks on the budget and holds media avail in Barrie, Ont.

-U.K. Prime Minister Theresa May to deliver speech on Brexit strategy

-Seventh round of NAFTA negotiations continues in Mexico City (to March 5)

Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN'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.bnn.ca/subscribe.