Today Canadians will learn more about the government's strategy heading into crucial NAFTA negotiations. Foreign Affairs Minister Chrystia Freeland has three public events this morning where she's expected to map out some of this country's priorities for the crucial trade talks that are scheduled to get underway in D.C. on Wednesday. As the week unfolds, we’ll establish the stakes for the automotive, agriculture and countless other sectors. We’ll also see the early returns from the Liberals’ full-court press south of the border; this afternoon we’ll hear directly from the Liberals’ audience, when we speak with Colorado Governor John Hickenlooper at 3:30 p.m. ET.  

CHINA WARNS TRUMP ON TRADE

U.S. President Donald Trump is expected to return to The White House today. Among his agenda items: he will reportedly direct U.S. Trade Representative Robert Lighthizer to launch a probe of Chinese trade practices. The China Daily state-run newspaper is warning such a move will “poison the overall China-U.S. relationship.”

SIGH OF RELIEF IN THE MARKETS

Some relief in the markets today that the weekend has come and gone without further escalation in U.S.-North Korea tensions. Indeed, CIA Director Mike Pompeo said yesterday morning he hasn’t seen any intelligence indicating the two countries are “on the cusp of a nuclear war.” Global stocks trading higher, futures indicating a strong open in New York, safe havens like gold and the Japanese yen losing some ground.

NABORS BUYING TESCO 

We've got a takeover in the oilfield services sector. Nabors is buying Tesco in an all-stock transaction, at a 19 per cent premium to Tesco's close on Friday.

OTHER NOTABLE STORIES:

-Wood Mackenzie is making the case for the oil sands. The consulting firm said today the sector “may be worth a second look from international investors who had dismissed [it] as high cost.” We’ll try to reconcile that with the exodus of major international producers and the overall dour sentiment we’re hearing from portfolio managers.  

-Yesterday’s data dump shows a slowing in the world’s second-largest economy. Chinese industrial production, retail sales and urban investment growth all decelerated sequentially and came in below estimates at 6.4 per cent, 10.4 per cent and 8.3 per cent, respectively.

-Shares of Fiat Chrysler are trading almost five per cent higher in the pre-market amid an Automotive News report that Chinese competitors are demonstrating some takeover interest in the automaker. 

OTHER NOTABLE RELEASES/EVENTS

-Notable earnings: Canopy Growth

-Notable data: Teranet-National Bank Canadian home price index (8:30)

-8:00 a.m. ET: Freeland speech at University of Ottawa

-10:00 a.m. ET: Freeland testimony before House Standing Committee on International Trde

-11:30 a.m. ET: Freeland media avail in House Foyer