MORE GAINS FOR THE LOONIE 

The Canadian dollar is into a third straight day of big gains. It’s packed on one-and-a-half cents against the greenback this week alone, hitting a high of 75.82 cents US in early trading. You’d have to go back to late February to find our currency above that level. The rally is still being fueled by the Bank of Canada’s two senior officials indicating in recent days it’s not a matter of if, but when, they’re going to raise rates. A couple of angles we’ll consider today:

-Whether you’re a business owner or an average Canadian planning a vacation, how does anyone plan for the long-term when we’re witnessing such outsized moves in the currency?

-Is it possible Stephen Poloz and Carolyn Wilkins jawbone themselves out of a near-term hike, lest the dollar keeps running away from them and, thus, heaps more pressure on Canadian exporters?

-Practically speaking, is Canada just going to end up importing higher rates thanks to the Fed?

FED DECISION DAY

All is relatively calm ahead of the U.S. Federal Reserve’s rate decision. European markets narrowly in the green. Futures pointing to relatively flat open in New York. U.S. Dollar index nearly unchanged. Investors are banking on a quarter-point boost to the Fed’s target range. They’re also eagerly awaiting the infamous dot plots to gauge the central bank’s appetite for more tightening this year, as well as clarity on the Fed’s balance sheet management strategy. Rate decision + dot plots land at 2:00 p.m. ET. Chair Janet Yellen addresses the media at 2:30 p.m. ET.

AIMIA SUSPENDS DIVIDEND PAYMENTS 

More fallout at Aimia this morning stemming from Air Canada's decision to launch its own loyalty program. Aimia announced this morning it's suspending all dividend payments, saying this is because it wouldn't pass a required capital impairment test -- partially due to the company's market cap erosion since the Air Canada announcement. "The Company currently has the requisite liquidity to pay these dividends, however the statutory capital impairment test legally prohibits us from doing so," said Aimia Chairman Robert Brown in a statement. "Our business continues to perform well and generate strong free cash flow." Aimia has lost 76.6 per cent of its value since Air Canada announced its non-renewal plan on May 11. Aimia also announced on Wednesday that three of its directors – Joanne Ferstman, Alan Rossy and Beth Horowitz – are resigning from the company’s board of directors. 

HOUSEHOLD DEBT RELIEF

Household debt burdens eased a bit in the first quarter. Statistics Canada said today the credit market debt to disposable income ratio slipped to 166.87 per cent in the first quarter from 167.23 per cent in the fourth quarter. BMO's economics team saw this coming, telling clients in a preview note that the ratio isn't seasonally adjusted and thus "generally" declines in Q1.

CANADA’S STRONGEST VOICE IN D.C.

Canadian Ambassador to the U.S. David MacNaughton is slated to join us on BNN at 9:40 a.m. ET ahead of testimony this afternoon before a Senate committee. No better source for timely insight on the roadmap to NAFTA negotiations and whether Canada’s full-court press in D.C. is paying off.

IN CONVERSATION WITH A PRIVATE EQUITY TITAN

We’re looking forward to our conversation this morning with David Rubenstein. He co-founded The Carlyle Group – a behemoth of a buyout shop, with US$162 billion in assets under management. Can’t wait to get his perspective on the investment landscape in Canada and the outlook for U.S. President Donald Trump’s fiscal plan. He’s live with us from Montreal at 10:30 a.m. ET.

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BNN Advisor

Vancouver: Housing concerns cross generations

Winnipeg and Saskatchewan: The loonie and U.S. protectionism weigh on Central Canada

Yellowknife and Whitehorse: The hurdles of northern living and aboriginal issues

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NO END TO UBER CULTURE SHOCK 

The latest: TPG Capital’s David Bonderman is stepping down from Uber’s board after leaks from yesterday’s staff meeting show he made a tasteless comment about the importance of having women on boards of directors. His tone-deaf remark was made in the midst of a conversation about cleaning up the company’s culture. Let’s keep gathering insight on who’s fit to lead this company, the risk of upsetting investors, and whether it’s going to be fit for an IPO.

OTHER NOTABLE STORIES

-Suncor is delaying the scheduled restart of full production at Mildred Lake until July.

-The price of oil is drifting lower this morning on the back of an American Petroleum Institute report showing an unanticipated rise in stockpiles. Meanwhile, the International Energy Agency said today it expects non-OPEC oil production will rise by a “sobering” 1.5 million barrels per day in 2018, outpacing the anticipated rise in demand.  

-Chinese industrial production and retail sales maintained their momentum in May, rising 6.5 per cent and 10.7 per cent respectively.

NOTABLE RELEASES/EVENTS

-Notable data: Canadian national balance sheet and financial flow accounts (8:30 a.m. ET), Teranet/National Bank home price index (8:30 a.m. ET), U.S. CPI (8:30 a.m. ET), U.S. retail sales (8:30 a.m. ET)

-8:00 a.m. ET: CN Rail holds investor day in Montreal 

-2:00 p.m. ET: FOMC releases rate decision and updated forecasts

-2:30 p.m. ET: Fed Chair Janet Yellen holds news conference

-4:15 p.m. ET: Canadian Ambassador to U.S. David MacNaughton testifies before Senate Foreign Affairs and International Trade committee

-4:15 p.m. ET: Innovation Minister Navdeep Bains testifies before Senate Banking Committee re. trade barriers

-Global Petroleum Show continues in Calgary (Keynote by Alberta Premier Rachel Notley at 1:30 p.m. ET)

-Economic Forum of the Americas conference continues in Montreal (Notable speakers: Carlyle Group CEO David Rubenstein and Caisse CEO Michael Sabia at 12:00 p.m. ET. 

-Foreign Affairs Minister Chrystia Freeland attends Oslo Forum

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.