NAFTA partners aren’t bothering to hide their frustration about tense talks to modernize the trilateral trade deal. Foreign Affairs Minister Chrystia Freeland acknowledged “significant differences” among the three sides after the latest round of renegotiations wrapped up yesterday. U.S. Trade Representative Robert Lighthizer was even more blunt. “Frankly, I am surprised and disappointed by the resistance to change,” he said. Today we’ll evaluate how, or if, the talks can be salvaged.

MORE TAX TWEAKS

Finance Minister Bill Morneau is expected to reveal another round of adjustments to his tax reform proposals later this morning. The Canadian Press is reporting he’ll refine his plan to clamp down on passive investment in private corporations, and point to hundreds of billions of dollars apparently sitting dormant in a tiny fraction of all private corporations. His announcement is happening a time zone away from the uproar in Ottawa over the finance minister not putting assets in a blind trust. Glen McGregor from CTV News will walk us through that political firestorm.  

OSFI FALLOUT

Canada’s top banking regulator managed to dethrone Bombardier as our top story yesterday after confirming its plan to go ahead with stress tests for uninsured mortgages. The spillover effect is still being calculated. Ratehub.ca painted the picture of massive purchasing power erosion. Meanwhile, BMO says “this significant move” might mean less tightening by the Bank of Canada next year, and TD’s economics team expects the clampdown will hold back price growth next year by as much as four per cent. We’ll continue gathering reaction to the new rules.

IN CONVERSATION WITH KEITH CREEL

Fresh off driving down CP’s operating ratio and boosting its full-year profit outlook, we’re sitting down today with the CEO for the first time since he took the baton from Hunter Harrison. Look forward to getting his views on consolidation, trade, industry bottlenecks, the regulatory landscape and his growth plan.

OTHER NOTABLE STORIES:

-Xi Jinping warned of “severe challenges” facing China during a marathon, three-hour speech today at the Communist Party congress in Beijing.

-Racist remarks by newsletter writer Marc Faber have led to his ouster from the boards of Sprott Inc., Ivanhoe Mines and Novagold Resources.

-Boeing's general counsel said in a statement Bombardier's deal with Airbus has "no impact or effect" on the trade dispute that's before the U.S. Commerce Department.

-Desjardins Securities warned in a note to clients today that Canadian Tire needs to up its game in e-commerce next year in the wake of Sears' exit from Canada's retail landscape.

NOTABLE RELEASES/EVENTS

-Notable earnings: Corus Entertainment, eBay

-Notable data: Canadian manufacturing sales, U.S. housing starts

-8:00 a.m. ET: Encana investor day meeting

-8:00 a.m. ET: Finance Minister Bill Morneau discusses tax reform in Hampton, New Brunswick, media avail expected at 9:00 a.m. ET

-8:10 a.m. ET: Ontario business advisor Ed Clark delivers speech in Toronto on Amazon HQ2 submission

-10:00 a.m. ET: CMHC releases 2017 stress test results

-10:00 a.m. ET: Transport Minister Marc Garneau discusses government’s tax plan and holds media avail in Montreal

-12:00 p.m. ET: McKinsey Global Managing Partner Dominic Barton delivers remarks at Economic Club panel in Toronto

-2:00 p.m. ET: U.S. Federal Reserve releases Beige Book

-CRTC continues hearing on licence renewals for TV service providers (agenda here)