Nov 1, 2017
BNN's Daily Chase: Oil climbs above US$55; Competition Bureau launches bread pricing probe
By Noah Zivitz
The price of oil has climbed above US$55 per barrel for the first time since January. Crude made its move above the threshold a little before 5 a.m. ET this morning, helped along by a more than 5-million-barrel drop in inventories last week, according to industry data from the American Petroleum Institute. Worthwhile to point out that Canada’s currency, a supposed petrocurrency, hasn’t been taken along for the ride during oil’s recent ascent. While WTI has been rallying pretty steadily since its recent low of US$47 on Sept. 11, the loonie has been in a tailspin over the same period. We’ll address the broken correlation and get colour from BNN's Tara Weber on how oil’s rise is playing into sentiment in Calgary.
BREAD PRICING PROBE
The Competition Bureau says it has conducted searches tied to alleged anti-competitive behaviour. That’s more or less the extent of information we have from the watchdog. Loblaw and George Weston have provided a bit more context, saying there’s an industry-wide price-fixing probe involving “certain packaged bread products.” For its part, Metro says the investigation is targeting suppliers and retailers. We’ll watch for any market reaction this morning.
OUTLOOK FOR AECON TAKEOVER
We’ll get unique insight today on the proposed $1.45-billion takeover of Aecon Group by China Communications Construction Company. Former Canadian Ambassador to China Howard Balloch and current Ambassador John McCallum join us at 8:40 a.m. ET and 2:15 p.m. ET, respectively, to discuss the state of ties between our two countries and share their perspectives on the deal.
FED MEETS AS TRUMP PREPS PICK
The U.S. central bank’s decision today is all but an afterthought, as investors see no chance of the Fed raising its benchmark rate. Instead, the elephant in the room gets all the attention, as markets wait for U.S. President Donald Trump to name his nominee for the chairmanship. Have to wonder how loud Jerome Powell’s voice will be in today’s policy meeting.
OTHER NOTABLE STORIES:
-We’ll watch for any new information on the suspect in yesterday’s terror attack in New York. Turns out the individual had previously worked as an Uber driver. The ride-sharing company says it’s cooperating with law enforcement.
-The impact of B.C.’s tax on foreign buyers is evidently diminished as those international purchasers accounted for 5 per cent of sales in Metro Vancouver in September.
-Netflix is suspending production of House of Cards amid the allegation of unwanted sexual advances by star actor Kevin Spacey in 1986.
-Bitcoin continues building on supercharged gains today (trading near US$6,500 at last look) after the CME announced it’ll launch futures for the cryptocurrency.
-Sony is standing out as a notable overseas mover, trading almost 12 per cent higher after the company raised its profit and sales forecasts
NOTABLE RELEASES/EVENTS
-Notable earnings: Sleep Country Canada, Hudbay Minerals, Torstar, Thomson Reuters, Facebook, Tesla, Molson Coors, Kraft Heinz
-Notable data: ISM U.S. manufacturing index, U.S. construction spending
-Automakers report monthly sales
-9:30 a.m. ET: Ontario Premier Kathleen Wynne, Ontario Housing Minister Peter Milczyn and Toronto Mayor JohnTory make announcement in Toronto
-10:00 a.m. ET: Imperial Oil holds update call
-12:00 p.m, ET: TD Bank CEO Bharat Masrani delivers speech at Economic Club event in Toronto
-2:00 p.m. ET: U.S. Federal Reserve releases interest rate decision
-2:00 p.m. ET: Parliamentary Secretary Andrew Leslie holds NAFTA town hall in Hamilton
-3:30 p.m. ET: Finance Minister Bill Morneau testifies before Senate Finance committee
-4:15 p.m. ET: Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins testify before Senate Standing Committee on Banking, Trade and Commerce
-7:00 p.m. ET: Canadian American Business Council “State of the Relationship” conference in Ottawa
-U.S. Senate and House intelligence committees hold hearing on social media influence in 2016 election (0930 and 1400ET, respectively)
-International Economic Forum of the Americas' three-day Toronto Global Forum continues (agenda)
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.
