A little over a decade ago, then-Prime Minister Stephen Harper boldly stated his plan to make Canada a “global energy powerhouse.” Yesterday, that vision suffered another setback as Malaysia’s Petronas pulled the plug on its $11-billion PacificNorthwest LNG project. “Market conditions” got the blame. But not everyone is buying it. “I think there’s a certain amount of subtlety in the message,” Order of Canada Officer John Risley told us before wondering aloud if this decision will embolden opposition to Kinder Morgan’s Trans Mountain pipeline expansion project. We’ll continue chasing reaction from Canadian industry leaders and government leaders today.  

CN RAIL WARNS ON LOONIE

Big profit and revenue gains (20 and 17 per cent, respectively) posted by CN Rail after yesterday’s closing bell. The Canadian dollar and its recent gains, however, are causing some consternation. “…We remain committed to delivering on our 2017 financial outlook,” CEO Luc Jobin said in a statement. “However, volume comparisons in the second half of the year will be more challenging, and the strengthening of the Canadian dollar will constitute a headwind.” That sounds like the most blatant warning we’ve seen about the downside of the loonie’s run from the 72-cent range in May to its recent burst above 80 cents U.S. 

U.S. DOLLAR EXTENDS WINNING STREAK AHEAD OF FED

Not a lot of suspense heading into today’s decision by the U.S. Federal Reserve. With a hold all but guaranteed, the only hint of intrigue surrounds the central bank’s language on balance sheet management and inflation. Worth noting the U.S. dollar index is into a third straight day of gains after plunging to the lowest level since June 2016 last week.

LOBLAW WARNS ON MINIMUM WAGE HIKES

Last week it was Magna International that sounded the alarm on proposed labour legislation in Ontario that will push up the minimum wage. Today, Loblaw is chiming in -- warning it will incur $190 million in additional costs next fiscal year because of wage increases in Ontario and Alberta. The grocer also reported adjusted second-quarter profit and revenue that narrowly beat estimates.

OTHER NOTABLE STORIES:

-Cineplex continues branching out beyond its bread-and-butter movie business. It announced a partnership today with Topgolf to bring its massive entertainment venues to Canada.

-Oil is also into a third straight day of gains on American Petroleum Institute data that’s reported to show U.S. oil stockpiles plunged by 10.2 million barrels last week.

-Home Capital Group announced late yesterday it has repaid all amounts owing on the $2-billion Berkshire backstop.

-Open Text’s appetite for acquisitions hasn’t been satiated. It’s buying Guidance Software for $240 million (the deal value appears to be in USD). Guidance promotes itself as existing “to turn chaos and the unknown into order and the known.”

NOTABLE RELEASES/EVENTS

-Notable earnings: Loblaw, Suncor, Canfor, Goldcorp, Barrick Gold, Agnico Eagle, Fairfax Financial, Methanex, Lundin Mining, Vermilion Energy, Calfrac Well Service, Ford, Boeing, Coca-Cola, Facebook, Whole Foods, Norfolk Southern,

-Notable data: U.S. new home sales (10:00 a.m. ET)

-9:30 a.m. ET: Finance Minister Bill Morneau speaks to the media in Stanley Bridge, PEI

-9:45 a.m. ET: Supreme Court of Canada releases decisions in Hamlet of Clyde River et al. v. Petroleum Geo-Services et al.; and, Chippewas of the Thames First Nation v. Enbridge et al. (regarding Line 9 reversal and duty to consult).

-1200 p.m. ET: CMHC releases quarterly Housing Market Assessment

-2:00 p.m. ET: U.S. Federal Reserve releases rate decision 

 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.