Jan 10, 2017
BNN's Daily Chase: Trudeau expected to shuffle the deck in Trump preparation
By Andrew Bell
As investors around the world get set for a Trump presidency, BNN is helping you to prepare for a very different world.
Our CTV News colleague Laura Payton reported last week that Prime Minister Justin Trudeau’s top advisers have been meeting Trump’s most trusted advisers. The Prime Minister is expected to unveil a cabinet shuffle Tuesday to prepare his own team for the Trump administration.
BUSINESS APPROACH
Big business is betting on change. “People are getting out the agendas that they have had for years, but never thought could happen,” one Washington lobbyist tells The Wall Street Journal.
“Oil and gas firms are pressing to roll back federal regulations on drilling,” The Journal says. “Verizon (VZ.N) and other large telecommunications firms want changes to the Obama administration’s net neutrality rules. Airlines are seeking stronger enforcement of an aviation agreement that they believe favors foreign carriers on the most prized international routes. Boeing (BA.N), Lockheed Martin (LMT.N) and other defence contractors are scrambling to protect against cuts in the Pentagon’s budget.”
At 9:45 a.m. ET, we’ll hear from Andrew Pink, portfolio manager at LDIC. He tells segment producer Adena Alia that Trump’s ascendancy looks like good news for the U.S. stock market amid tax changes and a “pro-business” government. But he warns that investors “can’t discount the prospect of a large Trump misstep following his inauguration on January 20th. We think there would be a meaningful flight to safety (gold/bonds) if this materializes.”
BOMBS AWAY
And at 10:20 a.m. ET, we’re joined by Christopher Sands, director of the Center for Canadian Studies at Johns Hopkins University in Baltimore, Maryland.
Johns Hopkins’ Sands thinks the United States and Canada are doing what they can to get off to a good start. He reckons that Trudeau might be wise to echo Trump’s criticisms of the costly F-35 fighter-bomber and support calls for a better deal from Lockheed Martin.
SILVER AND GOLD
If Trump’s volatility means a flight to gold, many investors will be attracted to the streaming companies such as Silver Wheaton (SLW.TO) and Franco Nevada (FNV.TO) that simply help finance mines in return for some of the output without the risk of actually digging giant holes themselves.
Wheaton CEO Randy Smallwood told us yesterday that even as new streamers pop up, he won’t be drawn into bidding wars for deals.
At 2:30 p.m. ET, we’ll be joined by one of those newcomers, Sean Roosen, CEO of Osisko Gold Royalties. Desjardins reckons that his just-announced Q4 results “could potentially indicate slight weakness” at the crucial Canadian Malartic mine and “a potential modestly negative read-through for owners Agnico Eagle (AEM.TO) and Yamana Gold (YRI.TO)”