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Noah Zivitz

Managing Editor, BNN

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THE MOST IMPORTANT JOBS REPORT OF THE LAST FOUR YEARS

Usually the StatsCan Labour Force Survey is more relevant  than the U.S. non-farm payrolls. Not so this time. That’s because of the potential for today’s NFP to sway undecided voters in the U.S. presidential election. The U.S. economy added 161,000 jobs last month versus economists' estimated 173,000 gain.  But, really, what matters to Americans is whether they’re better off today than they were four years ago (or, perhaps more accurately, eight years ago when Democratic nominee Barack Obama was elected).  We’ll tackle the jobs report through the prism of implications for election day. 

Canada also released its jobs report today. The economy added an unexpected 43,900 positions in October versus the estimated 15,000 drop. 

MARKETS ON EDGE AHEAD OF THE ELECTION

The S&P 500 is on an eight-day losing streak over which time it’s dropped almost 3 per cent.  The Dow has fared only slightly better, with its six-session skid. BNN will continue gathering investor sentiment and expectations for how things could play out Wednesday morning depending on the outcome (presuming by the time markets open that day the outcome is actually determined).  Yesterday we were told by Portfolio Manager Bruce Campbell that “everything goes down” if Republican nominee Donald Trump wins.  Well, what if a victor hasn’t been declared by 9:30 a.m. ET on the 9th?    

ONTARIO’S SPAT WITH BOMBARDIER HEATS UP

Metrolinx, the provincial transit agency, confirmed to BNN late yesterday that it has indeed served Bombardier with a notice of intent to terminate its $770-million contract for light-rail vehicles. “There have been some concerns about Bombardier’s performance as there have been significant quality and manufacturing issues that, to-date, have not been resolved. As a result, we have taken the next step available to us through our contract. We will continue to work with Bombardier on this issue and we will deliver on our transit commitments,” said spokesperson Anne Marie Aikins in a statement. Bombardier spokesperson Marc Laforge told BNN his company isn’t defaulting on its contractual obligations and, “we don’t understand where Metrolinx is going at when talking about performance on a vehicle that has yet to run its first kilometres on track and production has not started yet.” 


Are You a Financial Advisor?

As we approach the final months of 2016, BNN’s Catherine Murray looks at some of the best ways to utilize TFSAs and RRSPs - and the tax implications that are making the TFSA extremely popular among high-net-worth clients.

Compensating advisors for selling mutual funds and ETFs

Sponsored: Don’t follow the investing crowd

Explaining life cycle investing to clients


MORE FALLOUT FROM THE NEW MORTGAGE RULES

We will be keeping an eye on Genworth MI Canada today.  In addition to reporting double digit third-quarter declines in transactional insurance after yesterday’s closing bell, the mortgage insurer also shed more light on how it will be affected by Ottawa’s new mortgage rules.  It’s warning new transactional insurance next year could fall up to 25 per cent, and that new portfolio insurance could drop up to 35 per cent. 

EARNINGS WRAP

Some highlights from the other earnings that landed late last night and so far this morning:

-Fairfax Financial third-quarter profit sank to $1.3 million from $424.8 million amid a $200-million loss on investments

-Telus is raising its quarterly dividend to 48 cents from 46 cents after third-quarter revenue rose 2.6 per cent to $3.2 billion thanks in part to rising demand for wireless data amid 87,000 new postpaid wireless subscribers. 

-TMX Group is also raising its dividend (for the first time since the takeover by the Maple consortium) after third-quarter adjusted profit surged 27 per cent.  We’ll speak with CEO Lou Eccleston at 9:45 a.m. ET.

MORE NOTABLE INTERVIEWS TODAY

-Ex-Quebec Premier Jean Charest tees up trade ramifications of the U.S. election at 10:40 a.m. ET

-Hudson’s Bay Company CEO Jerry Storch gives us a look at the retailer’s new robotics distribution strategy at 2:20 p.m. ET. 

-Healthcare of Ontario Pension Plan CEO Jim Keohane discusses the pension fund’s investment strategy with McCreath on Weekly at 5:30 ET. 

RELEASES/EVENTS:

-Notable data: U.S. trade balance

-CRTC’s week-long hearing on differential Internet data pricing continues.  Shaw, Quebecor, Competition Bureau among those scheduled to speak.

Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Today's note was written by BNN's Managing Editor Noah Zivitz. Have it delivered to your inbox before the trading day begins by heading twww.bnn.ca/subscribe.