U.S. President Donald Trump’s legislative agenda faces a new threat this morning after Democrat Doug Jones’ surprise win in Alabama. His victory will shave GOP control in the Senate to a single-seat majority once he’s sworn in, which by some accounts won’t happen until early January – thus giving the Republicans only a few weeks to rush tax legislation onto Trump’s desk for sign-off before their control of the upper chamber narrows. For now, investors don’t seem too fussed with U.S. futures little changed (albeit with a Fed decision looming).

INCOME SPRINKLING DETAILS  

Finance Minister Bill Morneau will release new information this afternoon about the government's controversial plan to tighten income sprinkling rules for private corporations. Recall Morneau's miserable summer started in mid-July with the release of his three-pronged tax plan. After facing months of outrage, the finance minister vowed to “simplify” his plan in October (during small business week, no less). But the Canadian Federation of Independent Business has been up in arms over the lack of details before the new rules take effect in the new year. Jameson will tee up the news and we'll gather reaction this afternoon.

EMPIRE WARNS ON HIT FROM WAGE HIKES

Michael Medline has delivered an essentially in-line quarter as his overhaul of Empire Company (EMPa.TO) continues. Adjusted profit more than doubled to 27 cents per share, putting the bottom line two cents ahead of expectations, while same-store sales excluding fuel decelerated from the previous quarter (0.4 per cent vs 0.5 per cent). Empire's stock has been on a tear since Medline took over as CEO in January (+68 per cent). If there's a wrinkle this morning, check out the grocer's warning that it might "not be able to fully offset the effects" of legislated wage hikes.

FOOD PRICE FORECASTS

A closely-watched annual report expects food prices will rise as much as three per cent in 2018 with vegetables and restaurant meals rising at the fastest rate. For a family of four, the inflation works out to $348 in additional spending next year. It's worth pausing to note last year's predictions, co-produced by experts at Dalhousie and the University of Guelph, have largely failed to materialize - with the authors attributing the miscue to Amazon's surprise takeover of Whole Foods and "misleading macroeconomic forecasts."

OTHER NOTABLE STORIES:

- TSX record closing high watch: 16,131.79 is the all-time high set on Nov. 7.

- The Reserve Bank of Australia’s governor took a swipe at bitcoin and other cryptocurrencies today. “When thought of purely as a payment instrument, it seems more likely to be attractive to those who want to make transactions in the black or illegal economy, rather than everyday transactions. So the current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment,” Philip Lowe said in a speech.

- Royal LePage expects home prices will rise 4.9 per cent nationally next year, based on its composite gauge of 53 markets. Unsurprisingly, Royal LePage sees OSFI's new stress tests for uninsured mortgages as a crucial catalyst, and warns policymakers run the risk of "sinking the ship" by trying to steer prices in Canada's largest markets.

NOTABLE RELEASES/EVENTS

- Notable earnings: Empire Company

- Notable data: U.S. CPI

- 8:30 a.m. ET: CIBC holds investor day meeting in Toronto

- 11 a.m. ET: Senate Finance Committee releases report and recommendations on Morneau’s tax plan at news conference in Ottawa

- 2 p.m. ET: U.S. Federal Reserve releases rate decision and updated forecasts, plus news conference 

- 3:15 p.m. ET: Bill Morneau holds media avail in House Foyer 

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.