The U.S. dollar has drifted to its lowest level against a closely-watched basket of currencies since December, 2014. And America’s Treasury Secretary appears to be just fine with that. "A weaker dollar is good for us as [it’s] related to trade and opportunities,” Steven Mnuchin is quoted as telling reporters in Davos. So, the U.S. administration isn’t shying away from currencies being used as a lever in trade at a time when it’s putting NAFTA counterparts on edge and maybe giving Canada the extra nudge it needed to embrace TPP. We’ll apply a trade lens to the dollar’s decline and also dig into the stakes for Canadian companies that generate a substantial proportion of their revenue in the States.

Worth pointing out Steve Verheul, Canada’s top NAFTA negotiator, addressed TPP yesterday afternoon in Montreal, saying “it really doesn’t affect the talks here.” Verheul also said his team is going to the table with “a lot of creative strategies to try to bridge some of the gaps in the negotiations; we have high hopes for making progress this week.”

 

AURORA-CANNIMED REACH DEAL 

Aurora Cannabis and CanniMed Therapeutics are letting bygones be bygones, announcing a friendly $1.1-billion deal today that will see Aurora pay $43 per share in cash and stock. Newstrike, which was poised to be acquired by CanniMed – but which Aurora didn’t want - is being tossed aside (resulting in a $9.5-million break fee). We’ll have tons of coverage and reaction throughout the day on BNN. And let’s not forget the vitriol that’s been flying from the CanniMed camp prior to today, including its CEO calling Aurora’s competence into question in November. 

 

MORNEAU TALKS BITCOIN

Canada's finance minister is hinting at some concern about what's going on in the crypto market. "The main way that we're looking at bitcoin is making sure that we understand what's going on underneath that market to make sure that we're not introducing any risks into our economy - whether they be risks like money laundering or terrorist financing; so we're very focused on it from that angle," he told Bloomberg in Davos yesterday.

OTHER NOTABLE STORIES:

-CN Rail isn’t letting its deteriorating operating ratio stop it from giving back to shareholders. Meanwhile, fourth-quarter profit was held back by “challenging operating conditions,” while this year’s forecast falls short of the average analyst estimate.  

-Toys 'R' Us is closing approximately 180 stores in the U.S. in a move the retailer’s CEO says offers “the best chance to emerge from our bankruptcy proceedings as a more viable and competitive company.” Canadian stores are unaffected.  

-We’ll keep an eye on the price of oil as it takes another run at US$65/barrel, a level it hasn’t touched since 2014.

NOTABLE RELEASES/EVENTS

-Notable earnings: Celestica, General Electric, Ford

-Notable data: U.S. existing home sales

-9:00 a.m. ET: Kinder Morgan holds analyst meeting in Houston

-10:30 a.m. ET: U.S. Commerce Secretary Wilbur Ross participates in “Future Shocks: Systemic Trade Tremors” World Economic Forum panel

-11:00 a.m. ET: Minister of Public Services and Procurement Carla Qualtrough announcement in Mississauga, Ont., on government’s new vision for Canada Post

-Trudeau in Davos; meets with CEOs of DP World, Ericsson, Salesforce, Royal Dutch Shell and Microsoft

-B.C. Premier John Horgan in Asia (trip runs to Jan. 30, stops in China, South Korea, Japan) 

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.