Here are five things you need to know this morning
Coin flip at the BoC: It seems we have some rare drama in store today when it comes to the Bank of Canada decision on interest rates. Observers are almost evenly split on whether the BoC will trim rates for an eighth straight time or pause for the time being. Some experts believe the bank’s decision was made a bit easier yesterday, when weaker-than-expected Canadian inflation numbers were released. Receding inflation could make it easier for the Bank to cut its benchmark rate – which now stands at 2.75 per cent. A cut by the bank would be intended to support a slowing Canadian economy, which is expected to come under further pressure from U.S. trade tariffs. BNN Bloomberg will have full live coverage of the announcement at 9:45 a.m. EDT, with analysis from Ed Devlin, former head of Canadian Portfolio Management at PIMCO, and Bipan Rai, North America Head of FX Strategy at CIBC Capital Markets. We will also carry Tiff Macklem’s news conference, beginning at 10:30 a.m. EDT.
Chip sector tensions: Tech stocks are leading a slump in global equities this morning after U.S. President Donald Trump’s administration imposed new restrictions on Nvidia’s chip exports to China. Nvidia shares lost about six per cent in premarket trading. Trump’s administration has barred Nvidia from selling its H20 chip in China, an escalation of Washington’s tech battle with Beijing. The chip sector has also been hit by ASML Holding NV reporting first-quarter orders that were almost a billion euros less than expected. The Dutch company warned it doesn’t know how to quantify the impact of recent tariff announcements that are threatening to upend the semiconductor industry. ASML is the sole producer of cutting-edge lithography machines used by semiconductor companies to make advanced chips.
China open to talks: While still in the red, equity futures have pulled off of their lows on signs China may be open to negotiations with the U.S. Bloomberg News is reporting China wants a number of steps from Trump’s administration before it will agree to talks, including showing more respect by reining in disparaging remarks by members of his cabinet, according to a person familiar with the Chinese government’s thinking.
Metro cites ‘uncertain economic environment’: Metro says it’s facing an uncertain economic environment and it’s unclear how it will impact the company’s operations. The Montreal-based grocery giant says tariffs have not impacted their bottom line so far. Metro did see a five per cent jump in sales in its latest quarter, with the addition of two major pre-Christmas shopping days in the period.
Parkland CEO stepping down: Parkland CEO Bob Espey has announced he will step down from his role by the end of year. Parkland Chair Michael Jennings will take over the role of executive chair, effective immediately. This comes as the fuel distribution and gas station operator tries to ward off pressure from an activist investor. Parkland launched a strategic review last month that could include the sale of certain assets or the entire company.
