Here are five things you need to know this morning
Bank of Canada expected to stay on hold
The Bank of Canada will announce its latest decision on interest rates later this morning. The BoC is widely expected to leave the key rate unchanged at 2.25% -- which would be the fifth straight hold. Reasons to stay on hold include some conflicting economic signals, as well as ongoing uncertainty around the Iran war and U.S. trade. BNN Bloomberg will have full coverage, including expert analysis, the announcement at 9:45 am ET, and the Bank of Canada news conference at 10:30 am.
Stocks under pressure as Middle East tensions flare
North American stock markets are set to open in the red for a second day as tensions in the Middle East escalate. U.S. President Donald Trump says Iran “will have to pay the price” for taking too long to negotiate a deal. The threat followed a round of retaliatory attacks between the two sides, with Tehran saying it’s reviewing the diplomatic process. Technology stocks are again set to lead the market lower, as investors show concern that the sharp rally in AI-related listings has been too extreme.
U.S. inflation jumps to 3-year high
U.S. inflation jumped 4.2% in May, the third consecutive monthly increase since the start of the Iran war and a three-year high. Energy prices were once again responsible for the increase in the consumer price index, accounting for 60% of the overall monthly increases. Stripping out volatile energy and food prices, core CPI increased 2.9%.
Apotex has raised $1.3 billion in its initial public offering, in Canada’s largest listing since 2021. The generic drug manufacturer priced its IPO at $24 per share. The listing comes nearly a decade after the murder of Apotex founder Barry Sherman and his wife, Honey. The company was sold in 2023 to New York-based SK Capital Partners.
Cenovus CEO slams Pathways plan
The head of Cenovus is calling a plan for a massive carbon-capture project uneconomical. The Pathways carbon capture project is considered a central condition for new oil infrastructure. But in a speech yesterday in Calgary, Cenovus CEO John McKenzie said the plan doesn’t address how the industry would ship an extra million barrels of oil a day while also spending capital on the Pathways project, which he said would cost as much as $30 billion.
