First Look With Surveillance: Energy War, UK Budget
We’re taking stock today (and not just like usual on Fridays at 6 p.m. EDT with Amanda Lang). Today it’s about the rollercoaster ride for investors in the third quarter. After the last week or so, it feels hard to believe the S&P/TSX Composite Index enters today only 2.2 per cent below where it closed on June 30. Kumutha will lead our coverage of what’s been working for investors, and what hasn’t, in Q3. We’ll have plenty of market professionals share their perspective on what to expect in the final quarter of this year, starting with Purpose Investments Chief Investment Officer Greg Taylor at 8 a.m. EDT.
The mood of the market flipped this morning. Initially, there appeared to be some optimism that the U.K. government may reassess the tax cuts that spurred market turmoil, particularly as Prime Minister Liz Truss and her chancellor met today with the Office for Budget Responsibility. However, Bloomberg News reported after the meeting wrapped that the Truss administration is standing firm on its fiscal plan. And so, European indices and U.S. futures pared some gains. And then those futures flipped into the red around 8:30 a.m. EDT when the U.S. Federal Reserve’s preferred gauge of inflation (the PCE index) landed hotter than expected in August.
DRIVING MORE FOR WORK? BETTER TELL THE INSURANCE COMPANY
A new survey by Leger for BNN Bloomberg and RATESDOTCA suggests many Canadians may be playing with fire by not keeping their insurer apprised of increased driving as they return to the office. Read all about it here.
NATIONAL DAY FOR TRUTH AND RECONCILIATION
The TSX remains open for trading today despite the federal statutory holiday. Jon Erlichman and producer Polina Chinkarenko-Lake prepared a report on the outlook for greater economic inclusion; watch for it today on BNN Bloomberg and BNNBloomberg.ca. In the same vein, we’re speaking with Raven Indigenous Capital Partners Co-Founder Jeff Cyr on The Street. And JP Gladu — the former head of the Canadian Council for Aboriginal Business, who now runs a consulting firm called Mokwateh, and has several boardroom roles (including at Suncor) — speaks with Amanda in today’s episode of Taking Stock.
OTHER NOTABLE STORIES
- Nike’s profitability was crunched in its latest quarter for many of the familiar reasons. The shoe and apparel maker said its gross margin tumbled 2.2 points to 44.3 per cent. It blamed that erosion on higher freight and logistics costs, unfavourable FX rates, and markdowns — mostly in North America — amid bloated inventory.
- Algonquin Power & Utilities has renegotiated its takeover of Kentucky Power. The deal is now valued at US$2.646 billion (including $1.221 billion in assumed debt), it said today. When the transaction was announced last October, the all-in price tag was US$2.846 billion.
- Notable data: U.S. personal income, spending, core PCE price deflator, and University of Michigan consumer sentiment index (September final reading)
- 930: U.S. Surface Transportation Board concludes three-day hearing into Canadian Pacific Railway’s planned takeover of Kansas City Southern
- 1200: Irving Oil President Ian Whitcomb and New Brunswick Premier Blaine Higgs among participants in Economic Club panel on investing in New Brunswick