Here are five things you need to know this morning:
Rail service set to resume: Canada’s two largest railways are preparing to restart operations after the federal government stepped in to try to end the labour dispute. Labour Minister Steven Mackinnon has asked the Industrial Relations Board to impose binding arbitration on CN Rail, Canadian Pacific Kansas City and the Teamsters union. He also ordered the board to direct the parties to extend their current labour contract, and resume operations. Workers at CN say they will take down picket lines and go back to work today – but employees at Canadian Pacific plan to challenge the constitutionality of the government’s decision.
All eyes on Powell at Jackson Hole: Wall Street will be watching Wyoming today, as U.S. Federal Reserve Board Chair Jerome Powell gives a highly-anticipated speech at the Jackson Hole Economic Symposium. Powell is expected to signal that it’s appropriate for the central bank to begin lowering interest rates soon – as well as possible clues about the magnitude and frequency of the reduction.
Retail sales likely rose in July: Canadian retail sales likely rose last month after dropping in June. Receipts for retailers rose 0.6 per cent in July, only the second monthly sales gain this year, according to an advance estimate from Statistics Canada. That followed a 0.3 per cent decline the previous month, matching expectations. Sales were down in four of nine subsectors in June and were led by decreases at auto dealerships. Retail sales were down 0.5 per cent in the second quarter, following a 0.4 per cent drop in the first quarter. It’s the weakest two consecutive quarters since 2009 outside the pandemic, keeping the Bank of Canada on track to lower borrowing costs for a third straight meeting on Sept. 4.
Shares of uranium-mining companies will be in the spotlight today: Kazatomprom, the world’s biggest uranium producer, cut its production forecast for next year. Uranium prices have soared this year as nuclear energy emerges as a twin solution to both energy security concerns and decarbonization ambitions. Global supplies remain tight. Shares of Canadian producers Cameco and NexGen Energy traded higher in the premarket.
Vancouver-based rare earths miner plans U.S. listing: Tactical Resources Corp. plans to list on the Nasdaq stock market through a merger with a shell company. After the transaction, the combined firm will have an enterprise value of US$589 million. Founded in 2018, Tactical Resources explores and develops rare earth elements — a group of 17 metals essential for defence technology, electric vehicles and semiconductors. The company will use proceeds from the deal to finance construction of a processing facility at the Peak Project, a rare earth minerals mine near El Paso, Texas.
