Here are five things you need to know this morning:
China strikes back in trade war: China has launched an anti-dumping probe into rapeseed imports from Canada, embroiling the $5 billion industry into a nascent trade war between the two countries. The move comes after Canada slapped tariffs of up to 100 per cent on Chinese-made EVs, as well as 25 per cent levies on steel and aluminum. Rapeseed is the plant from which canola oil is derived, and it’s not the first time China has targeted the product that is literally named after Canada. Following the arrest and detention of Huawei executive Meng Wanzhou in Vancouver at the behest of the U.S. in 2018, China banned the import of Canadian canola on trumped up quality concerns.
Parkland to sell Florida assets amid shareholder pressure: Fuel company Parkland says it will sell its Florida-based retail and commercial business in the next year and a half. The business consists of about 100 gas stations, nine cardlock facilities and four storage plants. The company says it has seen substantial interest in buying the business, which is improving, but the company wants to reallocate the capital to other more accretive parts of the business. The move comes as Parkland faces continuing pressure from Simpson Oil, which owns 20 per cent of the company and has been pushing for the company to get new leadership.
Volkswagen mulls shutting German factories: VW is considering shutting some of its factories in Germany for the first time in almost a century. The German automaker says headwinds for the automotive sector in Europe have forced it to contemplate the previously unthinkable move. The main target for the company is the underperforming namesake passenger car division, which is slumping. The last time VW closed a factory was in the U.S. 30 years ago but it’s maintained production in its home of Germany for decades. The move sets up a major fight with the company’s unions if it reneges on a pact first established in 1994 that was set to guarantee maintained production until at least 2029.
Bank of Canada set to cut rates tomorrow: Canada’s central bank is widely expected to cut its benchmark interest rate tomorrow, which would be the third cut in a row. Currently market expectations are that the Bank of Canada is going to cut for seven policy meetings in a row, so a cut tomorrow would place the bank near the middle of its cutting cycle. While anything but a 25-point cut would be a shock, the bank’s comments on the outlook will be closely scrutinized to try to decipher their line of thinking.
BNN turns 25: We’d be remiss if we didn’t mark a major market milestone this morning, because it was 25 years ago this week that our channel first went to air; on September 1, 1999. First known as ROBTV, we’ve had many changes over the years, but one thing that hasn’t changed is our unique focus on the Canadian business and investment world. To celebrate, we’ll be joined by a number of familiar faces reminiscing about the past quarter century and looking forward to the next one. Be sure to tune in all week. Thanks for watching — and reading!
