Here are five things you need to know this morning:

Canada swings to $2.3B trade deficit: Instead of the billion-dollar surplus that economists were expecting, Canada swung to a $2.3 billion trade deficit in March, as exports fell by 5.3 per cent, more than offsetting a decline of 1.2 per cent on the import side. Statistics Canada reported this morning that exports of metals, minerals, energy and motor vehicles all fell. On the import side, electronics, metals, minerals and aircraft led the decline. For the quarter as a whole, the numbers show that total imports rose by 0.4 per cent from January to March, while exports slipped by 1.4 per cent. The monthly trade deficit in goods is the deepest we’ve seen since June of last year and it can be taken as a sign that the trade sector — typically a source of strength for an open trading nation such as Canada — was a net drag on the economy to start the year. It adds to growing evidence that the economy is slowing and ratchets up expectations of a rate cut by the Bank of Canada, possibly as soon as next month. Odds of such a move have inched higher in recent days, and currently stand at about 58 per cent on the swaps market.

Gildan earnings show proxy battle racking up millions in legal costs: Between Glenn Chamandy, Vince Tyra, the old board, the new board, and shareholders, it’s still premature to pick a comprehensive list of winners and losers in the battle for control of Gildan Activewear. But one group is racking up some bankable wins: the investment bankers and lawyers. The TSX-listed apparel company posted earnings after the bell yesterday, and while they were ahead of expectations on a number of fronts, the company’s profit slipped by 20 per cent and revenue slumped, too. That’s not a great trend for a company no matter who is in charge, and the numbers show Gildan’s boardroom battle is racking up a not insignificant amount of costs. The company spent $15.4 million in “advisory, legal and other expenses” related to the fight, and an additional $2.5 million in costs to a potential sale of the company announced in March — a move that activist Gildan shareholder Browning West vociferously objects to. Now that the quarterly results are in, the months-long feud between ex-CEO Chamandy and the company’s board that turfed him in favour of Tyra is set to finally come to a head on May 28 at a vote during the company’s annual general meeting.

Mixed results at Air Canada: Air carrier Air Canada posted quarterly results before stock markets opened this morning, and it’s fair to say the financial numbers for the airline’s performance were mixed. On the positive side of the ledger, total revenue rose by almost seven per cent to $5.23 billion, and the company swung to an operating profit of $11 million from a $17 million loss during the same period last year. But on the downside, adjusted EBITDA came in at $453 million, less than the $513 million analysts were looking for, and the company posted an adjusted loss per share of 27 cents. That’s better than last year’s 53 cent loss but still worse than the 10 cents that analysts were expecting. Ultimately, the best news out of the company might be that they foresee strong demand for seats during the key summer travel season. Andrew Pyle, senior portfolios manager at CIBC Wood Gundy, told BNN Bloomberg’s The Street this morning that’s a good thing given how the cost of everything from fuel to wages to interest on their debt will likely continue to increase. “As long as those demand numbers hold up into the summer, I think those revenues are going to come in at or better than what analysts have priced in already,” he said.

Airbus strikes mediated deal with Canadian workers, averting lockout: Workers at an Airbus facility in Mirabel, Que. have voted in favour of a mediator’s recommendations for a labour deal with the company, averting a threatened lockout. More than 1,300 unionized employees at the facility that builds the A220 jet had previously rejected multiple deals, but a mediator recommended by the Quebec government came in and struck a deal that both sides can apparently live with, barely ahead of the Thursday deadline. The deal will include wage increases of 23 per cent over the next five years, including additional benefits. The union says 81 per cents of the workers voted, and 77 per cent of them voted to OK the plan.

Peloton CEO shown the door: The spinning flywheel of executive change at exercise firm Peloton continues, with CEO Barry McCarthy stepping down after barely two years on the job. McCarthy took over the top job from founder John Foley in 2022 and was tasked with reinvigorating the company that had been on an up and down ride in the pandemic. The company’s shares skyrocketed in 2020 as millions of people stayed indoors, before torrid growth fizzled and the stock changed direction. Today’s CEO change comes as the company is laying off 15 per cent of its entire work force. The cuts are expected to save US$200 million annually and the stock is responding positively in premarket trading, up about nine per cent. As things stand, the shares are changing hands at a little over $3 a share. That’s down from almost $10 as recently as last summer and well off the $160 they topped in the heady days of 2021.