The chase by Noah Zivitz:
Where to begin? How about with major European indices down more than a percentage point, U.S. futures pointing lower and the price of gold down more than 2% on the heels of the Federal Reserve showing no immediate urge to open the stimulus spigots. Today I'd like to hear a little more about what could compel the FOMC to reconsider. What happens if employment growth falters? Yesterday's minutes revealed concern inside the Fed about the sustainability of employment gains. Current consensus is for Friday's non-farm payrolls to show growth of 201,000. We'll get a snapshot of America's labour market with today's ADP report at 8:15am ET.
And let's not forget StatsCan publishes its labour force survey tomorrow. Worth noting today's CFIB confidence index shows small business sentiment has climbed to levels associated with sustainable economic growth.
Mario Draghi will get plenty of attention today. The European Central Bank releases its rate decision at 7:45am ET; but our main focus will be the ECB president's press conference at 8:30. We'll listen closely for any comments about Spain's economic outlook; particularly after the government's borrowing costs spiked in a bond auction today. All of this against the backdrop of fresh data showing eurozone retail sales, services and manufacturing activity losing ground.
Some compelling corporate stories to be tracked in Canada:
Hours after its shares soared 17% intraday, RONA issued a statement saying it isn't for sale, and doesn't think a takeover would be in its best interests. Would its shareholders beg to differ? That's what we need to know.
According to a Bloomberg report, Yellow Media bondholders recently held a conference call to discuss a plan to force the company into a restructuring. This probably shouldn't come as a surprise, considering the company's difficult attempt to transform itself from old media to new. It's also another shining example of bondholders grabbing the wheel. Let's get someone to discuss Yellow's options.
Royal Bank of Canada remains a hot topic. CFTC commissioner Bart Chilton held his ground in conversation yesterday on Market Sense, and the Globe and Mail is reporting the U.S. regulator didn't give its Canadian counterparts much of a heads up before filing its lawsuit. We need to hear more about the role OSFI and the government could play in this process – if any. We'll get plenty of intel tomorrow, when Howard chats with OSFI boss Julie Dickson.
We've also got Shaw Communications partnering up with New Brunswick-based Xplornet to offer internet and satellite packages to rural customers. Bundling is the name of the game. But what about wireless?
We've also seen Chinese premier Wen Jiabao slam the grip large banks have on China, and urge room for private capital. Presumably, this is about ramping up access to credit.
Still to come today: National Bank's AGM, Jim Flaherty speaks in Vancouver at 4:05pm ET, ISM services index lands at 10am, and Bank of Canada deputy governor Jean Boivin speaks in Toronto at 12pm. We'll have it all covered. And don't miss former TransCanada CEO Hal Kvisle on Headline at 12:50, and former FDIC chairman Bill Isaac on Market Sense at 5:30.