/Posthaste: ECB stimulus exceeds expectations, Dollarama’s profit miss and bets on 4 LNG projects in Canada

Posthaste: ECB stimulus exceeds expectations, Dollarama’s profit miss and bets on 4 LNG projects in Canada

Good morning!

With The European Central Bank cutting key interest rates and approving a new round of bond purchases, the U.S. and China easing up on their hostilities for now, and the White House leading efforts to stamp out vaping in most forms, the morning is off to a great start.

“Markets see a hint of optimism that U.S. President Trump is engineering policy reversals after sacking Bolton, musing that sanctions on Iran could be eased, and delaying the October 1st 5% tariff hike on Chinese imports to two weeks later and hence no longer on one of the most culturally insensitive days on China’s calendar,” writes Derek Holt head of capital markets economics at Scotiabank in a note this morning.

The Canadian Imperial Bank of Commerce believes that while the ECB appears to exceed expectations in terms of stimulus, it’s still unclear just how much the measures announced today will do to support economic growth and inflation in the region.

“While the ECB’s earlier QE programme did appear to boost growth, that was largely due to stronger exports thanks to the weaker euro. Domestic demand was never particularly strong. Given the current economic and political environment globally, such a surge in exports is unlikely to be repeated,” said CIBC economist Andrew Grantham.

National Bank Financial Inc. analysts are feeling hopeful about a spate of Canadian liquefied natural gas projects, after spending some time on the ground on the B.C. coast.

“We see four projects that will likely get over the goal line with a positive FID in the near term; LNG Canada Phase 2, Woodfibre LNG, Goldboro LNG and Kitimat LNG,” said National Bank analysts Greg Colman, Dan Payne and Travis Wood, noting that the long-term supply-demand global outlook for the fuel is supportive of the new projects.

Meanwhile, a raft of retail earnings out today with department store Hudson’s Bay, grocery chain Empire and value-retailer Dollarama out with their results this morning.

Here’s what’s you need to know this morning:


  • The Supreme Court of Canada releases judgment in one application for leave to appeal: Sobey’s Incorporated, et al. v. Commissioner of Competition
  • A panel of property tax experts considers whether all the newly imposed real estate taxes by various governments have helped or hurt the housing crisis in Vancouver
  • B.C. Finance Minister Carole James releases data from the first year of the province’s speculation and vacancy tax in Vancouver
  • Corporate Events: Empire Co. Ltd. AGM.
  • Notable Earnings: Transat, Hudson’s Bay Co., Dollarama Inc., ADF Group, Aurora Cannabis

The footprint of new housing should, naturally, allow for the current and anticipated demographics of a place. Reflecting the fact that one-person households are now the most common type in Canada, StatsCanada says new condominium units are 35 per cent smaller than those of the 1980s. The median condo size in Ontario in 2016-17 was 665 square feet, and in B.C., 775 sq. ft. And now micro-condos are coming in at anywhere between 220 sq. ft. and 495 sq. ft. But the Haider-Moranis Bulletin explores a paradox: If there are more one-person households, why are single-family homes getting larger?


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With files from The Canadian Press, Thomson Reuters and Bloomberg



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