Stock futures are mixed this morning with U.S. equities pointing down, while stocks in Canada are looking to open higher. A batch of company earnings continues today with American Airlines and Blackstone before the bell and Intel after the bell. Oil rose again this morning, after surging yesterday following Trump’s announcement of new sanctions on Russia’s two biggest oil companies. Overseas, European natural gas prices rose alongside shares in oil companies like BP and Shell. Investors are also digesting the latest economic data which showed Canadian retail sales rising modestly in Q3, helped by strong auto sales despite economic headwinds from U.S. tariffs on the auto sector. While overall retail receipts fell 0.7% in September after a 1% gain in August, sales were up 0.3% for the quarter, driven by solid demand at motor vehicle and parts dealers. Auto sales climbed 8.2% year-to-date, outpacing broader retail growth as consumers rushed to buy cars ahead of potential U.S. trade restrictions. Despite inflation ticking up to 2.4% in September, traders expect the BoC to cut rates next week to support slowing growth. Consumer spending remains uneven, with strength among wealthier households offsetting weakness among younger and lower-income Canadians.
Beyond the border. PM Mark Carney announced plans to double Canada’s exports beyond the U.S by 2035, aiming to add $300 billion in new trade as part of an effort to reduce reliance on the U.S., which buys about 75% of Canadian exports. In an evening address to students at the University of Ottawa, Carney highlighted new trade agreements with Indonesia, the UAE, the EU, and Germany, and renewed engagement with India and China. The budget will include “generational investments,” featuring a new immigration and talent strategy to attract global tech workers affected by U.S. visa fees and a climate competitiveness plan that balances clean energy goals with support for resource development. Carney described Canada as an “energy superpower” and emphasized a shift from spending to investing, pledging to balance the operating budget within three years while increasing capital investment. Economists expect the deficit to reach as high as $100 billion, but Carney said Canada has the fiscal capacity to act decisively, promising to cut waste, and improve efficiency.
Trade talks appear to be stalling between the U.S. and China with the latest potential move according to a Reuters report. Washington is weighing broad software export restrictions on China, similar to measures used on Russia, if Beijing goes ahead with new rare-earth export curbs and port fees on U.S. ships. The curbs could cover enterprise tools like CRM, and CAD software, though details and timing are unclear. The step would add to pressure from existing tariffs and could strain a fragile U.S. economy, however both sides could be floating tough measures to gain leverage before negotiations. Trump has also threatened a 100% tariff and wider software controls starting next month, and even suggested blocking airplane parts, while still saying he expects a “good deal” with Xi. The White House and Commerce Department did not comment on the report.
Staying on the topic of Trump and Russia, the U.S. administration is applying a new kind of pressure in a bid to end the war in Ukraine. The Trump administration imposed sweeping sanctions on Russia’s top oil producers, Rosneft and Lukoil, in its first major financial move against Putin. The Treasury department said the sanctions are a response to Moscow’s failure to pursue peace in Ukraine. The decision marks a sharp shift for Trump, who had previously resisted such measures even after meeting Putin earlier this month. The move sent Brent crude up 5% on fears of supply disruption, as Rosneft and Lukoil account for nearly half of Russia’s oil exports. Trump said “it was time” and hopes the sanctions will be short-lived if the war ends. Analysts warn the measures are unlikely to alter Putin’s strategy, though Ukraine welcomed the decision. The U.K. sanctioned the same firms last week, and the EU plans to expand its own restrictions, including an LNG import ban, later this week.
Canadian travel to the U.S. fell sharply in August, with 2.9 million return trips marking a 29.7% drop from a year earlier, according to Stats Canada. Meanwhile, 3.2 million U.S. residents visited Canada, down 1.4% but still outnumbering Canadians travelling south, a rare occurrence outside the pandemic period. Overall, Canadians took 4.2 million trips abroad, down 21.5% from 2024, driven by a 32.6% decline in road travel and a 17% drop in air travel to the U.S., though overseas trips rose 8.6%. Visits to Canada from overseas countries climbed 9.2%, led by arrivals from Europe and Asia, particularly the U.K., France, and Germany.
Billion-dollar valuations. The NFL approved several multibillion-dollar ownership deals yesterday, with the New York Giants becoming the world’s most valuable sports franchise after selling a 10% stake to Julia Koch and her family at a $10.3 billion valuation. The New England Patriots followed with minority stake sales valuing the team at $9 billion, while the San Francisco 49ers reached $8.6 billion. The league also approved acquiring a 10% stake in ESPN, which will begin broadcasting NFL Network as part of the agreement. These deals highlight skyrocketing sports franchise valuations since the NFL began allowing private equity ownership, with each transaction setting new records across the industry.
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