Here are five things you need to know this morning
Tariff watch continues: We’ll be watching for more reaction to Donald Trump’s announcement about reciprocal tariffs yesterday, when the U.S. president said he has ordered officials to conduct a sweeping review of America’s tariff regime and set about implementing reciprocal tariffs over and above on any country that dares to implement them. It’s hard to overstate the significance of what the move might mean once the review is completed in April, but as with all things Trump, the plan is still short on details. Among the more significant tidbits of what he said is that he considers any sort of value-added tax to be a tariff, something that if taken at face value, would imply just about every major trading nation can expect a new round of tariffs in the near future.
Don’t look now but the loonie is back above 70 cents: Can’t help but notice that the loonie broke through the 70-cent level for the first time since December this week and is changing hands this morning a full half-a-cent above the level. Canada’s currency is still facing some major potential headwinds, and it wouldn’t take much from Trump to send it tumbling again, but the mini rally might suggest that a lot of the bad news is already priced in. BMO noted in a commentary this morning that the loonie’s average value was 69.5 cents US last month, the weakest monthly figured in more than 20 years. With expectations that low, it gets a little easier to beat them, so the U.S. dollar will have a hard time maintaining its strength as the initial panic from Trump tariffs dissipates. “The USD looks set to remain on the defensive as the tariff-related risk premium slowly erodes,” said Jeremy Stretch, a currency analyst at CIBC.
Gold keeps flirting with new all-time high: Gold prices are on a three-day winning streak and are trading near an all time high this morning, as Trump’s tariff talk continue to fuel demand for assets perceived to be safe havens and inflation hedges. Bullion was trading at about US$2,935 an ounce this morning, putting gold safely on track for its seventh weekly gain in a row, the longest streak since August 2020.
Earnings galore: It’s hard to pick a most notable set of numbers among the cornucopia or corporate results out this morning but if you force me to, it’s probably Air Canada, where the carrier beat expectations with record operating revenue and higher profit. But I’ll also be watching the market’s reaction to fresh numbers from Enbridge, where the pipeline giant saw higher revenue and earnings per share, and boosted its dividend. Shares in auto parts maker Magna will likely be under pressure despite the company beating on its most recent quarterly numbers and raising its dividend but slashing its outlook for 2025 and 2026. And we have a full plate of numbers to digest from my favourite under the radar economic bellwether, MTY Food Group, where the food court giant swung to a loss per share even as revenue inched up 1.6 per cent to $284.5 million.
Cohere faces lawsuit over copyright infringement: A group of major U.S. media companies and the owner of the Toronto Star are suing Canadian AI firm Cohere over copyright infringement. The suit, filed in a New York court yesterday on behalf of Conde Nast, McClatchy, Forbes, Guardian and others, alleges that Cohere uses content generated by media companies to train their large language models, without compensation or permission. In a statement to The Canadian Press, Cohere calls the lawsuit “misguided and frivolous” and expects to win in court. ChatGPT maker OpenAI is facing similar suits in the U.S. and Canada from publishers including the New York Times, the CBC, Canadian Press, The Globe and Mail and Torstar.
