The Daily Chase: Blockade hammers auto sector; Prem Watsa flexes investing smarts
BNN Bloomberg
The economic pain is spreading deeper into the auto industry as the Ambassador Bridge remains blocked this morning.
The economic pain is spreading deeper into the auto industry as the Ambassador Bridge remains blocked this morning. A spokesperson for Honda said one of the production lines at its plant in Alliston, Ont. will be suspended today due to border delays. And it’s becoming increasingly clear the blockade is creating friction in Canada-U.S. relations; in a release late yesterday, the U.S. Chamber of Commerce said it “respectfully urges the Canadian government to act swiftly to address the disruption.”
We’ll stay tuned to what Magna International’s management has to say about the situation when its management addresses analysts at 8 a.m. [Sidebar: The auto parts maker this morning reported sharp drops in fourth-quarter revenue and profit (blame semiconductor shortages), yet still exceeded expectations.]
One interesting development we spotted this morning is that, as of 5:15 a.m., there were no longer any delays being reported at the Blue Water Bridge, where some Canada-bound trucks have been diverting this week.
MARKET WATCH
U.S. futures are pointing to more losses at the start of trading after yesterday’s sky-high U.S. inflation report and talk of a half-point rate hike by the U.S. Federal Reserve at its next meeting sent stocks tumbling (including the TSX, which closed in the red after earlier trading above its record closing high). We’ll find out today if the Fed is losing control of inflation expectations when we see the University of Michigan’s consumer sentiment report.
WATSA’S STILL GOT IT
