The Daily Chase: Fed decision day

Here are five things you need to know this morning.

Rate decision day in the USA: The U.S. Federal Reserve’s Open Market Committee will announce its latest decision on interest rates today, and while no change to the rate is expected, we’ll be paying close attention to what Fed chair Jerome Powell has to say about it in his accompanying press conference this afternoon. New data out of Canada on Tuesday shows inflation slowing down to the point where rate cuts are on the table sooner than previously expected, but strength in the economic data coming out of the U.S. lately suggests the central bank might be content to keep rates high for a while longer yet. Currently, the market is expecting around three rate cuts out of the Fed this year, starting in the second half of the year. But depending on what happens today, it wouldn’t be a surprise to see those expectations shift a little.

Gildan saga takes new twist with sale report: The back and forth drama that’s been underway at Montreal-based apparel manufacturer Gildan Activewear got even more interesting on Tuesday with reports that the company’s board has put the company up for sale after receiving numerous expressions of interest. Shares in the company popped more than 10 per cent right before the close yesterday after the company announced it has established a special committee to evaluate various bids to buy the company, including one from private equity group Sycamore Partners. One of the potential bids comes with a reported offer price of US$42 per share. That’s close to the all-time high the shares hit in 2022, but at least one major shareholder has expressed concerns about how it’s all playing out. Browning West, a supporter of ousted CEO Glenn Chamandy, is speaking out against the sale process, calling it “reactionary” and says it is “dismayed” at what’s transpiring, implying that the board is trying to implement a quick sale in order to escape accountability for its shambolic CEO succession last year.

TMX pipeline expansion has its first major order: There’s a major development in the years-long saga of the Trans Mountain Expansion Pipeline. Bloomberg is reporting that China’s Sinochem Group has purchased one of the first crude cargoes that will be shipped along the expanded pipeline, taking Canadian oil from landlocked Alberta to the Pacific Coast for export. The pipeline’s expansion has triple the capacity of the existing pipeline, and the Sinochem purchase is the first major deal to incorporate that added capacity. Traders who asked not to be identified told Bloomberg that Sinochem has ordered 550,000 barrels from Suncor Energy that will be transported in May or June — although neither company responded to a request for comment. The pipeline expansion was supposed to be completed in 2017, but it has faced countless delays and has run billions of dollars over budget. The federal government bought the pipeline from Kinder Morgan in 2018 to make sure the project would be completed, and are now looking for a buyer. Having customers willing to pay to use it is a major step toward making sure they find one.