The Daily Chase: In conversation with outgoing CN Rail boss; Canadian inflation sets 18-year high
BNN Bloomberg
It’s going to be must-see TV when Jean-Jacques Ruest joins us at 1 p.m. ET, less than 24 hours after CN Rail announced he’s planning to retire as president and chief executive of the company.
It’s going to be must-see TV when Jean-Jacques Ruest joins us at 1 p.m. ET, less than 24 hours after CN Rail announced he’s planning to retire as president and chief executive of the company. Timing for his exit is January 2022 – maybe. Depends on how the search for his successor goes. Ruest’s ouster was on the to-do list for the activist investor leading a proxy battle with CN; but the statement from TCI Fund Management makes it clear that it hasn’t been appeased by Ruest’s plans. So, lots to consider in a looming management change that completely stole the quarter’s thunder, despite an adjusted profit and revenue that edged past expectations – and operating expenses that jumped 10 per cent.
INFLATION WATCH
Canada’s inflation rate rose in September to the highest level since February of 2003. The 4.4 per cent year-over-year increase in the consumer price index last month marked an acceleration from August and is bound to stir new concerns about the rapidly rising cost of living in this country and the consequences for the Bank of Canada as it attempts to untangle transitory from non-transitory factors. We’ll have plenty of reaction throughout the day.
Ahead of the inflation data, we saw a, a sobering reminder of the challenges facing many Canadians: a new Angus Reid Institute survey suggests almost half of Canadians (46 per cent) are finding it difficult or very difficult to cover the costs of feeding their family. And almost eight-in-10 respondents (79 per cent) said their salary hasn't increased enough to compensate for higher food costs.
OIL RALLY PAUSES
After four straight days of gains, West Texas Intermediate crude is slipping in early trading, alongside most of the other energy commodities. In addition to the American Petroleum Institute indicating oil inventories rose by almost 3.3 million barrels last week, Bloomberg News has noted China’s overnight jawboning on the energy crunch. That country’s National Development and Reform Commission said the price of coal “has completely deviated from the fundamentals of supply and demand”, and warned that it’s looking at options to intervene in an attempt to rein in prices. All of this threatens to weigh on the TSX, which set new intraday and closing records yesterday amid a 10-session winning streak.
