The Daily Chase: Federal government said it has more flexible border rules; A quick problem causes the web to go down
The federal government must soon make a crucial decision for the travel and hospitality industries: stay the course on strict border restrictions and isolation or ease for the crucial summer vacation season as rates of vaccination increases. Our Bloomberg News partners hear it will be the last, with a report that the federal government is “preparing to relax” the rules for fully vaccinated travelers. An announcement is expected within a few days; While the details aren’t clear, it will likely be good news for border towns, hotel operators, and countless other business owners. We will chase away the reaction.
It didn’t last long, but it was another reminder of our digital addiction and its vulnerabilities. Shopify, The New York Times, Reddit, and Amazon are just a few of the names that were hit by an outage this morning that introduced many of us to a company called Fastly, which helps transfer data across the internet and whose shares at one point were down more than two percent in pre-market trading. In a tweet shortly after 7 a.m., Fastly blamed a “service setup” and said her network was restarting.
THE CEO OF COLONIAL PIPELINE ON THE HOT SEAT
For the first time since the cyberattack that crippled the crucial U.S. gasoline pipeline, the CEO of Colonial Pipeline will speak publicly today when Joseph Blount addresses a U.S. Senate committee on critical infrastructure threats. His remarks come a day after the Assistant United States Attorney General announced that most of the $ 4.4 million in ransom paid to the perpetrators had been recovered. I have to imagine that Blount’s testimony will be a staple for business executives around the world with ransomware threats on the rise.
2.08 TILLION DOLLARS AND ACCOUNT …
That was the total amount of consumer debt in that country at the end of the first quarter, according to data released today by Equifax which highlights how heavily the Canadian economy relies on housing. To know: As credit card debt is at its lowest level in six years as the pandemic changes consumer behavior, the size and volume of first-quarter mortgages increased by 20.5 respectively % and 41.2%, according to Equifax. And while the report shows delinquency rates are mostly declining, there are outliers (such as in Fort McMurray, where the mortgage delinquency rate jumped 38% year-on-year). We’ll take all of this into consideration ahead of tomorrow’s Bank of Canada update.
OTHER SIGNIFICANT STORIES
- Bloomberg reports on Canada Pension Plan Investment Board reconsider its future involvement with Global management of Apollo due to the performance and management by the private equity giant of the controversy surrounding former CEO Leon Black’s ties to Jeffrey Epstein. According to the story, the CPPIB is in the midst of a “broader assessment” of its use of external managers. The report is based on an unidentified source.
- Enbridge exits the parent company of gas and electricity distributor Énergir, announcing that it has reached an agreement to sell a 38.9% stake in Noverco to a consortium led by the Caisse de dépôt et placement du Québec for 1, $ 14 billion. The proceeds will be used to repay the debt.
- Pembina pipeline announced this morning that it has acquired a 50% interest in the $ 3 billion Cedar LNG project led by the Haisla First Nation. Pembina said she plans to invest $ 90 million over the next two years before a final investment decision is made.
- Canada has unexpectedly shifted to a trade surplus in April, imports fell more sharply than exports. In total, the surplus stood at $ 594 million, down from a deficit of $ 1.3 billion in March.
- Canfor announced this morning that it will spend US $ 160 million to build a new sawmill in Louisiana. The move is, in part, attributed to “significant state and local incentives,” and Canfor added that as a result, it was canceling plans for a new project in Georgia.
NOTABLE OUTPUTS / EVENTS
- Notable data: Canadian trade balance, US trade balance
- 10:00 am: Colonial Pipeline CEO Joseph Blount addresses the US Senate Committee on Homeland Security and Government Affairs on Cyber Attack
- 11:45 am: Prime Minister Justin Trudeau, Minister of Industry François-Philippe Champagne make a virtual announcement with Nova Bus (plus 12:15 available)
- 2:30 p.m .: Romy Bowers, CEO of CMHC, addresses the Senate Committee on National Finance