Good morning!
B.C.ās Conservatives won a mandate to step on the gas, promising more energy production and faster approvals.
Meanwhile, markets hit the brakes on Friday as oilās rally revived inflation worries.
Letās get into it.
MARKET RUNDOWN
Last Fridayās Close
WTI jumped as Houthi attacks in Saudi Arabia continued to fuel supply fears, reviving inflation concerns and weighing on stocks and bonds.
Losses in financials, consumer stocks, and miners outweighed energy gains on the TSX.
U.S. tech shares steadied after Thursdayās AI-related sell-off.
BRIEF OF THE DAY
B.C. Conservatives Win First Election in 98 Years, Promising Tax Cuts and Faster Resource Development
The news: British Columbiaās Conservatives won a clear majority in Saturdayās provincial election, with preliminary results showing the right-wing party leading in 63 of 93 electoral districts. Lorne Doerkson is set to become premier, ending 9 years of left-wing NDP government; David Eby announced his resignation as NDP leader.
The backdrop: David Eby had called the election 2 years early to strengthen his narrow NDP majority, arguing that U.S. trade threats required a fresh mandate. The gamble backfired in a campaign also shaped by affordability, healthcare, and concerns about the provincial economy.
The business agenda: The Conservatives propose a 3-year provincial sales tax exemption for currently taxable machinery, equipment, and business software, alongside firm deadlines for mining and energy approvals. Those measures aim to lower the upfront cost of business investment and make project timelines more predictable.
The resource push: The party wants to double B.C.ās natural gas production by 2032 and expand liquefied natural gas (LNG) exports. Doerkson also pledged to work with Ottawa and Alberta on the proposed Pacific Link oil pipeline to the B.C. coast.Ā
The fiscal constraint: B.C.ās latest forecast projects a $13.8B deficit for 2026-27. Doerkson has promised an independent review of provincial finances; his first budget will show how he intends to fund tax cuts while maintaining public services and infrastructure investment.
š¼ Why this matters: B.C.ās Pacific coast is central to Canadaās federal effort to reach more oil & gas buyers beyond the U.S. Expanding production and export routes would increase economic activity across Western Canada, from resource producers to construction firms, utilities, and transport operators - and require substantial long-term financing. The election gives those ambitions stronger provincial political backing.
HEADLINE RECAP
In Canada
B.C. Conservatives secure first majority in 98 years on tax cuts, faster permitting, and expanded natural gas production (BBG)
Canada and U.K. scrap defence bank merger talks, opt for separate but complementary institutions for defence financing (BBG)
Bombardier (TSX:BBD.B) plans US$270M U.S. investment and 800 hires as Trump threats recede (BBG)
Brookfield (TSX:BAM) opens Doha, Qatar, office to expand Middle East presence, anchored by its Oaktree credit platform (BBG)
Chinese automaker Chery considers Canadian manufacturing as it prepares 2027 sales launch (BBG)
Canadian retail sales rise 1.2% MoM in August on new car sales; early estimates point to 0.7% gain in September (BBG)
Canada commits $193M to Rio Tinto and Alouette aluminum projects in Quebec (TL)
U.S. removes 50% tariffs on some Canadian paper and machinery products, adds duties on others (BBG)
White House says U.S.-Canada trade talks are āvery closeā to a deal as negotiations pick up; Trump says the tariff dispute will be settled āpretty soonā (BBG)
Carney says U.S. midterm election interference accusations have āno meritā (CBC)
Carney cites Starlink disruption in Ukraine as warning against Canadaās reliance on U.S. technology (BBG)
Carney, premiers, and First Nations leaders to hold historic meeting on Monday as major-project tensions rise (GM)
Canadaās banking watchdog says unclear fees and switching barriers are weakening competition (GM)
Vancouver biotech Zymeworks (NASDAQ:ZYME) strikes cancer drug licensing deal with Roche, worth up to US$813M plus royalties (TL)
Carney says AtkinsRĆ©alis (TSX:ATRL) has āgood chancesā in race to build Turkeyās second nuclear plant (RTRS)
Amazon used AI tool to score labour-union risk at Canadian warehouses, documents show (GM)
Loblaw (TSX:L) notifies 2 million Canadians after data breach exposed personal information (CBC)
Canada unveils proposed stablecoin regulations as Bank of Canada prepares to oversee issuers (BK)
Canadian crypto-wallet maker Coinkite faces proposed class action over US$140M bitcoin hack (GM)
Questrade adds extended-hours U.S. options trading as Canadian brokerages broaden retail trading access (BK)
DEALS WITH CANADIAN PARTIES
M&A & Investments
Ribbon AI: The Toronto-based, Radical Ventures-backed platform that uses AI to interview job candidates agreed to be acquired by Thoma Bravo-backed HR software provider Dayforce.
VC & Growth Equity
CPP Investments joined a US$62M (~$87M) Series C for U.S. cancer drug developer Hexagon Bio, led by The Column Group, with Nextech Invest, Deviation Capital, and 8VC also participating.
ECM
Hercules Metals (TSXV:BIG): The Toronto-based copper explorer upsized its bought-deal private placement to $45M from $30M, issuing 51.7M shares at $0.87 each, with an underwriter option for up to another ~$5M; proceeds will advance its Hercules Project in Idaho and fund working capital.
Canaccord Genuity and BMO were joint bookrunners.
Kenorland Minerals (TSXV:KLD): The Vancouver-based mineral explorer launched an $11M non-brokered private placement at $2.10/share, expandable to ~$16.3M.
DCM & Credit
Sigma Lithium (TSXV:SGML): The Toronto-based, Brazil-focused lithium producer extended the maturity of US$100M of senior secured debt with Synergy Capital to June 2027 from December 2026, with pricing unchanged at SOFR +6.95%, providing additional runway as it ramps production following its October restart.
BAY STREET TRIVIA
Which Canadian minerās name contains the chemical symbols for silver, nickel, and cobalt?
FOR THE GROUP CHAT
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