CIBC expected a frosty outcome at the........>

CANADA: CIBC expected a frosty outcome at the weekend's G7 summit, but the

outcome was darker than anticipated.

- "Trump's constant about-face, brinkmanship approach to negotiations implies

heavy two-way risk for FX and that the trade premium is likely here to stay for

CAD assets. Crucially - Trump tweeted that the US looking at tariffs on auto

imports (the White House was already reported to be looking into Section 232 of

US trade law a few weeks back). Escalation of tensions in the auto sector is a

huge risk given its importance to both the US and Canadian economies. Sizeable

tariffs here will dent growth prospects to a material degree. Autos represent

roughly 15-16% of Canada's total exports and around 19% of imports."

- CIBC is re-entering a short CADCHF position.