Markets north of the border are closed Tuesday in observance of Canada Day, a federal holiday marking the joining of the British colonies of Nova Scotia, New Brunswick and the Province of Canada into a federation of four provinces (the Province of Canada being divided, in the process, into Ontario and Quebec) on July 1, 1867.

Once upon a time, BCE reluctantly assumed the lead role in the largest potential income trust conversion ever. Now, in a demonstration of ubiquity redolent of Woody Allen’s Zelig, it’s the star of the biggest potential leveraged buyout (LBO) in history.

The relationship between the US and Canada is the closest and most extensive in the world, reflected in the volume of bilateral trade: the equivalent of USD1.5 billion a day in cross-border exchange of goods. And about 300,000 people cross the shared border every day.

“Since the April Monetary Policy Report (MPR), economic developments have been broadly in line with expectations. However, the balance of risks to the Bank's April projection for inflation in Canada has shifted slightly to the upside.” With that statement, the Bank of Canada (BoC) left its key rate unchanged at 3 percent, flummoxing economists who forecast a 25-basis-point cut.

Canada’s first quarter GDP number was the worst among the Group of Seven (G-7), trailing the US, the UK, Europe and Japan. Real GDP growth slid into negative territory during the first quarter after expanding at an annualized 0.8 percent during the fourth quarter and 2.3 percent during the third quarter of 2007.

Though still in the “touchy-feely” stages, a new Great Game is breaking out up north. Touched off by Russia’s audacious flag-planting maneuver last fall and made even more urgent by the “upside” impact of global warming, countries with designs on the resources underneath the North Pole will gather this week to work out parameters for the resolution of conflicting territory claims.

Headline-grabbing food shortages have bolstered demand for potash, pushed per-ton prices soaring and the stocks of those companies that produce it to the moon. But another major player sees more value in companies that produce fertilizer components.

We’re on the ground at the Las Vegas Money Show, enjoying unusually mild, La Jolla-like weather in America’s Playground. Several Canadian trusts--including Penn West Energy Trust, Paramount Energy Trust and Enerplus Resources--are exhibiting in the convention hall, and we’ll be tracking down representatives during our stay; we’ll pass along any insights we’re able to glean.

We’ve written extensively here and in Canadian Edge about the global resource boom that sustains the economy up north and provides compelling stories for investors. So the headline “Sprott Hedge Fund IPO May Signal Top of Canada Commodity Rally” on a May 5 Bloomberg story caught our attention.

Canaccord Adams analyst Yuri Lynk released a bullish report on Canada-based infrastructure opportunities, naming Bird Construction Income Fund (TSX: BDT.UN, OTC: BIRDF) among his top picks.