Canadian Business News: Wildfires, Lumber Prices, and Economic Strength

2023-06-12 13:22:30

(Illustration: Camille Charbonneau)

NEWS ESSENTIALS

• ANALYSIS — Wildfires in Canada are shutting sawmills and driving up lumber prices. Canada’s worst spring wildfire season has forced the logging industry to close sawmills, raising lumber prices and delaying production by months, just as housing construction is slowing down due to high costs and a tight labor market.

• SPOTLIGHT — Why is the Canadian economy still strong despite the record pace of rate hikes? Despite the fastest cycle of monetary tightening in the country’s history, Canada’s economy continues to run at full speed, prompting the central bank to further increase its key interest rate, bringing it to a level of 4, 75% last week, its highest level in 22 years.

• Glencore makes an offer for the steelmaking coal business of Teck Resources. Glencore has offered to buy the steelmaking coal business of Teck Resources as a stand-alone unit, after the Canadian mining company twice rejected its $22.5 billion bid to combine the two businesses.

• The Nasdaq buys the financial software company Adenza for 10.5 billion dollars. The Nasdaq announced that it had agreed to acquire financial software company Adenza from private equity firm Thoma Bravo for $10.5 billion, in a cash and stock transaction, while that the exchange operator is trying to reposition itself as a fintech company.

• Biogen climbs as FDA panel backs its Alzheimer’s drug, easing concerns over its safety. Shares of pharmaceutical company Biogen rose in ahead of trading after its drug Leqembi for the treatment of Alzheimer’s disease received backing from advisers to the US regulator (FDA), dissipating concerns. fears about his safety.

TRENDS BEFORE OPENING

Futures on Canada’s main stock index edged lower as oil prices tumbled on concerns over growing fuel demand in China and rising Russian crude supply . Wall Street futures rose ahead of the release of key inflation data and the Federal Reserve’s interest rate decision this week. European stocks rose as investors focused on key central bank meetings scheduled throughout the week. The US dollar retreated as gold prices rose. The Japanese Nikkei closed higher, supported by domestic pharmaceutical stocks and microchip companies.

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TITLES TO FOLLOW

• TC Energy: The oil and gas transmission services company announced that it has completed the closure of two compressor stations on the NOVA Gas Transmission Ltd. network. (NGTL) and a gas storage structure that were near wildfires in Edson, Alberta. “Other sections of the NGTL System and other pipeline systems continue to operate safely and we continue to monitor the situation closely,” the company said in a statement. The 25,000 kilometer long NGTL system transports gas across Canada and to US markets.

• Teck Resources: Glencore has offered to buy the steelmaking coal business of Teck Resources as a stand-alone unit, after the Canadian mining firm twice rejected a $22.5 billion bid to combine the two companies . Teck said on June 6 it had received several offers to buy its coal business, which the company is seeking to remove from its copper and zinc unit which has failed to garner sufficient support from late shareholders. april. Teck has confirmed that it is talking to Glencore about its new proposal. Glencore exploits and markets thermal coal, used to generate electricity and manufacture steel. The British company said it would separate the two companies’ coal units.