2023-11-14 19:29:19
(Illustration: Camille Charbonneau)
THE ESSENTIAL NEWS
• A group led by Glencore buys Teck’s coal assets for $9 billion. A consortium led by Glencore has completed one of the mining sector’s biggest deals in years, agreeing to buy Canadian miner Teck Resources’ steelmaking coal unit for $9 billion.
• Sun Life beats profit forecasts, thanks to its asset management unit. Canadian insurer Sun Life reported better-than-expected quarterly profits on Monday, thanks to growth in its wealth and asset management unit as well as higher fees.
• Home Depot beats quarterly earnings expectations thanks to demand for small projects. America’s largest home improvement retailer, Home Depot, beat quarterly profit estimates and reported a smaller-than-expected decline in like-for-like sales as customers shifted to smaller home improvement projects. repair and development.
• The IEA revises upwards its forecasts for growth in oil demand, raising the possibility of a surplus in 2024. The International Energy Agency (IEA) has revised upwards its oil demand growth forecast for 2023 and 2024, despite slowing economic growth in almost all major economies, although its outlook for 2024 remain significantly lower than those of the OPEC group of producers.
• Canadian Prime Minister Justin Trudeau’s climate strategy called into question following the dilution of the carbon tax. Canadian Prime Minister Justin Trudeau is sending mixed messages on climate policy, environmental experts say, following diluting his carbon tax policy to ease the cost of living in a region that has been a stronghold of his party.
TRENDS BEFORE OPENING
Futures contracts for the main Canadian stock index remain subdued, while those on Wall Street advance slightly, as investors await a report on US inflation which should clarify the outlook for the Federal Reserve’s monetary policy. European stocks are climbing, led by commodities, with Glencore shares hitting their highest level in almost two weeks. Japan’s Nikkei ended higher on forecasts that domestic companies would continue to show strong prospects as the yen neared a three-decade low once morest the US dollar. Gold varies little. Oil prices are falling on demand concerns related to slowing economic growth in almost all major economies.
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HEADLINES TO FOLLOW
Results
• Sun Life Financial: The Canadian insurer announced higher-than-expected quarterly profits on Monday, driven by growth in its wealth and asset management unit as well as increased fees. Sunlife has diversified its operations across the world and strengthened its presence in the United States with the acquisition of DentaQuest last year for $2.5 billion. Underlying profit from its US operations fell 19%. Its wealth and asset management division reported underlying net profit of C$457 million, an increase of 9%. The insurer posted underlying net income of C$930 million, or C$1.59 per share, for the quarter ended September 30, up from C$949 million, or C$1.62 per share. , one year earlier.
Transactions
• Teck Resources: A consortium led by Glencore has completed one of the mining sector’s biggest deals in years, agreeing to buy Canadian miner Teck Resources’ steelmaking coal unit for $9 billion. Glencore will take a 77% stake in the company in a $6.9 billion all-cash deal, compared to 20% for Japan’s Nippon Steel Corporation, which already has a 2.5% stake. South Korean company POSCO will exchange a stake in two of Teck’s coal operations for 3% in steelmaking coal company Elk Valley Resources (EVR). The transaction is expected to close in the third quarter of 2024. “This is a very different transaction… we have spent the months leading up to this date engaging with a range of counterparties and it is important that we let’s take this time to get the best outcome,” Teck Chief Executive Jonathan Price told Archyde.com in a telephone interview, adding that the company will use the proceeds to pay down debt, fund future projects and provide “a significant cash return to our shareholders. The new entity will be listed in New York, with secondary listings in Toronto and Johannesburg, within two years of the acquisition, Glencore chief executive Gary Nagle told reporters. The head office of the steelmaking coal business will be established in Vancouver.
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