Dec 19, 2018
The Daily Chase: Backlash over Ottawa’s energy package; Fed decision looms
By Noah Zivitz
There hasn’t been much room for misinterpreting reaction to the federal government’s $1.6-billion support package for Canada’s beleaguered oil sector. From industry analysts, a chief executive, a former senior TransCanada official, the premier of Alberta, and (overwhelming) feedback to yesterday’s BNNBloomberg.ca poll — we heard it all on BNN Bloomberg and, simply put, stakeholders aren’t satisfied. So what’s the fallout? Maybe we’ll get a sampling today at a rally expected to take place in Nisku, Alberta.
Good time to point out crude oil prices are stable this morning, with WTI hovering near US$46.50 per barrel. Western Canadian Select, meanwhile, plunged 18 per cent yesterday to US$30.60/barrel.
FED DECISION DAY
Jerome Powell and his U.S. Federal Reserve colleagues have been getting an earful from U.S. President Donald Trump and The Wall Street Journal’s editorial board. Today we’ll find out if he’ll bow to the calls for a pause. Of course, if the Fed leaves rates unchanged it’s almost certain Powell will brush off questions from reporters about the impact of Trump’s tweets.
POT M&A
Tip of the hat to David George-Cosh, who was first to report today's deal that will see Aleafia Health acquire Emblem Corp. in an all-stock deal that delivers a gateway for Aleafia to dip its toe into the recreational cannabis market. See DGC's story here, and watch for his reporting today on BNN Bloomberg. Also notable: RBC Capital Markets is ready to make its foray into the pot sector.
BUFFETT PARING TIES WITH HOME CAPITAL
It's looking like the end of an important era for Home Capital Group, with Berkshire Hathaway indicating its stake in the alternative lender will fall below 10 per cent. Recall that Warren Buffett's Berkshire became a significant investor in Home Cap during the company's darkest days. Today, Buffett said in a statement he'll "continue to cheer" for Home Capital "from the sidelines."
BNN BLOOMBERG’S STORY OF THE YEAR
Lots to choose from. Stay tuned for the big reveal in special coverage at 10:30 a.m. ET.
OTHER NOTABLE STORIES
-Pfizer and GlaxoSmithKline say they’re creating a new consumer health-care joint venture. Pfizer will own 32 per cent of the JV, which Glaxo says will eventually list in the U.K. Glaxo shares have been up as much as 7.8 per cent in London. The deal puts brands like Advil, Tums and Nicorette under the same roof.
-Will be worth keeping an eye on Facebook today after The New York Times published a massive feature with new claims about leaky data privacy.
-Sun Life Financial announced this morning its Bentall Kennedy real estate division will combine with GreenOak Real Estate. The merged entity — to be renamed Bentall GreenOak — will have $62 billion in assets and will be majority owned by Sun Life.
-FortisBC says its customers can resume normal use of natural gas. Recall the utility had been warning customers to show restraint as a result of the Enbridge pipeline blast in October.
-Quebecor’s Videotron unit announced late yesterday it will sell its 4Degrees data centre unit for $259 million.
NOTABLE RELEASES/EVENTS
-Notable earnings: General Mills
-Notable data: Canadian CPI, U.S. existing home sales
-2:00 p.m. ET: U.S. Federal Reserve releases interest rate decision and updated forecasts (plus news conference at 1430)
-2:00 p.m. ET: Prime Minister Justin Trudeau holds year-end news conference in Ottawa
-China begins three-day meeting to set economic policies for 2019
