Dec 27, 2017
BNN's Daily Chase: Oil flirts with US$60; bitcoin volatility continues
By Noah Zivitz
Oil is hovering near US$60 per barrel after breaking through that threshold yesterday (barely) for the first time since the middle of 2015. WTI futures reached a high of US$60.01 while Canadians were doing their Boxing Day shopping. That headline number masks the reality for Canadian producers, however, with the WTI-WCS differential stuck near $27 per barrel. With no end in sight to the volatile mix of pipelines and politics (and protests, and legal challenges, and so forth), BNN's Jameson Berkow will address implications of the differential for producers, oil patch workers and the economy.
CANADIAN BUYOUT FIRMS EYE WEWORK RIVAL
Shared workspace provider IWG disclosed today that it received a takeover approach from Brookfield Asset Management and Onex. Under U.K. rules, the Canadian duo has until Jan. 20 to either put up or walk. IWG shares have shot up more than 30 per cent on the disclosure, giving it a nearly GBP2.45-billion ($4.16B) market cap.
MANULIFE CHARGES
In case you missed it heading into the long weekend: Manulife Financial disclosed $2.9 billion in pending charges late Friday. A little more than one third of the hit stems from a decision to tweak asset allocation. The remaining $1.9 billion is due to freshly-legislated U.S. tax changes. Manulife points out the tax overhaul will boost its core earnings by $250 million/year starting in 2018.
CHAOTIC BITCOIN TRADING CONTINUES
Bitcoin is little changed this morning. But that could change in an instant. The cryptocurrency surged as much as 17 per cent yesterday, propelling it to a recovery after Friday's vicious trading session that saw it plummet as much as 30 per cent.
OTHER NOTABLE STORIES:
-Bit of a split decision by the Ontario Securities Commission in the ongoing takeover fight between Aurora Cannabis and CanniMed Therapeutics. The OSC is cease trading CanniMed's poison pill, ordering Aurora to amend some of its press releases and its takeover circular, and also denying Aurora's request to shorten the minimum tender period associated with its hostile bid.
-Centerra Gold fell in early trading after the company said it's suspending mill processing at Mount Milligan in B.C. amid a water shortage. Centerra said it expects to restart some processing by the end of next month.
-Bombardier announced a US$444-million contract with France's National Railway Company today to supply 256 rail cars. Bombardier says the order is part of a contract first announced in 2010.
-Apple shares slipped 2.5 per cent on Tuesday amid a report iPhone X sales could fall short of expectations in the first quarter.
-Bombardier reportedly could have a backup buyer if proposed U.S. tariffs interfere with CSeries deliveries to Delta. Grupo Mexico is mulling buying the jets in such a scenario, according to a Bloomberg report published yesterday.
NOTABLE RELEASES/EVENTS
-Notable data: U.S. consumer confidence
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
