Here are five things you need to know this morning
Carney’s pipeline announcement: Prime Minister Mark Carney is expected to announce a framework agreement fora new oil pipeline in Calgary today. The Alberta government has been negotiating with Ottawa to allow the proposed Pathways Alliance project to move forward along with a pipeline to the west coast. Carney has vowed to make Canada an ‘energy superpower’, but a 2019 tanker ban is blocking a new pipeline from being built. Ottawa has yet to say whether it would end the ban.
Ottawa’s support for steel and lumber: PM Carney announced the federal government will add a 25 per cent tariff on all steel-derivative imports as part of a suite of measures to help steel and softwood lumber producers Tuesday. The new levies will take effect Dec. 26 and will affect $10 billion worth of goods. Ottawa will also subsidize freight-rail rates for the steel and lumber industries, as well as provide an additional 500 million dollars in loans for the forestry sector.
Steel sector skepticism: Canadian steel stocks may rise today due to the support plan announced by Ottawa – however some analysts are skeptical on how sustained the boost will be. James McGarragle of RBC Capital Markets sees the support measures as positive for the domestic steel industry, including Algoma Steel. However, in a report he writes that “we still believe the Canadian market will be in a position of oversupply; and we are therefore uncertain if this will be enough to drive pricing to a level where Algoma is able to profitably service its customers.” He notes that the government’s plan to reduce freight rates for inter-provincial steel transportation should increase demand for Canadian steel and make Ontario steel more competitively priced.
Sweet results: Rogers Sugar beat estimates for profit and revenue in its latest quarter. The Montreal-based company attributes the results to disciplined execution and consistent demand from customers. The company says it is currently focusing on expanding its refining and logistics capacity in eastern Canada to support evolving needs for customers.
Puma sprints higher: Shares of sportswear company Puma traded sharply higher on speculation of a potential takeover from China’s anta sports. Bloomberg News is reporting that Anta is working with an advisor to evaluate a bid and could team up with a private equity firm if it moves forward. Other potential bidders could include Li Ning of China and Japan’s Asics, according to Bloomberg.
