Here are five things you need to know this morning
Shell buying ARC Resources for $22 billion: We have a major deal this morning in Canada’s energy sector. ARC Resources is being taken over by Shell, in a deal valued at $22 billion including assumed debt. Shell says the transaction strengthens its integrated gas business and expands its footprint in Canada through ARC’s Montney assets. The offer is a mix of cash and stock, and represents a 27 per cent premium to ARC’s most recent trading price.
Oil rises as peace talks stall: Meanwhile the price of oil traded higher this morning after efforts to resume peace talks over the Iran war stalled. Brent climbed as much as three per cent to US$108.50 a barrel and West Texas Intermediate advanced toward US$97. The standoff has left the Strait of Hormuz almost impassable. There are reports Tehran offered the U.S. a fresh proposal to open the strait. Over the weekend, U.S. President Donald Trump canceled a planned trip by his top envoys to Pakistan, which is mediating talks, while Iran said it won’t negotiate if it’s being threatened.
Feds to announce sovereign wealth fund: There are multiple reports that Prime Minister Mark Carney will unveil a sovereign wealth fund today. The fund would be used to invest in major projects the federal government has committed to in the coming years. The plan would also allow individual Canadians to contribute. The details are expected to be presented at an event later today in Ottawa.
Ottawa to forecast lower deficit: The Globe and Mail is reporting the federal government will forecast a lower deficit in its upcoming spring economic statement. The update is scheduled to be released Tuesday by finance minister François‑Philippe Champagne. The current fiscal plan projects a deficit of more than $78 billion for 2025-26 and over $65 billion dollars for the fiscal year that began April 1.
Domino’s fails to deliver: Shares of Domino’s Pizza traded lower in the pre‑market after missing on earnings for the first quarter. The decline was primarily due to a US$30 million loss from its investment in DCP Dash, a food delivery service that relied on independent contractors rather than in‑store employees. Despite the results, the company remains positive, citing its scale advantage and its relative resilience as the broader restaurant sector comes under pressure.
