Here are five things you need to know this morning
Markets react to latest U.S.-Iran tensions: The price of oil moved higher and stock futures moved lower as tensions continue in the Middle East. The U.S. is denying an Iranian media report that Iranian military struck an American naval vessel with missiles. This follows U.S President Trump saying the U.S. will help ships stranded in the Persian Gulf transit the Strait of Hormuz, calling it a humanitarian gesture. The plan left ships confused with very few details. In response, Iran’s military said U.S. forces would be attacked if they entered the strait.
OPEC+ to increase production: OPEC nations and their allies will slightly increase crude production next month as the Iran war continues to impact global oil supply. During a virtual meeting on Sunday, the group decided to raise production by close to 200,000 barrels a day. However, the move is mostly symbolic until the Strait of Hormuz is fully opened. This will be the third consecutive monthly increase by the bloc. It comes after the United Arab Emirates’ surprise exit from OPEC.
Spirit Airlines shuts down: Discount American air carrier Spirit Airlines has shut down operations. Spirit says the move follows failed efforts to restructure the business and secure funding. A sharp rise in fuel costs and other pressures worsened spirit’s financial position, leaving it without enough capital to continue. The airline operator’s bankruptcy leaves thousands out of a job and several passengers stranded over the weekend,
Moneris takeover talks: U.K.-based newspaper The Financial Times is reporting U.S. private equity group Francisco Partners is in talks to buy Canadian payments processor Moneris. The report says a deal could value Moneris — a joint venture of Royal Bank of Canada and Bank of Montreal — at as much as $2 billion and may come together by the summer. The banks reportedly put the payments venture up for sale last year. Toronto-based Moneris is Canada’s leader in payments, with more than 325,000 points of commerce across the country.
GameStop proposes eBay takeover: A takeover is in the works for internet auction company eBay. GameStop is proposing to buy eBay for US$56 billion. The cash and stock offer from the gaming retail chain comes with a 20 per cent premium. GameStop says it has secured a “highly confident” letter from TD Bank to provide about US$20 billion in debt financing and pledged to find about US$2 billion of annual savings within a year of closing.
