Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

The central bank just got the final piece of its puzzle this morning ahead of tomorrow’s rate decision, when it’s widely expected to announce a second consecutive half-point hike. And it’s not pretty. Canada’s economy slowed sharply in the first quarter, to annualized growth of 3.1 per cent from 6.6 per cent in the fourth quarter. And Statistics Canada’s flash estimate for April is for just 0.2 per cent growth in April. Meaning the economy almost stalled.

ROGERS-SHAW DEAL ON HOLD

Rogers Communications and Shaw Communications have reached a truce, of sorts, with the Competition Bureau. They've essentially hit pause on their $20-billion takeover arrangement rather than face a public hearing about a possible injunction in front of the Competition Tribunal. That hearing was scheduled to begin on June 29. And today was the deadline for Rogers and Shaw to respond to the Competition Bureau's application for an injunction. Instead, Rogers and Shaw said they will now focus on addressing the Competition Bureau's concerns about their deal. The basic question is whether the two companies can reach a negotiated settlement with the Bureau, or whether the Competition Tribunal will have to make the call in an expedited hearing. And let's not forget the deal also still requires approval from the Ministry of Innovation, Science and Economic Development. Reminder that Shaw shares are still trading at a substantial discount to the $40.50-per-share takeover offer. 

OIL EXTENDING RALLY

West Texas Intermediate crude has been up almost four per cent in early trading, coming close to US$120 per barrel, after European Union leaders reached a tentative agreement on a partial ban of Russian oil imports. Final details still have to be worked out. But for now, it’s enough to lift oil prices. We’ll frame this against the broader inflation storyline that will be top of the agenda when U.S. Federal Reserve Chair Jerome Powell meets with U.S. President Joe Biden at the White House this afternoon. And we’ll keep a close eye on the energy subgroup as the S&P/TSX Composite Index enters the day riding a seven-day stretch of gains. 

GOLD FIELDS BUYING YAMANA GOLD

South Africa-based Gold Fields announced this morning it’s buying Toronto-headquartered Yamana for US$6.7 billion in an all-stock deal. And unlike the previous trend of no-premium deals in the gold sector, the companies highlighted this morning that the offer (which breaks down to 0.6 of a Gold Field share for each Yamana share) is a 33.8 per cent premium to Yamana’s 10-day volume-weighted average price. Gold Fields investors don’t appear to be thrilled: its shares have been down as much as 14.8 per cent in Johannesburg this morning. We’ll discuss the deal with Yamana Executive Chair Peter Marrone at 11am.

OTHER NOTABLE STORIES

• Cenovus Energy announced plans to restart the West White Rose offshore oil project. Recall the future of that project near Newfoundland and Labrador was cast in doubt even before Cenovus acquired Husky Energy. Now, Cenovus said production is expected to resume in 2026 before production peaks around 80,000 barrels per day by the end of 2029. The announcement was saluted by NL’s government.
• Toronto-based fintech Pine announced a $27-million funding round this morning, led by Greylock, a California-based firm that’s backed some of the biggest names in technology in their infancy. In a release, Pine pledges to offer users the lowest rates available, with applications taking less than 10 minutes. One of Pine’s co-founders told us that since the platform soft-launched in January, it has attracted more than $400 million worth of applications.
• Sprott Inc. announced Peter Grosskopf is handing over the CEO role to Whitney George (the company’s current president) at the end of June. Grosskopf is also resigning from the board.
• Unilever shares jumped almost eight per cent in pre-market trading after the consumer packaged goods company announced U.S. activist investor Nelson Peltz is joining its board of directors.
• MEG Energy announced this morning it bought back 3.4 million shares as part of a normal course issuer bid. Those shares were purchased amid a block trade of 15 million MEG shares on the Toronto Stock Exchange.

NOTABLE RELEASES/EVENTS

• Notable data: Canadian GDP (Q1), U.S. Conference Board consumer confidence index, China manufacturing PMI
• Notable earnings: Salesforce.com, HP
• 705: NL Premier Andrew Furey addresses media at Energy NL conference
• 1315: U.S. President Joe Biden meets with U.S. Federal Reserve Chair Jerome Powell in the Oval Office
• 1600: Deputy Prime Minister and Finance Minister Chrystia Freeland addresses Senate Committee on national Finance on Bill C-8 and Bill C-19 (tied to implementing measures in most recent budget and fiscal update)