Global stocks are starting the new year in familiar territory, with losses across most Asian and European indices and with futures pointing to a weak open on Wall Street. Looks like the blame is being pinned on another sign that China’s factories shifted into contraction last month, raising the stakes for next week’s meeting between Chinese and American trade officials. The S&P/TSX Composite Index, meanwhile, will start fresh at 9:30 a.m. ET after closing out a calendar year that saw it tumble almost 12 per cent.
In addition to weak economic data in China, investors are also wrestling with overhang of a partial U.S. government shutdown that’s into a 12th day. With the next session of Congress set to open tomorrow with Democrats in charge of the House, U.S. President Donald Trump invited House Democrat Leader Nancy Pelosi to “make a deal” in a tweet yesterday and has opened the door to a meeting with Congressional leaders today.
THE NEW BARRICK GROUP DEBUTS
It’s the first day of a new era for Barrick Gold Corp. as it officially starts trading as a combined entity with Randgold Resources. We look forward to speaking with Mark Bristow, who guided Randgold into Barrick’s embrace -- and who will serve as president and CEO of Barrick Group. Stay tuned for that conversation about merging cultures and stewarding assets on Commodities.
OTHER NOTABLE STORIES
-Tesla shares fell sharply in pre-market trading after the car maker reported fourth-quarter Model 3 deliveries that came in a bit shy of estimates. The company is also cutting U.S. prices by $2,000/vehicle.
-Stingray Group announced today it has given up on its attempt to buy Music Choice for US$120 million.
-Netflix is shaping up a stock to watch today. Stock is down ~2 per cent in pre-market trading after an analyst at SunTrust said subscriber growth this quarter appears to be a little below Netflix’s forecast.
-The Canadian Centre for Policy Alternatives is out with its annual reminder of wage disparity, saying the country's top CEOs will earn the average Canadian salary by 11:33 this morning.
-In case you missed it on New Year's Eve, Green Growth Brands attempted to dispel some of the questions surrounding its intent to launch a takeover offer for Aphria. Also note its shares again closed well below the $7/share level that forms the basis for the valuation of its upcoming offer. See the full statement here.
-Back to the subject of tomorrow’s swearing in of lawmakers: take note of incoming Senator Mitt Romney’s scathing criticism of Trump in yesterday’s Washington Post as a potential precursor to GOP tension.
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg'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.bnnbloomberg.ca/subscribe.