U.S. futures are pointing to a negative open and commodities are rallying as investors digest increased sanctions against Russia over the weekend. On Saturday, Canada joined the United States, the U.K. and European nations in taking steps to block some Russian banks from SWIFT - the Society for Worldwide Interbank Financial Telecommunication. It’s a global payments system used by more than 11,000 financial institutions around the world to send secure messages about money transfers and other transactions. The countries are also taking aim at Russia’s central bank limiting its ability to access it’s more than $600 billion in reserves to help the Russian economy. The Russian ruble fell almost 30 per cent against the U.S. dollar, forcing the country’s central bank to more than double its key interest rate to 20 per cent. All this as the Ukrainian government confirms its delegation has arrived near the Belarus border to hold talks with Russian officials.

ENERGY PRICES SOAR

The increased sanctions by the West could cause disruptions to Russia’s oil exports and that has oil and gas prices surging this morning. West Texas Intermediate crude is trading above US$95 per barrel. OPEC+ members are due to meet on Wednesday. It is unclear if the escalating conflict between Russia and the Ukraine will influence the group to increase production targets for April.

TD TO BUY FIRST HORIZON

TD Bank is accelerating its growth strategy in the United States by buying Tennessee-based First Horizon bank. It’s an all-cash deal valued at US$13.4-billion. TD says the deal will immediately add to profit with more than $600-million in cost synergies but expects to spend more than a billion dollars to integrate the business.

BP QUITS RUSSIA, DUMPS 20% STAKE IN RUSSIA’S ROSNEFT

Shares of BP were down significantly in overseas trading. The drop comes after the London-based company announced it would exit its business in Russia by dumping its almost 20 per cent stake in Rosneft. The move is the most significant yet by a Western company in response to Moscow’s invasion of Ukraine and could cost BP up to $25 billion.

OTHER NOTABLE STORIES

  • In addition to the sanctions outlined above, Canada and the European Union announced on Sunday that they were closing their airspace to Russia
  • Rogers and BCE are removing Russia Today from their services and Telus is ready to do the same if asked to do so by the Canadian broadcast regulator
  • RBC is boosting its one-year target price on Ovintiv by six per cent to $50 per share following the company’s fourth-quarter results. It has also raised its rating to Outperform from Sector Perform
  • Berkshire Hathaway used US$6.9 billion to buy back shares in the fourth quarter as the company posted operating earnings that totaled just over $7 billion in Q4. In total, the company repurchased a record $27 billion worth of shares in 2021.

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian current account balance, industrial product and raw materials price indices
  • Notable earnings: Spin Master, Zoom Video Communications
  • 1115: US President hosts call with Allies and partners to discuss Russia’s attack on Ukraine and coordinate a united response
  • 1330: Alberta Finance Minister Travis Toews addresses Calgary Chamber of Commerce
  • Tracy Robinson's first day as Canadian National Railway's president and chief executive
  • Canada's relaxed travel rules take effect (including no longer requiring PCR test for pre-entry into the country)