Jan 5, 2021
The Daily Chase: Traders brace for Georgia Senate vote; Agnico to buy TMAC
By Noah Zivitz
There’s caution in the market today, with major European indices flat and U.S. futures little changed, as Boris Johnson’s U.K.-wide lockdown serves as the latest reminder of COVID-19’s threat to economic activity, and ahead of a vote that will determine how easily U.S. President-elect Joe Biden can implement his agenda. Georgia’s two Senate seats are up for grabs today in runoff elections; Republican candidates need to win just one of them to retain their upper hand in the chamber. We’ll gather market insight on the stakes throughout the day, and look forward to broadcasting our Bloomberg Television partners’ prime-time special on the runoffs, starting at 7 p.m. ET.
OPEC+ AT ODDS
West Texas Intermediate and Brent crude oil prices are trading narrowly in positive territory this morning as traders await the resumption of OPEC+’s ministerial meeting. Yesterday, talks broke off amid a reported dispute over production levels as Russia pushed for higher production levels, while Saudi Arabia led a resistance against looser output. Discussions are expected to resume mid-morning
AGNICO BUYING TMAC AFTER FAILED CHINA DEAL
TMAC Resources didn’t waste any time to secure another buyer. This morning, the miner – whose proposed takeover by China’s Shandong Gold was blocked last month – has unveiled a friendly deal to be acquired by Agnico Eagle Mines for $2.20 per share. In the end, it works out great for TMAC’s investors, considering Shandong had offered $1.75 per share. The pairing makes perfect sense on paper considering Agnico’s expertise operating in Nunavut. There are some interesting twists to the arrangement, which we’ll detail this morning and we look forward to speaking with Agnico CEO Sean Boyd at 11 a.m. ET.
DON’T MISS THESE INTERVIEWS
In addition to Sean Boyd, we have a couple other Canadian corporate heavyweights on the network today. Magna International’s new CEO, Swamy Kotagiri, joins Amanda Lang at 1:30 p.m. ET to discuss his plans for the auto parts maker as it ramps up involvement in electrification. Before that, we’ll hear from former Aurora Cannabis CEO Terry Booth on Commodities at 11:20 a.m. ET.
OTHER NOTABLE STORIES
-Suncor Energy is taking a $425 million after-tax impairment on its minority stakes in White Rose and the West White Rose project. Suncor blames the charge, which will be booked in 2020’s fourth quarter, on “significant doubt” about West White Rose’s future as a result of Cenovus Energy’s acquisition of Husky Energy.
-Precision Drilling says it repaid $170 million in debt last year, compared to its goal of as much as $150 million. It’s also raising its long-term debt reduction goal to $800 million, from $700 million, by the end of 2022.
-On a day when we’ll be hearing plenty about the outlook for Joe Biden’s agenda, interesting to see Wisconsin-based Precision Pipeline announce it’s been selected to build the Keystone XL pipeline in Montana and South Dakota.
-The New York Stock Exchange has flip-flopped on the listings of three giants of China’s telecommunications industry. In a short statement late yesterday, the NYSE announced it “no longer intends” to delist China Telecom, China Mobile, and China Unicom “in light of further consultation with relevant regulatory authorities” over U.S. President Donald Trump’s executive order against companies alleged to be subsidiaries of China’s military.
-Bank of Montreal is selling its Hong Kong and Singapore private banking business to J. Safra Sarasin. Terms of the deal haven’t been disclosed.
-Vancouver’s housing market ended the year on a strong note, with December sales reaching a record high of 3,064 – representing a 53.4 per cent jump year-over-year.
-In the latest sign of booming demand for Amazon.com’s services, the ecommerce giant today announced it’s buying 11 767 jets: seven from Delta Air Lines, four from WestJet.
NOTABLE RELEASES/EVENTS
-Notable data: ISM U.S. manufacturing index
-9:30 a.m. ET: OPEC+ ministerial meeting resumes
-11 a.m. ET: Ontario Associate Chief Medical Officer of Health Barbara Yaffe leads technical briefing on province’s COVID-19 vaccination plan
-11:15 a.m. ET: Prime Minister Justin Trudeau addresses Canadians from Rideau Cottage
-12 p.m. ET: Federal ministers and government officials deliver update on COVID-19
-Georgia holds Senate runoff elections
