Jan 30, 2023
The Daily Chase: Markets point to negative open; Rogers-Shaw extend deal deadline
First Look With Surveillance: ECB Rate, Adani Rout
North American equity markets are poised to start the week on the back foot as Friday's broadly positive showing fizzles. Equity market futures south of the border are pointing to a negative open as we kick off a week riddled with corporate earnings, not to mention the U.S. Federal Reserve's first interest rate decision of the year, where Jay Powell & Co. are widely expected to increase rates by another quarter of a percentage point. Back to that busy earnings calendar for a moment – about a fifth of S&P 500 constituents are set to report this week, with the headliners being Apple, Meta, Amazon and Alphabet, so it's something of a test for the tech group in the days ahead.
ROGERS' EXTENDS DEADLINE FOR SHAW DEAL
Looks like Rogers, Shaw and Quebecor are giving themselves a bit more breathing room as they await a final decision on that massive $20-billion telecom deal (and the accompanying sale of Freedom Mobile to Quebecor to the tune of $2.85 billion.) The three companies are extending the outside date for consummating the deal to Feb. 17 – call it a couple of weeks further than the Jan. 31 plan that was in place. The companies say they're committed to the transactions, which are still awaiting final approval from Industry Minister Francois-Philippe Champagne, after the courts shot down an appeal from Competition Commissioner Matthew Boswell to block the deal.
RBC SEES FLOOR FOR OIL PRICES
RBC analysts Helima Croft and Michael Tran say they'd “not be in the least surprised” if oil prices had already found a floor in 2023. In a note to clients, RBC said the lows of US$72 per barrel could in fact be the floor for crude this year, with expectations for an average of US$92 per barrel through 2023. China's the keystone here – RBC reckons Beijing's abandonment of its COVID-zero policy is “far from priced” into energy markets, thus its view for materially higher prices throughout the year.
OTHER NOTABLE STORIES
- CPPIB is investing US$205 million into India's IndoSpace's new real estate fund.
- Bitcoin's pulling back a bit this morning, but worth noting it's on track for its strongest January showing since 2013, up the better part of 40 per cent so far this year.
- One for the racing fans out there – Audi has acquired a minority stake in the F1 team Sauber as parent VW looks to enter the racing series and cash in on the popularity it's gained in no small part due to Netflix's Drive to Survive series.
- Notable earnings: CAE, Canaccord Genuity Group, GE Healthcare Technologies, Whirlpool