TSX reaches record highs as markets bet on possible Fed rate cuts
Canada's main index of stocks hit a new record on Tuesday. Energy stocks helped to boost the index as investors assessed domestic annual inflation figures amid optimism about a policy cut made by the U.S. Federal Reserve last week. If gains continue, the S&P/TSX Composite Index of the Toronto Stock Exchange is poised to close at a record level for a fourth consecutive session. The markets remained focused on the U.S. Federal Reserve’s policy decision scheduled for Wednesday.
TSX sluggish as gains in CPI are offset by energy shares
Canada's main index of stocks was down on Tuesday, as the losses in energy shares tempered gains from consumer price data which showed that inflation had cooled to a low of 40 months in July. This raised hopes for a rate cut next month. At 9:56 am. The S&P/TSX Composite index rose 3.48 points or 0.02% to 23,119.87 ET (13.56 GMT), hovering near its record highs. The annual rate of inflation in Canada dropped to 2.5%, but it rose 0.4% monthly, which indicates that the Bank of Canada may lower rates in September.
Eni, Vaar Agree to Buy Neptune Energy in $4.9 Billion Deal
Italy's Eni ENI.MI and its Norwegian unit Vaar have agreed to buy private-equity backed Neptune Energy in a deal valuing the assets of the gas and oil producer at $4.9 billion including debt, the two groups said on Friday.The acquisition, which is expected to be completed at the start of next year, is one of the biggest oil and gas deals in Europe in years.The deal fits the Italian group's plan to increase the share of gas in its total hydrocarbon production and is expected to boost its earnings immediately…
Price Drop Triggers Haggling Over Oil and Gas Deals
The collapse in oil prices to 21-year lows has led potential buyers of oil and gas fields to try and renegotiate deals already agreed at higher prices, with the first examples emerging of sellers having their hand forced.At a time when most oil companies are slashing budgets, dividends, and headcounts to preserve cash, sellers are facing a difficult choice between sweetening the deal or risking losing it altogether.Premier Oil's…
Hurricane FPSO Leaves Dubai After Upgrade, Shetlands First Oil Seen in H1
The Aoka Mizu floating production, storage and offloading (FPSO) vessel ordered by Hurricane Energy has left Dubai following a series of upgrades, the company said, another milestone for the group as it seeks to extract so-called fractured basement oil in Britain.Hurricane specializes in recovering oil from fractures in hard and brittle rock known as fractured basement reservoirs, which some see as a risky way to obtain crude.It expects first oil from its Greater Lancaster Area (GLA) project…
Kinder Morgan wins Trans Mountain Appeal
Canada's energy regulator ruled on Thursday in favor of Kinder Morgan Canada Ltd's appeal to sidestep some municipal permits for its Trans Mountain pipeline expansion, a major victory for the C$7.4 billion ($5.8 billion) project. The ruling, which came just three days after the regulator heard the case, could offset some of the construction delays afflicting the company, which said on Monday the project could be further set back if it could not get clarity about the permits.
Cenovus to Face Investors as Shares Decline
Cenovus Energy Inc will seek on Tuesday to convince investors of the value of an unpopular acquisition this year amid continuing skepticism from shareholders. At an annual investor event in Toronto, Chief Executive Brian Ferguson is expected to unveil plans for asset sales to cut debt assumed for the C$17 billion ($12.9 billion) March purchase of some ConocoPhillips assets in Canada. The deal effectively doubled Cenovus' assets, a move the company has said would allow it to utilize economies of scale to lower costs.
ConocoPhillips Sheds Canadian Oil & Gas Assets
ConocoPhillips on Wednesday agreed to sell oil sands and western Canadian natural gas assets to Cenovus Energy Inc for C$17.7 billion ($13.3 billion), making it the latest international oil major to pull back from a region where high costs and low crude prices have made it hard for large companies to make an acceptable return. For Calgary-based Cenovus, among Canada's largest producers, the deal doubles its production to 588…
Canada July Trade Deficit Shrinks as Non-energy Sector Shines
Canada's trade deficit in July unexpectedly shrank on stronger non-energy exports, a sector the Bank of Canada says is crucial to helping revive an economy hit by low oil prices. Statistics Canada said on Friday that the July deficit was C$2.49 billion ($1.90 billion), lower than the C$3.25 billion shortfall predicted by analysts in a Reuters poll and below the record C$3.97 billion in June. Exports jumped by 3.4 percent, the biggest month-on-month gain since last December…
Canada Economy to Rebound After Energy Slump
Canada's economy should rebound "over the course of the year" from the impact of a wildfire in its energy heartland, Finance Minister Bill Morneau said on Saturday on the sidelines of a G20 meeting in Chengdu, China. The fire in the province of Alberta is estimated to have cut daily oil production by more than 1 million barrels and the Bank of Canada estimates it will shave 1.25 percentage points off economic growth in the second quarter.
Canada Trade Deficit Hits Near Record Despite Energy Export Jump
The value of Canadian energy exports surged in May even as the industry was coping with a major Alberta wildfire, but improved oil sales were not enough to prevent the second biggest trade deficit on record, Statistics Canada data showed on Wednesday. The C$3.28 billion ($2.52 billion) deficit, the 21st in a row, was much larger than the C$2.70 billion shortfall predicted by analysts in a Reuters poll. The record high was the revised C$3.32 billion seen in April.
Canadian Banks Not over the Worst Impact from Oil Crunch
Canada's banks are not over the worst of the impact from the oil crunch and face further hefty losses as energy firms struggle to pay back loans and consumers in oil-producing regions suffer, analysts and investors say. The country's biggest five lenders, including Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia, all set aside more funds to cover bad loans to oil & gas firms in the second quarter but their provisions remain relatively low compared to U.S. peers.
U.S. Oil & Gas Lenders Demand Liquidity Floors
Banks are increasingly requiring U.S. oil and gas companies to maintain minimum levels of liquidity, an unusual step that could help reduce the risk of being exposed to companies struggling to maintain operations and repay debt. One of the energy companies hardest-hit by so-called minimum liquidity covenants is Chesapeake Energy Corp, according to a Reuters review of regulatory filings. Chesapeake must maintain $500 million in cash and other assets that can be easily converted to cash at all times…
National Bank of Canada's Q2 Energy Loan Set Asides Soar
May 5 (Reuters) - National Bank of Canada estimated that it would set aside C$250 million ($195 million), before taxes, in the quarter ended April to cover bad loans to the oil and gas industry. The lender said on Thursday it expects provisions for credit losses, which totals C$183 million after tax, to reduce earnings per share by about 54 Canadian cents in the second quarter. The provision is much higher than C$17 million National Bank had set aside to cover bad energy loans in the first quarter.
TSX Jumps With Oil, Closes 2.6 % Higher
Canada's main stock index scored its biggest rally in more than four years on Friday, led by oil and gas stocks as crude prices surged and investors welcomed hints of more stimulus from global central banks. Sharp gains on Thursday and Friday left the index 2.6 percent higher for the week, supported by a recovery in crude oil prices and optimism that central banks in Europe and Japan will increase policy stimulus. "The market was becoming extremely oversold in the short run," said Irwin Michael, portfolio manager at ABC Funds.
Bay St Down as Energy Shares Fall with Oil
Canada's main stock index was down for the second day in a row on Friday as energy shares fell alongside the price of oil and financial shares came under pressure. U.S. crude prices were down 1.5 percent to $59.86 a barrel after Saudi Arabia said it stood ready to raise output to new records. The energy sector led the way down, falling 1 percent. Among the laggards, Suncor Energy fell 1.1 percent to C$35.14, while Canadian Oil Sands dropped 2.4 percent to C$9.99.
Shell Signs $15.3b Bridge Loan
Royal Dutch Shell (RDSa.L) has agreed a 10.07 billion pound ($15.28 billion) bridge loan from a group of relationship banks backing its 47 billion pound takeover of smaller rival BG Group (BG.L), the company announced on Friday. The two-year loan replaces a 3.025 billion pound interim bridge loan that was provided in early April by Bank of America Merrill Lynch. The bridge loan will be used, along with existing cash, to cover the 13.2 billion pound cash portion of the cash and share deal.
Bank of Canada Cite Oil Price Shock at G20
The oil price shock has been front and center at meetings of the Group of 20 (G20) leading economies, Bank of Canada Governor Stephen Poloz said on Tuesday, but nothing he has heard at the talks so far has changed his economic outlook. Speaking in an interview with Reuters and another news outlet, Poloz also rejected the notion that he has been purposefully talking down the Canadian dollar, saying the currency has moved on what the economy has done.
TSX Boosted by Repsol Purchase of Talisman
Canada's main stock index jumped on Tuesday, with Talisman Energy Inc surging 46 percent after Spanish oil major Repsol agreed to buy the independent producer for $13 billion. The Toronto Stock Exchange's S&P/TSX composite index was up 172.61 points, or 1.26 percent, at 13,877.75 in mid-morning trading. "People are recognising that there is a difference between stock prices and business value," said Barry Schwartz, a portfolio manager at Baskin Financial Services.
Oil Plunge Hits Energy Firms' Outlook Hard
The plunge in oil prices has significantly dampened the outlook for Canadian companies tied to the energy sector, though overall business sentiment remains positive with sales expected to grow at a slightly faster pace this year, a Bank of Canada survey showed on Monday. The central bank's quarterly business outlook survey showed that companies anticipating a positive impact from the U.S. economic recovery are more optimistic than others.
