The Daily Chase: Suncor makes peace with activist; Markets extend their rally

Suncor Energy has reached a truce with activist investor Elliott Investment Management. The agreement will see three new independent directors immediately join Suncor’s Board of Directors. And the oil sands giant has also agreed to conduct a strategic review of its Petro-Canada gas station business. Full details on BNNBloomberg.ca, and we’re monitoring feedback from the investment community.

MARKET WATCH

US futures suggest major markets will jump in early trading today, extending Friday’s gains by around 2%. US bank earnings are once again guiding investors. Goldman Sachs shares rose more than 4% after the Wall Street firm’s trading desks had an explosive quarter (notably with fixed income, currencies and commodities up 55%), this which mitigated the impact of weakness in Goldman’s investment banking unit. . It was a similar story for Bank of America, but with more modest revenue growth from the trading business. BofA benefited from higher interest rates, with net interest income jumping 22% year-over-year.

Meanwhile, the price of West Texas Intermediate crude rose 3% this morning, undermining Joe Biden’s optimism on Friday after his meeting with Saudi Crown Prince Mohammed Bin Salman. It should be noted, however, that the US Dollar is trading lower against all other major currencies this morning, effectively driving up the price of WTI and other commodities priced in USD.

MACKLEM, FREELAND EYE SOFT LANDING

The two most powerful economic decision makers in this country talk about the prospects of a soft landing. Bank of Canada Governor Tiff Macklem used the term nine times in his Q&A with the Canadian Federation of Independent Business, based on the transcript posted online. What would that soft landing look like? “A quarter and three quarters growth (next year) is positive growth. The economy is still growing. It’s a soft landing. This is not a recession,” he said. And in an exclusive interview with our partners at Bloomberg Television over the weekend, Deputy Prime Minister and Finance Minister Chrystia Freeland said “it’s entirely reasonable to hope for a soft landing for Canada.” We will test this trust. An encouraging sign: There has been an uptick in optimism about personal finances and the economy in general in the latest Bloomberg Nanos Canadian Confidence Index.

WAITING FOR FREEDOM CASE

Friday was the deadline for Rogers Communications, Shaw Communications and Quebecor to reach a definitive agreement for the latter to buy Shaw’s Freedom Mobile division as Rogers tries to grease the wheels of its Shaw takeover. Friday came and went with no news, however. Like Saturday and Sunday. And so, at least for now, the market operates in a vacuum of crucial information. A Rogers spokesperson told us this morning that the three companies “continue to pursue” the agreement and that negotiations are “progressing as planned.” We acknowledge here that when the Freedom deal was announced, the July 15 deadline came with the caveat of “or such other date as the parties agree.”

OTHER NOTABLE STORIES

  • Toronto-based urban design firm IBI Group has agreed to be acquired by Amsterdam-based Arcadis in an $873 million deal worth $19.50 per share. This equates to a premium of approximately 30% over IBI’s last closing price on the Toronto Stock Exchange.
  • Franco-Nevada is paying $250 million for a gold stream from G Mining Ventures’ Tocantinzinho project in Brazil. It has also committed to participate in a US$116.4 million private placement of G Mining common stock and will also provide the company with a US$75 million term loan.
  • Precision Drilling announced this morning that it will pay $38.2 million to acquire the well servicing and leasing business of High Arctic Energy Services.

NEWS RELEASES / NOTABLE EVENTS

  • Notable Data: Housing Starts in Canada
  • Notable Profits: PrairieSky Royalty, Bank of America, Goldman Sachs, IBM
  • The Farnborough International Airshow begins (until July 22)