Market news for Wednesday, May 29

Market news for Wednesday, May 29
Market news for Wednesday, May 29

(Illustration: Camille Charbonneau)

THE ESSENTIAL NEWS

• BMO misses profit due to high provisions for loan losses and weak US economy. Bank of Montreal missed analysts’ estimates for its quarterly profit, hurt by weakness in its U.S. segment and by setting aside more funds to cover potentially soured loans in an interest rate environment students.

• National Bank of Canada-Wealth management and dynamic markets boost profit in Q2. The National Bank of Canada recorded an increase in its net profit in the second quarter, thanks to the good performance of its wealth management division and its financial markets division.

• Anglo rejects BHP’s latest attempt to continue takeover negotiations. Anglo American on Wednesday rejected BHP Group’s request to extend the deadline to discuss a $49 billion takeover offer it described as highly complex, which could end a five-week quest by its largest great rival.

• ConocoPhillips buys Marathon Oil for US$22.5 billion. ConocoPhillips announced plans to buy Marathon Oil in an all-stock, $22.5 billion deal. Under the terms of the agreement, Marathon Oil shareholders will receive 0.255 0 shares of ConocoPhillips for each share of Marathon Oil common stock, representing a premium of 14.7% to the closing price of Marathon Oil stock on the 28th. May 2024.

• PwC becomes OpenAI’s first client. PwC will become the largest customer and first reseller of OpenAI’s enterprise product under a new deal, the accounting giant said, as businesses race to adopt and capitalize on artificial intelligence generative.

TRENDS BEFORE OPENING

Major Canadian stock indexes are falling, reflecting losses suffered by U.S. stock indexes and European stocks, as rising bond yields spark fears that interest rates could remain high for longer. On the Asian front, Chinese stocks finished slightly higher after the IMF revised its economic growth outlook upwards. The Japanese yen hits a four-week low against the US dollar as markets encourage investors to resume carry trades. Oil is nearing a four-week high on expectations of production cuts by major producers amid a high summer demand season, and gold prices are sliding.

(Re)read all the market news

HEADLINES TO FOLLOW

Results

• Bank of Montreal: The Canadian lender missed analysts’ estimates for quarterly profit, hurt by weakness in its U.S. segment and by setting aside more funds to cover loans that could turn sour in an environment high interest rates. Overall, provisions for loan losses stood at C$705 million for the second quarter, compared with analysts’ estimates of C$563.3 million, according to LSEG data. BMO’s net interest income fell 6% to C$4.52 billion. BMO’s adjusted net income fell from C$2.19 billion to C$2.03 billion for the quarter ended April 30. Per share, BMO earned 2.59 Canadian dollars, compared to estimates of 2.77 Canadian dollars.

• National bank of Canada: The company reported an increase in net profit in the second quarter, thanks to good performance in its wealth management and financial markets units. Profit at the bank’s wealth management unit rose 15% in the second quarter to C$205 million. The financial markets sector’s net profit was C$322 million, an increase of 20% from the previous year. National Bank of Canada’s profit rose to C$906 million, or C$2.54 per share, for the three months ended April 30, from C$832 million, or C$2.34. Canadians per share, the previous year.

Movements

• Toronto-Dominion Bank: Daniel Kerstein, after spending 15 years at Barclays, is joining Canadian bank Toronto-Dominion, according to a memo seen by Reuters on Tuesday. Daniel Kerstein, who led a team focused on shareholder activist advocacy and ESG consulting at Barclays, will be managing director of TD Bank’s M&A team, according to the memo. The document indicates that he will be based in New York.

Others

• Nutrien: The world’s largest potash producer on Tuesday declared an indefinite shutdown of three fertilizer blending facilities in Brazil as part of a broader reorganization aimed at coping with difficult market conditions. Nutrien confirmed the decision, which was only announced to its employees, in a statement to Reuters, adding that it was part of a strategy to prioritize efficiency and profitability. The company said it would rely on partners and its two other blenders in Brazil to supply fertilizer to local customers. “This decision allows Nutrien to reactivate (the factories) in the future, when the market scenario is more stable,” the press release specifies. Two of the plants are located in the state of Goias and the third is a new blender, in the state of Minas Gerais, which has not yet been put into operation.

• Emera: Private equity firm KKR will acquire Canadian energy company Emera’s indirect minority stake in the Labrador Island Link (LIL) green energy transmission project for C$1.19 billion, the two announced. companies Tuesday. The transaction, which is expected to close around June 4, consists of C$957 million in cash and C$235 million to assume Emera’s obligation to fund the remainder of the initial capital investment. . Proceeds from the transaction will be used to reduce Emera’s debt and support its investment opportunities in its regulated utility businesses, the companies said.

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