Top News and Market Updates: Bank of Canada Rates, Toronto Real Estate, Enbridge-Dominion Deal, EU Tech Rules, China's iPhone Ban

2023-09-06 20:09:52

(Illustration: Camille Charbonneau)

NEWS ESSENTIALS

• The Bank of Canada should maintain its rates after the economic slowdown in the second quarter. The Bank of Canada is expected to keep rates at 5%, their highest level in 22 years, after the economy unexpectedly slowed in the second quarter, analysts said.

• Real estate prices in Toronto fell for the third consecutive month in August. Real estate prices in the Greater Toronto Area fell in August for the third straight month as rising borrowing costs and economic uncertainty weighed on market activity.

• Enbridge is betting big on US gas with a $14 billion bid for Dominion utilities. Canadian natural gas pipeline company Enbridge will buy three utility companies from Dominion Energy for $14 billion including debt, creating North America’s largest natural gas supplier and doubling its gas distribution business.

• The core activities of big tech companies challenged by EU tech rules. The European Commission estimates that 22 services provided by six major online service technology companies, ranging from messaging to video sharing, are preventing market access for new entrants in its latest crackdown on large technology companies.

• China bans civil servants from using iPhones for work. China has ordered officials from central government agencies not to use Apple iPhones and other foreign-branded devices for work and not to bring them into the office, the report said. Wall Street Journalciting people familiar with the matter.

TRENDS BEFORE OPENING

Futures linked to the main Canadian stock index fell after weak data from China and Europe weighed on global sentiment, as investors eagerly await the decision of the Bank of Canada on interest rates, due later in the day. Wall Street futures fell as inflation worries kept investors on edge ahead of the release of key data, including the Federal Reserve report on the US economy. European stocks extended their losses for the sixth consecutive session. Japanese stocks closed at new highs as the weakest yen rate since November boosted automakers. The index Hang Seng closed lower and the Chinese benchmark fell, in anticipation of a slower contraction in Chinese exports in August. L’or retreated on the strength of the US dollar and Treasury yields as US interest rates are expected to remain elevated for longer. THE oil fell as investors brushed aside fears of supply cuts from Saudi Arabia and Russia.

TITLES TO FOLLOW

• Enbridge: The company will buy three services from Dominion Energy for 14 billion US dollars (B$US) including debt, the Canadian gas pipeline operator said on Tuesday, creating the largest natural gas supplier in North America. North and doubling its gas distribution activity. Transactions for East Ohio Gas, Questar Gas and Public Service Co of North Carolina will consist of US$9.4 billion in cash and US$4.6 in debt assumed. Upon closing, Enbridge will supply more than 9 billion cubic feet per day (bcfpd) of gas to approximately 7 million customers in Ohio, North Carolina, Utah, Idaho and Wyoming, making it the largest gas distributor by volume in North America. The transaction is expected to close in 2024, subject to approval by the Federal Trade Commission and the Committee for Foreign Investment in the United States, among others.