Top News and Market Updates: Fed Minutes, Oil Cooperation, Acquisition Deals, and More

2023-07-05 17:42:35

(Illustration: Camille Charbonneau)

NEWS ESSENTIALS

• Fed Minutes should offer some clues on rates. The Federal Reserve’s June policy meeting minutes to be released on Wednesday are expected to show active debate among policymakers who, on the whole, appear inclined to support more action to rein in inflation.

• Saudi Arabia says Russian-Saudi oil cooperation is strong. Russian-Saudi oil cooperation continues under the OPEC+ alliance, which will do “whatever is necessary” to support the market, Saudi Energy Minister Prince Abdulaziz bin Salman said during a meeting. a conference.

• Brookfield Reinsurance achète American Equity. Brookfield’s reinsurance arm will buy American Equity Investment Life Holding in a deal worth approximately US$4.3 billion, as the Canadian investment firm expands its insurance business, said both companies.

• Export restrictions are “just the start,” says a Chinese adviser. China’s export controls on metals used in semiconductors are ‘just the start’, an influential Chinese trade policy adviser has said, as Beijing escalates a tech battle with Washington days before Beijing’s visit. US Treasury Secretary Janet Yellen.

• The regulatory noose is tightening on redemptions of investment funds. Global regulators have proposed tougher rules for investment funds to increase their resilience to market shocks, while cracking down on “non-banks” who make up around half of the global financial sector.

TRENDS BEFORE OPENING

Major Canadian stock indexes fell, following declines in U.S. stock indexes ahead of the release of the Federal Reserve’s June meeting minutes, while Sino-U.S. tensions and weak economic data from Beijing further eased. the atmosphere. European stocks fell as slowing service-sector activity in the euro zone fueled fears of a hit to global growth. In Asian equity markets, the Japanese Nikkei closed lower as investors took profits after a recent rally, Fast Retailing dragged the index lower, while Chinese stocks ended in the red due to the slowdown. expansion of activity in the service sector. The US dollar stalled against other major currencies as gold prices rose. The oil benchmark, Brent, fell slightly on concerns about a slowing global economy.

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TITLES TO FOLLOW

Transactions

• Brookfield: The company’s reinsurance arm will buy American Equity Investment Life Holding in a deal worth approximately $4.3 billion, as the Canadian investment firm expands its insurance business, the two companies said. The cash and stock transaction, valued at US$55 per share, was originally offered by Brookfield in late June, the two companies said in a statement. That’s a 35% premium to AEL’s last close on the New York Stock Exchange before media reports last week of a possible takeover bid from Brookfield. Brookfield and AEL said the transaction consisted of $38.85 in cash and the balance in shares of Brookfield Asset Management.

Others

• Teck Resources: China investment corporation (CIC) said on Tuesday that its wholly-owned subsidiary Fullbloom Investment Corporation has sold some of its shares in Teck Resources. The company sold 3,000 Class B subordinate voting shares for gross proceeds of nearly C$169,000, at about C$56.30 apiece, CIC said. CIC said the transaction was undertaken to adjust its portfolio. Fullbloom now owns 50.8 million Class B shares of Teck, or approximately 9.895% of the issued and outstanding Class B shares.