Conditions in the currency market are beginning to settle as investors abandon their concerns of the subprime crisis hampering worldwide growth, bolstering the Canadian dollar. Overnight and early this morning, Asian, European, and American markets showed stability which investors speculate may drive up the demand for Canadian commodities; commodities account for almost half of Canadian exports.
N.L. to Announce Oil Deal on $6B Hebron Project: Sources
Newfoundland and Labrador is about to announce the signing a major oil deal on the $6-billion Hebron oilfield project after talks to develop the project fell apart slightly more than a year ago, CBC News has learned. Premier Danny Williams and representatives of Chevron Resources Canada are due to make an announcement later Wednesday that the Hebron project is back on again.
http://www.cbc.ca/money/story/2007/08/22/hebron-deal.html
Source: CBC
E*Trade and TD Ameritrade in Merger Talks: Report
Online brokerages TD Ameritrade Holding Corp. and E*Trade Financial Corp. have been in serious merger discussions for weeks but are not yet close to a deal, the Wall Street Journal reported. The paper’s Web site, which early on Wednesday cited people familiar with the matter, said consolidation of the two giants could shake up the industry, which went through a wave of consolidation after the dot.com bubble burst, by creating a dominant player.
http://www.canada.com/nationalpost/financialpost/story.html?id=690a28bd-4577-44b2-8be0-a3ee8a834b0d&k=9910
Source: Financial Post
Transat Holds Half Its Cash in Commercial Paper
Transat A.T. Inc., owner of Canadian charter carrier Air Transat, said almost half of its cash is invested in the asset-backed commercial paper market, which has seized up amid a global credit crunch. The transport company holds C$154.5 million ($146 million) in 10 commercial paper trusts, accounting for 45 percent of its C$340 million in cash investments, Montreal-based Transat said today in a statement.
http://www.bloomberg.com/apps/news?pid=20601082&sid=aawUqXGnJnMk&refer=canada
Source: Bloomberg
Currency Markets: USDCAD
Conditions in the currency market are beginning to settle as investors abandon their concerns of the subprime crisis hampering worldwide growth, bolstering the Canadian dollar. Overnight and early this morning, Asian, European, and American markets showed stability which investors speculate may drive up the demand for Canadian commodities; commodities account for almost half of Canadian exports. If the Bank of Canada feels confident with market stability they may be inclined to raise rates to quell the above target inflation figure seen yesterday. The Canadian dollar was last traded against the US dollar at 1.0617.
Equity Markets: S&P/TSX Index
The S&P/TSX index lunged forward this morning up over 150 points led by raw material producers and TD?s merger talks with ETrade. Raw material producer Teck Cominco headed the advance, gaining C$2.29 to C$45.24, following BHP Billiton?s record earnings report which indicated the credit crunch has not restrained the commodities business. Another big gainer was the 40 percent owner of TD Ameritrade Toronto-Dominion as TD Ameritrade engaged in merger talks with ETrade. The Toronto-Dominion Bank was up 77 cents to C$69.20. The S&P/TSX index was most recently quoted up 173.49 points to 13,412.20.
Fixed Income Markets: Canadian Government 10-Year Bond
Government bonds fell today after a long bout of risk aversion that resulted in their appreciation. Canadian government bonds increased 8 out of the last 10 sessions as the credit crunch instilled fear into investors. However, investors regained confidence as they dumped their concerns of the subprime fiasco suppressing growth, lowering the value of the Canadian government?s risk free securities. The Canadian government 10-year bond was last traded at 96.816, yielding 4.40 percent.
