Thursday, September 14, 2006, 4:15 PM ET (Thomson Financial Corporate
Services): Major resource mergers in the energy and yellow metals sectors
were offset by troubling statistics from both sides of the border today, as
retail sales, factory shipments, and inventory data numbers began to spur
fears of a slowdown and/or inflation. The TSX stumbled, as the day began
with blue chips Boeing and GE being downgraded on reports of declines in
orders. Natural gas prices also hit a two-year low, oil failed to stay
above US$64, and gold continued its decline, despite news of the
acquisition of Cambior by Iamgold and the creation of a new Canadian gold
mogul.
* The S&P/TSX Stock Exchange Composite Index tumbled 128.46 points, or 1.09%.
* U.S. business inventories data was released; while 0.5% was expected,
the figure for July was 0.6%, or US$1.347 trillion. Also, retail sales
weakened, but still rose, in August, edging up 0.2%, down from the heights
of July but above the 0.1% loss predicted. Import prices shot up 0.8%,
spurring inflation fears.
* In Canadian stats, July shipments from factories lifted 0.8% from
June, with a total value of C$49.9 billion; however, if adjusted for high
commodity prices (especially petroleum), the figures turned into a decline
of 0.6% to C$45.1 billion. Analysts had expected a decline of 0.1%.
* Canadian Natural Resources will spend US$4.08 billion for Anadarko
Canada, Anadarko Petroleum's western Canadian oil and gas properties.
Houston-based Anadarko put the company on the block to help finance its
purchase of Kerr- McGee and Western Gas Resources for C$21 billion. CNR
will boost its natural gas output by nearly a quarter.
* Gold giants Iamgold and Cambior are poised to merge and create the
tenth- largest gold mining concern in the world, with a value of over US$3
billion. Cambior shareholders will get 0.42 of an Iamgold share for each
Cambior share, a current value of C$4.83 per share. Since Iamgold is
officially buying Cambior, the new entity will be called Iamgold; the
combined operations are expected to produce 1.1 million ounces of gold per
year. Elsewhere in the yellow metal markets, a U.S. court denied NovaGold's
attempt to block a hostile takeover by Barrick with an injunction, while
admitting that the two companies have a "genuine dispute" over terms. The
Alaskan circuit said that NovaGold shareholders had sufficient information
to hold an informed vote.
* Within the telecom group, Telus won a five-year, C$140 million
contract from the Ontario government to manage a mammoth IP data network,
linking 1,500 offices over the huge province. So far, the contract does not
include VoiP (voice over internet protocol), but Telus is hoping it will in
the future. Coincidentally, the company is also holding a groundbreaking
for its new, C$250 million office tower in downtown Toronto tomorrow.
* As the U.S. pushed for sanctions from Iran, Iran insisted it would
not cut off oil supplies, and the IMF predicted prices could rise and stunt
global growth, the market for crude rendered its opinion by raising the
price over US$64 briefly before settling down US$0.75 at US$63.22.
-- Carolyn.Crapo@contractor.Thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
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SOURCE Thomson Financial Corporate Group
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