(Illustration: Camille Charbonneau)
NEWS ESSENTIALS
• Expected decline in US bank profits this week. Major U.S. banks are expected to report lower fourth-quarter profits this week as they hoard reserve funds ahead of the economic downturn hitting investment banks.
• First Quantum in negotiations with Panama to settle the mining dispute. First Quantum Minerals Ltd said it was in talks with the government of Panama to avoid halting operations at its mine in the Central American country over a contract dispute.
• TC Energy does not yet know how much the cleanup will cost in Kansas. TC Energy said on Monday it was too early to speculate on the cost of cleaning up the 14,000 barrel spill from its Keystone pipeline, after it reached a cleanup agreement with the US Environmental Protection Agency. (EPA).
• Pfizer rules out a generic version for China of its Paxlovid treatment. Pfizer is not in talks with Chinese authorities to provide Beijing with a license to use a generic version of its COVID-19 treatment Paxlovid, but is in discussion on a price for the official product, according to this said Monday the general manager of the pharmaceutical Albert Bourla.
• Apple would replace a key Broadcom chip with its own design. Apple is planning to replace a Broadcom chip in its devices with one of its own in-house design in 2025, Bloomberg News reported Monday, citing people familiar with the matter.
TRENDS BEFORE OPENING
Futures for Canada’s main stock index are down, following the trend seen on Wall Street ahead of Federal Reserve Chairman Jerome Powell’s speech. European stocks fell after two US central bank officials adopted a favorable tone for rate hikes last night. The Japanese Nikkei ended the session at a two-week high, benefiting from the advance in the technology sector, but gains were limited by caution ahead of next week’s Bank of Japan meeting. The strength of the US dollar limited the rise in gold prices. Oil prices are down slightly due to further rate hikes expected in the United States, which could slow economic growth and limit demand for gasoline.
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TITLES TO FOLLOW
• First Quantum Minerals: the miner said it was in talks with the government of Panama to avoid halting operations at its mine in the Central American country over a contract dispute. The company was informed on December 21 of a government order asking it to draw up a plan to stop operating Cobre Panama within 10 working days after it missed the deadline for signing a new contract due to disagreements over royalties and taxes. First Quantum said its division would present a plan to place the mine under “care and maintenance” for government review, but that operation of the mine was continuing as normal for now. The company recalled that it continues to engage with the government of Panama to reach an agreement that is “fair and equitable for both parties”.
• TC Energy: the company said on Monday it was too early to speculate on the cost of cleaning up the 14,000-barrel spill from its Keystone pipeline, after it reached a cleanup agreement with the US Environmental Protection Agency (EPA). Keystone is a major export pipeline transporting 622,000 barrels per day of crude oil from Alberta to US refineries. It was temporarily closed in December after it ruptured Dec. 7 and leaked oil into a Kansas stream. The pipeline resumed service at the end of December. Cleanup work is ongoing and TC has not yet publicly identified the cause of the spill. “We share the EPA’s priority on safety and mitigating environmental risk, and we are committed to upholding the agreement as we move forward in our response, recovery, and restoration,” said TC.