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Daily Pulse

Canada

Hudson’s Bay Co. Chairman Richard Baker may scrap an offer to take the struggling retailer private after regulators delayed a vote on the deal following complaints from a minority shareholder. The investor group that controls the owner of Saks Fifth Avenue is “evaluating next steps, including terminating the transaction,” according to a memo sent to advisers. The group plans to make a final decision in a week or so, according to the note.

Four British Columbia First Nations will argue that Canada failed to properly consult them on the impacts of the expansion of the Trans Mountain crude oil pipeline. The Tsleil-Waututh Nation, the Cold Water Indian Band, the Squamish Nation, and the Stó:lo Nation will ask the Federal Court of Appeal to quash the federal government’s June approval of the $4.4 billion project during three days of hearings that begin Dec. 16 in Vancouver. The 1,150-kilometer Trans Mountain expansion would triple capacity of an existing pipeline linking northern Alberta’s oil sands with a port near Vancouver to 890,000 barrels a day. The hearings will be the second time indigenous communities have challenged the federal government’s handling of the project.

United-States

International Flavors & Fragrances Inc. reached a $26.2 billion agreement for DuPont Inc.’s nutrition division, prevailing over Ireland’s Kerry Group Plc as it continues to expand in the fast-growing food-ingredients business. The transaction will create a new company comprised of the bidder’s assets and DuPont’s nutrition business. The new company will have an enterprise value of $45.4 billion, with DuPont shareholders getting a 55.4% stake and IFF shareholders getting 44.6%, the companies said in a statement Sunday after Bloomberg News reported the deal was near.

Europe

Britain’s Cineworld Group Plc is on track to become North America’s biggest operator of movie theaters with its plan to buy Canada’s Cineplex Inc. for C$2.15 billion ($1.64 billion). Cineworld will pay C$34 a share for Cineplex, a 42% premium to Friday’s closing price. The deal will be funded by $2.3 billion of loans.

President Recep Tayyip Erdogan threatened to close two critical NATO installations if the U.S. imposes sanctions over Turkey’s purchase of a Russian missile system, escalating a row that’s roiling the military alliance. The lira dropped the most in almost two months, the biggest decline among emerging-market currencies, as Erdogan’s high-stakes warning of possible retaliation sparked market concern.

Asia

The pickup in China’s economy in November adds to the optimism from the trade deal announced last week, though plenty of downside risks remain as the nation heads into 2020. Industrial output and private consumption were both much stronger than expected, with production jumping 6.2% from a year earlier and retail sales climbing 8%, data released Monday showed. At the same time, fixed-asset investment in the first 11 months of this year grew at 5.2%, the slowest pace since at least 1998.

The author

Michel Doucet

Michel Doucet

Vice-President and Portfolio Manager
After obtaining a Bachelor's degree from the Faculty of Social Sciences at the Université du Québec in Montréal and his Master’s degree, Michel Doucet began his career as a junior economist at the National Bank head office in Montreal. In 1992 he joined the institutional equities and fixed income group at Lévesque Beaubien Geoffrion as an economist and market analyst. Over the years, he has led various projects related to the North American and international economies as well as Canadian public finances. In 1996, the team of institutional economists to which he belongs was ranked first in Canada by Brendan Wood International. In August 1997, Mr. Doucet joined the personal services division of Lévesque Beaubien Geoffrion where he served as an economist, fixed income market analyst and vice president. In 2004, he joined the Desjardins Securities full service team as Vice President. He now occupies the roles of fixed income strategist, economist and portfolio manager. He manages the Securities Portfolio Advisory Group, advisor marketing and distribution of financial planning and insurance.