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Daily Pulse

Canada

Suncor’s full-year production guidance has been revised to 680,000–710,000 boe/d. Guidance in its 2Q earnings presentation had been for upstream production of 740,000-780,000 boe/d.

Cogeco Inc.’s controlling family reiterated its rejection of a plan by Altice USA to acquire the business for $7.8 billion. Louis Audet, the designated representative of the Audet family, said that the controlling shares the family holds of Cogeco and indirectly of Cogeco Communications Inc. are not for sale.

United-States

The recent market selloff continues to bear the mark of a correction. A pullback had become nearly unavoidable. Growth stocks had moved vertically and reached furious valuations. Yet, bond yields were not declining anymore. The correction could run further as the bullish sentiment toward US stocks remains very elevated. Despite these dynamics, BCA Research is not yet concerned that the S&P 500 is about to enter a renewed bear market. Even if at the margin they are not easing anymore, monetary conditions remain simply too accommodative for a prolonged contraction to take hold.

Argentina has officially emerged from its ninth default after S&P Global raised its credit rating following the restructuring of $65 billion of overseas debt. S&P Global lifted the rating to CCC+ with a stable outlook from “selective default” after the country issued new bonds Sept. 4 to replace securities that had been in default since May. The ratings agency raised Argentina’s long-term foreign and local currency rating on both international and local law debt. Argentina’s upgrade out of default is the culmination of more than four months of negotiations with the country’s largest creditors which resulted in a deal worth roughly 55 cents on the dollar. That was enough for bondholders to exchange 99% of the nation’s international debt, granting about $38 billion in debt relief over the next 10 years.

Europe

Rising tension between the U.K. and European Union over trade is proving to be a boon for the nation’s first syndicated offering since June. The U.K.’s 15-year debt attracted bids in excess of 57 billion pounds ($75 billion). The bonds were priced at about 13 basis points over similar-maturity debt.

The Finnish state is buying shares of Nokia Oyj to send a signal that it’s ready to protect the maker of 5G mobile networks amid a geopolitical battle in which the U.S. has expressed interest in owning a part of the company. The state’s equity-asset manager Solidium Oy recently crossed the 5% threshold in Nokia shares, and now has about 1 billion euros ($1.2 billion) worth of stock.

Asia

President Donald Trump said he intends to curb the U.S. economic relationship with China, contrasting himself with Joe Biden by threatening to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts.

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.