Global Market Update
Canadian Markets
Canada’s TSX dropped almost 2 percent as lingering concerns about a global trade war weighed on market sentiment. Investors were also closely watching the Bank of Canada’s upcoming interest rate decision later in the week, which added to the uncertainty in the market. Along with this, both gold and oil prices fell, which had a negative impact on the commodities sector.
Adding fuel to the fire, Mark Carney, the new leader of the Canadian Liberal Party, launched a sharp attack on the U.S. government over its recent tariff impositions. Carney criticized the tariffs, which had escalated the ongoing trade conflict, warning that this could prolong the market downturn and further destabilize global trade relations. His remarks further heightened concerns that the trade war could have lasting negative effects on market stability.
American Stocks
Meanwhile, U.S. stocks were deep in the red, with the Nasdaq experiencing a sharp drop of over 4% as tariff fears and broader economic concerns continued to weigh heavily on investor sentiment. These developments were exacerbated by growing uncertainty over the impact of escalating tariffs on corporate earnings and consumer prices, which sparked fears of a potential economic slowdown.
European Markets
In Europe, stock indexes also saw declines, though they fared better than their U.S. counterparts. HSBC, in a surprising move, downgraded U.S. stocks while offering a bullish outlook on European equities. The bank’s analysis pointed to the resilience of European markets amid the broader global turbulence, which offered a glimmer of optimism in an otherwise bleak landscape. However, the European markets remained under pressure, with concerns about a slowing global economy and the ongoing trade tensions.
In the U.K., stocks followed a similar downward trend, with the pound continuing to weaken against the dollar, further exacerbating the market’s challenges. The British government announced plans to implement significant cuts to welfare spending by billions of pounds, aiming to reduce the national deficit. This austerity measure has sparked concerns over its potential to harm consumer spending and economic growth, which added to the negative sentiment in the U.K. stock market.
Corporate Stock News
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Alimentation Couche-Tard Inc: Japan’s Seven & i Holdings has begun talks with Alimentation Couche-Tard regarding a store sale plan that could pave the way for ACT’s $47 billion takeover bid. The two companies are exploring the viability of divesting stores to facilitate a buyout offer. Seven & i also announced the resignation of Joseph Michael DePinto as a director, though he remains CEO of 7-Eleven Inc.
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Alphabet Inc: The U.S. Department of Justice dropped its proposal to force Google to sell its AI investments, including those in Anthropic, in a bid to boost competition in online search. However, Google is still under scrutiny, with the DOJ and 38 state attorneys general seeking a court order to address Google’s search monopoly.
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Artisan Partners Asset Management Inc: Artisan Partners opposed Seven & i Holdings’ CEO succession plan and urged the company to reconsider a takeover offer from Alimentation Couche-Tard. The activist investor plans to vote against key board members, citing their failure to secure financing for a $58 billion management buyout.
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Bally’s Corp: Bally’s has proposed a $158 million recapitalization package to Star Entertainment, which could grant it majority control. Star, a debt-laden Australian casino company, is reviewing the proposal as part of its efforts to avoid voluntary administration.
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Barrick Gold Corp: Barrick Gold is still engaged in negotiations with Mali over its assets in the country, with a resolution expected soon. While there are no major updates, the company remains committed to resolving the dispute.
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Beacon Roofing Supply Inc and QXO Inc: QXO is negotiating a potential $11 billion deal for Beacon Roofing Supply. Shares of Beacon rose as the companies continue discussions toward a definitive agreement.
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BHP Group Ltd: BHP has acquired the right to buy a 75% stake in Cobre’s Kitlanya projects in Botswana, in exchange for $25 million in funding for exploration. The deal is part of BHP’s ongoing exploration efforts in the Kalahari copper projects.
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BlackRock Inc: The Panama Maritime Authority is investigating the transaction between CK Hutchison and a consortium backed by BlackRock, which gained control of key Panama Canal ports. The authority is reviewing the deal to ensure public interest is protected.
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Boeing Co: A federal judge certified a class action against Boeing over safety issues prior to a January 2024 incident with a 737 MAX 9. Additionally, Boeing announced that its employees’ bonuses would be linked to company-wide performance rather than individual business units.
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Cognizant Technology Solutions Corp: Activist investor Mantle Ridge has built a $1 billion stake in Cognizant, stating the company’s shares are undervalued. Mantle Ridge is working behind the scenes and not planning to nominate directors but is advocating for changes to enhance shareholder value.
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Dexcom Inc: Dexcom received a warning letter from the FDA regarding issues in its manufacturing processes at its San Diego and Mesa facilities. The company does not expect a material impact on its manufacturing capacity or sales guidance for 2025.
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Ford Motor Co: Ford will inject up to $4.76 billion into its struggling German operations to revive its European business, focusing on cost reduction and competitiveness.
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Full Truck Alliance Co Ltd: Full Truck Alliance, also known as Manbang in China, may revisit plans for a second listing in Hong Kong, following an improvement in investor sentiment and rising geopolitical tensions between the U.S. and China. The company is also investing in AI for better order fulfillment.
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General Mills & PepsiCo Inc: U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. plans to meet with executives from leading food companies like General Mills and PepsiCo on March 10 to discuss industry issues, according to Politico.
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Hims & Hers Health Inc: Hims & Hers will discontinue its personalized acne treatments business, Apostrophe, which it acquired in 2021. The company will continue offering other dermatology treatments but will cancel all current Apostrophe subscriptions.
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KKR & Co Inc: Assura is considering a £2.1 billion offer from KKR and Stonepeak Partners. The proposed offer is at a 31.9% premium to Assura’s share price on February 13 and has been deemed more attractive than a competing all-share merger proposal.
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Logility Supply Chain Solutions Inc: Logility has received an unsolicited proposal to acquire its shares for $15 each. The company’s board has reaffirmed its recommendation to vote in favor of an offer from Aptean, but is engaging with the unsolicited bidder.
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Novo Nordisk A/S: Novo Nordisk’s experimental drug CagriSema helped overweight or obese patients with type 2 diabetes lose 15.7% of their weight after 68 weeks. The drug, which combines two active ingredients, was shown to outperform a placebo in a Phase III trial.
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Robinhood Markets Inc: Robinhood agreed to pay $29.75 million to resolve probes by the Financial Industry Regulatory Authority (FINRA) related to its compliance practices. The settlement includes a $26 million civil fine and $3.75 million in restitution to customers.
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