North American Morning Briefing: Dow Set For New -2-
TMX to Acquire Remaining 78% of VettaFi Common Units for $848M; Deal Brings Total Amount to Be Paid for Full Ownership to $1.03B; TMX Made Strategic Investments in 1H for About 22% of VettaFi Common Units; Deal Expected to Be Accretive to Adjusted EPS in Year One; TMX to Finance Deal With Committed Bank Debt; TMX to Assume $100M VettaFi Debt to Retire With Funds Under New Term Loan; VettaFi Will Be Included in TMX's Global Solutions, Insights & Analytics Segment; Deal to Close in January 2024; Deal Increases Proportion of Revenue From Recurring, Global Sources; Deal Expands Capabilities in Data-Driven Analytics, Indexing Solutions; VettaFi Is a US-based, Indexing, Digital Distribution, Analytics Company
Economic Insight
Canadian Household Debt Service Ratio Elevated and Rising
Canadian household debt ratios continued to improve in 3Q, though modestly, as elevated interest rates weigh on loan demand, but high-debt service costs are pressuring consumer spending, BMO Economics' Shelly Kaushik notes.
The country's household debt-to-income ratio edged down 0.3 percentage point to 181.6% and on an adjusted basis disposable incomes rose faster than debt. Still, the household debt service ratio rose to a record-high 15.2% and given the lag in mortgage renewals that ratio is likely to climb, the economist says.
"With rates likely to remain above levels seen in the post-GFC period, household debt metrics are poised to follow a downward path." (robb.stewart@wsj.com; @RobbMStewart)
Expected Major Events for Thursday
00:01/UK: Nov RICS Residential Market Survey
04:30/JPN: Oct Revised Industrial Production
09:00/FRA: Dec IEA Oil Market Report
09:00/GER: Ifo Economic Forecast
11:00/FRA: 3Q OECD Quarterly National Accounts G20 GDP growth
12:00/UK: Agents' Summary of Business Conditions
12:00/UK: UK interest rate decision
13:00/RUS: Weekly International Reserves
13:30/CAN: Oct New motor vehicle sales
13:30/US: Nov Import & Export Price Indexes
13:30/CAN: Oct Monthly Survey of Manufacturing
13:30/US: Nov Advance Monthly Sales for Retail & Food Services
13:30/US: 12/09 Unemployment Insurance Weekly Claims Report - Initial Claims
13:30/US: U.S. Weekly Export Sales
15:00/US: Oct Manufacturing & Trade: Inventories & Sales
15:30/US: 12/08 EIA Weekly Natural Gas Storage Report
21:30/US: Foreign Central Bank Holdings
21:30/US: Federal Discount Window Borrowings
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Thursday
Aberdeen International (AAB.T,AABVF) is expected to report for 3Q.
AltiGen Communications (ATGN) is expected to report for 4Q.
Cenntro Electric Group Ltd (CENN) is expected to report for 3Q.
Costco Wholesale Corp (COST) is expected to report $3.44 for 1Q.
Daily Journal (DJCO) is expected to report for 4Q.
Empire Co (EMLAF,EMP.A.T) is expected to report for 2Q.
Enghouse Systems (ENGH.T) is expected to report $0.38 for 4Q.
Good Times Restaurants Inc (GTIM) is expected to report for 4Q.
HEXO Corp (HEXO,HEXO-T) is expected to report for 1Q.
Jabil Inc (JBL) is expected to report $2.35 for 1Q.
Lennar Corp - A Share (LEN,LENB) is expected to report $4.59 for 4Q.
Live Ventures Inc (LIVE) is expected to report for 4Q.
Mega Uranium (MGA.T) is expected to report for 4Q.
Mesa Air Group Inc (MESA) is expected to report $0.22 for 4Q.
NASB Financial (NASB) is expected to report for 3Q.
PhenixFIN Corp (PFX) is expected to report for 4Q.
Quanex Building Products Corp (NX) is expected to report $0.72 for 4Q.
RCI Hospitality Holdings Inc (RICK) is expected to report $1.02 for 4Q.
RVL Pharmaceuticals PLC (RVLPQ) is expected to report for 3Q.
Scholastic Corp (SCHL) is expected to report $2.65 for 2Q.
Starcore International Mines Ltd (SAM.T) is expected to report for 2Q.
Transat AT (TRZ.T) is expected to report $-1.75 for 4Q.
WeWork Inc (WEWKQ) is expected to report for 3Q.
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ANALYST RATINGS ACTIONS
Agree Realty Cut to Neutral From Outperform by Exane BNP Paribas
Ally Financial Inc Raised to Equal-Weight From Underweight by Morgan Stanley
Aveanna Healthcare Cut to Underweight From Neutral by JP Morgan
Bread Financial Cut to Underweight From Equal-Weight by Morgan Stanley
C4 Therapeutics Raised to Buy From Hold by Stifel
Capital One Raised to Equal-Weight From Underweight by Morgan Stanley
Church & Dwight Cut to Sell From Neutral by Citigroup
Coherent Cut to Equal-Weight From Overweight by Morgan Stanley
DR Horton Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Evofem Biosciences Cut to Hold From Buy by Laidlaw & Co.
Health Catalyst Raised to Overweight From Neutral by JP Morgan
Hertz Global Cut to Perform From Outperform by Oppenheimer
Hillman Solutions Cut to Equal-Weight From Overweight by Barclays
Incyte Raised to Outperform From Market Perform by Leerink Partners
Inspire Medical Systems Cut to Equal-Weight From Overweight by Wells Fargo
Johnson & Johnson Cut to Equal-Weight From Overweight by Wells Fargo
MFA Financial Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Model N Cut to Neutral From Overweight by JP Morgan
Mohawk Raised to Equal-Weight From Underweight by Barclays
MSCI Inc Raised to Overweight From Equal-Weight by Morgan Stanley
Netstreit Cut to Neutral From Outperform by Exane BNP Paribas
Opendoor Technologies Raised to Market Perform From Underperform by Keefe, Bruyette & Woods
Q2 Holdings Raised to Neutral From Underweight by Piper Sandler
R1 RCM Cut to Neutral From Overweight by JP Morgan
Radian Group Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Realty Income Raised to Outperform From Neutral by Exane BNP Paribas
RxSight Raised to Overweight From Equal-Weight by Wells Fargo
Trex Co Cut to Underweight From Equal-Weight by Barclays
Visteon Cut to Neutral From Outperform by Exane BNP Paribas
Walker & Dunlop Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
Western Midstream Ptrs Cut to Underperform From Buy by B of A Securities
Xponential Fitness Raised to Buy From Hold by Stifel
Zurn Elkay Water Soltns Cut to Sector Weight From Overweight by Keybanc
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 14, 2023 06:05 ET (11:05 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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