Tuesday, March 31st13.0°C
25757
23613

Loonie down, traders look to possible Tim Hortons/Burger King deal, growth data

TORONTO - The Canadian dollar closed lower Monday as traders considered a potential merger and acquisition deal involving iconic restaurant chain Tim Hortons and looked ahead to the latest reading on economic growth.

The loonie was down 0.3 of a cent to 91.07 cents US.

Burger King is in merger talks with Tim Hortons in hopes of creating a new, publicly traded company with its headquarters in Canada. With a new base in Canada, Burger King, now based in Miami, could shave its U.S. tax bill. Tax inversions have become increasingly popular among U.S. companies trying to cut costs. The majority owner of Burger King, 3G Capital, would own the majority of shares of the new company.

It's not known what such a deal would be worth but, depending on the structure, it could have an impact on the dollar. Tim Hortons has a market capitalization of $9.5 billion and the loonie has been pushed higher in the past by big corporate deals.

That's because a foreign buyer acquiring a Canadian company will need Canadian currency to close the deal, boosting demand for the loonie on financial markets.

Meanwhile, Statistics Canada releases the June reading on gross domestic product growth on Friday. Economists expect that Statistics Canada will report that GDP grew by 0.2 per cent in June, which would translate into annualized growth of 2.6 per cent.

In the U.S., the durable goods report for July is out Tuesday and economists looked for a gain of seven per cent, reflecting a strong pickup in aircraft orders. Excluding transportation, durable goods orders were expected to rise by 0.4 per cent.

Elsewhere on currency markets, the euro traded at an 11-month low (1.3201 against the greenback) after European Central Bank president Mario Draghi said that medium-term inflation expectations had declined. Draghi told the Federal Reserve’s economic symposium on Friday that the bank is considering asset purchases to pump more money into Europe’s economy, though he gave no guidance on when that would happen.

On the commodity markets, October crude in New York dipped 30 cents to US$93.35 a barrel.

December gold fell $1.30 to US$1,278.90 an ounce, while September copper was up one cent to US$3.22 a pound.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14902.44-5.95
S&P CDNX680.07-0.26
DJIA17776.12-200.19
Nasdaq4900.88-46.56
S&P 5002067.89-18.35
CDN Dollar0.7888+0.0002
Gold1183.60-1.20
Oil47.46-1.22
Lumber277.10-2.20
Natural Gas2.637-0.007

 
Okanagan Companies
Pacific Safety0.125+0.010
Knighthawk0.010.00
QHR Technologies Inc1.48-0.02
Cantex0.03-0.01
Anavex Life Sciences0.211-0.004
Metalex Ventures0.04+0.00
Russel Metals24.04-0.36
Copper Mountain Mining1.16-0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.25+0.02
Decisive Dividend Corporation1.80+0.02

 



24910

FEATURED Property
780345415 Commonwealth Rd.
1 bedrooms 1 baths
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_





25482


Member of BC Press Council


25577