
The Daily Chase: StatsCan says GDP accelerated in Q4 ; Canadian banks are 4 for 4
BNN Bloomberg
We got the final read this morning on how the Canadian economy rebounded and turned around late last year from 2020’s pandemic lows.
We got the final read this morning on how the Canadian economy rebounded and turned around late last year from 2020’s pandemic lows. Statistic Canada said the economy grew at an annual rate of 6.7 per cent in the fourth quarter of 2021. It’s the last major data point to hit the tape before the Bank of Canada Key interest rate decision tomorrow.
CANADA’S BIG BANKS ARE FOUR FOR FOUR
Canadian bank earnings season continues. Bank of Montreal was the first out of the gate this morning, topping analysts expectations in the first-quarter, driven by strength in its capital markets division. Meanwhile, Scotiabank’s Q1 profit was driven by strength in its Canadian and International banking units. On Monday, Scotia announced it has reached a deal to pay just over a billion dollars to acquire Grupo Said's remaining 16.8 per cent stake in Scotiabank Chile, which increases its ownership in the Chilean unit to 99.8 per cent.
PEMBINA, KKR FORM JOINT VENTURE
A big deal in the Canadian energy patch was announced this morning. Pembina Pipeline and private equity giant KKR are forming a joint venture to combine their Western Canadian natural gas processing units. That joint venture will be 60 per cent owned by Pembina, with KKR owning the remaining 40 per cent. There's another aspect to the deal - the new joint venture will also acquire the Canadian assets from Energy Transfer, one of KKR’s current partners. In all, those deals are valued at $11.4 billion.
ENERGY PRICES TICK HIGHER