On this day of love, it would seem that it is not being felt in the Euro zone as Q4 GDP fell 0.6%. That stat is causing the capital markets over there to sell off to the tune of approximately three quarters of a point. Asia showed solid gains (other than China as it is still closed until Monday) of about three quarters of a point.
Moving to North America, there seems to be lots of love in the air, but not enough to turn futures north as they are down by about a quarter point this morning. Bonds are rallying into the market slide by about the same amount.
The positive news in the US starts with the Weekly Jobless Claims which were well below estimates of 360000 at 341000 declining 27000 from last week. We then head to the consolidation room where Warren Buffet and his new date, private equity firm 3G Capital, have put an offer on the table to take HJ Heinz private at $72.50 per share which represents a 23% bump over yesterdays close. The deal valued at $28bn is the biggest ever in the food industry. Warren sees money in Ketchup!! The last kiss sees AMR (American Airlines) and US Air merging forming the largest airline on the planet. The merger which will need regulatory approval and will take the synergies of both companies to provide a more efficient travel experience.
In earnings news, two mandate positions are reporting today. RioCan beat estimates by a large amount and FFO (Funds From Operations) increased 16% to $116mn or $0.39 per share. CI Investments will also be releasing earnings today but had not done so as of writing this morning. Consensus estimates for the quarter are at $0.34 per share.
So today, with all the love in the air and the relatively positive news out there, we are in for a risk off day which would suggest a buying opportunity is on the horizon.
Kenneth A. Dick, BA, CIM, CFP, FCSI