The Economy
Ending NAFTA Would Hurt Canada, U.S. Growth, Says Report
According to a report issued by Bank of Montreal on Monday, the failure to reach a new trade agreement between Canada, the U.S. and Mexico would lead to a 0.2% reduction in U.S. GDP and 1% decrease in Canadian GDP over the next five years.
If a NAFTA deal does not materialize, trade among the three countries would be subject to tariffs set by the World Trade Organization. Pursuant to the report, the industries that would suffer the biggest losses are automotive and textiles.
Senate To Vote On Tax Plan This Week
The U.S. Senate plans to vote on the tax bill that was voted out of the Finance Committee last Thursday. The bill is a major priority for both Republican lawmakers and President Donald Trump. Several senators have expressed concerns about the bill, including its potential to expand the federal deficit.
The Markets
Bitcoin Skyrockets To Record High, Approaching $10,000
Having already hit a record high over the weekend, Bitcoin continued to soar on Monday, now sitting at close to $9,600. This price surge brings Bitcoin’s market cap to over $163 billion, according to Coinmarketcap.
Meredith To Buy Time Inc For $2.8 Billion
U.S. media company Meredith Corp. (NYSE:MDP) plans to buy magazine publisher Time Inc. (NASDAQ:TIME) in a $2.8 billion all-cash deal, backed by billionaire brothers Charles and David Koch. Meredith previously tried to acquire Time in 2013.
Oil Prices Decline On Higher U.S. Supply, Doubts Over Russia
Oil prices fell by 1% on Monday on prospects of higher U.S. oil supply and uncertainty over Russia’s stance in joining the OPEC nations to extend the production cut. The price drop may also be a market reaction to a potential restart of the Keystone pipeline.
Top Active Stocks
Square (NYSE:SQ) plummeted by 16% on Monday despite Bitcoin — based on which the company has launched a pilot program — hitting an all-time high. Various analysts have also downgraded Square, citing macroeconomic and credit-related risks.
As mentioned, Meredith Corp. (NYSE:MDP) intends to buy Time Inc. (NASDAQ:TIME) with the backing of the Koch brothers. Meredith and Time went up by 10.7% and 9.5% respectively on Monday.
Strong Black Friday sales and Cyber Monday spending forecast numbers drove Amazon (NASDAQ:AMZN) past the $1,200-per-share mark for the first time. Record online sales numbers were posted by the company for Black Friday and Thanksgiving last week.
Western Digital Corp. (NYSE:WDC) shares tumbled by 6.7% on Monday as Morgan Stanley downgraded several chipmaker stocks including the company, citing lower flash memory prices and uninspiring earnings growth next year.
Bazaarvoice Inc. (NASDAQ:BV) saw its shares jump by 13% on Monday as the marketing technology company entered an agreement to sell itself to Marlin Equity Partners for approximately $521 million. Bazaarvoice will be a privately held company after the transaction, which is expected to close in Q1 2018.
CIENA Corp. (NASDAQ:CIEN) shares jumped by 2.4% after Bank of America upgraded the company’s stock rating to buy from neutral. Its target price has also been raised to $30.
Featured image: Depositphotos/ Primakov
