Everything You Need to Know on Thursday: BCE and ServiceNow Expand Multi-year Strategic Agreement

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,369.80, up 0.07% from previous.

● Gold clings to record high amid U.S. rate-cut expectations

● Paladin Energy targets top uranium producer spot with Fission acquisition

● BCE and ServiceNow expand multi-year strategic agreement

● Tenaz Energy to buy NAM Offshore from Shell/ExxonMobil for 165 million euros

Today, the Canadian dollar is trading at 73.13 cents US, a slight decrease from previous close.

S&P/TSX 60 Index Standard Futures are trading at 1,369.80, up 0.07% from previous.

Gold prices remained strong, staying close to the record high reached previously, driven by increased expectations of earlier U.S. Federal Reserve rate cuts, which kept the dollar and Treasury yields in check.

Analysts like FXTM's Lukman Otunuga highlight gold's allure due to anticipation of U.S. rate reductions, a weaker dollar, and low Treasury yields. Further dovish signals from Fed officials and a cooling job market could push gold to new highs.

Fed officials like Christopher Waller and John Williams suggest a shift towards easier monetary policy, while Thomas Barkin notes encouraging declines in inflation.

Lower interest rates enhance the attractiveness of non-yielding gold. Analysts predict gold will trade higher in the second half of 2024. The World Gold Council reports that gold-backed ETFs had inflows for the second month in June.

Nonetheless, the price jump has dampened physical gold demand in Asia, with reduced buying and some selling, a typical market response according to StoneX's Rhona O'Connell. Buyers are expected to return as they adjust to new price levels.

Purdy, who has been in Canada to engage with federal officials regarding the deal, believes the combined entity will offer a significant alternative to investors in a market currently dominated by a few key players.

The merger is expected to facilitate investor attraction and ensure the completion of Fission's Patterson Lake South project by the decade's end. Paladin plans to finance the C$1.2 billion project through cash flow from its Langer Heinrich mine and traditional financing options.

Last month's C$1.14 billion all-stock deal signals a notable consolidation in the revitalizing uranium sector, driven by surging global demand and nuclear energy's role in reducing carbon emissions.

Paladin, based in Perth, Australia, anticipates an increased market valuation post-acquisition, enabling greater financial leverage for future endeavors. Purdy asserts that Paladin's size post-merger will attract financing opportunities not available to Fission as a standalone entity.

The deal awaits approval from the Canadian government amid heightened scrutiny over foreign involvement in critical minerals. However, Purdy reports a positive reception from officials in Ottawa, with expectations to finalize the acquisition in September.

Bell plans to broaden its utilization of ServiceNow's platform to enhance efficiency across various business segments, including Network, Customer and Field Service Operations, as well as Corporate Services. The statement highlighted that this expansion will enable Bell to automate its scheduling processes to more promptly fulfill customer requests, promising service delivery in "hours or days versus weeks."

This announcement marks a significant step in the ongoing relationship between the two companies, building upon their initial collaboration revealed last November.

The acquisition is slated for completion in mid-2025.

Projected to output nearly 11,000 barrels of oil equivalent per day (99% TTF2 natural gas), NAM Offshore is also anticipated to produce 90 million euros ($134 million) in free cash flow in 2024, based on the current strip prices.

President & CEO Anthony Marino of Tenaz stated, "Securing this acquisition aligns with our strategic objectives to enhance company value through purchases that offer significant organic investment potential."