Wednesday, 28 Feb 2024

Gold Futures Settle Higher

Canadian Pacific Gains 7% After Regulator Approves Kansas City Acquisition

Shares of Canadian Pacific Railway Limited (CP) are gaining over 7% on Wednesday morning after the Surface Transportation Board, which oversees U.S. freight railroads, approved the company’s $31 billion acquisition of U.S. railroad Kansas City Southern.

CP is currently trading at $78.14, up $5.16 or 7.08%, on the NYSE. The stock opened its trading at $74.26 after closing Tuesday’s trading at $72.98. The stock has traded between $65.17 and $84.22 in the past 52-week period.

The board also has required an “unprecedented seven-year oversight period along with extensive data-reporting requirements”.

The acquisition combines the 6th and 7th largest U.S. railroads by revenue. The deal, which was announced 2021, has since closed but Kansas City shares were transferred to a trust and the railroad had to operate independently until the board made a decision.

European Economic News Preview: France Payroll Employment Data Due

Payroll employment from France is the only major economic report due on Thursday, headlining a light day for the European economic news.

At 1.30 am ET, France’s statistical office INSEE releases payroll employment data for the fourth quarter.

At 2.00 am ET, Statistics Sweden is scheduled to issue GDP, industrial production and new orders data for January.

At 3.00 am ET, the Czech Statistical Office publishes foreign trade data for January. The trade balance is forecast to show a surplus of CZK 15.3 billion compared to a shortfall of CZK 1.2 billion in December.

ThermoGenesis Holdings Surges 84%

Shares of ThermoGenesis Holdings, Inc. (THMO) are gaining over 84% on Wednesday morning after the company announced roll out of ReadyStart cGMP Suites for early-stage cell and gene therapy companies.

THMO is currently trading at $3.8884, up $1.7784 or 84.28%, on the Nasdaq, on a huge volume of 18 million shares, above average volume of 118 thousand. The stock opened its trading at $4.1800 after closing Tuesday’s trading at $2.1100. The stock has traded between $2.1100 and $40.5000 in the past 52-week period.

ThermoGenesis Holdings announced that the company is rolling out a new facility in the Sacramento metro area, containing a total of 12, class-7, ReadyStart cGMP Suites available for lease by early-stage life science and cell gene therapy companies.

The roll-out of the ReadyStart Suites is part of ThermoGenesis’ previously announced plan to transform from a medical device company to a contract development and manufacturing organization in the cell gene therapy field.

The facility is expected to be available for customers in the second or third quarter of this year. If fully occupied, the facility is anticipated to generate an estimated $10-16 million in annual revenue.

T-Mobile US To Buy Ka'ena Corp. For Up To $1.35 Bln In Cash, Stock

Wireless network operator T-Mobile US, Inc. (TMUS)said on Wednesday that it has inked a deal to acquire Ka’ena Corporation including its units and brands, for up to $1.35 billion in a combination of 39 percent cash and 61 percent stock.

However, T-Mobile noted that the actual price to be paid will be based upon Ka’ena’s performance during certain periods before and after the closing.

T-Mobile US expects transaction to slightly add to both core adjusted EBITDA and free cash flow, without having any impact on the company’s 2023 outlook or its ongoing share repurchase drive.

The list of brands and units to be acquired by TMUS include, Mint Mobile, a direct-to-consumer prepaid wireless brand, Ultra Mobile, a wireless service offering international calling options, and wholesaler Plum.

Mike Sievert, CEO of T-Mobile, said: “Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers on the Un-carrier’s leading 5G network and now we are excited to use our scale and owners’ economics to help supercharge it – and Ultra Mobile – into the future…”

This Is Not Shrimp Scampi

Nix the garlic (gasp!) for coriander seeds and a dollop of dill-speckled mayo for a subtle, speedy dish that’s all about the shrimp.

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By Melissa Clark

Gold Futures Settle Higher

Gold prices climbed higher on Wednesday on safe-haven buying as global stocks fell sharply due to a crisis in the banking sector following the collapse of Silicon Valley Bank and Signature Bank, as well as the debt woes at Swiss bank Credit Suisse.

The dollar’s strong uptick limited the yellow metal’s gains.

The dollar index, which climbed to 105.10 a little before noon, retreated slightly to around 104.90 subsequently, but still remained in positive territory with a gain of about 1.25%.

Gold futures for April ended higher by $20.40 at $1,931.30 an ounce.

Silver futures for May ended down $0.158 at $21.882 an ounce, while Copper futures for May settled at $3.8430 per pound, down $0.1600 from the previous close.

In U.S. economic news, data from the Commerce Department showed retail sales fell by 0.4% in February after spiking by an upwardly revised 3.2% in January. Economists had expected retail sales to decrease by 0.3% compared to the 3% surge originally reported for the previous month.

Producer prices in the U.S. unexpectedly edged slightly lower in the month of February, according to a report released by the Labor Department.

The Labor Department said its producer price index for final demand slipped by 0.1% in February after rising by a downwardly revised 0.3% in January. Economists had expected producer prices to increase by 0.3% compared to the 0.7% advance originally reported for the previous month.

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