MARKET RECAP at 4 pm ET

The S&P 500 ended slightly lower as

investors bet on a more hawkish-than-
Coming Up - On Monday
expected Federal Reserve response to A survey from the Institute for Supply Stellantis NV North American COO
a strong payrolls report. Longer-dated Management is scheduled to show its Mark Stewart are scheduled to speak
Treasury yields and the dollar fell. Oil non-manufacturing PMI fell to 53.1 in at the Automotive News Congress to
dipped in a choppy session ahead of November from 54.4 in October. The be held in Detroit.
the OPEC+ meeting on Sunday. Gold Commerce Department is expected to
prices retreated from a near 4-month report that factory orders rose 0.7% in The S&P Global services and
high. October after increasing 0.3% in composite PMI data for Brazil for
September. The S&P Global November is due for release.
STOCKS Close Chng % Chng Yr-high Yr-low composite PMI final and services Separately, the national statistics
DJIA 34429.88 34.87 0.10 36952.65 28660.94 PMI final are also due for release. agency of Mexico is scheduled to
Nasdaq 11461.50 -20.95 -0.18 15852.14 10088.83 release consumer confidence index
S&P 500 4071.70 -4.87 -0.12 4818.62 3491.58 Ford Motor Co CEO Jim Farley and data for November.
Toronto 20488.35 -37.10 -0.18 22213.07 17873.18
FTSE 7556.23 -2.26 -0.03 7687.27 6707.62
Eurofirst 1751.99 -2.47 -0.14 1921.56 1506.25 KEY ECONOMIC EVENTS
Nikkei 27777.90 -448.18 -1.59 29388.16 24681.74
Events ET Poll Prior
Hang Seng 18675.35 -61.09 -0.33 25050.59 14597.31
S&P Global Composite Final PMI for Nov 0945 -- 46.3
TREASURIES Yield Price S&P Global Services PMI Final for Nov 0945 -- 46.1
10-year 3.4844 12 /32 Employment Trends for Nov 1000 -- 119.57
2-year 4.2697 -1 /32 Durables ex-defence, R mm for Oct 1000 -- 0.8%
5-year 3.6468 5 /32
Durable goods, R mm for Oct 1000 -- 1.0%
30-year 3.5414 57 /32
Factory orders mm for Oct 1000 0.7% 0.3%
Durables ex-transport R mm for Oct 1000 -- 0.5%
FOREX Last % Chng
Non-defence cap ex-air R mm for Oct 1000 -- 0.7%
Euro/Dollar 1.0533 0.10 Factory ex-transport mm for Oct 1000 -- -0.1%
Dollar/Yen 134.33 -0.69
Sterling/Dollar 1.2283 0.24
ISM N-Manufacturing PMI for Nov 1000 53.1 54.4
Dollar/CAD 1.3466 0.25 ISM N-Manufacturing Business Activity for Nov 1000 -- 55.7
USD/CNH (Offshore) 7.0166 -0.30 ISM N-Manufacturing Employment Index for Nov 1000 -- 49.1
ISM N-Manufacturing New Orders Index for Nov 1000 -- 56.5
COMMODITIES ($) Price Chng % Chng ISM N-Manufacturing Price Paid Index for Nov 1000 -- 70.7
Front Month Crude /barrel 80.14 -1.08 -1.33
Spot gold (NY/oz) 1797.39 -5.50 -0.31

Coming Up - Week Ahead

Copper U.S. (front month/lb) 0.0386 0.0004 1.17
CRB Index Total Return 299.18 -2.97 -0.98

S&P 500 Price $ Chng % Chng

GAINERS On the U.S. economic tap, the Labor The Labor Department is expected to
Enphase Energy Inc 336.00 22.00 7.01 Department is scheduled to report a report on Friday the producer price
Solaredge Technologies Inc 308.77 13.00 4.40 rise in initial jobless claims on index for final demand rose 7.2% in
Huntington Ingalls Industries Inc 240.66 9.76 4.22 Thursday to 230,000 for the week the 12 months through November,
LOSERS
ended Dec. 3, from 225,000 in the compared to an 8.0% rise in the year-
PayPal Holdings Inc 74.66 -3.87 -4.93
Valero Energy Corp 127.11 -4.92 -3.73
previous week. Continued jobless ago period. On a month-on-month
EQT Corp 39.98 -1.54 -3.71 claims data is also due for release. basis, the producer price index for
final demand likely remained
unchanged at 0.2% in November. The
producer price index, excluding
food and energy, likely fell 5.9% in
November. The Commerce
Department is set to report on Tuesday
a U.S. trade deficit of $79.1 billion in
October, up from a deficit of $73.3
billion in the previous month. On
Friday, the University of Michigan is set
to report that preliminary December
reading on the overall index on
consumer sentiment rose to 57.0
from 56.8 in the previous month.
Meanwhile, the Commerce Department
is scheduled to release wholesale
inventories data on the same day.
Costco Wholesale Corp on Thursday
is expected to post a rise in first-quarter
revenue, benefiting from a resilient
demand for its fresh food, grocery and
fuel offerings even in the face of
decades-high inflation. Investors will be
on the lookout for comments from the
company on impacts from inflation,
stronger dollar, shift in consumer
behavior and trends during the
Thanksgiving weekend.
A file photo of a sign seen outside a Costco Wholesale store in Glenview, Illinois, U.S., May 24,
2016. REUTERS/Jim Young
On Thursday, U.S. oil major Exxon
Mobil Corp is expected to release
details of its capital spending and oil
production plans through 2027. The
company will also hold a conference
call with analysts to update its
corporate plan thereafter.
The Bank of Canada is expected to
increase the interest rate to 4.25% from
3.75% when it announces its rate
decision on Wednesday. Separately,
Sharon Kozicki, deputy governor at
the Bank of Canada, will give an
economic progress report on Thursday.
Lululemon Athletica Inc on Thursday
is expected to report a rise in third-
quarter revenue, benefiting from strong
demand for its sportswear and
athleisure apparel as well as price
increases. Investors will look out for
comments on a shift in consumer
spending, excess inventory, supply-
chain disruptions, impact of the Russia-
Ukraine conflict and COVID-19
lockdowns in China.
Former Theranos Inc President
Ramesh "Sunny" Balwani is
2
scheduled to be sentenced on
Wednesday by a U.S. judge on his
convictions for defrauding investors in
the blood testing startup and patients
who received flawed tests.
On Friday, Turquoise Hill
shareholders will vote on Rio Tinto's
$3.3-billion bid to buy them out, which
would deliver to Rio majority ownership
and control of the giant Oyu Tolgoi
copper mine in Mongolia.
Canada's Ivey Purchasing Managers
Index data is due for release on
Tuesday. Statistics Canada is set to
release the trade balance report for
October on Tuesday and the Canadian
industries' capacity utilisation report
for the third quarter on Friday.
The Brazilian central bank's rate
decision is expected on Wednesday.
Inflation data for November in Brazil
as measured by the IGP-DI price
index, and auto sales data for
November are also due for release on
Wednesday. Brazil's retail sales data
for October is due for release on
Thursday.
On Wednesday, Mexico's central bank
will publish its financial stability
report. Mexico's inflation, producer
price index and consumer price
index data are expected on Thursday.
Argentina's industrial output data for
October is due for release on
Wednesday. On Tuesday, Chile's
central bank is expected to announce
its interest rate decision. Chile's
inflation and trade balance data for
November are due on Wednesday.
Peru's central bank interest rate
decision is scheduled for Wednesday.
LIVECHAT-REUTERS GLOBAL
MARKETS FORUM
Reuters FX analyst Jeremy Boulton
discusses G7 currencies and select EM
FX pairs. (0600 ET/1100 GMT) To join
the discussion, click here
Market Monitor
The S&P 500 closed slightly lower
although major indexes rallied off their
worst levels of the day, as the
November payrolls report fueled
expectations the Federal Reserve
would maintain its path of interest rate
hikes to combat inflation. "If anything, I
am actually encouraged by how the
market is clawing its way back from the
level we were at today, it is another
indication the market is looking for at
least a seasonal December rally," said
Sam Stovall, chief investment strategist
at CFRA in New York. "The market is
beginning to look across the valley and
say, 'OK, a year from now the Fed will
likely be on hold and considering
cutting rates.'" The S&P 500 fell 0.12%
to 4,071.70, the Nasdaq composite
index declined 0.18% to 11,461.50 and
the Dow Jones Industrial Average
was up 0.10% at 34,429.88. For the
week, the Dow added 0.24%, the S&P likely to slow and as investors took growing rumblings that OPEC might try
500 rose 1.13% and the Nasdaq profits from earlier gains after jobs data to shock and awe the market at their
gained 2.10%. and wage inflation were surprisingly weekend meeting," said Phil Flynn, an
strong in November and muddied the analyst at Price Futures group. OPEC+
Treasury yields pared sharp gains outlook for how hawkish the U.S. is widely expected to stick to its latest
after a strong jobs report for November central bank will be. Chicago Fed target of reducing oil production by 2
showed a resilient labor market with President Charles Evans said that the million barrels per day (bpd) when it
rising wages, a potential thorn for the pace of increases is likely to slow, but meets on Sunday, but some analysts
Federal Reserve as it moves to slow its added that the U.S. central bank will believe that crude prices could fall if the
hiking of interest rates to tame high likely need to raise borrowing costs to a group does not make further cuts.
inflation. The acceleration in average "slightly higher" peak than envisioned Brent crude futures were down 1.17%
hourly earnings and a third-straight in forecasts from September. at $85.86 per barrel. U.S. West Texas
drop in labor force participation will Richmond Fed President Thomas Intermediate crude futures fell 1.27%
likely trouble Fed policymakers, said Barkin also said the United States is to $80.19 a barrel.
Joe LaVorgna, chief U.S. economist at likely in a sustained period in which
SMBC Nikko Securities in New York. there will remain a shortage of workers, Gold prices slipped, retreating from a
"Their intention from what Powell has complicating the Fed's aim of getting near-four month high, after robust U.S.
said and from what the latest data labor demand back into balance. The jobs data fanned concerns that the
show is that they will keep rates up at dollar index was down 0.15% at Federal Reserve might stick with its
these levels until it's clear inflation is 104.58. The euro gained 0.10% to aggressive monetary policy tightening.
trending lower," he said, referring to the $1.0532. The greenback slipped "With the U.S. jobs number coming in
U.S. central bank chairman, Jerome 0.72% against the Japanese yen to much stronger than expected... what
Powell. The two-year notes were 134.29 yen. we're seeing is the concern that the
down 1/32, yielding 4.2697. The Fed may need to go further with their
benchmark 10-year notes rose 12/32, Oil prices slipped in choppy trading expected interest rate hikes," said
to yield 3.4844% and the 30- year ahead of a meeting of the Organization David Meger, director of metals trading
bonds were up 1-24/32, yielding of the Petroleum Exporting Countries at High Ridge Future. Spot gold fell
3.5422%. and its allies (OPEC+) on Sunday and 0.28% to $1,797.81 per ounce, after
an EU ban on Russian crude on earlier hitting its highest since Aug. 10
The dollar dipped as a Federal Monday. "Traders will be hesitant to be at $1,804.46. U.S. gold futures were
Reserve official said rate hikes are short over the weekend if there are down 0.20% at $1,811.50 per ounce.

3
Top News
U.S. labor market shrugs off
recession fears; keeps Fed on
tightening path
U.S. employers hired more workers
than expected in November and
increased wages, shrugging off
mounting worries of a recession, but
that will probably not stop the Federal
Reserve from slowing the pace of its
interest rate hikes starting this month.
Despite the strong job growth, some
details of the Labor Department's
closely watched employment report
were a bit weak, which economists said
could be flagging upcoming labor
market weakness. Household
employment decreased for a second
straight month. About 186,000 people
left the labor force, keeping the
unemployment rate unchanged at
3.7%. Nonfarm payrolls increased by
263,000 jobs last month. Data for
October was revised higher to show
payrolls rising 284,000 instead of
261,000 as previously reported.
Monthly job growth of 100,000 is
needed to keep pace with growth in the
labor force. Economists polled by
Exchange President Lynn Martin said the investment announced on Friday
Reuters had forecast payrolls
institutional investors will be unlikely are already underway, with others
increasing 200,000. With the labor
embrace crypto without clearer rules. planned to begin early next year, Pfizer
market still tight, average hourly
"There was no regulatory framework, said in a press release. At the plant in
earnings increased 0.6% after
and an institutional investor is not going Ireland, expansion is expected to begin
advancing 0.5% in October. That
to really dip their toe in a meaningful in 2024 and to be completed in 2027,
raised the annual increase in wages to
way in a market unless they the company said. Meanwhile, French
5.1% from 4.9% in October. Wage
understand what the regulatory drugmaker Sanofi said that if it decides
growth peaked at 5.6% in March.
framework is," Martin said. to bid for biotech company Horizon
Therapeutics, it would do so in cash.
After FTX collapse, pressure builds
Pfizer to invest more than $2.5 To read more, click here
for tougher crypto rules
billion to expand European
Regulators must step in to protect
manufacturing Florida mulls U-turn on move to
crypto investors after the collapse of
Pfizer is investing more than $2.5 strip Disney theme-parks of self-
FTX, financial industry executives and
billion at its drug making plants in governing status – FT
lawmakers said at the Reuters NEXT
Belgium and Ireland, gearing up to Florida lawmakers are mulling plans to
conference this week, the latest call for
launch new products it hopes can reverse a move that would strip Walt
tougher oversight of a sector prone to
replace lost revenue as patents expire Disney of its right to operate a private
meltdowns. "The collapse of something
and COVID-19 vaccine sales decline. government around its famous theme-
as major as FTX just illustrates the
The drugmaker said it plans to spend parks, the Financial Times reported,
importance of transparency,
more than 1.2 billion euros to expand citing people briefed on the plan. The
importance of appropriate regulatory
its Puurs, Belgium, manufacturing site, state lawmakers are working on a
protection, regulatory requirements for
matching the investment at its Dublin, compromise that would allow Disney to
all financial activities," Laura Cha,
Ireland, plant announced on Thursday. keep the arrangement largely in place
chairman of Hong Kong Exchanges
In Belgium, some projects related to with a few modifications, the FT report
and Clearing said. New York Stock

4
said. A spokesperson at DeSantis'
office said that the governor "does not
make U-turns," but added that a plan
was in the works and would soon be
released. "We will have an even
playing field for businesses in Florida,
and the state certainly owes no special
favors to one company. Disney's debts
will not fall on taxpayers of Florida."
Separately, Disney Channel will stop
broadcasting in Russia from Dec. 14,
the Kommersant newspaper reported,
citing other media. To read more, click
here
Musk delivers first Tesla truck, but
no update on output, pricing
Tesla Chief Executive Elon Musk
delivered the company's first heavy-
duty Semi on Thursday to PepsiCo
without offering updated forecasts for
the truck's pricing, production plans or
how much cargo it could haul. Musk,
who appeared onstage at an event at
Tesla's Nevada plant, said the battery-
powered, long-haul truck would reduce
highway emissions, outperform existing
diesel models on power and safety and
spin-off a fast-charging technology
Tesla would use in its upcoming
Cybertruck pickup. Musk said the Semi
has been doing test runs between
Tesla's Sparks, Nevada factory and its
plant in Fremont, California. Tesla said
it had completed a 500-mile drive on a
single charge, with the Semi and cargo
weighing in at 81,000 pounds in total. .
Separately, Uber and self-driving
technology company Aurora Innovation
will expand their driverless pilot
program in Texas to meet increased
delivery demand during the holidays.
To read more, click here
Twitter suspends Kanye West's
account again
Twitter suspended the account of Ye,
the artist formerly known as Kanye
West again, just two months after it
was reinstated, because Elon Musk
said the rapper violated the platform's
rules prohibiting incitement to violence.
Ye's account showed a notice that it
was suspended, after one of his posts
had earlier appeared to show a
swastika symbol inside a Star of David.
"I tried my best. Despite that, he again
violated our rule against incitement to
violence. Account will be suspended,"
Musk tweeted in reply to a Twitter user
who said "Elon Fix Kanye Please". Ye,
who had more than 30 million followers
on Twitter before his suspension, did
not respond to requests for comment. It
was not immediately clear if Ye would
be allowed back on Twitter and the
company did not respond to requests
for comment. Ye posted a screenshot
on Trump's Truth Social platform,
showing his Twitter account would be
suspended for 12 hours.
Amazon's media chief Jeff
Blackburn to retire
Amazon.com's top media executive
Jeff Blackburn plans to retire at the
start of 2023, the e-commerce giant
said. The company said that the media
and entertainment businesses, led by
Blackburn since May last year, will be
overseen by two current executives,
Mike Hopkins and Steve Boom, who
will report directly to CEO Andy Jassy.
The businesses include Prime Video,
Amazon Studios, Music, Audible,
Games, and Twitch. Blackburn, who
also served as senior vice president at
Amazon, joined Amazon in 1998 and
guided the company through its initial
public offering prospectus at Deutsche
Bank. "I've decided to spend 2023
differently, giving more time to family,
and feel strongly this is the right
decision for me," said Blackburn. Over
the past year and a half, Blackburn was
a key figure behind the success of
shows like "Rings of Power" as well as
the acquisition of movie studio MGM
this year, said Amazon.
Wall Street bankers to see bonuses
shrink as dealmaking sputters -
Bloomberg Law
Wall Street banks are weighing plans
to slash bonuses this year, Bloomberg
Law reported, as investment banking
comes under pressure from choppy
markets and a high interest-rate
environment. Citigroup and Bank of
America are considering cutting bonus
pools by as much as 30%, the report
said, citing people with knowledge of
the internal deliberations. JPMorgan
Chase is also planning bonus cuts,
5
according to a source familiar with the
matter. Goldman Sachs Group is also
planning to shrink the year-end
bonuses for traders at its global
markets unit by a low double-digit
percentage, a separate report from
Bloomberg News said, citing people
with knowledge of the discussions.
EQT-THQ Appalachia latest U.S.
energy deal to face regulatory delay
Natural gas producer EQT said the
U.S. antitrust regulator has asked for
more information on its planned $5.2
billion buyout of THQ Appalachia I LLC
and associated pipeline infrastructure.
"We think the deal will get done and
aren't surprised by the requests in the
(second request) process given the
increased scrutiny in the current
environment," said Gabriele Sorbara,
analyst at Siebert Williams Shank, in
an emailed comment. EQT, the biggest
U.S. natural gas producer, said it plans
to cooperate with the regulator's
request. It has begun talks with THQ's
pipeline operator XcL Midstream and
THQ itself to amend deal terms in case
it does not close by Dec. 30 as
originally planned.
United Airlines nears deal with
Boeing for major 787 order –
sources
United Airlines is close to reaching a
deal with Boeing for a major 787
Dreamliner order, two sources briefed
on the matter told Reuters. The precise
size of the order could not immediately
be determined but is expected to be
significant and announced as soon as
this month, the sources said. The Wall
Street Journal, which reported the plan
earlier, said United was close to
ordering dozens of 787 Dreamliners.
United and Boeing both declined to
comment. United had 64 787
Dreamliners at the end of September
and will have 68 by the end of 2022.
The Federal Aviation Administration
cleared the way for deliveries to
resume after the agency approved
Boeing's inspection and retrofit plan
needed to meet certification standards
in July.
The Almaty Television Tower peeks out from under a blanket of thick fog in Almaty, Kazakhstan, December 1. REUTERS/Pavel Mikheyev
Insight and Analysis
COLUMN-Dodging recession could
whiplash markets: Mike Dolan
Recession of some sort next year is
fast becoming consensus - to such an
extent that financial markets could find
themselves whiplashed if it doesn't
materialise. The gist of most 2023
outlooks is for a year of contracting
activity at some point, disinflation and
peaking interest rates. The investment
upshot is a bias for bonds, a snubbing
of the overvalued dollar and a volatile
year for equities that will struggle to get
much beyond current levels in 12
months. Energy prices, Ukraine and
China's reopening remain the biggest
wild cards. may endure through early
next year. But neither incoming hard
economic numbers nor many senior
policymakers have fully bought into the
recession idea just yet.
Blackstone REIT restriction a
possible warning sign for markets
While there has been little wider fallout
from this week's surge in redemption
requests at an unlisted Blackstone real
estate income trust (REIT), it is being
read by some as a warning sign.
Blackstone limited withdrawals from its
$69 billion unlisted REIT on Thursday
after redemption requests hit pre-set
limits amid investor concerns it was
slow to adjust valuations as interest
rate surged, a source said. The
development is yet another reminder of
the risks facing not just sectors that are
sensitive to higher interest rates but
also broader financial markets, which
have rallied sharply on hopes that
interest rate hikes will slow. Investors
said they expected further declines in
REITs and the property sector.
6
FOCUS-Merck could keep its patent
edge by shifting Keytruda cancer
drug to a simple shot
U.S. drugmaker Merck hopes to patent
a new formulation of its $20 billion
cancer immunotherapy Keytruda that
can be injected under the skin, allowing
it to protect its best-selling drug from
competition expected as soon as 2028.
For years Merck has relied on Keytruda
to fuel its growth. The treatment,
approved in 2014, harnesses the
body's own immune system to fight
cancers with dramatic results. Against
advanced lung cancer, it has led to a
five-year survival rate in about one-
quarter of people compared to 5% of
people historically. How much hospitals
and doctors embrace the method could
reflect how they will be impacted by the
change financially.
CANADA
Market Monitor COMING UP - ON MONDAY

Statistics Canada is expected to

Canada's main stock index fell after release Canadian building permits
data showed that the country's for October.
economy had added more-than- TSE's S&P/TSX composite Price C$ Chng % Chng
anticipated jobs in November.
GAINERS
Tilray Brands Inc 6.15 0.54 9.63
The Toronto Stock Exchange's S&P/ Canopy Growth Corp 5.76 0.48 9.09
TSX composite index ended 0.20% Cronos Group Inc 4.67 0.27 6.14
lower at 20,484.05. BELLUS Health Inc 13.71 0.56 4.26
Algoma Steel Group Inc 9.17 0.30 3.38
LOSERS
The U.S. dollar up 0.24% against its
Wesdome Gold Mines Ltd 8.97 -0.84 -8.56
Canadian counterpart at C$1.3464. Canadian Western Bank 24.28 -1.14 -4.48
REUTERS/Mark Blinch Nuvei Corp 40.05 -1.65 -3.96
ECN Capital Corp 2.99 -0.12 -3.86
Brookfield Asset Management 60.75 -2.02 -3.22
Inc

Top News
Canada's November jobless rate
edges down ahead of rate decision
The Canadian economy added a
limited number of jobs in November
and the unemployment rate came in
lower than expected as fewer people
looked for work, official data showed, in
a tepid report that may bolster the
chances for a normal-sized interest
rate increase next week. Canada
added 10,100 jobs in November,
broadly in line with the forecast gain of
5,000, while the jobless rate fell to
5.1%, Statistics Canada said. The
November report follows a monster
gain of 108,300 jobs in October and
comes just days ahead of a Bank of
Canada policy-setting meeting on
Wednesday. "To my mind, this is
evidence of a decelerating economy,"
said Andrew Kelvin, chief Canada
strategist at TD Securities. He said he
sees a 25-basis-point hike next week
but that there is an equal chance of a
bigger increase. "As a result of the only
modest gain in headline employment
and the absence of any signs of
accelerating wage growth, we continue
to expect the Bank of Canada to hike
rates just 25 basis points next week,"
said Royce Mendes, director and head
of macro strategy at Desjardins.
Average hourly wages of permanent
employees increased 5.4% in
November versus 5.5% the previous
month, Statscan said. The small jobs
gain was entirely for full-time work and
mostly in the services sector, while the
participation rate edged down to 64.8%
from 64.9% in October.
REUTERS/Chris Helgren
CIBC to appeal New York court's
ruling in Cerberus lawsuit
Canadian Imperial Bank of Commerce
(CIBC) said it would appeal a New
York court's ruling in a lawsuit brought
against the bank by an entity of U.S.
private equity firm Cerberus Capital
Management. Cerberus had alleged
that CIBC defaulted on certain
payments and is seeking damages of
$1.067 billion. CIBC said it had
satisfied all its obligations. The court
issued a liability ruling against the
lender, but has not determined how
much it will have to pay. The parties
will get to present arguments on the
damages at a hearing on Dec. 19,
CIBC said. The lawsuit, filed in 2015,
relates to an October 2008 transaction
in which CIBC issued a limited
recourse note - a form of debt - to the
Cerberus-controlled fund in exchange
for an investment. CIBC said it expects
to recognize a provision tied to the
case in its first-quarter results due in
February, without specifying numbers.
The bank had so far believed that the
case "was more likely than not to
prevail at trial", it added.
Canadian pension fund CPPI to
issue first 'reverse inquiry' bond on
investor demand
Canada's largest pension fund CPP
Investments (CPPI) is set to raise
C$500 million in its first "reverse
inquiry" bond, a debt instrument that is
issued in response to investor demand,
a top official told Reuters. The bond
offer gives Canadian institutional
investors a rare opportunity to buy into

7
TC Energy's logo pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic
the pension manager's debt at an
attractive coupon. The offer is unique
as it is tailored according to the terms
determined by the investors or bond
dealers instead of an issuer. It is the
first such bond issued by a pension
fund in Canada, and is popular among
provinces tapping debt markets. "What
we are really attempting to do here is to
provide investors greater flexibility by
providing stronger voice in the program
by providing reverse inquiry," Sam
Dorri, Managing Director, Financing
CPPI to Reuters. CPPI's three-year
bond will open on Dec. 6 and offer a
coupon of 3.95% with interest paid out
twice a year, Dorri added. Unlike
regular bonds, the terms of CPPI's
offer were determined by investors
seeking to buy these debt.
DEALTALK-'No sacred cows' as
pipeline company TC Energy
prepares for C$5 billion asset sales
As TC Energy prepares to unload C$5
billion in assets next year, investors
and analysts say the North American
pipeline operator has plenty of options
without touching its core gas business.
Chief Executive Francois Poirier
cleared up any ambiguities this week
when asked how much of TC's portfolio
is in the shop window. "I remember
reading a book once called, 'Sacred
Cows Make the Best Burgers,'" Poirier
said at the company's investor day.
"There are no sacred cows." Calgary,
Alberta-based TC is widely known for
its Keystone oil pipeline, a critical artery
for moving Canadian oil to U.S. refiners
that dominated headlines over the past
8
decade for an expansion that ultimately
failed. But moving natural gas around
the United States, Canada and Mexico
is the bigger part of TC's business. TC
should consider selling Keystone along
with its stake in Ontario's Bruce Power
nuclear facility, since they are not part
of its core business, said Rob
Thummel, senior portfolio manager at
TC shareholder Tortoise Capital
Advisors. "As far as a strategy, they're
trying to figure out, do they want to be
a utility company or more of an
infrastructure play?" Thummel said.
"The stuff that's not core, you could
look at selling and implementing a
buyback program or look at energy
transition ideas."
WEALTH NEWS
FED POLICY
As the Fed plans to 'raise and hold,' new projections
may show the cost
New U.S. Federal Reserve projections, issued later this
month alongside an expected half-point interest rate
increase, could show the central bank's target rate
headed toward levels last seen on the eve of the 2007
financial crisis, and will also reveal policymakers' best
guess of the fallout that will have for a so-far resilient job
market. A stronger-than-expected U.S. employment report
for November showed firms added 263,000 workers, with
hourly wages rising at a 5.1% annual rate and the size of
the labor force itself shrinking - all signs of a job market
both tight and speeding ahead even as the Fed hopes it
will begin to cool. Coupled with an only modest decline in
inflation so far, new projections from the Fed's 19
policymakers are likely to show rates continuing to rise
and to remain elevated through 2023, countering current A file photo of the Federal Reserve building seen in Washington, U.S., Janu-
ary 26. REUTERS/Joshua Roberts
market expectations for rate cuts by the end of next year.

LEGISLATION
Biden signs bill to block U.S. railroad strike
President Joe Biden signed legislation to block a national U.S. railroad strike that could have devastated the American
economy.

FED CLIMATE PROPOSITION

U.S. Fed proposes framework for how banks manage climate-related financial risk
The U.S. Federal Reserve Board proposed new guidance for how large banking institutions manage climate-related financial
risks, following proposals from other key financial regulators.

OPEC POLICY
OPEC+ seen heading for oil policy rollover, cut not ruled out
OPEC+ is likely to stick to its current oil output target when it meets on Sunday, two OPEC+ sources said, although some say
a further output cut is not completely off the table given concern about economic growth and demand.

BofA NOTE
Credit fund outflows in 2022 unwind last year's inflows -BofA
Investors have withdrawn $316 billion from credit funds this year, unwinding all of the previous year's inflows, BofA Global
Research said in a note.

FEES
Crypto meltdown a boon for bankruptcy lawyers
Turmoil in the cryptocurrency industry has rattled major exchanges and sent the value of digital assets tumbling, but at least
one group stands to gain: bankruptcy lawyers.

POLL
U.S. house prices to fall 12% peak to trough: analysts
A retreat in U.S. house prices will extend into next year, although the expected 12% peak-to-trough drop predicted by analysts
polled by Reuters would be just about one-third as severe as the last market correction 15 years ago.

9
ON THE RADAR
Events ET Poll Prior
Tue: International trade for Oct 0830 -$79.1 bln -$73.3 bln
Goods trade balance (R) for Oct 0830 -- -$99.00 bln

Wed: Unit labor costs revised for Q3 0830 3.2% 3.5%

Productivity revised for Q3 0830 0.5% 0.3%
Consumer credit for Oct 1500 $28.50 bln $24.98 bln

Thu: Initial jobless claims 0830 230,000 225,000

Jobless claims 4-week average 0830 -- 228,750
Continued jobless claims 0830 -- 1.608 mln

Fri: PPI Machine Manufacturing for Nov 0830 -- 171.3

PPI Final demand yy for Nov 0830 7.2% 8.0%
PPI Final demand mm for Nov 0830 0.2% 0.2%
PPI exfood/energy yy for Nov 0830 5.9% 6.7%
PPI exfood/energy mm for Nov 0830 0.2% 0.0%
PPI ex food/energy/transport yy for Nov 0830 -- 5.4%
PPI ex food/energy/transport mm for Nov 0830 -- 0.2%
U Mich Sentiment Preliminary for Dec 1000 57.0 56.8
U Mich Conditions Preliminary for Dec 1000 58.0 58.8
U Mich Expectations Preliminary for Dec 1000 55.3 55.6
U Mich 1-year inflation Preliminary for Dec 1000 -- 4.9%
U Mich 5-year inflation Inf Preliminary for Dec 1000 -- 3.0%
Wholesale inventories, R mm for Oct 1000 0.8% 0.8%
Wholesale sales mm for Oct 1000 -- 0.4%