MARKET MOVEMENTS:
–Brent crude oil is down 0.2% at $67.55 a barrel
–European benchmark gas falls 0.6% to 33.36 euros a megawatt-hour
–Gold futures are up 1.2% on $3,422.20 a troy ounce
–LME three-month copper futures climb 0.7% to $9,801.50 a metric ton
TOP STORY:
Cenovus Energy to Buy MEG Energy in $5.68 Billion Oil-Sands Tie-Up
Cenovus Energy is buying rival MEG Energy for 7.9 billion Canadian dollars, about $5.68 billion, the latest consolidation move in Canada's oil patch as producers bulk up in the country's vast oil-sands region.
The cash-and stock deal, which includes debt, announced Friday, is set to create a combined producer pumping about 720,000 barrels of oil a day, solidifying Cenovus's position as a major player in Alberta's oil sands. Under the deal terms MEG shareholders will receive C$27.25 a share, 75% of which will be in cash and the other 25% in Cenovus stock. The deal represents a 33% premium to MEG's average price before rival Strathcona Resources launched a takeover bid in May.
Shares of MEG energy have been up this year, rising about 17% since the start of the year to close on Thursday at C$27.56.
Earlier in the spring, Strathcona Resources, another Alberta-based oil and gas producer, began its own bid to buy out MEG in cash and stock, a deal with only a 9.2% premium that the MEG board urged shareholders not to accept. Instead, MEG launched a strategic review of alternatives that began in mid-June as the company sought to surface an offer superior to its standalone plan.
OTHER STORIES:
Canada to Drop 25% Tariff on Some U.S. Imports -- Source
OTTAWA--Canada on Friday will remove its 25% tariff on about half of the U.S. goods it has targeted since March, according to a person familiar with the matter, as a sign of goodwill from Ottawa as it tries to reset its trading relationship with the U.S.
However, Canadian tariffs on U.S. steel, aluminum and automobiles would remain in place, the person said.
The move comes the day after Prime Minister Mark Carney and President Trump spoke for the first time since the two countries failed to reach a trade deal prior to an Aug. 1 deadline. In a summary of the call released by Carney's office, the conversation was described as "productive," and the two leaders pledged to reconvene on trade.
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Why Solar and Wind Power Can Thrive Without Subsidies
The government delivered a shock to the renewable energy industry when it took away subsidies for solar and wind as part of the One Big Beautiful Bill Act. It's a shock the industry can actually absorb--and maybe even benefit from in the long term.
The two main tax credits used by the wind and solar industries have been in place since 1992 and 2005, respectively. These have been kept alive through multiple extensions. But the latest tax-and-spending law cuts these tax credits short. Treasury Department guidance, released more than a week ago, also placed stricter guidelines on qualifying for these subsidies.
Yet this doesn't portend doom and gloom for the industry. And that could mean investors might currently have an attractive entry point to the industry.
Stocks of renewable developers such as NextEra Energy and AES have underperformed the S&P 500 so far this year, and their valuations, based on their multiple of expected earnings, are cheaper than the trailing 10-year average. That is a stark contrast to nuclear and natural gas-heavy power producers such as Constellation Energy and Vistra, which are trading at steep premiums to their historical average and are up roughly 40% year to date.
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Gold Fields Earnings Boosted by Higher Gold Price
Gold Fields reported higher earnings for the first half year, in line with its forecasts, as it benefited from rising gold prices offset by increased costs.
The South African gold miner said Friday that net profit was $1.02 billion for the half year ended June 30 compared with $389 million for the comparable period a year earlier.
Basic earnings per share for the half year were $1.15 compared with $0.43 and a forecast of between $1.09 and $1.21 per share given on Aug. 4.
Headline earnings per share were $1.15 compared with $0.36 and a forecast of between $1.09 and $1.21 per share.
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Kazatomprom Posts Lower Profit, Revenue But Backs Production Guidance
Uranium producer Kazatomprom posted a drop in first-half profit and revenue due mostly to a fall in sales volumes, but backed its production guidance for the year.
The Kazakhstan state-owned miner on Friday posted a 54% decrease in net profit to 263.2 billion Kazakhstani tenge ($489.5 million). Revenue fell 6% to 660.2 billion tenge.
Operating profit rose 12% to 253.7 billion tenge.
Uranium long-term prices have remained stable despite the volatility in the market caused by tariff wars, Chief Executive Meirzhan Yussupov said. However, he said the company doesn't plan to return to 100% production levels at this time.
MARKET TALKS:
Gold Futures Rise as Fed Chair Opens Pathway to Interest Rate Cuts -- Market Talk
1537 GMT - Gold futures rise as Federal Reserve Chair Jerome Powell effectively opens the door to a September interest rate cut. Futures are up 1.2% at $3,421.40 a troy ounce, and are now on track to end the week up 1.2% after trading broadly sideways in recent weeks. Powell's speech at the Jackson Hole symposium in Wyoming noted that prospects of a sharper slowdown in the job market could reduce concerns that tariff-driven cost increases will fuel inflation, changing the outlook in a direction that could justify resuming interest rate cuts. Markets are now pricing in a quarter-percentage-point interest-rate cut in September, increasing the appeal of non-interest-bearing bullion. (joseph.hoppe@wsj.com)
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Oil Stays Flat Despite Fed-Induced Stock Rally -- Market Talk
1136 ET - Crude futures are little changed after Fed chair Jerome Powell's comments at Jackson Hole raise hopes for a September interest-rate cut, causing stocks to rally and the dollar to retreat. "A Fed cut should be more bullish to crude but there's still a more wait-and-see attitude to see how the negotiations with Russia are going to go," says Dennis Kissler of BOK Financial. The market's main focus is on whether the U.S. goes ahead with secondary tariffs on India for buying Russian oil, while concerns about oversupply with OPEC+ raising output remain. Earlier this week it looked as though a deal could ease restrictions on Russian oil, "but now that looks like it's definitely going to be delayed," Kissler adds.WTI is near flat at $63.53 a barrel and Brent is 0.1% lower at $67.62. (anthony.harrup@wsj.com)
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Base Metal Prices Rise as Fed Chair Opens Door to Interest Rate Cuts -- Market Talk
1532 GMT - Base metal prices rise, with LME three-month copper up 0.6% at $9,790.0 a metric ton and LME three-month aluminum up 0.8% at $2,613.0 a ton. Base metal prices have been boosted by weakness in the U.S. dollar, with demand increased as international purchasers find it cheaper to buy dollar-denominated commodities. Metals prices had drifted for much of the week, with few catalysts for traders to push prices in either direction. Recent dollar weakness follows Federal Reserve Chair Jerome Powell's Jackson Hole summit address, in which Powell highlighted job market worries while tariffs drive up costs. Powell's speech effectively endorsed market expectations for a phase of cutting interest rates, ING analysts say in a note. This has pushed risk assets up, and the dollar down against a basket of other currencies, ING says. (joseph.hoppe@wsj.com)
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Cattle Push Up to New Record Levels -- Market Talk
1105 ET - Live cattle futures are up 0.6%, with the most-active contract nearly crossing over $2.36 a pound. Futures are higher ahead of this afternoon's Cattle on Feed report from the USDA, which may continue to show a constricted amount of cattle on U.S. feedlots through Aug. 1. Analysts are forecasting less cattle on feedlots, says StoneX in a note, which has market-impacting implications. "If confirmed this placement effort would be a 10-year low for this month," says the firm. "The on feed count would be our smallest of any month since 2017." Lean hog futures are up 1.8%. (kirk.maltais@wsj.com)
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Gold Jumps After Powell Speech -- Market Talk
1058 ET - Gold futures surged following Fed Chair Jerome Powell's address in Jackson Hole, Wyo. opening the door for a rate cut next month and future cuts to come. With Powell saying the "balance of risks appears to be shifting," gold is now up 1.1%. Analysts say that they still see the best investing strategy as moving money into precious metals. "Stay with gold and silver - and continue to allocate away from the USD via commodities," RJO Futures says in a note.(kirk.maltais@wsj.com)
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Oil Futures Little Changed in Early Trade -- Market Talk
0955 ET - Oil futures are mixed in early U.S. trade with the market watching for developments in efforts to bring an end to the Russia-Ukraine war. "The lack of progress on a Putin-Zelensky summit and on security guarantees reinforced expectations of prolonged conflict and potentially tougher U.S. sanctions, adding a risk premium that could reverse part of the recent weeks' decline," Frank Walbaum of Naga says in a note. "Attention is also on the Jackson Hole conference for clues on possible Federal Reserve rate cuts, which could support growth and oil demand." WTI is up 0.1% at $63.57 a barrel, and Brent is off 0.1% at $67.62.(anthony.harrup@wsj.com)
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Pro Farmer Reports Higher Iowa and Minnesota Yields -- Market Talk
(MORE TO FOLLOW) Dow Jones Newswires
August 22, 2025 12:01 ET (16:01 GMT)
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