Market Update, Wednesday, Nov 27, 2013

By Musabbir Mazhar

Rogers Communications Inc. struck a deal on Sunday, announced on Tuesday a $5.2 Billion deal for the sports broadcasting rights for National Hockey League (NHL) for the next 12 years. This is the biggest in the history of NHL. This is important to the media division since sporting events get people tied to tv in a way unlike any other entertainment – this means more subscribers for rogers and more Advertising revenue generating potential for Rogers. Bell Media, lost the bid for the deal, so that means no hockey broadcasting rights at the end of this season for TSN (80% owned by Bell Media). Rogers shares went up as much as 2.4% on wednesday to C$47.30 from C$46.20 on Tuesday’s low. CBC will share saturday night hockey games with Rogers.

The S&P/TSX closed slightly higher at 13,362.06 points moving up 0.092% as the Materials sector moved up 1.46%. The S&P 500 ended slightly higher at 1,807.23(+0.25).

DJIA was closed up 24.53 points on Wednesday at 16,097.33 still at record highs since the great recession.

WTI Jan crude contract fell $1.38 to US$92.30 a barrel as supplies increased.

Carlyl Group LP, the big asset management firm that oversees $170 Billion in AUM (Assets Under Management) is buying Diversified Global Asset Management Corp. (DGAM) – a Toronto based asset manager which has $6.7 Billion in AUM. The deal is valued at $103 million, of which one-third will be paid now and the rest over subsequest years. DGAM has 100% institutional clients such as pension funds, sovereign wealth funds; and specializes in forming tailor made hedge fund and hedge fund strategies. DGAM will add to Carlyl’s new fund of new hedge funds business. This is essentially a positive move for Carlyl to enter the Toronto asset management world – this seems a right deal at a right team since DGAM has been performing well in a tough environment.

A huge turn around in approach was seen to be taken by German Chancellor Angela Merkel in dealing with Crises. Angela Merkel reached agreement between the centre-left Social Democrats and conservative Christian Democratic Union to form a coalition government. Notable changes include boost in stimulus spending, country’s first minimum wage (minimum hourly wage of €8.50), and a lower age to become pension eligible. Angela Merkel and Germany has been an advocate of austerity in the past few years before this.