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OPEC is falling apart

Angola has officially announced its decision to leave the Organization of the Petroleum Exporting Countries (OPEC). The move comes after a prolonged disagreement with the organization over production quotas, marking a departure that will reduce OPEC’s membership to 12 countries.

Diamantino Azevedo, Angola’s Minister for Mineral Resources, Petroleum, and Gas, emphasized that the decision was made in the interest of defending Angola’s economic concerns. Azevedo stated, “We feel that … Angola currently gains nothing by remaining in the organization and, in defense of its interests, decided to leave.”

You can read more on the matter here.

What’s going on?

• Rudy Giuliani Files for Bankruptcy Amid $148 Million Defamation Penalty (theDeepDive)

• China Restricts Rare-Earth Technology Exports (theDeepDive)

• Federal government posts $15.1 billion deficit between April and October this year (BNN)

• It Was All But A Dream: Hyperloop One to Shut Down by Year-End (theDeepDive)

• Nikki Haley closes to within four percentage points of Trump in surprise New Hampshire poll (FOX)

• Operation Prosperity Guardian Isn’t Reassuring Major Merchants, Over 100 Container Ships Have Diverted Away from the Red Sea (theDeepDive)

• China announces rules to reduce spending on video games (Reuters)

• Houthi Rebels Taunt US With Top Gun-Themed Video (theDeepDive)

• Rand Paul's 'Festivus Report' exposes $900B in government squander (FOX)

• Canadian Government Spends Close to A Million to Cull 84 Deer (theDeepDive)

• Biden’s Hydrogen Tax Credit Rules Deal Nuclear Industry a Blow (BNN)

• Tesla recalls 120K vehicles with doors that may unlock during crash (FOX)

What’s the latest?

• Canada’s Deficit: Between April and October, the Canadian federal government recorded a budget deficit of $15.1 billion, with $7 billion of this deficit occurring in October alone. This marks a significant increase from the same period last year, where the deficit was only $0.2 billion. This year's deficit reflects a rise in government revenues by $3 billion (1.2%), mainly from higher interest and other non-tax revenues.

• Soft Landing?: The Canadian economy appears to be avoiding consecutive quarterly contractions, with early indications suggesting a modest expansion in November. Statistics Canada's preliminary data shows a 0.1% growth in GDP for the month, driven by gains in manufacturing and agriculture, but somewhat offset by retail trade declines. October saw no growth, marking three consecutive months of essentially unchanged output.

• US Inflation Falls: In November 2023, U.S. inflation experienced a decline for the first time in over three and a half years, with the annual increase in the personal consumption expenditures (PCE) price index falling below 3%. This decrease in inflation, measured at a 0.1% drop last month, has bolstered expectations for a potential interest rate cut by the Federal Reserve in March 2024.

• Lionsgate Spinoff: Lionsgate is spinning off its studio unit, known for the "Hunger Games" and "John Wick" franchises, in a deal with Screaming Eagle Acquisition Corp, a SPAC. This merger values the studio business at about $4.6 billion, including debt. The move is part of Lionsgate's strategy to separate its studio unit from its Starz cable and streaming division. The transaction is expected to generate approximately $350 million in gross proceeds for Lionsgate.

• Russian Asset Seizures: President Vladimir Putin has placed Rolf, Russia's largest car dealership, under temporary state management, marking a significant shift as it affects a prominent Russian business leader, Sergei Petrov. The Kremlin cites economic expediency and compliance with Russian law amid the current international economic climate as reasons for the seizure.

The Panama Canal Drought

The stock market and stuff

• Royal Bank Receives Federal Approval For $13.5 Billion Purchase Of HSBC Canada (theDeepDive)

• Tencent Sheds $46 Billion in Market Cap After China Proposes Online-Gaming Curbs (WSJ)

• Lionsgate to spin off studio business in $4.6-billion SPAC deal (Reuters)

• Bristol Myers to Buy Karuna Therapeutics for $14 Billion (WSJ)

• Nike, Foot Locker shares sink after athletic apparel maker cuts revenue outlook (CNBC)

In the juniors

• Neotech Metals Faces Prolonged Trading Suspension For “Unexplained And Unusual Fluctuations” (theDeepDive)

• Bird And The B(ankruptcy): E-Scooter Maker Goes Bankrupt (theDeepDive)

• Gold Hunter Sells Newfoundland Assets For $15 Million In Shares (theDeepDive)

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