The Daily Chase: Oracle chosen for U.S. TikTok deal; stocks rise on vaccine hope

It looks like Oracle is the chosen one to help spare TikTok from being shut down in the United States by president Donald Trump. In a release this morning, the software giant confirmed it would be the social media platform’s “trusted technology partner” under the terms of a proposal submitted to ByteDance this weekend. Still unclear what the precise details of the deal look like. Beneath the surface, this is a story about private enterprise adapting to mounting China-U.S. tension; we’ll look into how much more of that should be expected as elections loom in less than two months, and how Oracle positioned itself to prevail.

STOCKS RALLY

Futures are pointing to gains at the start of trading in New York amid some encouraging signals about COVID-19 vaccine development. Pfizer’s CEO told CBS “it’s a likely scenario” that Americans could be vaccinated before the end of this year, adding that his company has already manufactured hundreds of thousands of doses of its vaccine. Also, AstraZeneca said on Saturday it had resumed clinical trials of the vaccine it’s developing with the University of Oxford.

LOBLAW’S PC UNIT GETS BACK INTO BANKING

It’s been almost three years to the day since Loblaw’s President’s Choice business announced the end of its banking partnership with CIBC. Now, PC is launching a no-fee banking offering, dubbed the PC Money Account. It’s being billed as a “simple bank account” that allows clients to collect PC Optimum points with their transactions.

CABINET RETREAT

Prime Minister Justin Trudeau begins a two-day meeting with his cabinet colleagues today, with 10 days to go until his government’s vision for resuscitating the economy will be unveiled in the speech from the throne.  According to the advisory, Trudeau and his ministers will “discuss the path to recovery and how we can build a more resilient Canada that is healthier and safer, cleaner and more competitive, and fairer and more inclusive for everyone” in addition to talking about how to maintain vigilance on COVID-19.

RECORD SEMICONDUCTOR DEAL

Softbank announced last night it’s selling chip designer Arm to Nvidia for up to US$40 billion, in what amounts to a major bet on the potential of AI and the so-called Internet of Things to transform everyday life. The deal is a mix of cash and stock, with Nvidia using shares as a currency after their value more than doubled so far this year. Among the angles to explore beyond the nuts and bolts of IoT: regulatory hurdles to closing the deal could be significant, with approvals required in the U.S., EU, U.K and China. Also need to dig into how this will go over with Arm’s licensees.

OTHER NOTABLE STORIES

-Cineplex is being removed from the S&P/TSX Composite Index, adding to what’s already been a miserable year for the movie theatre operator after its tie-up with Cineworld fell apart and the pandemic upended its operations. Pason Systems is also getting the boot from the index, while S&P Dow Jones Indices says Fortuna Silver Mines, New Gold, Osisko Mining, Sprott Inc. and Trillium Therapeutics will be added on Sept. 21.

-Amazon.com Inc. is going on a major hiring spree, announcing it’s planning to add 100,000 employees across its fulfillment and logistics operations in Canada and the United States.

-IGM Financial announced this morning it’s hiring former Bank of Nova Scotia head of Canadian banking James O’Sullivan as its next president and CEO. 

-Gilead Sciences announced it’s buying Immunomedics for US$21 billion in a deal that boosts its oncology business. The treasure at Immunomedics is an innovative breast-cancer therapy called Trodelvy.

-Restaurant Brands International disclosed late Friday that 3G has served notice it wants to exchange 6.76 million limited partnership units; RBI says the units will be repurchased with cash on hand.

-Montreal-based GardaWorld is ramping up pressure on G4S to engage in deal talks, disclosing this morning that it offered to buy its rival for 190 pence/share on Aug. 31. “GardaWorld's attempts to engage with G4S's board have now been summarily dismissed or ignored on three occasions. Consequently, GardaWorld now encourages G4S's shareholders to mandate their board's engagement in collaborative discussions towards a transaction,” it said in a filing.

NOTABLE RELEASES/EVENTS

-9:00 a.m. ET: Prime Minister Justin Trudeau begins two-day Cabinet retreat in Ottawa

-OPEC releases monthly oil market report

Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.