The Big Three: Big Six hike prime rates; Ford gets his way with Hydro One; oil stabilizes
Ontario Premier Doug Ford got his way. The entire slate of directors at Hydro One is going to resign by Aug. 15, and CEO Mayo Schmidt is already gone with a $400,000 “retirement” lump sum instead of the $5-million severance he would have been owed for termination without cause. Ford was smiling from ear to ear when he announced the news late yesterday, but struggled to connect the dots when pressed by reporters for a clear answer about how the overhaul will deliver hydro relief for Ontarians.
Some basic questions to consider in our coverage:
-What does this do to Hydro One investor confidence?
-How will this affect Hydro One’s ability to attract top talent to the board and CEO post?
-What does this tell us about operating in the Ford era?
-What does it mean for the Avista takeover that’s still awaiting final regulatory approvals?
BANKS BOOST PRIME
The Big Six banks are passing along the Bank of Canada’s full 25 basis-point rate increase, all announcing yesterday their trend-setting prime rates will go up to 3.7 per cent. CTV's Chief Financial Commentator Pattie Lovett-Reid will explain how that’s going to affect your money.
U.S. oil futures are stable this morning as the International Energy Agency warns global spare production capacity is “stretched to the limit”. WTI tumbled as much as 5.5 per cent yesterday, putting crude within three cents of breaking below US$70 per barrel amid no apparent single news catalyst.
OTHER NOTABLE STORIES
-Shares of Papa John’s are rallying in pre-market trading after the pizza maker announced late yesterday its chairman, John Schnatter, has resigned amid a firestorm over racist remarks
-Michelin announced today it’s buying Magog, Qc-based farm equipment tire-maker Camso for US$1.45 billion
-Toronto is facing a “critically low level” of rental supply, according to the president of real estate consulting firm Urbanation. New data today shows the average monthly condo lease rate surged 11.2 per cent year-over-year in the second quarter.
-Notable earnings: Delta Air Lines
-Notable data: Canadian new housing price index, Teranet/National Bank home price index, U.S. CPI
-7:30 a.m. ET: Prime Minister Justin Trudeau holds media avail in Brussels
-10:00 a.m. ET: U.S. Treasury Secretary Steven Mnuchin testifies before U.S. House Financial Services Committee
-2:00 p.m. ET: Ontario’s Lieutenant Governor delivers Speech from the Throne
-NATO summit in Brussels
-Sun Valley Media Conference underway
Every morning BNN'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.