Good morning to all! Shari Kulha here again, with news you should peruse. It was on this day in 1792 that the Buttonwood Agreement was created, by 24 stockbrokers known as “curbstone brokers,” who had been trading on Wall Street (literally; they actually worked outdoors). The New York Stock Exchange grew out of Buttonwood’s securities operations 25 years later. And on another note, in Canada, the first Tim Hortons restaurant opened in Hamilton, Ont. in 1964.
Ottawa has offered a financial backstop for the Trans Mountain pipeline in British Columbia. Geoffrey Morgan and Jesse Snyder report that the indemnity would cover losses to Kinder Morgan and other companies from delays due to B.C.’s obstruction attempts. While John Ivison writes that Bill Morneau called Kinder Morgan’s bluff on his May 31 shutdown ultimatum, yesterday CEO Steve Kean stood his ground, reiterating that time is running short. It is; there are just two weeks until the end of the month.
HIGH AND DRY
And Alberta Premier Rachel Notley says she is “ready and prepared to turn off the taps,” now that Alberta’s new law granting it powers over oil and gas has passed. Geoffrey Morgan reports that Notley has vowed to cut oil supplies to B.C. if the Trans Mountain situation “is not settled soon.” As most of Vancouver’s oil comes from Trans Mountain, the cost to fill up a typical 60-litre-tank car there would climb to $120.
HSBC undercuts BMO, TD on variable rates as the mortgage fight escalates. It cut its five-year variable to 2.39% and its five-year fixed rate for some mortgages to 3.09%. Home sales nationwide fell to the lowest in more than five years in April, as bond yields and tougher mortgage qualification rules helped cool the market. Canada’s mortgage growth is at its slowest in four years.
Goldcorp chairman Ian Telfer is the latest industry magnate to predict the world has reached “peak gold,” saying that mining will continue to decline because all major deposits have been found. As he said to Gabe Friedman: “Are we not looking for it? Are we bad at finding it? Or have we found it all? My answer is we found it all. At US$1,300, we found it all.” But he added that Canadian miners are like cockroaches.
Canada’s best public policy book could be a must-read for executives at the country’s big banks, Geoff Zochodne writes. Stumbling Giants: Transforming Canada’s Banks for the Information Age is a hard look at how our banks need an innovation-friendly shakeup. “They’ve got this old business model,” co-author Patricia Meredith says, “which makes it almost impossible for them to deliver modern financial services as fast, as cheap and as well as new technology players.”