Harvey makes landfall again amid catastrophic flooding; biggest U.S. refinery goes offline
Tropical Storm Harvey has made landfall again, moving at a rate of just 11 kilometers an hour. At least 18 deaths are now being blamed on the storm. We’ll have updates throughout the day from our CTV colleagues in Texas. And BNN will track the domino effect across the energy industry. Motiva, the operator of America’s largest refinery, announced Wednesday morning its Port Arthur facility is being shut down, taking more than 600,000 bpd offline.
PROXY ADVISOR GIVES THUMBS DOWN TO BUFFETT-HOME CAPITAL PLAN
Institutional Shareholder Services is advising investors to vote against the second tranche of Berkshire Hathaway’s proposed investment in Home Capital Group. Based on a cost-benefit analysis, ISS says the additional $246.8-million investment offers “nominal additional reputational and strategic benefits … while dilution cost is … substantial.” We’re seeking comment from Home Capital and chasing reaction.
FIVE FOR FIVE
National Bank of Canada joined its peers this morning by beating expectations with $1.39 in adjusted earnings per share. The average estimate was $1.32. CEO Louis Vachon is citing revenue growth and cost control for driving the "excellent results" -- including double-digit gains in its P&C (+21 per cent) and wealth management (+31 per cent) units. TD rounds out the Big Six tomorrow – watch for our interview with Bharat Masrani.
The Canadian Transportation Agency convenes a hearing today in Ottawa to review circumstances surrounding infamous Transat Flight 157 last month that left passengers trapped on board the plane as it sat on the tarmac in Ottawa for approximately six hours. We'll monitor the hearing and assess any lasting impact for Transat and transportation rules in Canada.
OTHER NOTABLE STORIES:
-It’s official. Uber announced late yesterday that Dara Khosrowshahi has jumped ship from Expedia to become the ride-sharing service’s new CEO. We’ll continue assessing the risks and opportunities as a new leader takes the reins after a series of controversies at the company. Here’s the statement
-Maple Leaf Sports and Entertainment’s 20-year pact with Bank of Nova Scotia remains a top water cooler topic. Terms weren’t disclosed; reports suggest it’s an $800-million deal. We’re chasing insight on what Scotia can expect as a return on its investment at the home of the Maple Leafs and Raptors.
--U.S. President Donald Trump begins his roadshow to tout his tax reform strategy starting today in Springfield, Missouri. Recall his top economic advisor, Gary Cohn, made it clear last week in his FT interview that the president’s top priority starting this week is overhauling the tax code. Of course, that was before Harvey. We’ll monitor Trump’s remarks at 2:30 p.m. ET.
-North Korean state media says leader Kim Jong Un has called yesterday’s missile test “a meaningful prelude to containing Guam.”
-Notable earnings: National Bank
-Notable data: Canadian current account balance, U.S. GDP
-10:00 a.m. ET: Canadian Transportation Agency begins hearing on Transat tarmac delays
-10:45 a.m. ET: Justin Trudeau makes announcement in Moncton with New Brunswick Premier Brian Gallant, plus media avail
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN'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.bnn.ca/subscribe.