Good evening, let’s start with today’s top stories:
Bank of Canada’s key rate unchanged at 5 per cent
The Bank of Canada is holding interest rates steady in its latest policy decision, as widely expected, but warned that it is still prepared to hike again. The central bank’s tough talk about inflation comes in the face of market speculation that interest rates have peaked and cuts are coming next year.
The BoC had pushed interest rates up aggressively for a year and a half to combat the biggest surge of inflation in decades. It has held rates at 5 per cent since July.
While economists were watching the announcement for signs of a pivot, the bank gave few hints that it is preparing to cut rates any time soon.
Read more: How economists and markets are reacting to today’s BoC policy decision and future rate bets
Opinion:
- Does the latest Bank of Canada announcement mean it’s go-time again for variable-rate mortgages? - Rob Carrick
- Canada is in economic decay. Prepare for BoC rate cuts and big returns in this asset class - David Rosenberg
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Canada to use cap-and-trade system for emissions cap
Ottawa’s long-awaited emissions cap on the oil and gas sector will be imposed through a cap-and-trade system, but force fewer reductions from the country’s heaviest polluting industry than some feared, sources tell The Globe and Mail.
The oil and gas sector emissions cap was one of Prime Minister Justin Trudeau’s major promises in the 2021 election campaign. It is expected to be challenged by Alberta, which believes it will act as a de facto production cap.
The federal policy was crafted to address that concern, the sources say, after widespread consultation with industry, climate groups, provinces, Indigenous communities and other experts. The policy is expected to be released tomorrow.
Ukrainian government shifts blame to foreign media as dissent grows
After more than 21 months of fighting off the invading Russian army, Ukraine is seeing political machinations that feel unprecedented, senior international correspondent Mark MacKinnon reports.
What began with an apparent disagreement between President Volodymyr Zelensky and the country’s top general over how to describe the situation at the frontline has descended into full-scale political combat. Zelensky’s political opponents are using the fray to resume criticizing him after almost two years of rally-behind-the-leader solidarity.
Bruised by Western media reports highlighting the growing dissent, the Ukrainian government’s Centre for Countering Disinformation turned its fire on foreign reporters covering the conflict. It warns that unnamed English-language journalists were “preparing a disinformation campaign” aimed at creating “a split in Ukrainian society.”
ALSO ON OUR RADAR
Israel-Hamas developments: Israeli troops fought fierce battles with Hamas in an expanding offensive into southern Gaza, forcing tens of thousands of displaced Palestinian civilians to cram into a city close to the Egyptian border to avoid Israeli bombardment.
Opinion: Israel faces the risk of a strategic defeat in Gaza - R. David Harden
Election interference from Beijing, Kremlin: China and Russia are carrying out most of the disinformation campaigns aimed at disrupting elections in democracies such as Canada – a threat that is becoming increasingly difficult to combat, according to a new report by an Ottawa security watchdog.
AFN voting: Developing story: Cindy Woodhouse, a regional chief from Manitoba, is in the lead after one round of voting in the election to name the next national chief of the Assembly of First Nations.
A-G report on Ontario Science Centre: The provincial government’s decision to move the Ontario Science Centre to its controversial Ontario Place redevelopment on Toronto’s waterfront was made without a full comparison of its costs or proper consultations with the city or its school boards, the acting Auditor-General says.
Read more: Ford government altered local planning decisions to allow for development: Globe analysis
Boris Johnson rejects “totally hopeless” charge: Britain’s former prime minister has acknowledged that his government made mistakes in its handling of the COVID-19 outbreak at a public inquiry today. But he dismissed criticism by insiders that he was “useless,” “criminally incompetent” and “totally hopeless.”
RIP Norman Lear: The writer, director and producer who revolutionized prime-time TV with shows such as All in the Family and Maude, propelling political and social turmoil into the once-insulated world of sitcoms, has died at age 101.
More kudos for Swift: After launching the record-shattering Eras tour and becoming the world’s most-streamed musical artist in 2023, mega pop star Taylor Swift has been named Time magazine’s Person of the Year.
Sinclair exits on high note: Soccer superstar Christine Sinclair went out the way she wanted to - with a win. Last night, in front of a bumper crowd of more than 48,000 in Vancouver, Canada beat Australia 1-0 win in Sinclair’s farewell international game.
Captain Christine Sinclair celebrates Canada’s first goal during a friendly against Australia as she plays her final international game, retiring from Canada’s national women’s soccer team at B.C. Place Stadium in Vancouver on Dec. 5, 2023.JENNIFER GAUTHIER/Reuters
MARKET WATCH
U.S. stocks ended down, pulled lower by megacaps and energy shares as signs of a cooling jobs market reinforced expectations that the Federal Reserve could start cutting interest rates early next year. Canada’s main stock index followed suit, weighed down by the drop in oil prices.
The S&P/TSX Composite index slipped 101.72 points or 0.05 per cent to 20,274.21. The dollar traded at 73.55 U.S. cents.
The Dow Jones Industrial Average fell 70.13 points or 0.19 per cent to 36,054.43, the S&P 500 dropped 17.84 points or 0.39 per cent to end at 4,549.34, and the Nasdaq Composite slipped 83.20 points or 0.58 per cent to 14,146.71.
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TALKING POINTS
With one video, Pierre Poilievre has taken control of the housing debate
“Brand Poilievre is fresh and Brand Trudeau is stale. ... Poilievre is leveraging the difference. His video is a nail, and this Liberal government is beginning to resemble a coffin.” - John Ibbitson
Golf challenges its fans’ delusions of gearness
“Most of us have known that guy (always a guy) who’s spent the equivalent of a mid-range SUV on clubs and clothes. His game never improves, but his kit is always cutting edge.” - Cathal Kelly
LIVING BETTER
Which Christmas treat is the best? Only eight sweets remain
More than 25,000 votes were cast in the first round of the holiday treat bracket, narrowing down the contenders. But only one can be named the best treat. See which ones advanced and vote for your favourites here.
TODAY’S LONG READ
Real estate developer Westbank faces onslaught of litigation for Canadian, U.S. projects
Westbank is one of the companies behind the King Toronto condo project under construction.Fred Lum/The Globe and Mail
Westbank Corp., a prominent Canadian developer known for its ambitious architecture, is facing problems at several projects in Toronto and Seattle with contractors claiming millions of dollars in unpaid bills.
The number of lawsuits and liens has been piling up over the past year – a particularly difficult period for the industry as borrowing costs and construction expenses soar. More than two dozen construction and trade businesses have been fighting with Westbank over unpaid bills. The allegations have not been proven in court.
The Vancouver-based developer, which incorporates dramatic art at sites such as the Shangri-La hotels in that city and Toronto, said it is not commenting on the details of individual disputes that are subject to continuing negotiation or litigation, other than to say it expects to reach a resolution. Read the full story.
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