Good evening, let’s start with today’s top stories:
Bank of Canada Governor Tiff Macklem spelled out the limits of monetary policy in a speech today, saying that interest rates alone won’t solve housing affordability.
With some exceptions, monetary policy has a good track record of controlling inflation, he said. But central bankers don’t have power over other key economic variables.
“Housing supply has fallen short of housing demand for many years,” he said. “There are many reasons why – zoning restrictions, delays and uncertainties in the approval processes, and shortages of skilled workers. None of these are things monetary policy can address.”
The central bank’s next interest rate decision is on March 6.
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Canadian universities and colleges trying to come to grips with fallout from international student cap
Colleges and universities across Canada are figuring out how to deal with the financial impact of the two-year cap recently imposed on international student visas.
The limit on visas will reduce new study permits by 35 per cent for the next two years, to about 360,000 a year. And since provinces will be given a share based on population size, Ontario and British Columbia will lose under this plan. The number of new international students in Ontario could go down by as much as half.
Also, the federal government has placed a key decision in the hands of the provinces: how to allocate the study permits. Colleges and universities will lobby for a greater share.
- Opinion: Canada’s cap on international students shows a university bias
As Nova Scotia emerges from under heavy snow, some residents await rescue
A car buried after winter storm in Sydney, N.S. on Monday, Feb. 5, 2024.Shane Wilkie/The Canadian Press
As Nova Scotia emerges from under one of its heaviest snowfalls in two decades, some residents continued to wait today for rescue.
The weekend dump of heavy, wet snow blocked entryways and roadways in parts of the province, sparking a local state of emergency. Up to 150 centimetres of snow collected in some parts of Cape Breton. Cleaning it all up could take days. Meanwhile Nova Scotia has requested help from neighbouring provinces and from the federal government.
How the battle to get Trump off the Colorado primary ballot signals trouble for the two-party system
In two days, the U.S. Supreme Court will hear an appeal of Colorado’s decision to stop Donald Trump from running for office over his role in the Jan. 6 insurrection. That decision has been stayed pending the higher court’s ruling.
Meanwhile lawyers for Trump have warned that, if the decision stands, it could disenfranchise tens of millions of voters and “unleash chaos and bedlam if other state courts and state officials follow Colorado’s lead and exclude the likely Republican presidential nominee from their ballots.”
- Related: Trump is not immune from prosecution in 2020 election interference case, U.S. appeals court says
ALSO ON OUR RADAR
Gaza: A Canadian who was reported missing in Gaza has made contact with his family. A spokeswoman for the family of Palestinian Canadian Mansour Shouman says he’s now in touch with family is doing okay.
- Canada sanctions Hamas leaders as Joly says more aid must reach Gaza Strip
- Israeli military opens probe into reports of Oct. 7 friendly fire deaths
Royal Family: King Charles, 75, was seen in public today for the first time since the Palace revealed he was diagnosed with cancer. Meanwhile, Prince Harry, who fell out with the family after stepping down from royal duties almost four years ago, flew into London to see him.
- Explainer: What happens if King Charles’ cancer diagnosis leaves him incapacitated and unable to carry out royal duties?
Real estate: Home sales in Toronto rose for the second consecutive month, by 10 per cent in January. The market has been in a slump since June, after the Bank of Canada surprised buyers with back-to-back interest-rate hikes.
Ukraine: Security at Ukraine’s Zaporizhzhia Nuclear Power Plant remains fragile, the UN nuclear watchdog said today. The plant, one of the 10 biggest atomic power plants in the world, is occupied by Russian authorities who have enacted concerning recent staff cuts.
- Opinion: Zelensky’s tensions with his top military commander could undermine Ukraine’s war efforts
AI images: Facebook’s parent company, Meta says, it will begin detecting and labelling images generated by external artificial intelligence services in the coming months. Meta already labels any content generated using its own AI tools.
WeWork: Adam Neumann, founder of the co-working space provider WeWork, is reportedly trying to buy back the company after it filed for bankruptcy in November, according to CNBC today.
Sports: Lionel Messi, Argentina’s World Cup-winning captain, says he “feels much better” today, and is hopeful about getting to play in Tokyo after the PR disaster in Hong Kong. There, he had to sit on a bench for the entire match because of a groin injury, resulting in angry fans demanding refunds.
MARKET WATCH
Strength in base metal stocks helped lead modest but broad-based gains on Canada’s main stock index, while U.S. markets ticked higher.
The S&P/TSX composite index closed up 85.85 points at 20,957.74.
In New York, the Dow Jones industrial average was up 141.24 points at 38,521.36. The S&P 500 index was up 11.42 points at 4,954.23, while the Nasdaq composite was up 11.32 points at 15,609.00.
The Canadian dollar traded for 74.04 cents UScompared with 73.93 cents on Monday.
The March crude oil contract was up 53 cents at US$73.31 per barrel and the March natural gas contract was down seven cents at US$2.01 per mmBTU.
The April gold contract was up US$8.50 at US$2,051.40 an ounce and the March copper contract was up one cent at US$3.78 a pound.
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TALKING POINTS
Danielle Smith’s sex-ed policy changes are putting all Alberta teenagers at risk
“Only a couple of dozen minors receive top surgery in Alberta annually. Yet the issue consumes vast amounts of political oxygen.” – John Ibbitson
Big banks’ loans to real estate developers are not shaping up to be as risky as feared
“BMO’s problem loan in Vancouver is a case study for what’s playing out on office, retail and residential projects across the country.”– Andrew Willis
What does the PWHL need to be a successful hockey business? More Canada
“Right out of the gate, it has repeatedly broken records for the most fans at a women’s pro hockey game.” – Tony Keller
LIVING BETTER
Seven ways to save money on Valentine’s Day
If you’re looking to stretch your dollars during Valentine’s Day, there are plenty of ways to do so while keeping things intimate and making an impression.Ashley StGermain/Getty Images
Valentine’s Day is just a week away and some of you might be looking for ways to splurge without breaking the wallet. From creating your own flower bouquet to planning a nice meal at home or digging up your loyalty points, here are some budget-friendly ways to celebrate love.
- This Valentine’s Day, Labrador’s north coast may not have any fresh flowers for sale
TODAY’S LONG READ
As concerns grow over China’s economy to start the Year of the Dragon, worse may be ahead
Unfinished residential buildings developed by China Evergrande Group in the outskirts of Shijiazhuang, Hebei province, China, on Feb. 1.TINGSHU WANG/Reuters
The start of the Lunar New Year holiday might indicate the mood in China is one of optimism. But digging a little deeper shows instead growing discontent after months of economic uncertainty, falling employment and a housing crisis. James Griffiths explores how views of the future in China are weighed down by a looming demographic crisis and slowing economic growth.
Evening Update is written by Maryam Shah. If you’d like to receive this newsletter by e-mail every weekday evening, go here to sign up. If you have any feedback, send us a note.