Good evening, let’s start with today’s top stories:
The Bank of Canada published a pair of quarterly surveys on Monday: the business outlook indicator and the consumer survey. The crucial metric for the central bank in both surveys is inflation expectations.
According to the results, the majority of businesses and consumers expect that Canada will enter a recession in the next year, while most continue to believe that inflation will remain elevated for several years. The findings present a challenge for the bank that sets the stage for another large interest rate hike next week.
There were, however, some positive signs that inflation pressures are easing for businesses, which suggests that Canada is so far avoiding the worst-case scenario of a wage-price spiral. Such glimmers of hope could influence whether the Bank of Canada opts for a 0.5-percentage-point interest rate increase or a 0.75-percentage-point move at its next decision on Oct. 26.
- Also read: Loblaw to freeze prices on No Name products until end of January amid spiking inflation
Ukranian youth activists protest at the Iranian embassy over the use of 'Kamikaze' drones after an attack early this morning on October 17, 2022 in Kyiv, Ukraine.Paula Bronstein/Getty Images
Ukraine updates today
The Canadian government is slapping sanctions on more than 30 individuals and entities it accuses of spreading lies in service of Russia’s war on Ukraine. “We see through the lies. Canada stands with Ukraine,” said Foreign Affairs Minister Mélanie Joly.
Waves of explosives sent by drones struck Ukraine’s capital today, setting buildings ablaze and tearing a hole in one of them. Previous Russian airstrikes on Kyiv were mostly with missiles. Analysts believe the slower-moving Shahed drones can be programmed to accurately hit certain targets using GPS unless the system fails.
- In photos: Russia attacks Ukrainian city of Kyiv with Iranian made drones
Emergencies Act inquiry
The City of Ottawa was warned three days before the trucker convoy arrived that protesters were planning to stay for more than 30 days and planned to block access to the city, according to evidence at the public inquiry into the federal government’s use of the Emergencies Act to quell the demonstration. The new information raises more questions about the city and police service’s preparation ahead of the convoy’s arrival.
During the public hearing today, an e-mail presented by the commission’s senior counsel showed that the Ottawa Gatineau Hotel Association warned the city about the convoy’s plans on Jan. 25. The convoy of anti-government, anti-vaccine mandate protests arrived three days later. Last week, the Ontario Provincial Police told the commission that the Emergencies Act wasn’t needed to end the protests.
- Explainer: Here’s what you need to know about the use of the legislation, the public hearing and the witnesses being called to speak.
New study shows long-term effects of COVID-19 infections on health care system
People who tested positive for COVID-19 had greater use of the health care system, with more time in hospital, even in the months after infection, compared with their peers who tested negative, according to a study of more than half a million Ontarians.
The study, published in the CMAJ today, found the difference was stark when it came to the top 1 per cent of people who used the health care system the most. They spent about seven additional days in hospital a year compared to those of the same age, sex, socioeconomic scores, vaccination status, and other characteristics who tested negative,
Lead author Candace McNaughton, an emergency physician at Toronto’s Sunnybrook Research Institute, calculated a family doctor who had 20 clinic visits a day before the pandemic would now need to find time and resources for 100 more clinic visits a year.
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ALSO ON OUR RADAR
Satellite photos show damage at Iran prison amid protests: A weekend fire at notorious Evin Prison damaged one of the largest buildings in the complex, according to satellite photos analyzed Monday. Satellite photos taken Sunday show the roof burning away from a large building that’s part of the northern section of Evin Prison.
British Finance Minister reverses Truss’s economic plan in historic U-turn: Jeremy Hunt scrapped Prime Minister Liz Truss’s economic plan and scaled back her vast energy support scheme on Monday to try to stem a dramatic loss of investor confidence.
Prosecution witness stands by testimony in Holmes trial: In Elizabeth Holmes’ fraud trial, former Theranos lab director Adam Rosendorff stood by his earlier statements that could pave the way for Holmes’ sentencing in the case.
CRTC weighs Telus plan to add credit-card fees to bills: Canada’s telecom regulator is weighing whether to allow Telus Corp. to add a surcharge for customers who pay their bills with credit cards, but said it needs more time to make its decision amid a barrage of consumer complaints.
Listen to The Decibel: What you need to know about Buy Now, Pay Later. And why is it all over the place all of a sudden?
MARKET WATCH
Stocks rally after BofA results, UK reversal
U.S. and Canadian stocks kicked off the trading week with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season.
Meanwhile, the Canadian dollar strengthened against its U.S. counterpart as Wall Street rallied and a survey showed that domestic expectations for inflation remain elevated, supporting bets for further interest rate hikes by the Bank of Canada. The loonie was trading 1.2% higher at 1.3720 to the greenback, or 72.89 U.S. cents.
According to preliminary data, the S&P 500 gained 95.33 points to end at 3,678.40 points, while the Nasdaq Composite gained 355.42 points to 10,676.81. The Dow Jones Industrial Average rose 566.35 points to 30,201.18.
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TALKING POINTS
The foster-care system causes harm to Indigenous families. We must do better
“At a fundamental level, love is what residential schools and the child-welfare system have taken from Indigenous peoples. It’s up to each of us to bring some love back, one relationship at a time.” – Anne Mahon
Winner-take-all elections can erode trust in democracy
“Winner-take-all elections, designed to produce majority governments, are likely to deepen executive overreach, political frustration and social polarization – key elements of democratic backsliding that are intensifying around the world today.” – Sanjay Ruparelia
In a changing world, Canada cannot continue to ignore its defence spending commitments
“Spending more on defence, and doing so now, may well be expensive. But failing to do so to bolster Canada’s medium-term security and sovereignty may well be the costliest option of all.” – Hugh Segal
LIVING BETTER
When you eat your calories may help weight loss, new research shows
Two rigorously controlled trials, both published this month in the journal Cell Metabolism, lend support to the theory that the right timing and allocation of daily calories may offer benefits to weight loss.
If you are doing time-restricted eating, they might prompt you to shift your eating window from the evening to the morning or afternoon. And for those who are busy in the morning, it might give you pause for skipping breakfast or eating dinner late or both.
Read more on what to know about the latest research – and how the findings might apply to you.
TODAY’S LONG READ
In the two-minute-long video, the notably young-looking duo can be seen walking up to the local theatre at Spears Rd. and Kerr St. with hoods pulled up, masks on and hands in their pockets before they enter without paying, walk into a theatre that had viewers inside watching a film, and slash across more than half of the screen with a knife.Film.ca Cinemas
Major cinemas back away from screening South Indian films after vandalism triggers talk of turf war
Criminals appear to have been using vandalism and the prospect of harming movie goers to intimidate theatres into not showing South Indian language films – to take ownership of a lucrative market where popular films regularly sell out. The tactics appear to be working: Cineplex and Landmark are refusing to screen certain films over safety concerns. Distributors say movie houses are demanding hefty deposits and added security before screenings.
The Globe and Mail has confirmed that around 20 theatres, including Cineplex Inc., Landmark and other owners, have been hit in at least 22 incidents since 2015. This year has seen more vandalism than any other, with 10 cinemas targeted to date, and in a much wider swath of the country. Read deeper into the turf war that film distributors say is spreading across the country.
Evening Update is written by Sierra Bein. 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.