Good evening, let’s start with today’s top stories:
Canada’s inflation rate falls to 3.4%, but the Bank of Canada is poised to hike rates again
Canada’s annual inflation rate was a whole percentage point lower in May but there are still several signs indicating that the central bank will raise rates again.
The Consumer Price Index rose 3.4 per cent in May from a year earlier, down from 4.4 per cent in April, according to a Statistics Canada report. Grocery prices, meanwhile are still climbing quickly, rising 9 per cent on an annual basis, down slightly from 9.1 per cent in April.
The short-term trend for various measures of core inflation – which strip out volatile components of the CPI – is tracking just below 4 per cent annually. “It looks almost like a done deal that the Bank of Canada will raise rates” again in July, said Royce Mendes, head of macro strategy at Desjardins Securities, in a note to clients.
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Wagner boss Yevgeny Prigozhin starts exile in Belarus, Putin praises Russian troops
After leading a brief weekend insurrection that threw Russia into chaos amid its war with Ukraine, Yevgeny Prigozhin, the leader of the mercenary Wagner Group, arrived in Belarus, where he has been exiled.
That was after Russian President Vladimir Putin addressed the nation, praising Russia for avoiding a civil war. In a late-night address on Monday, Putin rebuked Prigozhin – without actually naming him – saying the mutiny had served Russia’s enemies in Ukraine and the West.
Russian authorities also dropped the criminal case against the Wagner Group, according to a state news agency, as it was apparently a condition of the deal brokered by the Belarusian President this weekend.
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Ford says he seeks ‘common ground’ with Chow on housing, repeats pledge to redevelop Ontario Place
Ontario’s Premier Doug Ford is vowing to work with Toronto’s mayor-elect Olivia Chow on issues such as building more affordable housing. But he urged her to get the city’s finances in order – and also pledged he would continue with his government’s plans to redevelop Ontario Place, even though she objects.
He congratulated Chow after her by-election victory this week even though he himself endorsed Mike Saunders and had previously said he thought Chow’s leadership would be an “unmitigated disaster.”
“During the election, you throw some mud back and forth, but I’ll tell you one thing: people expect us to work together and that’s exactly what we’re going to do,” Ford said today.
- Marcus Gee: Olivia Chow’s mayoral win in Toronto is the culmination of a long and often trying odyssey
Government review of McKinsey contracts finds no evidence of political interference
A report released today said that there was no evidence of political interference when it came to federal contracts with consulting company McKinsey & Co.
Prime Minister Justin Trudeau had asked Treasury Board President Mona Fortier and Public Services and Procurement Minister Helena Jaczek to review federal outsourcing with the firm in January. As The Globe and Mail first reported in January, 2022, the value of outsourcing contracts to McKinsey has climbed steadily under the Liberals to at least $116.8-million since 2015.
While evidence of political interference wasn’t found in the review, Ottawa is updating procurement rules to take social and corporate governance issues into consideration when awarding future outsourcing work.
ALSO ON OUR RADAR
Postmedia in talks with Nordstar about merger with Metroland newspapers: Postmedia said it is in talks with Jordan Bitove’s Nordstar Capital over a proposed merger of Postmedia’s national newspaper chain with Nordstar’s Metroland community newspapers. Under the arrangement, ownership of The Toronto Star would be transferred to a new company 65 per cent owned by Nordstar.
Canadians don’t have enough choice in groceries, says Competition Bureau: Canada’s highly concentrated grocery retail industry lacks sufficient competition to give consumers adequate choices, lower prices and higher-quality goods and services, according to a months-long study.
Canadian wildfires causing unhealthy air quality again in parts of the U.S.: Drifting smoke from the wildfires is creating haze and raising air quality concerns throughout the Great Lakes region, and in parts of the central and eastern United States. In Minnesota, a record 23rd air quality alert was issued today through late Wednesday night across much of the state.
New details emerge about Trump’s classified document conversations: An audio recording from a meeting in which former U.S. president Donald Trump discusses a “highly confidential” document with an interviewer appears to undermine his later claim that he didn’t have such documents, only magazine and newspaper clippings.
Tooth analysis confirms the megalodon was warm-blooded: The huge shark’s massive teeth are providing a fuller understanding of the extinct predator. Analysis of the teeth has confirmed that the megalodon was warm-blooded, which scientists suspect contributed both to its tremendous success and eventual downfall.
MARKET WATCH
Stocks rise as upbeat economic data allays slowdown fears
U.S. stock indexes rebounded today from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve’s aggressive interest rate hikes. The Canadian benchmark stock index also rose, helped by gains for technology and consumer discretionary shares as domestic data showed inflation pressures easing.
The S&P/TSX composite index was up 145.77 points or 0.74 per cent at 19,733.09.
In New York, the Dow Jones industrial average was up 212.03 points or 0.63 per cent at 33,926.74. The S&P 500 index was up 49.59 points or 1.15 per cent at 4,378.41, while the Nasdaq composite was up 219.89 points or 1.65 per cent at 13,555.67.
The Canadian dollar traded for 75.90 cents US compared with 76.04 cents US on Monday.
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TALKING POINTS
A significant milestone in lifting people with disabilities out of poverty
“On Friday, after years of delays, MPs unanimously approved Bill C-22, legislation creating the Canada Disability Benefit (CDB). This is a significant milestone, potentially the most important addition to Canada’s social safety net since the Guaranteed Income Supplement for low-income seniors was introduced in 1967.” – André Picard
The population of Vancouver’s West Point Grey hasn’t changed in decades. That no-growth history will soon – finally – end
“The extent of the transformation on the Jericho Lands may seem jarring to some but it is the sort of scale that can start shifting the equation on Canada’s housing deficit.” – The Editorial Board
When it comes to Pride, the NHL doesn’t have any
“It is no secret that hockey suffers from an image problem, which includes a history of deep-seated homophobia that many believe is still a pervasive part of its culture. Some people may think that too much is being made of this decision. But I don’t.” – Gary Mason
TODAY’S LONG READ
First Person: The enormous power of a very small dog
Illustration by Marley Allen-Ash
“Dad had adopted Scruffy, likely some sort of shih tzu-terrier mix, from the local shelter two years before and renamed him to reflect his unkempt appearance. His white fur was long and messy, his ears flapped like wings as he ran, and his too-long nails click-clacked across the floor,” writes Lizz Bryce.
“Though Scruffy had endless patience for small children, he was territorial and protective, and barked aggressively at every person who dared walk by the house. Undeterred by his tiny stature, he took particular umbrage with the mailman; no matter where that dog was in the house each morning, he made it his mission to run to the door to snarl at the poor letter carrier the moment the mailbox lid creaked open.”
A few days before Bryce and her family were set to arrive in Whitehorse to care for her father, who had advanced intestinal cancer, he called to say he’s going to Vancouver for a surgery and would be gone for nearly their entire trip. She had already booked the leave from work, so even though her dad wouldn’t be there, they made the trip north anyway.
“Alone in my father’s house with nothing to do, it was Scruffy who saved us,” writes Bryce.
Today’s Evening Update is written by Prajakta Dhopade. 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.