Good evening, let’s start with today’s top stories:
Canada’s inflation rate takes surprising dip to 2.8 per cent
Canada’s inflation rate unexpectedly fell last month, while underlying price pressures seem to be retreating quickly, opening the door for the central bank to consider lowering interest rates.
The Consumer Price Index rose 2.8 per cent in February on an annual basis, down from 2.9 per cent in January, Statistics Canada said Tuesday in a report. Analysts were expecting an upturn to 3.1 per cent. This was the second consecutive month that CPI growth has undershot estimates by a wide margin.
The inflation rate has also resided within the Bank of Canada’s target range of 1 per cent to 3 per cent for two consecutive months – the first time that’s happened since early 2021. This news suggests that higher interest rates are not only working to bring inflation under control, but also that this is happening more quickly than central bankers expected. In January, the Bank of Canada projected that annual inflation would average 3.2 per cent in the first quarter.
- How economists and market bets for rate cuts are reacting to surprisingly subdued Canadian inflation data
- Our reporters’ analysis on today’s inflation data, and a look at what’s next
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Gildan Activewear’s board puts company up for sale as battle for control continues
Gildan Activewear Inc.’s board has put the T-shirt manufacturer up for sale and private equity funds are circling, escalating a three-month battle for control of one of the country’s largest consumer product companies.
Over the past four weeks, Montreal-based Gildan received a takeover approach from a potential buyer and responded by giving investment banks RBC Capital Markets and Goldman Sachs Group Inc. a mandate to look for additional bidders, according to two sources. The Globe and Mail is not naming the sources because they are not permitted to speak publicly on the matter. A Gildan spokesperson confirmed the company is examining the takeover approach.
Gildan currently has a US$5.7-billion market capitalization. One investment banking source said a potential buyer would likely need to pay more than US$7-billion, or more than US$42 per share, to acquire the company.
Israeli ambassador says motion passed by House of Commons will weaken Israel’s ability to defend itself
Parliament’s motion calling on the government to stop military exports to Israel will weaken the country’s ability to defend itself, Israel’s ambassador to Canada Iddo Moed said Tuesday.
In an interview with The Globe and Mail, Moed acknowledged that the motion was substantially softened from its original statements, but overall, he said, it still fell short of grasping the threat Israel faces and the reason why the war is still continuing: the more than 100 hostages still held captive by Hamas.
Late on Monday, the vast majority of the Liberal caucus and all of cabinet voted for an NDP opposition motion on the Israel-Hamas war, which passed because of the government’s support.
- Today: Israeli Prime Minister Benjamin Netanyahu rebuffed a plea from U.S. President Joe Biden to call off a planned ground assault of Rafah, the last refuge in Gaza for more than a million displaced people, where Israel believes Hamas fighters are holed up. Nearly 32,000 people have been confirmed killed in Israel’s attacks on the territory and the United Nations says that without a truce, Gazans would soon be dying of hunger at famine-scale rates.
- John Ibbitson: A divide is growing between the Conservatives, Liberals on issue of Israeli and Palestinian rights
- Robyn Urback: The NDP’s motion on Palestine ended up being a vain exercise in nothingness
Montana and the fate of TikTok in the U.S.:
Last year, the state of Montana passed legislation banning TikTok in the state unless it is sold to a company “that is not incorporated in any other country designated as a foreign adversary.”
Now, Donald Trump has joined a chorus of voices describing the social-media app as a necessary counterbalance to American-owned social platforms.
That argument builds on a defence of the app that has been marshalled by free-speech advocates, TikTok influencers and the company itself.
- Opinion: Canada needs to take TikTok’s security threats seriously
- Roundup: The arguments for and against banning TikTok
ALSO ON OUR RADAR
Dignitaries pay respects to Brian Mulroney: A solemn parade of dignitaries offered condolences today to the family of Brian Mulroney as the former prime minister’s lying in state began near Parliament Hill.
Hong Kong passes draconian new national security law: The Chinese territory has passed a national-security law that will further criminalize dissent, disregarding widespread criticism from human-rights groups, media organizations and Western governments.
Canada’s warmest winter on record: Winter comes to a close tonight, with the arrival of the spring equinox. But climatologist David Phillips says it’s almost as if this winter in Canada never happened.
- ICYMI: The disappearance of winter reveals how much we’ve come to love it, writes Ian Brown
Auditor-General reports released: The reports tabled today paint a bleak picture of Ottawa’s record on First Nations housing and policing.
Myanmar rebels target military officials and junta supporters for assassination: A series of dramatic advances that left Myanmar’s military on the back foot and saw resistance forces make territorial gains across the country have emboldened some armed groups to take the fight to the junta’s doorstep.
Latest royal spotting: Prince William and his wife Catherine have been filmed at a farm shop near their Windsor home, The Sun newspaper reported – the first footage of the Princess of Wales since she had abdominal surgery for an unspecified condition two months ago.
MARKET WATCH
Stocks advance with Nvidia and Fed meeting in focus
The four major North American stock indexes rose today, with computer chip maker Nvidia and apparel company Gildan both playing a role. Investors were also encouraged by expectations that the U.S. Federal Reserve’s policy meeting conclusion tomorrow could yield more clues about a possible interest rate cut later this year.
The Dow Jones Industrial Average rose 320.33 points, or 0.83% , to 39,110.76, the S&P 500 gained 29.09 points, or 0.56%, to 5,178.51 and the Nasdaq Composite gained 63.34 points, or 0.39%, to 16,166.79. On Bay Street, the Toronto Stock Exchange’s S&P/TSX composite index ended up 23.4 points, or 0.1%, at 21,860.58, moving closer to a near two-year high it notched last Wednesday at 21,970.11.
One Canadian dollar could be bought for 73.72 cents US, down from 73.85 cents US yesterday.
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TALKING POINTS
Diversion of safer supply drugs is a trivial issue distracting us from the real challenge: Toxic drug deaths
“Diversion of safer supply drugs is a triviality in the grand scheme of things. If we’re worried about it, then let’s figure out why it’s happening and address the problems.” – André Picard
We are being exploited for our data, and we need to take back control
“In the age of surveillance capitalism, data is all that matters.” – Saad Hammadi
Political hot air has scorched the carbon tax
“But if Canada has come to the point where an efficient and smart way of reducing climate-heating emissions is in an existential crisis, the blame falls on the government that implemented it and then undermined it, on an opposition party that has deliberately misrepresented the tax, and on premiers grasping at a short-term political win for their voters.” – The Editorial Board
LIVING BETTER
A spring 2024 guide to vehicle buying
Cars are a depreciating asset. So, which ones retain their value the best? Toyotas have the lowest annual depreciation of approximately $2,500 per year, or 7 per cent, closely followed by other Japanese competitors with an average of 8 per cent. Read the full story for more tips on buying a vehicle right now.
TODAY’S LONG READ
Javier Milei’s first 100 days were packed with shock and awe but little help for Argentines in dire economic crisis
President of Argentina Javier Milei speaks to supporters outside the National Congress after his inauguration ceremony on Dec. 10, 2023 in Buenos Aires, Argentina.Marcelo Endelli/Getty Images
The first 100 days of Javier Milei’s time in Argentina’s top office have been chaotic. The leader, newest darling of the ascendant global far right, has picked fights with pop stars and flung obscenities at governors. He has also undertaken aggressive austerity measures. One of his first acts in office was to devalue the official currency so that it was more in line with several parallel exchange rates. But the devaluation has pushed the cost of goods up, forcing Argentines to raid their savings to make ends meet. Read Natalie Alcoba’s account of what the first 100 days of Milei’s time in power has meant for the country – and what could be next.
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.