Evening Update: Canadian economy slowing quickly as rate hikes take hold

Good evening, let’s start with today’s top stories:

The Canadian economy is slowing quickly as the Bank of Canada hikes interest rates to tamp down excessive inflation, ahead of a potential recession this year.

Real gross domestic product rose 0.1 per cent in November, according to figures published Tuesday by Statistics Canada, with a preliminary estimate showing little change in December. The economy grew at an annualized rate of 1.6 per cent in the fourth quarter, based on that estimate, which will be updated near the end of February.

Despite the slowdown, the economy is showing resilience as it faces mounting headwinds. Growth in the final months of 2022 was stronger than what the Bank of Canada and several financial analysts had predicted and employers continued to hire workers in droves, which kept the unemployment rate near an all-time low.

• U.S. consumer confidence lags at start of 2023 as concerns remain over inflation, possible recession
• Opinion: High grocery prices and food insecurity – the system is broken all over the world

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Human Rights Watch says Ukraine likely used banned landmines

Ukraine is thought to be one of the most mined countries in the world, along with Afghanistan and Syria. A new report by Human Rights Watch says the Ukrainian military is almost certainly part of the problem.

The HRW report, released Tuesday morning, urges Ukraine to investigate compelling evidence that its military used rockets to spread thousands of anti-personnel landmines in and around the eastern city of Izyum when it was occupied by Russian forces. In a brutal battle, Russia gained control of Izyum in March; Ukraine regained control in September.

“Ukrainian forces appear to have extensively scattered landmines around the Izyum area, causing civilian casualties and posing an ongoing risk,” said Steve Goose, HRW’s arms division director. “Russian forces have repeatedly used anti-personnel mines and committed atrocities across the country, but this doesn’t justify Ukrainian use of these prohibited weapons.”

• On the front lines: Russia claimed on Tuesday to have captured a village just to the north of Bakhmut, a city it is trying to surround in a major push for what would be its biggest battlefield prize in Ukraine since last summer.
• Opinion: To rebuild Ukraine, the world needs to help clear the land from mines
• Opinion: Any compromise with Russia could put Zelensky’s life at risk

Mexico’s planned changes to electoral authority raise fears that country will become less democratic

In the 1970s and 1980s, Mexico’s Partido Revolucionario Institucional, which governed the country for 71 consecutive years, controlled the election machinery and ensured its candidates won every time.

Mexico transitioned to democracy in the 1990s but now, some fear the country may be set to return to that dark time.

Mexican President Andres Manuel Lopez Obrador has launched a series of reforms meant to reduce the power of the Instituto Nacional Electoral, the independent elections agency, and loosen elections rules. Since taking office in 2018, Lopez Obrador has regularly drawn accusations of autocracy. He has expanded the role of the military, mused about abolishing various independent regulatory bodies and disregarded constitutional law to curtail green energy projects. But none has met the opposition provoked by his efforts to change INE.

ALSO ON OUR RADAR

2023 Juno Award nominees announced: The Weeknd is back atop the nominees at this year’s Juno Awards while newcomer Tate McRae and pop-punk favourite Avril Lavigne trail close behind. See the full list.

• In other music news: The Vancouver Folk Music Festival is in talks with at least one potential financier to help cover nearly half a million dollars needed to resuscitate this year’s edition, but its board president is warning that the event needs a more permanent strategy for long-term survival amid ballooning costs.

Commission probing use of Emergencies Act granted extension: The commission investigating the federal government’s use of the Emergencies Act to quell the trucker protests last winter in Ottawa has asked for more time to complete its report.

South Africa’s energy crisis: The South African government, facing the prospect of power blackouts for years to come, says it is moving closer to declaring a national state of disaster to help it tackle the energy crisis that has devastated its economy.

Private equity, pension funds show interest in daycare industry: Private equity firms and institutional investors are increasingly taking an interest in the daycare industry amid government investment in the sector, a trend that child-care experts say could cause problems unless strict cost-control measures are introduced.

Decriminalization begins in B.C. as overdose death data released: Decriminalization of people with small amounts of illegal drugs for their own use has become a reality in British Columbia, but substance users and researchers say the change is expected to make little immediate difference because of a toxic drug supply.

Actor Alec Baldwin faces charge: Baldwin and set armourer Hannah Gutierrez-Reed were charged with involuntary manslaughter on Tuesday for the fatal shooting of cinematographer Halyna Hutchins on the set of Western movie “Rust” in 2021, a New Mexico prosecutor’s spokesman said.

MARKET WATCH

Major North American stock indexes closed higher on Tuesday as U.S. labour cost data encouraged investors about the Federal Reserve’s aggressive approach to taming inflation a day ahead of the central bank’s critical policy decision.

In New York, the Dow Jones industrial average was up 368.95 points, or more than one per cent, at 34,086.04. The S&P 500 index was up 58.83 points, or almost 1.5 per cent, at 4,076.60, while the Nasdaq composite was up 190.74 points, or almost 1.7 per cent, at 11,584.55.

The S&P/TSX composite index was up 195.27 points, or 0.95 per cent, at 20,767.38.

The Canadian dollar traded for 74.91 cents US compared with 74.87 cents US on Monday.

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TALKING POINTS

Is COVID-19 still a global health emergency?

“The public health emergency of international concern, when it was declared three years ago, was meant to raise the alarm. But, as we head into year four of COVID, alarm fatigue has set in.” – André Picard

A disgusting lack of humanity was on display on a Delta bridge last week

“There was a terrible scene on a major artery in Metro Vancouver last week: The Alex Fraser Bridge was shut down in one direction through the afternoon and well into the evening, causing traffic chaos. Many people were badly inconvenienced. Some let it be known in ways that might make you question humanity.” – Marsha Lederman

How should the media treat Trump? Like the menace to democracy that he is

“The fact that this is actually happening is surreal, and requires an important reminder: For his bid to secure the Republican nomination for the U.S. presidency to be covered as anything but an attempt by one of the greatest con artists in American history to further his own dangerous ends would be morally wrong.” – Gary Mason

LIVING BETTER

Winter warm-up guide to the perfect base layer

When you’re on the move and working up a sweat outdoors in the winter, a base layer is essential for staying dry and warm. But shopping for this wintertime staple can be a challenge, because similar looking styles are available at a wide range of price points and in a variety of different materials. The fabric is a key consideration. Most base layers on the market are made with a natural fibre like merino wool, silk, or bamboo; a synthetic fibre like nylon, polypropylene, or rayon; or a blend of different fibres. Experts advise against cotton, which can hold on to sweat and moisture. More on how to choose the right base layer.

TODAY’S LONG READ

ChatGPT prompting some professors to rethink how they grade students

Open this photo in gallery:

Instructors at Canadian postsecondary schools, warned that the struggle to prevent cheating with artificial-intelligence apps such as ChatGPT won’t be won by a technological arms race, are instead changing how they conduct assessments.

Professors are de-emphasizing essays and take-home exams and moving back to the kind of in-person tests that fell out of use over the COVID-19 pandemic. They’re being encouraged to talk openly with students about the new technology, set rules for its use and even make its “writing” a starting point for assignments, like a first-draft that needs to be revised and refined.

The technology is here to stay, experts in academic integrity say, so students have to be encouraged to buy in to a mindset that puts their learning first.

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.