Good evening, let’s start with today’s top stories:
Conservative MP Michael Chong – whose family was being targeted by China – announced in the House of Commons today that Jody Thomas, Prime Minister Justin Trudeau’s national-security adviser, informed the PM of the threats in a telephone call.
This is contrary to what Prime Minister Justin Trudeau said Wednesday when he blamed Canadian Security Intelligence Service for not informing Mr. Chong or his office about being target of China.
The revelation sheds more light on the intelligence failure surrounding Chong’s case who didn’t learn of this threat to him and his family until The Globe and Mail reported it Monday, citing a top-secret CSIS memo, dated July 20, 2021, and a national-security source.
Canada has summoned China’s ambassador over revelations Beijing was targeting Mr. Chong and his family, Foreign Affairs Minister Mélanie Joly says. She also said Canada is still mulling how to respond.
Bank of Canada must stay the course to combat risk of sticky inflation
Governor Tiff Macklem said that Canada’s central bank is “staying the course” to combat the risk of inflation getting stuck above 2 per cent, in a mildly hawkish speech that suggested the BoC intends to keep interest rates high even as inflation declines quickly. More from the story:
- He also warned that instability in the U.S. banking system could spill across the border and impact the path of Canadian monetary policy
- The annual rate of inflation has declined steadily since last summer, and the central bank expects it to return to 3 per cent in the coming months. They have said they could raise interest rates again if needed.
- So far Canadian banks have remained relatively isolated from the international banking turmoil.
Why a program for first-time home buyers fizzled in Toronto and Vancouver
Fewer than 400 households in the Toronto, Vancouver and Victoria areas have received financial assistance from a federal program for first-time home buyers, despite changes that were intended to make it more useable in pricier markets. In fact, over more than three years, 385 households have used the First-Time Home Buyer Incentive in those census metropolitan areas, according to a Globe and Mail analysis.
Several real-estate professionals say the program was basically doomed from the start. “We think this is a flawed policy,” said James Laird, the president of CanWise Financial, a mortgage lender. “We certainly have never promoted it to our customers.”
Public Service Alliance of Canada members who are Canada Revenue Agency employees picket outside a CRA office on tax deadline day, as a person in a vehicle waits to drop of their tax return in Surrey, B.C., on Monday, May 1, 2023.DARRYL DYCK/The Canadian Press
Union representing CRA workers reaches deal with Ottawa
The union representing 35,000 Canada Revenue Agency workers has struck a deal for a new collective agreement, ending a strike that lasted almost two weeks.
The union secured a 12.6-per- cent compounded wage increase for workers over the course of four years, as well as a one-time lump sum payment of $2,500 to all workers. On remote work, the union negotiated language outside of the collective agreement that requires management to evaluate remote work requests on an individual basis and prevent a blanket mandate around returning to the office like they did back in December.
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ALSO ON OUR RADAR
Layoffs: Shopify is terminating around 20 per cent of the e-commerce company’s global work force and is selling its entire logistics operations. This adds even more people to the list of 2023 layoffs affecting Canadian workers.
Telecom: Rogers launches cheaper 5G cell phone plans and doubling the amount of data that comes with its most popular wireless offering as it looks to boost uptake of its fifth-generation wireless services.
Banking: Toronto-Dominion Bank and First Horizon Corp. have terminated TD’s proposed US$13.4-billion takeover of the Tennessee-based bank, raising tough questions about the Canadian bank’s longer-term growth plans.
Jan. 6 attack: Former Proud Boys leader Enrique Tarrio and three other members of the far-right extremist group have been convicted of a plot to attack the U.S. Capitol.
Tennis: Bianca Andreescu is ready to play her best tennis after last week’s loss in Madrid, her first match since she suffered a frightening ankle injury on court last month.
Listen to The Decibel: Alex Bozikovic is on the show to talk about Ontario Premier Doug Ford, the never-ending Ontario Place saga and why so many people are fighting to keep it a public space.
MARKET WATCH
Stocks lower as PacWest fuels fears of deeper bank crisis
Wall Street ended lower on Thursday after PacWest’s move to explore strategic options deepened fears about the health of U.S. lenders and hit shares of regional banks as well as JPMorgan Chase, Wells Fargo & Co and other major financial players. The TSX also ended lower, although the tech sector got a boost from heavyweight Shopify surging 23% after announcing an earnings beat, a sale of its logistics operation, and plans to cut 20% of its staff.
The S&P 500 declined to end the session at 4,061.22 points. It was its fourth straight session of declines, the first such streak since February The Nasdaq declined to 11,966.40 points, while Dow Jones Industrial Average declined 33,127.74 points. The Toronto Stock Exchange’s S&P/TSX composite index ended down 116.49 points at 20,238.19, its lowest closing level since April 6.
The Canadian dollar traded for 73.71 cents U.S., compared with 73.44 cents U.S. on Wednesday.
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TALKING POINTS
Drug-price dust-up has put federal Health Minister in the hot seat
“The departures of Mr. Herder and Mr. Clark, who is stepping down in June, provide Ottawa with the opportunity to further renew the PMPRB’s leadership so that it can pursue afresh its true mandate as a neutral adjudicator on brand-name drug prices.” -Konrad Yakabuski
King Charles, and our odd fascination with rich strangers
“When King Charles gazes at the crowds Saturday, he must wonder about us, who crave proximity to a man whose opinions we don’t really want; envious of jewelry that he wears only with discomfort; enchanted by pageantry while sneering at the man who embodies it.” -Tom Rachman
Depression is a liar
“But here is the truth. Listen carefully, even though depression will try to tell you otherwise. Those perceived flaws and limitations have nothing to do with failing, but rather are simply part of being human. All humans are vulnerable and mortal. All human beings stumble and struggle and eventually yield to forces beyond their control.” -Dr. Harvey Max Chochinov
LIVING BETTER
Tax matters: 3 things to consider when buying a family cottage
According to the 2023 Re/Max Cottage Trends Report, Gen Xers are now driving activity in the cottage market. The “trillion-dollar transfer” of generational wealth, along with the search for more affordable housing markets, has put Gen X in the lead in recreational property purchases. And of course COVID-19 has taught us that working remotely for many is very doable and has its benefits.
So, with cottage season upon us, Tim Cestnick, wants to share some things to consider if you’re looking to buy a property, such as ownership name, renting out your cottage part-time and continuing costs to think about.
- Carrick on money: Canadians are acing this financial literacy test
TODAY’S LONG READ
Off duty: Why wellness guru Wim Hof loves cold plunges
Illustration by PHOTO ILLUSTRATION BY THE GLOBE AND MAIL
The extreme athlete celebrated his birthday as he always does by sitting in a rain barrel filled to the brim with ice. An eccentric Dutch man, who is known as the Iceman, turned 64. He incorporates deep-breathing exercises into this ritual, paired with exposure to extreme cold, as a way to “take control of your own physiology and accomplish things you never thought possible.”
Hof talked to The Globe and Mail about his journey from circus act to scientific mystery and now global health leader who remains steadfast in his belief that “cold, hard nature” is the ultimate teacher to create a more resilient body and mind.
Off Duty is a series of lively conversations with influential people, from CEOs to celebrities, on life, work and the art of taking time off.
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.