Good evening, let’s start with today’s top stories:
The federal banking regulator expressed frustration with the Canadian Imperial Bank of Commerce’s slow progress on fixing underwriting lapses in its mortgage portfolio. The regulator voiced these concerns in a May meeting with the bank’s board of directors, sources say.
The Globe and Mail reported last month that CIBC has been under remediation orders from the Office of the Superintendent of Financial Institutions (OSFI) for more than a year after a routine audit of its mortgage portfolio uncovered breaches of rules that limit levels of indebtedness for borrowers.
The issues involve thousands of clients, many of whom had lines of credit that were secured against their homes. When these lines were combined with a CIBC mortgage, the total credit available exceeded allowed regulatory ratios.
U.S. to send cluster munitions to Ukraine, White House says
The United States announced that it will send Ukraine widely banned cluster munitions as part of a security assistance package, a move Ukraine said would have an “extraordinary psycho-emotional impact” on occupying Russian forces.
Cluster munitions are prohibited by more than 100 countries, including Canada. They typically release large numbers of smaller bomblets that can kill indiscriminately over a wide area. Those that fail to explode pose a danger for decades after a conflict ends.
Human-rights groups oppose Washington’s decision, but the munitions could provide a boost to a Ukrainian counteroffensive to reclaim territory seized by Russian forces since they invaded in February, 2022.
Canada posts strong job gains in June, paving way for Bank of Canada rate hike
The Canadian economy added 60,000 jobs in June, paving the way for the Bank of Canada to raise interest rates again next week.
Despite the gain, Canada’s unemployment rate rose to 5.4 per cent from 5.2 per cent, owing to a growing number of people searching for work.
Analysts are divided over whether the central bank will hike interest rates by 25 basis points next Wednesday, as it did in June, or wait until September to make that move. (A basis point is 1/100th of a percentage point.)
- Markets and economists react: How views have shifted on the BoC’s next moves after June’s surprising job gains
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ALSO ON OUR RADAR
Ontario looks to go ahead with three more small modular nuclear reactors: Provincially owned Ontario Power Generation is seeking approval for the new reactors at its Darlington power plant. The company already had plans to build one unit of the novel technology, Canada’s first, at the plant.
Osisko Gold Royalties CEO fired after clashing with board: CEO Sandeep Singh was fired from the mining and streaming royalty company he helped turn around after clashing with the board. He had only been in the role since 2020.
Calgary Stampede opening day: The Calgary Stampede began today with Astronaut Jeremy Hansen leading the parade. Hansen is preparing to become the first Canadian to travel to the moon as part of the Artemis II mission, which could launch as early as November of next year.
B.C. mass-stabbing killer apologizes to victims: The man who committed a deadly mass stabbing at a library in North Vancouver, B.C. two years ago that killed one woman and wounded several other people apologized to his victims in court today. Yannick Bandaogo’s lawyer said his client cannot explain a motive for the attack, but in his statement, Bandaogo told the court of a troubled childhood that led him into drug use.
MARKET WATCH
Wall Street’s main indexes ended lower on Friday - but the TSX closed higher - in a seesaw session, as investors digested jobs reports on both sides of the border that showed some cracks in the labour market but probably not enough to prevent further central bank interest rate hikes.
The S&P/TSX composite index was up 20.35 points at 19,831.04.
In New York, the Dow Jones Industrial Average was down 187.38 points at 33,734.88. The S&P 500 index was down 12.64 points at 4,398.95, while the Nasdaq Composite was down 18.32 points at 13,660.72. The Canadian dollar traded for $75.34 cents U.S.
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TALKING POINTS
Rule by the second-place: the coming crisis of legitimacy in federal politics
“The longer the Liberal-NDP arrangement endures, and the more solidified it becomes, the greater the danger. So long as the Liberals and NDP remain separate and independent parties, with distinct agendas and interests, the Tories could always dream of fluking into a majority: all they needed was the vote to split just right.” - Andrew Coyne
Let’s loosen our puritanical bylaws so a new generation of strip clubs can flourish
“Toronto’s puritan policies of the past and present – along with developmental pressures and a general decline in live entertainment since the dawn of the digital era – have all contributed to the strip club’s slow demise. Similar trends have played out in other cities across Canada. Watching beautiful nude dancers perform on stage isn’t for everyone, but for many, strip clubs are fun gathering places to unwind, celebrate and enjoy the best in adult entertainment the city has to offer.” - Andrea Werhun
LIVING BETTER
Ten rosés to savour now
This week’s wine recommendations focus on 10 current rosé releases that stood out in recent tastings. They are made in a range of styles, in different parts of the world, from different grape varieties, to deliver a distinctive experience for wine lovers this summer and beyond.
TODAY’S LONG READ
Jamasie Teevee (1910 - 1985), felt-tip pen on paperWest Baffin Eskimo Co-operative/Dorset Fine Arts courtesy McMichael Canadian Art Collection
In a Toronto studio, familiar images of fanciful owls, Arctic terns and polar bears rotate gently, each one moving toward its moment under two big strobe lights and a digital camera. Art history is being made as the turntable, cleverly designed to cut the time it takes to photograph an archive, nears the completion of its maiden voyage: the complete digitization of a collection of 89,000 artworks belonging to the West Baffin Eskimo Co-operative in Kinngait, Nunavut, and housed at the McMichael Canadian Art Collection in Kleinburg, Ont.
Evening Update is written by Hope Mahood. 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.