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WHAT YOU NEED TO KNOW
Ottawa to cover Trans Mountain losses due to B.C. obstruction
The federal government says it is willing to cover the financial losses incurred by Kinder Morgan over the Trans Mountain pipeline expansion project due to obstruction or delays by B.C. Federal Finance Minister Bill Morneau made the announcement this morning, adding that Ottawa would compensate any party that takes over the pipeline if Kinder Morgan backs out. The company has ceased non-essential work on the pipeline. Ottawa has insisted that it won’t negotiate in public on the future of the pipeline, but Mr. Morneau’s comments come the same day as Kinder Morgan holds its annual meeting in Calgary. He did not clarify how the federal government would cover the losses, or how much taxpayers would be on the hook for.
If you need to get caught up on Ottawa’s role in the feud between B.C. and Alberta over the pipeline, we have a guide to the story so far.
NAFTA renegotiation set to miss key deadline as countries remain divided on major issues
Canada, Mexico and the U.S. all have a “common goal in getting a deal completed as soon as possible,” said Kirsten Hillman, Canada’s deputy ambassador to the United States. Her comments come even though negotiators look like they will miss a key deadline for finishing the renegotiated trade deal by tomorrow, the last day that it could be approved by the U.S. Congress before the end of the year. One possibility for a resolution tomorrow is to have the three countries reach an agreement on auto-content rules while leaving the other contentious areas of the trade deal untouched, sources told The Globe. There has been pressure on negotiators to reach some sort of agreement ahead of the July 1 Mexican election and before midterm elections in the United States begin to ramp up. (for subscribers)
Jeff Rubin, a senior fellow at the Centre for International Governance Innovation, writes in a column that a bilateral deal should be on the table: “If a bilateral agreement were made, Canada and the United States would continue duty-free trade in the sector while both countries would likely harmonize their tariff rates on Mexican-made made vehicles and parts (likely at a much higher rate than America’s current 2.5-per-cent Most Favoured Nation rate) to prevent backdoor access to their markets. With prospects for a new NAFTA deal on autos all but dead, a bilateral trade deal on autos with the United States is an option that Canada should seriously consider.” (for subscribers)
Docile no more, North Korea threatens to withdraw from summit with U.S.
North Korea says it will reconsider going through with the planned summit between Kim Jong-un and U.S. President Donald Trump “if the U.S. is trying to drive us into a corner to force our unilateral nuclear abandonment.” Earlier today, the North accused the U.S. of having an “awfully sinister” ambition to bring about the collapse of its state, referencing the cases of Libya and Iraq. The move ahead of the proposed meeting between Mr. Kim and Mr. Trump, set for June 12 in Singapore, is a signal that North Korea will not denuclearize without receiving significant concessions. The reversal in the co-operative tone that the North had adopted since the historic meeting between Mr. Kim and South Korean President Moon Jae-in came after the U.S. held joint military drills with South Korea earlier this week. China is also urging North Korea to proceed with the summit. Although North Korea has traditionally been isolated, Beijing has long been one of its few allies.
‘This is an eye-opener’: Changes in global water supply hint at future conflicts and crises
After examining 14 years of satellite data, scientists say that the world’s water supply is undergoing a rapid transformation. The changing landscape has immense ramifications in areas where the growing demand for water is colliding with the impacts of climate change. The outlook for Canada means that certain regions will become more flood-prone while the western sub-Arctic area will be drying out. The clearest changes across the world relate to ice loss in polar regions and in mountainous areas in Alaska and in portions of the Andes. There is also a widespread trend of the world’s water moving away from glaciers to human-made reservoirs.
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MARKET WATCH
Retail and technology stocks led Wall Street higher on Wednesday as the small-cap Russell 2000 hit a record peak, even as U.S. bond yields touched near a seven-year high and investors fretted over geopolitics. The Dow Jones Industrial Average rose 0.25 per cent to end at 24,768.93, the S&P 500 gained 0.41 per cent to finish at 2,722.46 and the Nasdaq Composite added 0.63 per cent to close at 7,398.30. Meanwhile, in Toronto, the S&P/TSX composite index finished up 0.06 per cent to end at 16,108.06.
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WHAT’S TRENDING ON SOCIAL
Joey Votto, the Cincinnati Reds all-star who hails from Toronto, has apologized for saying, “I don’t care almost at all about Canadian baseball.” The comments were made during a podcast with Yahoo Sports and came in response to a question about James Paxton’s no-hitter thrown against the Blue Jays in Toronto.
Cathal Kelly writes that in his contrite and heartfelt apology, Votto is showing his true colours: “The rest of us have nothing in common with Joey Votto, the baseball player. But Joey Votto, the guy who sometimes takes things the wrong way, or Joey Votto, the guy who wishes he could get that one back – we recognize that person. He is us. Screwing up was a minor thing. But Votto’s explanation was big. It allows us to see someone we admire do the right thing, the thing we’d like to think we’d do, too. It then lets us all feel the warmth of offering forgiveness. In general, major-league baseball can’t teach us much about life. But in his relatable frailty, Votto just managed to.”
TALKING POINTS
A mixed-race view of the royal wedding: Why representation matters
“When Prince Harry and Meghan Markle wed on Saturday, they will make history. She will become Britain’s first mixed-race royal — a fact that many have celebrated, but which has also provoked a disappointing reaction from sections of the media. As a mixed-race woman who grew up in Britain’s mostly white countryside, I am acutely aware that representation matters, and whilst this high-profile union is helping move society forward, is the media’s racialized narrative simultaneously dragging us backward?” – Ellie Abraham
Andrew Scheer bets on ‘blue axis’ to win in Quebec
“The federal Conservatives appear willing to help the [Coalition Avenir Québec] win this fall in the hope that [Leader François] Legault can return the favour in next year’s federal vote. A fresh CAQ government, provided it does not mess up out of the starting gate, could provide a major boost to the Tories. It would not likely be enough to allow Mr. Scheer to match Mr. Mulroney’s exploits in the province. Quebec’s urban/rural divide has only widened since 1988, and the blue axis can never again be what it once was. But it’s a lot stronger than it was a year ago.” – Konrad Yakabuski (for subscribers)
Amid escalating violence in the Middle East, some good news
“Iraq held an election with very little violence and chose a leader that crossed sectarian divides. Even more important, he was not an American candidate. A story like this is good news all over the Middle East. Egyptians, Syrians and Palestinians can only read the story with envy. Finally, the fighting between Israel and Iran, a deeply worrying trend, stopped after one round. No one, not Iran, not Israel, not Syria and not Hezbollah, had any interest in escalating the fighting. So it stopped after a single exchange of missiles, at least for the moment. That’s good news.” – Janice Stein
LIVING BETTER
How should you be maximizing space in a small kitchen? With a few small solutions, your kitchen can be a much more workable space. To start, food columnist Lucy Waverman suggests using the inside of your cupboard doors to hang items and using a drying rack over your sink.
LONG READ FOR A LONG COMMUTE
Your guide to the royal wedding
On May 19, Prince Harry and Meghan Markle tie the knot at Windsor Castle amid colourful spectacle and public controversy. Paul Waldie explains what’s happening, who’s paying, why some people are mad and how it includes the Mulroney family.
PLAYOFFS
It’s Game 3 of the Western Conference Finals between the Winnipeg Jets and Vegas Golden Knights. The two teams are tied 1-1 after two games in Winnipeg. The puck drops at at 9 p.m. ET.
Evening Update is written by Mayaz Alam and Kristene Quan. 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.