Good morning,
These are the top stories:
Facebook data breach the latest in tech giant’s privacy woes
Canada's Privacy Commissioner launched an investigation into Facebook yesterday, in one of many blows dealt to the social media giant. Daniel Therrien said he was working to determine whether Canadians were affected by the data breach that swept up 50 million Facebook users. Lawmakers on both sides of the Atlantic are pressing Facebook’s senior executives, namely CEO Mark Zuckerberg and COO Sheryl Sandberg, to testify publicly. Neither has issued public statements. Facebook has been under fire after a report over the weekend highlighted that Cambridge Analytica, a British political data-analysis firm hired by the Trump campaign, had improper access to data on Facebook users. Facebook’s stock price fell 2.56 per cent yesterday and is down 12 per cent this week. Cambridge Analytica has since suspended its CEO, Alexander Nix.
The whistle-blower who helped reveal the relationship between the Trump campaign and the company is a Canadian named Christopher Wylie. He lashed out against Facebook, saying the company is attacking him and not addressing the fundamental problems within its platform.
The Globe's Eric Reguly writes in a column that “the Facebook pounding is adding to jitters across the tech sector. This could get ugly for investors."
If you're wondering what Cambridge Analytica is and what it did, we have a guide to the Facebook scandal and its political fallout
This is the daily Morning Update newsletter. If you’re reading this on the web, or if someone forwarded this e-mail to you, you can sign up for Morning Update and all Globe newsletters here.
U.S. drops contentious auto-content proposal in NAFTA talks
The U.S. has dropped its contentious auto-content proposal, which had been a key sticking point in renegotiation efforts. The Trump administration took the demand off the table at the most recent round of talks in Washington. The United States had originally wanted vehicles made in Canada and Mexico that were exported back to the U.S. to have 50 per cent American content. The White House had also demanded that the existing requirement for the amount of North American content increase to 85 per cent from 62.5 per cent. Canada’s ambassador to the United States, David MacNaughton, is optimistic about the progress of talks. “I can say in all honesty that there has been substantive progress made, certainly on the auto side,” he said. “I am confident that we are going to move forward. I hope we can do so as quickly as possible.” (for subscribers)
If you need to get caught up on all things NAFTA, we have a guide to the trade talks so far and how we got to this point.
In bid to keep funding, charities sign Ontario school board’s pledge to follow Catholic doctrine
Around 30 non-profit groups and charities have signed a declaration from the Halton Catholic District School Board promising they will not support activities that go against its religious doctrine, to continue receiving funding from school events. The Terry Fox Foundation, the WE movement and the Knights of Columbus are among the organizations that signed the pledge to not support “either directly or indirectly, abortion, contraception, sterilization, euthanasia, or embryonic stem cell research.”
Controls on sales practices at Canadian banks ‘insufficient’: watchdog
The Financial Consumer Agency of Canada released a report yesterday saying that Canada's Big Six banks have “insufficient” controls to guard against misleading sales tactics. The watchdog did not find evidence of widespread misconduct but the report sheds light on the "sharp focus on sales" at Canadian banks, which could increase the likelihood that employees “missell“ products or services. The FCAC wrote in its report that “the importance employees place on reaching sales targets and qualifying for incentives may lead them to prioritize sales over consumers’ interests.”
Rob Carrick writes in a column that the Big Six will fleece you, if you let them: ”The FCAC has some ideas on improving consumer protection for bank customers, all of which sound worthwhile. But there’s more to this problem than profit-hungry banks pressuring employees to squeeze customers. We live in a country that is way too impressed with the financial industry and grants it all kinds of liberties. We encourage the banks to be predators by acting like sheep.”
Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com Need to share documents securely? Reach out via SecureDrop
IN CASE YOU MISSED IT
Is Ottawa’s ‘supercluster’ funding initiative a superboondoggle in the making?
The federal government has an ambitious and expensive plan to improve productivity and innovation through the promotion of five regional economic groups. The initiative includes an “ocean supercluster” in Atlantic Canada and a “digital technology supercluster” in B.C., among other groupings in Saskatchewan, Ontario and Quebec. It may provide the spark the country needs – unless it proves to be a fat subsidy for global technology giants. (for subscribers)
MORNING MARKETS
Focus on the Fed
World shares were flat on Wednesday and the U.S. dollar eased off three-week highs as investors marked time before a likely hike in U.S. interest rates and awaited guidance on how many more to expect for this year. Tokyo’s Nikkei was closed, but Hong Kong’s Hang Seng lost 0.4 per cent, and the Shanghai composite 0.3 per cent. In Europe, London’s FTSE 100, Germany’s DAX and the Paris CAC 40 were down by between 0.1 and 0.6 per cent by about 6:25 a.m. ET. New York futures were also down. The Canadian dollar was stronger at 76.75 US cents. Oil rose for a second day, heading for its highest in six weeks.
WHAT EVERYONE’S TALKING ABOUT
Canada’s deadly new peacekeeping mission to Mali
“As our forces prepare for the challenges ahead, serious questions must be asked of our government about how to ensure that Canadian blood and treasure are not wasted, and that we do not leave Mali worse off than when we arrived. Every single tough lesson from Afghanistan, Somalia and Rwanda must be brought to bear.” — Aisha Ahmad
It’s time to stop testing drugs on animals and start using better, more modern methods
“Proponents of the current state of affairs ignore the underlying science when they point only to success stories where life-saving drugs have emerged from animal-based research. Of course, bad models can accidentally produce right answers. Famously, stopped clocks are right twice a day, but we don’t use them to keep time. For the benefit of everyone, we must replace animal models with modern methods that are readily available and which offer greater promise for human health outcomes. Life offers few true win-win situations. This is one of them. Let’s grab it.” — Lisa Kramer
Rachel Notley’s other big nemesis: Alberta’s debt
“It’s accepted wisdom that if construction on Kinder Morgan’s Trans Mountain pipeline expansion doesn’t begin before the next election in Alberta, Premier Rachel Notley is toast. But there’s another matter equally threatening to her electoral chances: debt. Alberta has racked up tens of billions of dollars in debt coping with the fallout from the great oil price crash of a few years ago. This was, in part, an ideological decision by Ms. Notley’s government: Rather than slash jobs and radically cut back on services, as her political adversaries suggested, the New Democrats decided to maintain public sector employment levels and stimulate the province’s battered economy with infrastructure investment using borrowed funds. It was a plan sanctioned by no less than former Bank of Canada governor David Dodge. But that was then – and this is now.” — Gary Mason
HEALTH PRIMER
Five ways to reduce the physical harms of smartphone use
From increased stress on your eyes to worsening your posture, there are a myriad of ways that using your smartphone can negatively affect your body. Adriana Barton shares how to combat against eye strain, smartphone stoop, sleep loss, bacterial infection and cellphone radiation.
MOMENT IN TIME
First San Diego Comic-Con is held
March 21, 1970: Before Batman, Spider-Man and Black Panther became blockbuster cinematic spectacles generating billions of box-office dollars, the best – and maybe only – place fans could celebrate their comic-book heroes was at the Comic-Con. Where else could you don your best Wonder Woman costume, stock up on back issues and meet your favourite artists – all under one roof? While these gatherings first took shape in the 1960s, the Comic-Con really came of age a decade later. One of the biggest, San Diego Comic-Con International, was first held on March 21, 1970. That event drew about 100 people. Now, 130,000-plus attendees descend on the city year after year for four days of comic revelry. The modern Comic-Con also boasts more than its name implies: today, they are all-encompassing, genre-crossing, pop-culture extravaganzas. Think Superman partying alongside Super Mario and Mulder and Scully. In San Diego, Hollywood stars debuting their latest superhero projects are de rigueur. But you don’t have to fly to Southern California to get in on the fun; your local town is bound to have at least one comic event. These days, it’s not too hard to find like-minded fans. It’s as easy as checking the local movie listings. — Cliff Lee
Morning Update was written by Mayaz Alam
If you’d like to receive this newsletter by e-mail every weekday morning, go here to sign up. If you have any feedback, send us a note.