Good morning,
Today is The Globe’s 175th anniversary. Check out the Moment in Time section lower down for a look at our history – and what we should expect for Canada’s future.
These are the top stories:
Why Jane Philpott’s resignation is a major blow for Justin Trudeau
First, the news, in case you missed it: Philpott resigned as Treasury Board president, saying she has “lost confidence” in Trudeau’s handling of the SNC-Lavalin affair. The evidence of pressure on former attorney-general Jody-Wilson Raybould “have raised serious concerns for me,” Philpott said. (for subscribers)
Here’s the takeaway from Campbell Clark: "Losing one cabinet minister who resigns on principle can be considered a misfortune. Losing two smacks of crisis. If any other cabinet minister had quit Justin Trudeau’s cabinet after Jody Wilson-Raybould’s stand in the SNC-Lavalin affair, it would have been bad. When it is Jane Philpott, a paragon of principle who is no pie-eyed dreamer, it is Trudeau’s government falling apart from the inside. The second resignation will be worse than the first.” (for subscribers)
Philpott’s departure from cabinet comes only days after Trudeau shuffled his cabinet to make up for Wilson-Raybould’s resignation. And it will cast a shadow over the testimony of Gerald Butts, who is due to address the House of Commons justice committee tomorrow.
In a speech to supporters last night, Trudeau said: “I know Ms. Philpott has felt this way for some time, and while I am disappointed, I understand her decision to step down.”
Both Philpott and Wilson-Raybould say they intend to remain in the Liberal caucus and seek re-election. Trudeau is still considering whether to remove Wilson-Raybould from caucus.
John Ibbitson says Trudeau is facing a civil war: “Yes, this is about the alleged interference by the Prime Minister and his advisers in the prosecution for corruption of the Quebec engineering company SNC-Lavalin. But even more, now, it’s about his character, his commitment, his ability to lead – in the eyes of some of those who were closest to him.” (for subscribers)
Lori Turnbull, the director of the School of Public Administration at Dalhousie University, offers this take: “While other ministers have expressed confidence in the Trudeau government, I suspect other resignations are forthcoming. These pronunciations of confidence also smack of a PMO directive. Regardless, there are a few reasons why Philpott’s resignation from cabinet is nothing short of catastrophic for the government.”
This is the daily Morning Update newsletter. If you’re reading this on the web, or it was forwarded to you from someone else, you can sign up for Morning Update and more than 20 more Globe newsletters on our newsletter signup page.
Google is banning political advertising ahead of the federal election
The technology giant – which accounts for 48 per cent of all internet advertising in Canada – says it would be too difficult for it to comply with new federal transparency rules that require platforms to keep a registry of all political and partisan ads. Google Canada’s head of public policy called the decision “painful for us” and said “this isn’t a negotiating tactic.”
The new federal requirements take effect June 30, or sooner if an early election is called. The penalties for not following the rules include fines and possible jail time.
Democratic Institutions Minister Karina Gould said Google’s move was “very disappointing,” adding that the company is “enormously capable both technically and financially” of complying with the registry requirements.
The decision to opt out won’t affect other Google services like YouTube and enhanced search results.
Ontario has fired an OPP deputy who challenged the hiring of Ford friend Ron Taverner
Brad Blair, a 32-year veteran of the provincial police force, was dismissed months after launching a lawsuit over the decision to appoint Premier Doug Ford’s friend as commissioner. Blair, who was passed over for the top job, is calling for an Ombudsman review into the Taverner hiring, which he alleges involved improper interference by Ford.
The Ford government said the decision wasn’t politically motivated. Community Safety Minister Sylvia Jones said Blair “violated his duties and the obligations he is supposed to uphold as a public servant.” But NDP Leader Andrea Horwath accused Ford of taking revenge: “What Mr. Blair has done is sounded an alarm bell on a Premier who thinks he should be able to manipulate the independence of the Ontario police.”
Jones said her deputy minister, Mario Di Tommaso, recommended the termination. Before being hired by Ford’s government in October, Di Tommaso was Taverner’s commanding officer. He was also part of the committee that selected Taverner for the top post.
China is accusing two detained Canadians of spying and stealing state secrets
But the Canadian government said it has heard nothing official about charges being laid against Michael Kovrig and Michael Spavor, who have been detained since December in apparent Chinese retaliation for the arrest of Huawei’s Meng Wanzhou.
Justin Trudeau said his government is “very concerned” about the position China has now taken, noting that “we will continue to stand up for these Canadians.” Trudeau added that Canada will proceed with a U.S. extradition request for Meng.
Kovrig worked in China for the International Crisis Group, which focuses on conflict resolution. The Crisis Group said Kovrig hasn’t been able to see a lawyer or anyone in his family, with only periodic consular visits. The group is concerned about his health and well-being.
For her part, Meng recently filed a civil claim against members of the Canadian Border Services Agency, an RCMP constable and the Attorney-General alleging her constitutional rights were violated when she was detained at Vancouver International Airport. She is currently out on bail living at her Vancouver home while awaiting the extradition hearing.
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
ALSO ON OUR RADAR
Leaked banking records are shining a light on Canada’s role in money laundering, correspondent Mark MacKinnon reports. Every year, billions of dollars obtained through corruption spin through the global economy – and Canadian-registered shell companies are a favoured mechanism for making that money clean. (for subscribers)
Democrats are upping their investigations into possible obstruction of justice by U.S. President Donald Trump, with the House judiciary committee demanding documents from 81 individuals, agencies and other groups. The heads of three other House committees are also requesting documents and interviews about Trump’s talks with Russian President Vladimir Putin.
Vancouver-area home sales continue to slide, with the price of detached properties dropping 16.9 per cent last month compared with February, 2018. But while that’s a major decline, the average detached sale price was still $1,442,863. The decline comes amid a slowdown from Chinese buyers, rising interest rates and the mortgage stress test. (for subscribers)
MORNING MARKETS
Stocks mixed
Global shares remained near a five-month high on Tuesday as China cut its growth targets to a 30-year low but added more stimulus, and a revived U.S. dollar headed for a fifth day of gains in the currency markets. Tokyo’s Nikkei lost 0.4 per cent, while Hong Kong’s Hang Seng eked out the tiniest of gains and the Shanghai Composite climbed 0.9 per cent. In Europe, London’s FTSE 100 was up 0.3 per cent by about 6:25 a.m. ET, with Germany’s DAX and the Paris CAC 40 each down 0.1 per cent. New York futures were up. The Canadian dollar was below 75 US cents.
WHAT EVERYONE’S TALKING ABOUT
Has The Donald lost his USMCA trump cards?
Globe editorial: “In effect, Trump has negotiated himself into a trap. He has given his trading partners leverage to demand the end of steel and aluminum tariffs, neutralized his ability to credibly threaten withdrawal from NAFTA, and gifted his political opponents with the opportunity to sabotage ratification of a signature trade agreement, just when he needs it the most.” (for subscribers)
90210 star Luke Perry was the choice heartthrob of a generation – and gone too soon
Marsha Lederman: “Even before realizing that Archie’s dad was Dylan, I felt a weird exhilaration about Riverdale shooting up the street. Yes, I am mixing my pop culture metaphors. But if you’re reading this, you are probably following. This is about Luke Perry. Perry is – was (this “was” feels impossible) – the actor who played Dylan McKay on Beverly Hills, 90210, the smouldering James Dean-esque surfing, hotel-living brooder who won the heart of new girl Brenda Walsh – and pretty much everyone else in TV Land.”
Barbie at 60: Why does the iconic toy feel like all work and no play in 2019?
Nathalie Atkinson: “Is it ironic to love Barbie now? Because we do love her. Although Mattel was affected by the demise of key American outlet Toys 'R' Us, which closed all its U.S. stores last year, over all sales of Barbie were up 12 per cent this last quarter. ... Barbie’s retail sales, the highest they’ve been in five years, are being attributed to new marketing and diverse product offerings that better reflect today’s reality. The doll’s new tagline: ‘When a girl plays with Barbie, she imagines everything she can become.’” (for subscribers)
TODAY’S EDITORIAL CARTOON
David Parkins/The Globe and Mail)
LIVING BETTER
Everything you need to know about eating nuts (and preventing diabetes)
“If nuts aren’t a staple in your daily diet, they ought to be. That’s especially true if you’re at increased risk for type 2 diabetes,” Leslie Beck writes. Nuts are high in healthy unsaturated fats that are thought to help improve insulin sensitivity. And what about weight gain? The concern is overblown, Beck notes.
MOMENT IN TIME
George Brown launches The Globe
Actor Robert Christie played Globe publisher George Brown for an episode of CBC Radio's Assignment. He visited the newsroom in 1956 and posed with staffers Duncan Halliday, left, and Bruce West, right. (Harold Robinson/The Globe and Mail)
March 5, 1844: On this day 175 years ago, George Brown launched The Globe, founded on the principles of political and religious freedom, and of beating other journals to the latest news. Before long, it was the leading newspaper in British North America, read even by Brown’s opponents because of the quality of its journalism. Over the years, The Globe campaigned for prison reform, supported Confederation (Brown was one of its fathers); covered World Wars; merged in 1936 with The Mail and Empire; opened bureaus across the country and overseas, including the first bureau by a Western paper in Beijing in 1959; used satellites to provide national delivery in 1980; and held governments of every persuasion to account. Perhaps the finest tribute arrived in 1979, when James D. Cumming cancelled his subscription “to the Bible,” as he put it. His father had taught him to read using The Globe, Mr. Cumming told us, and it has been part of his life ever since. But at 91, his eyesight was failing, and he was compelled to put the paper aside. “Ours has been a long association,” he wrote, “and I bid you hail and farewell.” Mr. Cumming, we’re just getting started. – John Ibbitson
In a note to readers, Publisher Phillip Crawley writes: “Our promise remains the same – to provide Canadians everywhere with journalism that matters.”
As The Globe celebrates 175 years, we’re looking forward to writing the next chapter in Canada’s history, so we asked a number of prominent Canadians: What’s one thing you would like to see Canada accomplish in the next century? Here’s a glimpse at a few of the responses:
Murray Sinclair, senator: “A fundamental shift in the way Indigenous and non-Indigenous people talk to and about each other is needed.”
Galen G. Weston, executive chairman of Loblaw: “like many modern industrial nations, in our pursuit of progress we have damaged the world around us. ... I hope to see Canada reverse this trend and become a champion of sustainability.”
Julie Payette, Governor-General: “Be the leader in international co-operation. Because we are all on board the same planetary spaceship.”
Rosalie Silberman Abella, Supreme Court justice: “So what is my wish for Canada? That it stay true to the hopeful, generous country it has become, and insistently guide the rest of the world to the justice that emerged triumphantly from the ashes of Auschwitz, a world where all people can, like most Canadians, wear their identities with dignity, with pride and in peace.”
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.