A Canadian flag with a marijuana leaf on it flies during a 4/20 rally on Parliament Hill in Ottawa, on Thursday, April 20, 2017.SEAN KILPATRICK/The Canadian Press
Good morning and Happy New Year,
These are the top stories:
Federal government targets black – and grey – markets with legal cannabis
Legal recreational marijuana will become a reality in Canada this year and the governing federal Liberals say that the introduction of a legal product to the marketplace offers a clear opportunity to drive out black and grey market sellers. Federal Health Minister Ginette Petitpas Taylor and former Toronto police chief Bill Blair, the MP in charge of the marijuana file, say they want to put an end to the current situation in Canada, where medicinal growers and illegal dispensaries sell to recreational users. The federal government is expecting legalization to be a process that takes time before it is completely successful. "The system is not going to be perfect in July, 2018," Ms. Petitpas Taylor said. "With respect to the black market, we certainly want to make a dent in it. Do we think it will happen overnight? Absolutely not."
The Globe has previously written about how the mob controls marijuana and how it is incredibly difficult to expel them. (for subscribers)
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At least 13 dead, hundreds arrested as Iran cracks down on widening protests
More than a dozen people are dead amid continuing nationwide protests in Iran. The demonstrations are the largest in the Islamic Republic since 2009, when there was a disputed presidential election. The state has started cracking down in some ways, blocking Instagram and Telegram, a messaging app used by activists organizing protests, and President Hassan Rouhani said that the government is prepared to apprehend people it considers as lawbreakers. One of the primary causes for the protests, which outside of the capital of Tehran has been driven by working class Iranians, is the lack of an expected economic boom after international sanctions were lifted in early 2016. Unemployment is officially at 12.5 per cent but non-government estimates suggest that in reality the rate is higher. Inflation is also nearly at 10 per cent.
Mexico and Canada: NAFTA's other uneasy partners
When the North American free-trade agreement was signed in the 1990s, both Canada and Mexico saw it as a way to gain better access to the world's largest economy, which happened to be the country separating the two. The trading relationship between the two junior partners in NAFTA was nearly non-existent before but has since blossomed into something worth $42-billion per year. The two countries have also been in close contact behind the scenes throughout the renegotiation process to present a united front toward the U.S. but cracks are showing. Adrian Morrow reports from Chihuahua, Mexico, on the partnership that's formed and the strain it's coming under from the protectionist stance by the United States. (for subscribers)
Better relations with North Korea linked with resolving nuclear issue, South Korea's Moon says
In a New Year's Day address, North Korean leader Kim Jong-un said that he was "open to dialogue" with South Korea and that he has a "nuclear button" on his desk and is prepared to use it to if he feels threatened. Some analysts say that the rogue state has missiles that are capable of reaching the Eastern seaboard of North America. He also backtracked on an earlier decision and agreed to a request by South Korean President Moon Jae-in to allow North Korean athletes to participate in the Winter Olympics in Pyeonchang, South Korea, next month. Mr. Moon responded by by saying that the improvement of relations between the two Koreas must be linked with a resolution to the situation with North Korea's nuclear program. The decision could sow discord between South Korea and the U.S., who have been allies for decades.
The Bird Man of Soweto, symbol of a township revolution
Raymond Rampolokeng, a long-time resident of Soweto, leads guided tours for ornithology enthusiasts and is helping national efforts to strengthen the economies of South African townships built by the apartheid state solely to provide cheap black labour for white-controlled mines and industry. The Globe and Mail's Africa correspondent Geoffrey York reports from Soweto on a man who is a symbol of change in an evolving South African economy.
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MORNING MARKETS
The ailing U.S. dollar fell to its lowest in over three months on Tuesday, while surprisingly upbeat Chinese manufacturing data ensured there was no serious New Year hangover for world shares despite a groggy start for Europe. Tokyo's Nikkei was closed, but Hong Kong's Hang Seng gained 2 per cent, and the Shanghai composite 1.2 per cent. Europe is starting 2018 on a sour note, with London's FTSE 100, Germany's DAX and the Paris CAC 40 down by between 0.4 and 0.9 per cent by about 6 a.m. ET. New York futures were up, and the Canadian dollar was just below 80 cents (U.S.). Oil steadied after a second annual increase.
IN CASE YOU MISSED IT
How Bombardier's 'success fees' gave the transport giant an inside track to deals around the world
Canadian transport giant Bombardier has won hundreds of millions in international contracts to supply transit systems across the world. But a year-long Globe and Mail investigation spanning four continents reveals a pattern of middlemen, 'success fee' payments – and allegations of corruption. Mark MacKinnon, Geoffrey York and Nathan VanderKlippe report (for subscribers)
FYI: The Globe now provides all users access to real-time stock quotes for both Canadian and U.S. markets. Go here to find out about the major changes to our Globe Investor site.
WHAT EVERYONE'S TALKING ABOUT
How can democracies counter China's growing clout
"Canada needs to modernize the laws that govern foreign influence so as to cover not only illegal acts, but also instances where collaboration is unethical and against the values that define us. We must be strong in our resolve to protect our society and ready to be criticized – sometimes harshly – by Beijing. But such adjustments are necessary. As we push back, we can find strength in the knowledge that China needs us as much as we need it, that its economic and social exchanges with us are not, and never will be, charity. China engages us because it is in its interest to do so." – J. Michael Cole, a former analyst with the Canadian Security Intelligence Service
Let's finish what started with Harvey Weinstein
"2017 should have disabused every last reasonable person of the belief that sexual creeps aren't protected by outdated social codes. The year that just ended exposed the failings in our culture and in our legal system that have hurt women for too long. There is positive momentum toward change now. Let's not lose it." – Globe and Mail Editorial Board
The global tax war may already be under way
"The 40-per-cent cut in corporate tax rates in the United States could usher in a new era of across-the-board tax exemptions for multinationals. Such a radical measure may also be powerful enough to lead to complete tax exemption for multinationals as states attempt to lure capital investment through ever smaller tax rates. The question then: Are we already in the middle of a tax war? Early warnings of this were already seen a few years ago, when global corporations – namely Starbucks, Apple and Amazon – were found to abuse taxation structures to limit the taxes they were paying to the British government. Such conditions contribute to a situation where excessive poverty is caused by massive wealth that pays little or no tax." – Brigitte Alepin and Louise Otis
HEALTH PRIMER
How to be the top parent of 2018
The Globe's Dave McGinn asked five experts for what their most essential tip was for parents in 2018. Here's what they said: Use sedentary time in a positive way; plan screen time the way you plan nutritious meals; ban screens from the bedroom; establish a media-use plan for the whole family; and don't overstructure play. (for subscribers)
MOMENT IN TIME
Canada's first domestic coin made
Jan. 2, 1908: The presses hummed to life – switched on by the Governor-General, Earl Grey – stamping the first silver 50-cent coin with the familiar likeness of King Edward VII and crossed maple boughs. This was Canada's first coin made domestically, officially opening the Ottawa branch of the Royal Mint on Sussex Drive and marking a new milestone on Canada's path toward independence. Until that moment, at a ceremony witnessed by assorted dignitaries, Canada's currency had been made in Britain, its coins minted in London or Birmingham. To cap the occasion, Countess Grey struck the first bronze penny. The Ottawa branch was the culmination of repeated calls that Canada should mint its own money. But it wasn't until 1931 that Canada gained full control of the enterprise and the historic building that it still occupies today. By that time, the renamed Royal Canadian Mint was also producing coins used by other Commonwealth countries. – James Bradshaw
Morning Update was written by Mayaz Alam.
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