WHAT YOU NEED TO KNOW
All in the billionaire family: A blood feud shatters the bond between Frank and Belinda Stronach
Legal action is laying bare a simmering dispute between Magna founder Frank Stronach and his daughter Belinda Stronach. On Oct. 1, Mr. Stronach and his wife, Elfriede, filed a suit in the Ontario Superior Court of Justice that alleges Ms. Stronach mismanaged the family’s assets and trust funds and conspired to eliminate any control he had over the business he built. Eric Reguly offers a look at what’s behind the blood feud, and the lives and careers of both. (for subscribers)
Mr. Stronach is asking the courts to remove his daughter and her perceived allies from leadership roles at the family company and on a number of family trusts, in addition to claiming $520-million in damages, Andrew Willis writes. Ms. Stronach calls the allegations, which have not been tested in court, “untrue.”
No obligation for Indigenous consultation during federal law-making, Supreme Court says
The Supreme Court of Canada has rejected the arguments of an Alberta First Nation that said Indigenous people must be consulted when the federal government is drafting laws that could affect treaty rights, Gloria Galloway writes. The court was divided, with seven of the nine judges agreeing that the Crown does not have such an obligation.
In a decision released today, the judges agreed unanimously that the courts do not have the jurisdiction to make decisions about bills that are still being developed and debated by Parliament.
The Mikisew Cree First Nation went to the Federal Court in 2012 after the federal Conservative government of the day introduced two omnibus budget bills that dramatically altered Canada’s environmental laws. The Mikisew Cree said the bills could impinge upon their rights to hunt, fish and trap on their traditional territory, guaranteed under the treaty they signed in 1899.
The latest on Canada’s trade file
China is pushing Canada to resume stalled talks toward a free-trade deal, days after Ottawa agreed to a new North American trade accord that critics argue will make it difficult to pursue a similar pact with Beijing, Nathan VanderKlippe writes. (for subscribers) In a phone call yesterday with Foreign Affairs Minister Chrystia Freeland, Chinese Foreign Minister Wang Yi appeared to rebuke to Ottawa for agreeing to a clause in the United States-Mexico-Canada Agreement (USMCA) that allows a country to be punted from the pact if it enters into a free-trade deal with a “non-market country.” That language is widely seen as a veiled reference to China.
Separately, Canada does not hold out much hope that Washington will quickly lift tariffs that it imposed on steel and aluminum exports and is resisting a U.S. push to agree to strict quotas, two sources familiar with the matter said. The administration of U.S. President Donald Trump imposed the tariffs on Canada and Mexico in June, citing national security reasons. Despite the tentative USMCA deal, the measures remain in place.
Mother charged in death of son swept away in Ontario river
Charges have been laid against the mother of Kaden Young, nearly eight months after the toddler was swept into the swollen Grand River near Orangeville, Ont., and drowned. The Ontario Provincial Police say the car Kaden was travelling in was pulled into the river in late February when the driver did not stop for a road closure sign. Michelle Hanson is charged with impaired driving causing death, dangerous driving causing death and criminal negligence causing death.
Bill Blair launches consultations on possible ban on handguns, assault weapons
Border Security Minister Bill Blair is launching public consultations about whether Canada should ban handguns and assault weapons. Roundtables and discussions with stakeholders are to be held over the coming weeks, and an online portal is open for written submissions from the public until Nov. 10. Montreal and Toronto city councils have called on Ottawa to implement bans on handguns and assault weapons.
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North American markets tumbled again today, as choppy trading gave way to broad-based stock declines late in the afternoon. Investors are contending with multiple concerns, including rising borrowing costs that could dampen economic growth and tensions between Beijing and Washington.
In Toronto, the S&P/TSX composite index fell 200.27 points to 15,317.13. The Dow Jones Industrial Average closed down 545.91 points at 25,052.83, the S&P 500 lost 57.31 points to end at 2,728.37 and the Nasdaq Composite dropped 92.99 points to 7,329.06.
WHAT’S TRENDING ON SOCIAL
A Soyuz booster rocket failed less than two minutes after launching an American and a Russian toward the International Space Station today, forcing their emergency – but safe – landing. It was the latest in a recent series of failures for the troubled Russian space program, which is used by the U.S. to carry its astronauts to the station. NASA astronaut Nick Hague and Roscosmos’ Alexei Ovchinin were subjected to heavy gravitational forces as their capsule automatically jettisoned and fell back to Earth at a sharper-than-normal angle and landed near the city of Dzhezkazgan in Kazakhstan.
Andrew Scheer just repeated Justin Trudeau’s mistakes in India
“The prospect of the Opposition chief using his time in India for partisan point-scoring has loomed since this summer, when the visit was announced as a bid to ‘repair’ the damage Mr. Trudeau had wrought. The possibility irked then. It has been even more grating to see Mr. Scheer go through with it.” – Globe editorial
Here’s the reality about this week’s big market sell-off
“The lagging performance of the Financials was a canary in the coal mine, especially since this is one group that should have been benefiting from rising rates. Banks are shedding assets, we have been discussing this at length, and several have announced layoffs among their credit loan office groups. Credit growth has been slowing. Households have never before been so exposed to equities in their overall asset mix, and as such have done the reasonable thing, which is to start taking some chips off the table.” – David Rosenberg (for subscribers)
Every founder knows someone in the tech industry who has experienced burnout, but Will Richman isn’t afraid to talk about it. In the latest episode of The Globe’s podcast I’ll Go First, the CEO of AI-assisted sales-prospecting service GrowthGenius shares how he recognizes and tries to mitigate stress. He also gets candid about measuring up to the pressure of an incredibly entrepreneurial family and the pros and cons of living with your co-workers.
LONG READS FOR A LONG COMMUTE
Limits on income sprinkling cut into family businesses
In the nearly three decades that Douglas Nelson has been running his financial consulting company, never once has he considered the awkward task of writing a job description for his wife, a shareholder in the business, until now, Brenda Bouw writes.
It’s just some of the additional paperwork Mr. Nelson will need to do because of Ottawa’s changes to income-splitting legislation for private corporations that took effect Jan. 1. The rules limit the ability for business owners to split or “sprinkle” income with family members who aren’t considered active in the business. Mr. Nelson is also considering how he could eventually employ his children, now teenagers, since the new legislation removed the ability to pay them a dividend when they turn 18 through a family trust structure.
The recent changes are forcing many business owners such as Mr. Nelson to reconsider their family’s financial planning strategies, as well as how they staff their businesses, including potentially replacing existing or any additional employees with family members. Mr. Nelson is also advising his clients about making similar changes.
Watching my brother die made me a better doctor
"In truth, the moments during his clinic visits or hospital stay that were sub-par weren’t any more egregious than those experienced by many patients navigating our care system. We experienced long waits in emergency departments, clinicians who were hurried or unsure of the particulars of his case and, perhaps most difficult of all, the professional detachment of our oncologist, who came in that morning to declare that Stanley would soon die and didn’t check in on him or my family again.
“The experience profoundly affected me because they ran so contrary to both the type of human- and patient-centred medicine that I was taught, and the kind of compassion and understanding I hope to practise. In those moments, the clinical environment made me feel as though I was losing my brother again and again.” – Vivian Tam