Good evening,
WHAT YOU NEED TO KNOW
Porter joins Aeroplan fray as Aimia rejects Air Canada’s hostile bid
The morning after walking away from takeover talks with Air Canada and three financial partners, Aimia Inc. announced a new deal with Porter Airlines that will see the Toronto-based airline become a preferred Canadian partner for the Aeroplan loyalty points program. And even though Porter’s fleet of aircraft is only a fraction the size of Air Canada’s, Porter flies on crucial routes along the eastern corridor – particularly between Toronto, Ottawa and Montreal – and competes with Air Canada for customers along them. Last week, Air Canada teamed up with Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada Corp. on an offer to purchase the Aeroplan program for $250-million in cash, only to return to the bargaining table to raise their initial bid for the loyalty plan to $325-million. Aimia demanded $450-million.
For more context on the Aeroplan fray, read a piece from our archives on what the company is promising for members and the few financial details they have provided for investors.
In China, trade war fears stoke new criticism over the country’s direction
The election of Donald Trump in 2016 came at a moment when China’s leadership was coasting off a swell of internal confidence that the Asian country, long classified as a mere emerging superpower, could now claim the status of being an unchallenged supremacy in the global economy. But with the threat of a trade war with the U.S. and rebuffing from potential loan recipients, the Chinese president Xi Jinping’s enthusiasm is now beginning to look like hubris. Back home, for instance, sharp new criticism has emerged of China’s posture, a rare internal rebuke that, this week, included a public petition to have an academic who triumphed China’s economic prosperity to be removed from his post.
And after the Trump administration increased pressure on trade concessions from Beijing this week by proposing a higher 25-per-cent tariff on US$200-billion worth of Chinese imports, China hit back with proposed retaliatory tariffs on US$60-billion worth of U.S. goods. The new list of goods that Beijing will be targeting will include a range of products from liquefied natural gas (LNG) to aircraft parts. A senior Chinese diplomat said this recent development leaves little hope of resolving the two countries bitter trade conflict.
Toronto receives $11-million from feds to deal with spike in asylum seekers
“These initial funds have been allocated to help alleviate the immediate pressures being experienced by the City of Toronto,” Border Security Minister Bill Blair said after a meeting with Toronto Mayor John Tory on Friday. He also indicated that more financial support may be provided to the city as talks continue between the federal government and Toronto.
The $11-million earmarked for Toronto was announced in June as part of a $50-million commitment to Quebec, Ontario and Manitoba to help cover some of the costs they have borne as a result of the ongoing spike in asylum seekers crossing the Canada-U.S. border irregularly. Some of the funds will go towards relocating hundreds of irregular border crossers who’ve spent the past few months in dormitories at two major Toronto-area colleges, reducing the number of new arrivals living in dorms from 400 to just 272 in the past couple days.
To help answer your questions on Canada’s refugee situation, read our explainer on asylum seekers and get a detailed look at the facts.
Wildfires continue to burn across B.C. and northern Ontario
For the first time since British Columbia’s wildfire season began in April, the Wildfire Service announced that they would be calling for help from outside the province, as 454 wildfires continued to rage across the province. A spokesperson for the service said crews were bracing for new wildfires to start over the weekend, but none of these fires were expected to threaten any more communities.
And in Ontario, firefighters from at least seven other provinces and territories, the U.S. and Mexico are continuing to battle against at least 145 wildfires burning across Ontario’s NE and NW fire districts. As of July 30 there were 41 active forest fires across the northeast, with 15 that were not under control.
This is the daily Evening Update newsletter. If you’re reading this online, or if someone forwarded this e-mail to you, you can sign up for Evening Update and all Globe newsletters here. Have feedback? Let us know what you think.
MARKET WATCH
Stocks around the world edged higher on Friday, though a trade spat between the United States and China along with tepid U.S. jobs numbers capped gains and weighed on the dollar.
In New York, based on the latest available data, the Dow Jones Industrial Average rose 135.81 points, or 0.54 per cent, to 25,461.97, the S&P 500 gained 13.09 points, or 0.46 per cent, to 2,840.31 and the Nasdaq Composite added 9.33 points, or 0.12 per cent, to 7,812.02.
In Toronto, the S&P/TSX composite index unofficially closed up 11.08 points, or 0.07 per cent, at 16,420.24 despite a 0.4-per-cent drop in energy stocks and a 0.2-per-cent decline for the heavyweight financial sector.
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.
WHAT’S TRENDING ON SOCIAL
Pungent odour of dirty diapers descends on iconic Nova Scotia tourist town
Residents of one of Canada’s most recognizable seaside communities are complaining that a foul smell is bedevilling them at the height of tourism season. Lunenburg, a town that has been designated a UNESCO World Heritage Site for its brightly coloured buildings dating back to the 18th century, has a 15-year-old sewage treatmant plant that is, according to locals, spoiling the scenic setting.
TALKING POINTS
The conservative case for a guaranteed income
“But the biggest incentive for a universal-income scheme is just around the corner. Thanks to AI and automation, millions of jobs will vanish over the next few decades. Less educated people will be hard hit, but so will a lot of middle-class professionals. Society’s biggest challenge is going to be how to deal with all those involuntary dropouts from the labour force.” – Margaret Wente
EpiPen shortage is critical – and not easy to fix
“Opposition parties, as they are wont to do, blame the Liberal government for the crisis. The New Democrats say the manufacturer should be threatened with loss of their patent if the product is not available – but that would resolve nothing. The Conservatives, for their part, have demanded a “Canadian-based supply chain,” which is easier said than done.” – André Picard
Who really rides the gravy train? Not those who were on basic income
"If you think I’m exaggerating about Canadians worrying about their next meal, consider the recent Angus Reid Institute report on poverty in Canada, which showed that one-quarter of us have had to borrow money for groceries or transportation. Forty per cent cannot afford dental care. Twenty-seven per cent of respondents are living with “notable financial hardship.” – Elizabeth Renzetti
LIVING BETTER
Cannabis infused dishes give dinner party menus a new look
Scouting out a secret location in Vancouver’s historic Gastown neighbourhood was only part of the hype that originally attracted chef Kris Barnholden to a dinner party invitation last April. The main attraction, up-and-coming cannabis chef Chris Sayegh, who was flown up for the pop-up event from Los Angeles, was the reason organizers were able to justify charging $250 apiece for an eight-course cannabis-infused menu. This intimate Vancouver gathering attended by 60 guests was just one of the hundreds of private, cannabis-curated dinners that the L.A.-based chef has prepared since launching his company, the Herbal Chef, three years ago. And with the legalization of cannabis imminent in Canada, we can only expect to see more local chefs, such as Toronto chef Guy Kramer, to begin experimenting with this haute – not hippie – dining experience. (For subscribers)
LONG READS FOR A LONG COMMUTE
Canadian cowboy: a 23-year-old singer from Saskatchewan brings a new voice to outlaw country
The pale skin and spray of freckles across the nose and cheeks of musician Colter Wall make him look much younger than he really is (just turned 23). As he warms up for a performance during the Calgary Stampede, a song began to emerge from the sounds of tuning instruments, and Wall’s voice filled the air. It is a smoky baritone, unexpected and arresting, a new voice and yet a deeply familiar one – tinged with memories of the original outlaws of country in their heydays. The New Yorker and Rolling Stone have written about Wall, and Pitchfork has called him “one of country’s most exciting young voices.” No less than Steve Earle has raved about his music and his voice, saying Wall is the best singer-songwriter he’s seen in years, and describing his songs as “stunning.” (For subscribers)
Evening Update is written by Johanna Chisholm. 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.