Good morning,
These are the top stories:
Ottawa will be giving itself more power to push through Trans Mountain
The federal government is preparing legislation to boost its enforcement clout and assert its jurisdiction over the pipeline expansion project. One law professor at the University of Saskatchewan said this may be to declare “paramountcy,” which would allow Ottawa to override provincial legislation. B.C. is going to the provincial courts this month to ask whether it has authority over the movement of bitumen through its territory. B.C. Premier John Horgan says he’ll wait to see the federal bill before responding, but warned that any effort designed to curb provincial authority would also anger Quebec. All this comes as Kinder Morgan’s CEO says “it’s become clear the investment may be untenable” for a private company (for subscribers).
Campbell Clark argues that the spat over the pipeline is inter-provincial mayhem, but not a constitutional crisis: “ The questions at play now are not about who has jurisdiction, but who looks like they are taking a loud, tough stand for their side. This latest spate of tit-for-tat threats can’t do much but make a bunch of lawyers rich.” (for subscribers)
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Quebec and the federal government are at odds over the handling of asylum seekers
With an expected summertime surge in crossings around the corner, Premier Philippe Couillard criticized Ottawa for “showing a complete misunderstanding of the reality on the ground.” Quebec received about 25,000 asylum seekers last year, up from a usual pace of 3,500 claimants. There have already been more than 6,000 crossings into Quebec from the U.S. this year as President Donald Trump continues to crack down on immigration. After a meeting between federal and provincial counterparts last night, Ottawa agreed to assist by sending asylum seekers to provinces where they want to live, instead of keeping them all in Montreal as they await hearings.
Families of the Quebec City mosque shooting victims are pushing for stacked life sentences for Alexandre Bissonnette
Bissonnette has already pleaded guilty to six counts of first-degree murder in last year’s attack. The penalty for first-degree murder in Canada is life in prison with no chance of parole for 25 years. But in 2011 the federal government allowed judges to add the 25-year waiting periods on top of each other when a person has been found guilty of multiple murders. Since then, four men have been sentenced to 75 years of parole ineligibility. This latest case has kicked off a debate about the stacked parole law, which criminal lawyers say is cruel and unnecessary.
Hydro One’s board increased severance provisions to counter possible intervention by Ontario’s government
The new measures would increase the payout for the chief executive if he is fired, as well as providing protections if the government works to cap executive pay. The price of hydro and executive compensation has been a contentious issue in Ontario as the province heads to the polls in June. Last week, Ontario Progressive Conservative Leader Doug Ford said, if elected, he would replace the utility’s board and fire the CEO, who earned $6.2-million last year. Kathleen Wynne’s Liberal government partly privatized Hydro One in 2015.
NHL playoffs: Leafs look to even series with Bruins
The Leafs are finally playing with the confidence they had during the regular season after a bounce-back 4-2 win on Monday to cut the Bruins’ series lead to 2-1. The two teams face off tonight at the Air Canada Centre (7 p.m. ET).
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IN CASE YOU MISSED IT
The Bank of Canada held interest rates steady
The central bank is still eyeing future hikes, but it’s not yet clear just how high and how quickly rates will rise. The Canadian economy is growing, but uncertainty over the North American free-trade agreement and record debt levels are causing the Bank of Canada to take a cautious approach. And economic conditions wouldn’t be this good if the key rate wasn’t sitting at a low mark of 1.25 per cent, Bank of Canada Governor Stephen Poloz said. A neutral level is considered to be between 2.5 and 3.5 per cent.
MORNING MARKETS
Commodities climb
Talk that Saudi Arabia has its sights on $80-$100 a barrel oil again ignited a fierce rally in commodities and resource stocks on Thursday, though the potential boost to inflation globally put some pressure on fixed-income assets. Tokyo’s Nikkei gained 0.2 per cent, Hong Kong’s Hang Seng 1.4 per cent, and the Shanghai composite 0.8 per cent. In Europe, London’s FTSE 100 and the Paris CAC 40 were up by between 0.1 and 0.2 per cent by about 5:30 a.m. ET., with Germany’s DAX down 0.1 per cent. New York futures were down. The Canadian dollar is still holding above 79 US cents. Oil prices rose to their highest since late 2014 on Saudi Arabia, and as U.S. crude inventories declined, moving closer to five-year averages.
WHAT EVERYONE’S TALKING ABOUT
Pity the children! A pot shop is opening up nearby
“As the legalization of marijuana approaches, Canadians are suffering some anxiety about how it will all work. You might even call it a case of the fears. Just look at the fuss over the location of the first government pot shop in Toronto. Provincial government cannabis sellers (it is going to take awhile to get used to seeing those words in print) propose to put it in a plaza at Victoria Park Avenue and Gerrard Street East in the eastern suburb of Scarborough. Locals were quick to point out that there is − eek − a school close by. In fact, said some appalled parents, schoolchildren go to martial arts and tutoring in that plaza. … The reason for all the consternation is a bit of a mystery. Marijuana, after all, will shortly be a legal product across Canada. The fact that it is being sold in stores doesn’t pose any direct danger to schoolchildren. It is not as if plutonium nuggets or rocket launchers are passed over the counter.” – Marcus Gee (for subscribers)
Why is Canada angering the Russian bear?
“Canada’s approach toward Russia and its strongman President Vladimir Putin has come full circle since the 2015 election. We’ve blown cold and warm and cold again, with governmental and ministerial changes in Ottawa underscoring how personalities and domestic politics, not longer-term strategic objectives, dictate our foreign policy. … For Canada, which has Russia as an Arctic neighbour, dealing with the Russians is not a choice. As the North is opened up to commerce and travel, it will increasingly be our reality.” – Konrad Yakabuski (for subscribers)
Why co-working spaces are flourishing
“Thanks to technology, many people can now work from home in their pyjamas far away from annoying co-workers. Turns out, a lot of them would rather get dressed and take their chances with office mates, annoying or not. As a result, co-working spaces are flourishing and their benefits may be broader than what might first meet the eye. Like it or not, we are in the midst of a transformation of the workplace. Although a core of people still go to work in the same place every day, many other work arrangements now exist. Telecommuting, taking a series of part-time jobs, moving from contract to contract and every model of freelancing are all the reality for an increasing part of the workforce.” – Linda Nazareth, principal of Relentless Economics
LIVING BETTER
If you attempt a family Vegas vacation, go beyond the Strip
While Las Vegas isn’t a typical destination for families, there are plenty of ways to make sure everyone’s happy. Skip the big hotels on the strip and look for spots that offer pools with waterslides, planned activities and in-suite kitchens. Heading out for a day trip to Red Rock Canyon or the Valley of Fire State Park is a great way to explore the area’s natural sights. Go here for more Vegas food and adventure tips.
MOMENT IN TIME
LSD officially tested by Albert Hofmann
April 19, 1943: “Everything in my field of vision wavered and was distorted as if seen in a curved mirror. I also had the sensation of being unable to move from the spot,” wrote Swiss chemist Albert Hofmann in his 1980 autobiography, LSD: My Problem Child. Hofmann had just ridden his bike home from his lab after deliberately ingesting a small amount of a drug he had created to be used as a medicine. But he’d taken too much, and Hofmann experienced the first bad acid trip. He said it felt as if a demon had invaded him and taken possession of his body, mind and soul. “The substance, with which I had wanted to experiment, had vanquished me. It was the demon that scornfully triumphed over my will,” he wrote. Later, Hofmann’s employer began producing the drug for psychiatrists to use in experiments. While they failed to discover any medical use for it, free samples for the experiments were distributed widely. Hofmann’s hallucinogenic trip went on to inspire a counterculture of drug use – and what happened on April 19, 1943 became known (and celebrated) as Bicycle Day. – Noella Ovid
Morning Update is written by Arik Ligeti.
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Arik Ligeti