Morning Update: Federal budget highlights; marijuana firm under scrutiny

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Good morning,

These are the top stories:

The federal budget: What you need to know

Deficit: Despite the benefit of a strong economy, Ottawa has decided to spend instead of reducing a projected $18.1-billion deficit for 2018-2019.

Here's David Parkinson's take: "The boat for a return to a balanced budget in Ottawa has sailed. This government has no realistic route to get there – and frankly, it's not too worried about it. This budget cements that." (for subscribers)

Taxes: The Liberals opted not to offer the kind of tax cuts or incentives many in the business community had called for to compete with major tax cuts approved in the United States. The government has also pared down its controversial small-business tax plans, but those with a significant passive investment income will be taxed more.

Our editorial board argues the Liberals missed the mark by not responding to U.S. President Donald Trump: "The seismic impact of Trumponomics, with its blend of low taxes and know-nothing protectionism, makes barely a ripple in the serene document the Liberals have tabled."

Gender equality: The government is promising to introduce pay-equity legislation, but there is no dollar figure attached to the proposed bill, which won't be tabled before the fall. The government is also offering new EI benefits to encourage a second parent to take parental leave. But the Liberals didn't offer any new money for affordable child care, a measure that would have gone a long way to helping women enter and stay in the work force.

In brief: Ottawa is expanding its program to help thalidomide survivors; nearly $4-billion over five years is being pledged for science and research; the government is exploring the possibility of a national pharmacare program; there are seven key changes that could affect your finances.

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B.C. is suspending capital-reserve rules for its money-losing public auto insurer

The move increases the possibility that the government may have to bail out the Insurance Corporation of B.C., which posted a $1.3-billion loss in the past fiscal year. ICBC only has 50 cents in capital for every dollar it expects in claims, despite a requirement to have 100 per cent on hand (the recommended figure is $1.45 on hand for every dollar). But now the government is temporarily scrapping the capital-requirement rule because that's the only way it can appear before a regulator to present structural changes that are meant to improve ICBC's finances.

An Ontario marijuana producer is facing questions over actions by senior staff

Canada's top securities regulator is probing why Maricann's CEO didn't disclose to investors that he is under investigation for his actions at another pot company (for subscribers). The Ontario Securities Commission is also questioning why two Maricann directors sold $8-million in shares days before the company announced a big round of equity financing. The OSC's inquiry comes at a time when marijuana companies are facing more scrutiny: Stocks in the emerging sector have become volatile of late as investors start to question the financial viability of the scores of new cannabis companies.

Russians compromised U.S. election systems in seven states

That's according to a report from NBC News, which says Russian-backed operatives compromised voter registration systems or websites in seven states: Alaska, Arizona, California, Florida, Illinois, Texas and Wisconsin. The breaches are said to have taken place before the 2016 election and the states were not informed at the time that Russians were to blame. No votes were changed as a result of the Russian activity. The Department of Homeland Security is denying the NBC report.

Elsewhere on the U.S. politics front, Donald Trump's son-in-law and adviser Jared Kushner lost access to a key U.S. intelligence briefing after his security clearance was adjusted.

IN CASE YOU MISSED IT

China is using big data to detain people before a crime is committed

Chinese authorities are using a system that flags suspicious activity by parsing data from things like facial-recognition cameras and banking records. That information is then used by police to send people to political re-education camps, according to a new report from Human Rights Watch. People can then spend months in forced detention without any charges until the state deems them appropriately educated. The system is being used in the far western region of Xinjiang, which is home to a large Muslim Uyghur population that Beijing has blamed for acts of terror. But critics say it's a racially motivated effort by the Chinese state to suppress Uyghurs.

MORNING MARKETS

Stocks mixed

Global stocks were set to snap a record 15-month long winning streak on Wednesday, tumbling another quarter per cent after new Fed boss Jerome Powell's comments suggested the possibility of four U.S. interest rate rises this year rather than three. Tokyo's Nikkei and Hong Kong's Hang Seng each lost 1.4 per cent, and the Shanghai composite 1 per cent. In Europe, London's FTSE 100, Germany's DAX and the Paris CAC 40 were down by between 0.3 and 0.5 per cent by about 6:05 a.m. ET. New York futures were up. With the U.S. dollar perking up, the loonie is struggling, sitting at about 78.3 US cents. Oil prices struggled to stay in positive territory after data showed industrial activity in some of the world's major crude-consuming nations has softened.

WHAT EVERYONE'S TALKING ABOUT

Are Toronto police playing the blame game with the Bruce McArthur case?

"[Police Chief Mark Saunders] says police could have moved sooner if someone had come to them with a crucial scrap of evidence. Instead, Mr. McArthur navigated freely in the community 'and all the while, nobody knew.' That is fair as far as it goes. Citizens should not hesitate to approach the authorities with what might turn out to be critical information. Police need the help of the public to do their job. But are the police themselves really so blameless in this case? How can the chief say with such confidence that he is satisfied investigators handled it correctly? Did they follow every lead, turn every stone? Have police done enough to build trust with the LGBTQ community? Did they perhaps take the disappearances less seriously because most of the victims lived on the margins of an often-marginalized community?" – Marcus Gee

Gun control is a lost cause in America

"In U.S. cultural products, good guys kill bad guys with guns – whether they're in the Wild West, in U.S. cities, in foreign wars, or in outer space. My bet is that America in the years to come will continue to have a few gun-free zones, such as airplanes, sports stadiums and Republican Party conventions. But places explicitly free of guns – or "soft targets" as U.S. President Donald Trump has framed them – will become fewer. Beyond these enclaves, you could encounter someone with a weapon, concealed or brandished, almost any time and anywhere. I suspect the argument of arming good guys to kill bad guys will triumph over the idea of limiting the types of weapons available to ordinary citizens." – Michael Adams, president of the Environics Institute

HEALTH PRIMER

Seven ways to get enough (meatless) protein

If you're looking to cut out or reduce the amount of meat in your diet, fret not, there are plenty of alternatives. One cup of cottage cheese offers around 30 grams of protein, not to mention plenty of calcium and B vitamin. One large egg, meanwhile, has 6 g of protein, while lentils have 18 g in a cup. Edamame (green soybeans) can be found in the freezer section of the grocery store and offer 16 g of protein for ¾ of a cup. Tofu offers 16 g per cup, soy milk has 8 g per cup, and three tablespoons of hemp seeds pack 10 g.

MOMENT IN TIME

Canada wins Olympic gold at home

Feb. 28, 2010: "One Game. Our Game." So read the headline for The Globe and Mail preview of the biggest hockey match in a generation: Canada on home ice, facing arch rival the United States for men's Olympic hockey gold. Vancouver 2010 had been a spectacular Winter Games for the host country, with gold medals in events ranging from ice dance to women's hockey. But all eyes were on the last day's marquee event, the men's hockey final. It was a thriller. Tense. Canada nursed a 2-1 lead heading into the last minute when – shock – the United States tied the game 2-2. Overtime! Canadians began to panic – what if we lose? And then, watched by a staggering 16.7 million nervous Canadians on TV, Chris Cuthbert with the play-by-play: "Crosby over the line … Sidney Crosby can't bust in … up with it again he's on the ice with Iginla. Iginla. Crosby scores! … Sidney Crosby! … The golden goal and Canada has a once-in-a-lifetime Olympic gold!" Captain Canada, at 7:40 of OT, with the Games' crowning moment, thrilled the country and confirmed hockey as the national obsession for another generation. Said the next day's Globe headline: "Our Game. Our Gold." – Philip King

Morning Update is written by Arik Ligeti.

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