U.S. President Donald Trump speaks in the Roosevelt Room at the White House in Washington, D.C., on April 26, 2017.Mark Wilson/Getty Images
Trump changes course on NAFTA, drops threat to back out
Donald Trump has backed off on a plan that would have kickstarted a possible U.S. exit from the North American free-trade agreement. The White House had considered an executive order that, if signed, would have given Canada and Mexico a six-month warning; the U.S. could have theoretically pulled out after that. But in a call with Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto, Trump changed course and "agreed not to terminate NAFTA at this time." The three leaders agreed to work quickly to allow for a renegotiation of NAFTA to move ahead, according to a White House summary. Experts had seen the now-nixed order as a way for Trump to up his leverage in NAFTA talks.
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O'Leary drops out, endorses Bernier for Conservative leader
Kevin O'Leary has dropped out of the Conservative leadership race, pinning his decision on being unable to break through in Quebec. And he's throwing his support behind Quebec MP Maxime Bernier, who is seen as the front-runner. O'Leary entered the race in January and found growing support everywhere except Quebec, where he hasn't broken past 12 per cent. "You have to win 30 seats. So, who can do that? It's Bernier," 'O'Leary said. The news came on the same day as the last Tory leadership debate, where 13 candidates jockeyed for attention. Some of those remaining will likely need to start dropping out and endorsing other candidates if someone wants to defeat Bernier.
Softwood dispute front and centre at B.C. leaders' debate
B.C. Liberal Leader Christy Clark used the escalating softwood lumber dispute to deflect from a list of alleged failings of her government during the final debate of the election campaign. Clark was frequently attacked by both NDP Leader John Horgan and Green Leader Andrew Weaver on a range of issues, including skyrocketing home prices and her party's donations from large corporations. Clark warned of rising protectionism in the United States and promised to fight for the province's interest, while Horgan said Clark had failed to do more to head off the standoff in the first place.
Home Capital secures $2-billion lifeline as shares collapse
Home Capital, Canada's biggest alternative mortgage lender, saw its shares fall 65 per cent yesterday. The sudden drop happened after the company said it was negotiating a $2-billion line of credit after investors pulled money from their accounts. Home Capital provides subprime loans to people who don't qualify for bank mortgages. The firm needs money in its accounts in order to offer those loans. Home Capital has been caught up in a regulatory investigation in Ontario. It's also been criticized for lending money out to easily, in turn contributing to rising real estate prices.
NHL PLAYOFF ROUNDUP
Oilers, Predators win first games of second round
The Edmonton Oilers won Game 1 against the Anaheim Ducks 5-3, taking a one-game-to-none lead in their second-round playoff series. Adam Larsson and Mark Letestu both notched two goals for the Oilers, who blew a two-goal lead in the third period but came back for the win, in Anaheim. In St. Louis, the Nashville Predators took Game 1 by a score of 4-3, led by P.K. Subban's goal and two assists. Both series continue on Friday.
THE LOOKAHEAD
Ontario budget tabled today
Provincial Finance Minister Charles Sousa is expected to table Ontario's first balanced budget in nearly a decade later today. With an election set for June, 2018, Liberal Premier Kathleen Wynne will be looking to boost her dismal approval rating of 12 per cent – the lowest among Canadian premiers. Ontario's debt has jumped up to $304-billion, and the Progressive Conservatives want a plan to start paying that off. The NDP, meanwhile, wants the Liberals to increase public spending. The Liberals are expected to play to health-care workers in the budget, including more money for hospitals; Ontario's per-capita hospital funding is the second-lowest nationwide.
MORNING MARKETS
A record-setting rally in world stocks ran out of steam on Thursday, with unconvincing U.S. tax cut plans cooling investors' spirits and caution setting in as the European Central Bank met. Tokyo's Nikkei lost 0.2 per cent, though Hong Kong's Hang Seng gained 0.5 per cent, and the Shanghai composite 0.4 per cent. In Europe, London's FTSE 100, Germany's DAX and the Paris CAC 40 were down by between 0.3 and 0.6 per cent by about 6:25 a.m. (ET). New York futures were little changed. Oil prices fell, weighed down by oversupply, but losses were limited by expectations that major exporters would agree to extend production cuts to try to rebalance the market.
WHAT EVERYONE'S TALKING ABOUT
Kevin O'Leary: He didn't come back, for you
"And so Kevin O'Leary, having not yet arrived, departs. "It's for the sake of the party that I do this, and the country," he said on Wednesday. "Because I can't deliver Quebec. I can't win." The Conservatives once mocked Michael Ignatieff with the slogan, "He Didn't Come Back For You." O'Leary is telling Canadians that, after sort-of campaigning for months, at least when his U.S. reality TV career wasn't taking priority, the Boston-based star's sudden reversal of course is actually a case of him doing this country a favour. Why isn't he coming back? For you. For all of us. Cometh the hour, goeth the man." – Globe editorial
No standout moments in final debate of the B.C. election campaign
"BC Liberal Leader Christy Clark fashioned herself as the stoic, fearless leader, unafraid to stand up to the protectionist urges of Donald Trump. NDP Leader John Horgan portrayed himself in more prosaic terms, as the champion of the everyday person. And Green Leader Andrew Weaver tried to convince a skeptical public that the policies of his party are what's needed to rid Victoria of the decades-old stench created by the cynical politics of the province's two mainstream parties. ... I know that people want clear winners declared after these types of events. But I don't think that's possible here. All three had their moments. All three likely won supporters and lost some too. But it's hard to imagine the provincial election swung in any discernible way as a result of it." – Gary Mason
Is Home Capital's crisis the pin that pops the housing bubble?
"Home Capital and its peers run their businesses based on an act of faith: Clients entrust their cash to high-interest savings accounts and GICs offered by these institutions. That money is lent to home buyers, many of whom can't get a mortgage from the big banks. For this business to work, depositors have to believe they will get their money back. That trust is breaking down at Home Capital, the country's largest alternative lender. … Home Capital plans to right the ship by locking in capital, which in turn will stem the exodus of deposits. If that happens, this crisis of confidence will pass. Traditional factors such as interest rates, supply and demand will set prices in residential real estate markets. But if Canada's alternative mortgage lenders face an unexpected liquidity crisis, the housing market is in for a potentially nasty downturn." – Andrew Willis (for subscribers)
HEALTH PRIMER
Canadian task force rejects calls for widespread hepatitis C-testing
If you're a baby boomer, and you're healthy, there's probably no need to be tested for hepatitis C, a federal task force says. Those who should go for tests: poeple who have injected drugs, spent time in prison or immigrated from countries where the virus is more widespread. But liver doctors disagree with the decision, saying baby boomers could have been exposed when the virus was unknown. "It makes no sense to me. Why wouldn't you want to find carriers of this virus?" said Michael Houghton, a hepatitis virologist and the leader of the team that identified hepatitis C in 1989.
MOMENT IN TIME
South Africa holds first multiracial elections
April 27, 1994: Nobody was quite certain if South Africa could pull it off. In the lead-up to its first multiracial elections, the signs were ominous. White extremists were planting bombs across the country. Zulu militants and right-wing Afrikaners were threatening an election boycott. Protests had erupted into bloodshed and there were warnings of civil war. It was the charisma and diplomatic shrewdness of anti-apartheid hero Nelson Mandela that finally turned the tide. He pleaded for peace and reached out skillfully to the angry militants. On election day, millions of South Africans queued patiently in the sun. Despite bomb threats, ballot shortages and logistical chaos that forced the election to be extended to three days, the voting was largely peaceful. Mandela won an overwhelming victory and became the first black president of the new "rainbow nation." Today, April 27, is an annual holiday known as Freedom Day. – Geoffrey York
Morning Update was written by Arik Ligeti, James Keller and Steven Proceviat.
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