Good morning,
These are the top stories:
The Huawei saga: Here’s what you need to know
China threatens Ottawa: Beijing says Canada will face “serious consequences” if Huawei CFO Meng Wanzhou isn’t released from a B.C. prison immediately. China also summoned the Canadian ambassador to China, with Beijing’s Vice-Foreign Minister calling the arrest “an act committed by Canada.” China appears to be taking a much stronger tone against Ottawa than Washington, despite the fact that U.S. officials requested Meng’s extradition over accusations she committed fraud in misleading an investigation into the sale of U.S. technology to Iran. A desire to keep trade tensions at bay could account for discrepancy, observers say.
CSIS warns Canadian universities: Canada’s spy agency is warning the country’s top universities to be cautious about their extensive research relationships with Huawei. CSIS said Huawei’s technology “could have security implications as well as commercial applications,” said McGill’s Martha Crago, who chaired the October meeting of 15 research-intensive schools. That gathering was held well before Meng’s arrest, but came amid continuing U.S. pressure on Canada to ban Huawei’s access to Canada’s next-generation 5G wireless network. (for subscribers)
CFO seeks bail: Meng, who was arrested while transiting through Vancouver International Airport, is seeking to be released on bail. Meng, whose father founded Huawei, said she doesn’t pose a flight risk and should be released because of her fragile health. Meng emphasized her ties to Vancouver, including property holdings, in her sworn affidavit. (for subscribers)
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Gearing up for the Brexit day of decision: What to expect and what could follow
The fate of Prime Minister Theresa May’s Brexit deal will be on the line tomorrow as Parliament votes on the controversial agreement. A simple majority in the 650-seat House of Commons is needed, and about 100 members of May’s 315-seat strong Conservative Party have already voiced opposition to the deal. A key point of contention is a backstop that would see the U.K. remain part of the EU customs while new trade deals are negotiated, something critics say keeps the two sides too closely aligned. May is warning of “grave uncertainty” and “uncharted waters” if the deal fails to pass. In practical terms, this could result in an election being called.
Quebec is set to receive $13.1-billion in equalization payments next year
The province will see a $1.4-billion increase despite petitions from oil-producing provinces to rework the federal transfer formula. Alberta, Saskatchewan and Newfoundland and Labrador continue to be left out despite running budget deficits amid an energy-sector downturn. But Finance Minister Bill Morneau has resisted calls to change the system and earlier this year locked in existing rules for five years.
The payments are often a point of tension between “have” and “have not” provinces; Manitoba, New Brunswick, Nova Scotia and P.E.I. will also receive funds next year. Quebec’s Finance Minister said his province’s share is rising in part because the formula accounts for population, and Quebec is home to 22 per cent of the country.
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IN CASE YOU MISSED IT
In Washington: Kelly out as Trump’s chief of staff; developments in the Mueller probe
Retired Marine Corps general John Kelly is leaving his post by the end of the year. Kelly and Donald Trump clashed repeatedly over the past few months, and were reportedly no longer on speaking terms. Treasury Secretary Steven Mnuchin and Republican Representative Mark Meadows are among the names being floated as a replacement.
Meanwhile, a wave of new court filings by special counsel Robert Mueller are ratcheting up pressure on the President. Among the details: Trump allegedly ordered his lawyer to make illegal payments to two women who claimed to have had extramarital affairs with the future president; Trump’s former campaign chair, facing criminal charges for money-laundering and illegal lobbying, remained in touch with members of the President’s administration – and then lied about it.
MORNING MARKETS
Stocks sink
Losses on global stocks snowballed on Monday, with European markets following Asian peers lower as fresh signs emerged of slowing growth worldwide and fears grew that simmering U.S.-China tensions would torpedo chances of a trade deal. Tokyo’s Nikkei lost 2.1 per cent, Hong Kong’s Hang Seng 1.2 per cent, and the Shanghai Composite 0.8 per cent. In Europe, London’s FTSE 100, Germany’s DAX and the Paris CAC 40 were down by between 0.2 and 0.4 per cent by about 6:30 a.m. ET. New York futures were also down. The Canadian dollar was sitting at just above 75 US cents. Oil fell, erasing the gains made last week when producer group OPEC and other key exporters agreed to cut their crude output from January.
WHAT EVERYONE’S TALKING ABOUT
Don’t worry about the men’s comebacks. Worry about the women coming forward
“This is the message again and again from women who’ve found the courage to come forward: You feel like you don’t matter. Instead, what we’ve decided to fixate on is the tremendous suffering of men who have behaved like predators (at best) or criminals (at worst). Is this because we’re hooked on redemption stories? Is it because we cannot fathom a world in which men’s material wealth and status might be stripped away as a consequence of their terrible actions? I have no idea. But I do know that we seldom give as much thought to what women have lost, through no fault of their own – physical and mental health, job security, professional advancement. There’s a hole in the world where their accomplishments should be, but we’ll never see it.” – Elizabeth Renzetti (for subscribers)
Canada’s trade talks with China need to target fentanyl
“Donald Trump regularly gets things wrong – on facts and policy. But the U.S. President has been spot-on by outing China as the world’s No. 1 source of illicit fentanyl and using trade threats to force Beijing to do something about it. At the recent Group of 20 summit in Argentina, Trump secured a commitment from Beijing to designate fentanyl as a controlled substance, along with various chemical ingredients and fentanyl-like derivatives. Canada should adopt a similarly tough stance if it’s going to deepen trade ties with China and explore a possible free-trade agreement.” – Barrie McKenna (for subscribers)
The British are axing the fax. Will Canada follow suit?
“It’s not often that a seemingly mundane ministerial announcement reduces one to jealous tears, but this one fits the bill. On Sunday, Matt Hancock, the British health and social care secretary, banned the purchase of facsimile machines by the National Health Service effective Jan. 1, 2019. He also ordered that faxes be phased out completely in hospitals and physicians’ offices by April, 2020. Oh, but how Canada – a country even more in the poisonous grip of the fax than Britain – could use this common sense initiative. ‘We don’t underestimate the enormity of the challenge to remove all our machines in such a short time, but we cannot afford to continue living in the dark ages,’ Hancock said in the release. Amen.” – André Picard
LIVING BETTER
Women don’t need to follow a rigid schedule for breast cancer screening
Doctors should also inform patients of the potential risks mammograms pose, according to new guidelines published in the Canadian Medical Association Journal. The guidelines reflect a growing trend in health care to reduce unnecessary screening, tests or procedures that may have limited benefit. In the case of breast cancer, screening mammograms can help detect the disease in some women, but others may experience false positives and unnecessary follow-up tests and treatments as a result.
MOMENT IN TIME
Christmas shopping at Honest Ed’s, 1962
For more than 100 years, photographers and photo librarians working for The Globe and Mail preserved an extraordinary collection of 20th-century news photography. Every Monday, The Globe features one of these images. In December, we’re focusing on the holidays.
(Harold Robinson/The Globe and Mail)Harold Robinson/The Globe and Mail
In 1962, Globe and Mail photographer Harold Robinson found a great spot to capture the frenzy of last-minute Christmas Eve shoppers at Toronto’s renowned bargain house, Honest Ed’s. (For many years, the scene would have been no less wild at the store’s annual Christmas turkey giveaway.) Known for its corny slogans (“Only the floors are crooked!”) and, later, the 30-foot-tall by 60-foot-wide marquee sign, lit with 23,000 bulbs, the store was as flashy as its owner, Ed Mirvish, was humble. He and his wife, Anne, began with a small clothing store in 1943, and worked their way up to 1.8 hectares at Bloor and Bathurst streets. As the retail landscape changed and the store’s fortunes fell, the family sold the land to a luxury-property developer and Honest Ed’s closed for good in 2016. Looking for bargains in Toronto has never been the same since. – Dianne Nice
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Arik Ligeti