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Finance Minister Bill Morneau receives applause after delivering his fall economic statement in the House of Commons in Ottawa, Tuesday, Oct.24, 2017.Adrian Wyld/The Canadian Press

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WHAT YOU NEED TO KNOW

Federal deficit shrinks on strong economic growth, Liberals say in fall update

Finance Minister Bill Morneau gave an update on the state of Canada's finances today. In Budget 2017, the deficit was forecast to be $28.5-billion but will now come in at $19.9-billion because of the country's roaring economic growth in 2017. The Liberals also announced increased funding for programs for the middle class and lower-income Canadians. The Canada Child Benefit will be indexed to inflation starting in July, 2018, instead of 2020 as was originally planned. The Working Income Tax Benefit will have a $500-million injection starting in 2019, but the government says that more details would be released in next year's budget.

Here's Campbell Clark's take on the update: "Mr. Morneau has had to learn some hard lessons in politics this year, and one of them is that subtlety is not a virtue. The point of making those announcements about the CCB and the WITB now is to claim credit for a good economy, and in doing so, draw attention to the strong economy. If Conservatives in opposition claim it's the wrong prescription, and he should instead have been more cautious, and cut the deficit, Mr. Morneau should be happy to fight that out. That might just put him past those small-business tax troubles." (for subscribers)

And this is what Barrie McKenna thinks: "The one thing Canadians can be assured of is that the latest fiscal update will prove to be just as unreliable as the last budget – and the next one – in predicting how big the deficit will be two and three years out, or whether it's likely to shrink or grow. The update projects the budget deficit will shrink to $12.5-billion in 2022-23 from $19.9-billion in 2017-18. A whole lot could happen in the next few months to blow a big hole in these projections." (for subscribers)

Quebec softens some provisions of face-covering law Bill 62

After being criticized by legal experts, human-rights activists, the Muslim community and politicians of all stripes across Canada, Quebec has moved to clarify and soften some aspects of Bill 62. Justice Minister Stéphanie Vallée insisted the law, which would require residents to unveil their faces to access public services, was "not repressive." There was confusion as to how the legislation would be enforced and Ms. Vallee said that people would be required to unveil their faces for daily interactions like attending classes or picking up children at daycare. "No one will be thrown off public transit, be refused emergency health care, or be chased out of a library," she said. "We do not have the intention of setting up an uncovered-face police." If you need to get caught up on the issue, what brought it into the public discourse and where we go from here, we've built an explainer on the topic.

By-election upset victory fuels Liberal hopes in Quebec

In the 2015 federal election the Liberals won 10,193 votes in Lac-Saint-Jean and earned 18.44 per cent of the vote. On Monday, they won 13,442 votes, good for 38.59 per cent and an upset victory. It was the first time they captured the riding since 1980, when Mr. Trudeau's father was in charge. The success, which came in a traditionally nationalist area, has the Liberals hoping to consolidate their base of support in Quebec, where they won 40 of 78 seats in 2015. The by-election was triggered when Denis Lebel, a former Conservative cabinet minister and local politician, resigned his seat. Richard Hébert, a former mayor in the riding, will be the new MP.

HBC to sell Lord & Taylor flagship store; wins equity injection

Hudson's Bay Co. is planning on selling its Lord & Taylor store in New York to WeWork Cos. The Canadian retailer also owns The Bay and Saks Fifth Avenue and has been under pressure to monetize its real estate assets – many HBC stores are located in areas where real estate is extremely valuable. The deal with WeWork, a U.S.-based office-sharing business, is expected to reduce HBC's debt by $1.6-billion while increasing its liquidity by around $1.1-billion. WeWork plans on converting parts of the building into its New York headquarters while HBC continues to operate the Lord & Taylor store in a smaller space within the building.

MARKET WATCH

Canada's main stock index jumped to an eight-month high on Tuesday on gains by financial and industrial stocks. The Toronto Stock Exchange's S&P/TSX composite index closed up 0.31 per cent to 15,905.14. On Wall Street, strong earnings reports from Caterpillar and 3M sent the Dow to a record high close. The Dow Jones Industrial Average rose 0.72 per cent to 23,441.76, the S&P 500 gained 0.16 per cent to 2,569.13 and the Nasdaq Composite added 0.18 per cent to 6,598.43.

WHAT'S TRENDING

Pat Sorbara, an aide to Ontario Premier Kathleen Wynne, and Gerry Lougheed, a local fundraiser for the Ontario Liberals, have been acquitted of bribery charges. The pair were accused of offering a potential Liberal candidate in a Sudbury by-election a job or appointment if they stepped aside for the Premier's preferred candidate.

TALKING POINTS

Masculinity is toxic. Men don't have to be

"We're often told that the resurgence of dominant masculinity came alongside the Great Recession, driven by the often-invoked "working-class man." Rural, white and adrift in a new economy where his wife earns more than he does, he's susceptible to populist messages that his nostalgia could actually become reality. While I'm sure this guy exists, another type of man has been responsible for much of this era's ugliest vitriol – the one behind Gamergate, Uber's sexual-harassment lawsuit and other Silicon Valley abuses. Empowered after centuries of having sand kicked in their faces, too many tech geeks are asserting their new-found dominance over women repeatedly and repulsively. Their rise shows that there is no one type of man having trouble negotiating the space between archaic ideals and modern reality." – Denise Balkissoon

Morneau's U-turn: Great politics, terrible policy

"The turmoil of the past three months has ended up handing a giant political gift to the Conservatives, assisting them in their quest to rebrand the Liberals as the party of stealth tax hikes. And the final irony is that it's Mr. Morneau, of all people, who birthed this political millstone. He's been the progressive conservative Yin to the social-justice warrior Yang of the Prime Minister, his closest advisers and much of the cabinet. He's not just the Minister of Finance; he's the Liberal in Charge of Not Scaring Bay Street. But for the past three months, he allowed himself to become the chief sower of fear on Main Street. Small-business tax reform: What a short, strange trip it's been." – Tony Keller

We need a 'Joly' tax to put Canadian TV on equal footing

"If a Netflix tax is off the table, then what Canada needs is a 'Joly' tax, equivalent to a TV/internet licence fee, collected from consumers when they pay their income tax. The revenue would be used to fund a commercial-free CBC, private TV production and other media, perhaps including traditional newspapers, whose business model has been decimated by the internet. The tax would be an additional 2 per cent on top of a person's income tax, which would amount to about $100 for the average taxpayer and generate about $3-billion annually. This would truly put Canadian TV on the world stage with programs that have international acclaim." — Barry Kiefl

LIVING BETTER

The sports world has a new superfood. You may have met it before. It jiggles, is translucent and was a hit at dinner parties 40 years ago. Gelatin, which can be found in everything from jello salads to dumplings, can help strengthen parts of the body when combined with exercise, recent studies suggest.

LONG READS FOR A LONG COMMUTE

Justice delayed, justice denied: Byron Ruttan speaks for the first time about watching his sexual predator, already found guilty, set free by the Supreme Court

"I thought, 'Leave it buried and eventually it will go away.' But it didn't." When he was 12 years old, Byron Ruttan was repeatedly raped by a court-appointed mentor. The perpetrator was found guilty but the conviction was thrown out by the Supreme Court of Canada because of 'unreasonable delay.' The decision was based on R. v. Jordan, a ruling by Canada's top court that citizens have a right to be tried within a reasonable time.

Who killed Sears Canada? The inside story of its downfall

Sears used to be Canada's largest and most successful department store chain. Now, it's in liquidation. Customers are livid and pensioners are worried about the future; 16,000 workers have lost their jobs without their pay. Executives made out with bonuses. What happened? As The Globe's Marina Strauss reports: "Sears Canada didn't die of natural causes. It bled to death." (for subscribers)

Evening Update is written by Mayaz Alam and Omair Quadri. 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.

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