Good morning,
These are the top stories:
The CRA is probing 2,800 presale condo flips in the Toronto area
Auditors are reviewing transaction records as part of a crackdown on tax evasion in the real estate industry (for subscribers). The practice, known as paper flipping, is when people sell their units before projects are completed. "The profits from flipping real estate are generally considered to be fully taxable as business income," a CRA spokesman said. The CRA is also looking into the practice in Vancouver. Neither Ontario nor B.C. track presale flip sales, which means there's no way to know how widespread the practice is.
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Bombardier and Boeing almost had a C Series deal
But then Boeing abruptly ended talks and the U.S. imposed duties against Bombardier weeks later (for subscribers). The deal was aimed at avoiding a trade fight between Canada and the United States, with Boeing securing a stake in the C Series. Boeing appears to have concluded the U.S. would punish the C Series, in turn leading to its eventual demise, one source said.
After negotiations fell apart, Bombardier turned to Europe's Airbus in a deal which will see some C Series parts assembled in Alabama. That hurts Boeing because its trade case was billed as a way to protect American jobs, experts say.
Quebec by-election: The Liberals picked up a seat in Lac-Saint Jean for the first time in 30 years
Liberal Richard Hébert, a local mayor, picked up 38 per cent of the votes, a roughly 14-point lead over the Conservative and Bloc candidates. The Tories had held the riding for a decade. Justin Trudeau's popularity in Quebec was likely a major factor in the upset; the win will leave Liberals optimistic about securing other previously unfavourable ridings in the next election.
Meanwhile, the Conservatives easily won another by-election in the riding of Sturgeon River-Parkland, with candidate Dane Lloyd taking 77 per cent of the vote. He will officially take over from former interim party leader Rona Ambrose as the riding's MP.
The crucifix in Quebec's legislature is being thrust into the province's secularism debate
An opposition party is calling for the crucifix to be removed from its place above the Speaker's chair. "We've talked a lot about the clothes people wear," said Gabriel Nadeau-Dubois, an MNA with Québec Solidaire, who is submitting the motion. "Now it's time to talk about the apparent secular nature of the most important institution of Quebec democracy, the National Assembly."
Some have pointed to the crucifix as a sign that the provincial Liberal government's Bill 62, which requires uncovered faces to obtain public services, unfairly targets minority faiths, especially Islam. The Justice Minister is expected to release details today outlining how the law would be implemented.
IN CASE YOU MISSED IT
Putin put Magnitsky law advocate Bill Browder on the Interpol wanted list
Browder says the move is an act of retaliation for Canada's passage of a bill that will enable sanctions against human-rights abusers. It's a cause Browder took up after Russian tax lawyer Sergei Magnitsky was killed by prison staff in a Moscow jail in 2009. As long as the Interpol notice is in place, Browder could be arrested at a border crossing if he attempts to leave his home country of Britain. He had planned to travel to Canada later this month to meet with Canadian parliamentarians who helped pass the bill. This is the fifth time Russia has added him to Interpol's list.
Here's Campbell Clark's take: "By now, the absurdist Russian response to the Magnitsky campaign has told us more than Browder ever could. In 2013, the long-dead Magnitsky was put on trial and convicted. When the United States passed its Magnitsky law, Russia responded by cutting off U.S. adoptions of Russian orphans. Now, Russian investigators apparently think Browder was behind Magnitsky's death all along. There's probably more post-realist Russian reaction coming. And since Canada just passed its own Magnitsky law, it may be coming here." (for subscribers)
MORNING MARKETS
European stocks dipped and bond yields drifted higher on Tuesday, as data from the euro zone's top economies bolstered the case for the European Central Bank to signal a sizable cut this week to its stimulus measures. Tokyo's Nikkei gained 0.5 per cent, and the Shanghai composite 0.2 per cent, though Hong Kong's Hang Seng lost 0.5 per cent. In Europe, London's FTSE 100, Germany's DAX and the Paris CAC 40 were up by between 0.1 and 0.2 per cent by about 6:15 a.m. ET. New York futures were also up, and the Canadian dollar was at 79 cents (U.S.). Brent oil fell towards $57 a barrel as crude flows through Iraq's northern pipeline to Ceyhan in Turkey rose further, offsetting an expected fall in U.S. crude inventories.
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WHAT EVERYONE'S TALKING ABOUT
Don't kill specialty schools. There are better ways to promote equality
"A task force of the Toronto District School Board recommends doing away with arts and other specialty schools because they are too wealthy and white. … Discarding these jewels would drive many talented kids out of the public system and into private and independent schools. If the goal is to attract more kids from struggling families and diverse backgrounds, the board should bring in measures – transportation subsidies, bursaries to cover expenses, programs to attract students from low-income schools – that would overcome barriers to access. Better to reach out than tear down." – Marcus Gee
Legal marijuana: health ministers say they're ready, but are they?
"What happens if provincial rules aren't in place by the time the federal Cannabis Act takes effect next Canada Day? [That question] is, unfortunately, necessary because most provinces and territories have spent a lot more time and energy complaining about the so-called tight deadline than actually formulating policies. … Ottawa made clear its intentions and followed through. As shocking as that may be in modern politics, it remains that the provinces and territories have no possible excuse for claiming they didn't know what was coming down the pipe. Yet, to date, only three provinces, Ontario, New Brunswick and Alberta, have issued semi-detailed plans." – André Picard
HEALTH PRIMER
Will an Aspirin a day keep the cardiologist away?
Aspirin can help prevent the formation of clots which in turn reduces the risk of heart attacks and strokes. But it can also increase the risk of bleeding, especially nose bleeds. Some people suffer from more serious bleeding in the stomach, colon and, in rare cases, the brain. But many studies have determined that the benefits of taking aspirin outweigh the risk for those at risk of heart disease.
MOMENT IN TIME
Nylon stockings hit store shelves
Oct. 24, 1939: When nylon stockings had their debut on this day, they became a runaway sensation. Made from coal, water and air, nylon was more elastic, lasted longer and was sometimes less expensive than readily available rayon, which meant weekly stocking supplies would sell out almost immediately, TIME reported in 1940. Nylon as a material was first patented in 1938 by chemical maker DuPont, but manufacturing didn't start until a year later. Launched during the height of the Second World War, nylon stockings benefited from boycotts of Japan's silk alternative. But the nylon craze was quick to snap: DuPont discontinued their sales to focus on manufacturing supplies for war, such as nylon parachutes. All types of stockings were made available after the war, but lately, it's more in style to wear thick tights, or simply opt for a now non-taboo bare leg. – Morgan Bocknek
Morning Update is written by Arik Ligeti.
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Arik Ligeti