7:30 a.m.
Canada tightens grip on home-grown research
Canada has unveiled new rules aimed at preventing sensitive technological research developed in the country from being transferred to China, Iran or Russia.
Prime Minister Justin Trudeau’s government yesterday produced a list of dozens of foreign institutes, schools and laboratories it says are linked to entities that might pose a risk to Canada’s national security.
The government won’t finance sensitive research projects — including those related to artificial intelligence, advanced energy technology and aerospace and satellite systems — if they’re affiliated in any way with the listed institutions.
The new rules establish a list of sensitive research areas, such as advanced weapons, digital infrastructure and life-science technology. Any project in those fields that’s receiving money from one of the listed institutes would be ineligible for a Canadian government grant.
The organizations are primarily based in China, but the list also includes several from Russia and Iran.
Chinese Foreign Ministry spokeswoman Mao Ning said Wednesday that Canada was using national security as an excuse to suppress Chinese universities and scientific institutions. “This decision is not wise,” she said.
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— Laura Dhillon Kane, Bloomberg
Stock markets before the opening bell
Stock futures are falling this morning continuing yesterday’s selloff as central bankers push back against market bets for interest rate cuts.
Market pricing for a Federal Reserve rate cut by March dropped to about 65 per cent from 80 per cent after Fed governor Christopher Waller urged caution on the pace of easing on Tuesday.
The Europeans joined the fray this morning when European Central Bank president Christine Lagarde and governing council member Klaas Knot warned that aggressive bets on interest-rate cuts aren’t helping policymakers in the battle against inflation.
European stocks slumped more than 1 per cent at the open with all industry sectors in the red. Futures on the Nasdaq 100 and S&P 500 fell around 0.5 per cent, suggesting another weak day ahead for U.S. equities.
The CBOE Volatility Index — Wall Street’s “Fear Gauge” — climbed to a two-month high.
Fresh concerns about China are adding to the headwinds after officials figures showed the housing slump has worsened and domestic demand remains listless in the world’s second biggest economy.
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— Bloomberg
What to watch today
- Federal Housing Minister Sean Fraser will give a speech in Toronto today to discuss ways to solve the country’s housing crisis.
- Innovation Minister Francois-Philippe Champagne will take part in a fireside chat in Regina on building a resilient economy in the face of multiple transitions happening regarding critical minerals and the digital industry.
- Data coming from the United States includes the Federal Reserve Beige Book, with its economic snapshots from across the country, and retail sales for December
- Earnings out today include Charles Schwab, Alcoa and Kinder Morgan.
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Additional reporting by The Canadian Press, Associated Press and Bloomberg
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