Good morning. While happy couples around the world were celebrating Valentine’s Day on Saturday, Italy’s famous ‘lovers’ arch’ — a piece of seaside stone shaped like a heart — collapsed during a storm.
It was far from the only broken heart on Valentine's Day, but unfortunately, this one can’t be smoothed over with some roses and a cheesy Hallmark card.
Today’s reading time is 5½ minutes.
MARKETS
| ▲ | TSX |
33,073.71 |
+1.87% |
|
| ▲ | S&P 500 |
6,836.17 |
+0.05% |
|
| ▲ | DOW JONES |
49,500.93 |
+0.10% |
|
| ▼ | NASDAQ |
22,546.67 |
-0.22% |
|
| ▼ | GOLD |
5,013.1 |
-0.66% |
|
| ▲ | OIL |
63.73 |
+1.34% |
|
| ▼ | CAD/USD |
0.73 |
-0.15% |
|
| ▲ | BTC/USD |
68,436.7 |
+0.01% |
Markets: Stock markets in Canada and the U.S. were closed yesterday.
ECONOMY
Carney eyes global trade deal for middle powers
Source: Shutterstock.
Canada is looking to broker a deal to bring over a third of the world’s global trade under one roof.
Driving the news: Prime Minister Mark Carney is spearheading negotiations between the European Union and the CPTPP — a 12-nation Indo-Pacific trading bloc that includes Canada, Japan and the U.K. — to form one of the world’s largest economic alliances.
Bypassing the U.S., the pact aims to link EU and CPTPP supply chains by aligning “rules of origin,” so that products made with parts from either bloc can qualify for low tariffs and move more easily across nearly 40 countries.
The talks follow Carney’s World Economic Forum speech, calling for the world's “middle powers” to band together in the face of economic coercion (a not-so-subtle jab at the U.S.).
Why it’s happening: Amid the Trump administration's tariff campaign, Canada and its allies have had to take a strength-in-numbers approach to trade. Ottawa has already reached new economic partnerships and trade deals with China, the UAE and Indonesia, but this agreement would dwarf all of those in importance.
Earlier this month, India and the EU signed a landmark deal to form the world’s largest free-trade zone. That could serve as a blueprint for Canada in its ongoing negotiations with India.
Why it matters: With the U.S. increasingly treating market access as a weapon — using tariffs and trade threats as leverage — this alliance could anchor a new trade system for countries that still see the value in predictable, rules-based commerce.—LA
BIG PICTURE
Source: Shutterstock.
Warner Bros. is leaning toward reopening negotiations with Paramount. After several hostile takeover offers from its rival studio, Warner Bros. Discovery is reportedly willing to open new talks with Paramount despite its existing deal with Netflix. The move could spark a second bidding war with Netflix, forcing the streamer to up its current US$83 billion bid. (Semafor)
Anthropic is at risk of being blacklisted by the Pentagon. The U.S. Department of Defense is reportedly close to cutting all ties with Anthropic after the AI startup pushed back on the usage of its Claude model in military operations. If the Pentagon does blacklist Anthropic, any company that does business with the U.S. military would also be forbidden from working with them — a harsh penalty typically reserved for foreign adversaries. (Axios)
Carney taps Janice Charette to lead CUSMA negotiations. The former head of Canada’s public service will take on the role of chief trade negotiator to the U.S. and lead the upcoming review of the Canada-U.S.-Mexico Agreement. (CBC News)—LA
📡 What else is on our radar:
The founder of OpenClaw, the social media for AI agents, has been hired by OpenAI.
The Trump administration is planning to close a loophole that they claim allows shippers to avoid taxes by accessing the U.S. through Canadian ports.
The Ottawa-Gatineau region, which is now home to the worst job market in Canada, shed another 32,000 jobs last month.
China dropped its visa requirement for Canadian tourists and business travellers.
Catch up on yesterday:
Parry Sound’s Megan Oldham won the gold medal in the women’s freeski big air, her second medal of the games.
Canadian speed skater Courtney Sarault won the silver medal in the women's 1,000-metre short track event.
The Canadian women’s hockey team beat Switzerland 2-1, advancing to the finals where they’ll face the U.S. on Thursday.
What’s happening today:
Two Canadians will compete in the women’s slopestyle snowboarding final this morning at 6:50 a.m. Eastern.
The men’s freeski big air final will kick off at 1:20 p.m. Eastern.
In curling, the Canadian men take on Great Britain at 1:05 p.m. Eastern while the women face Sweden at 8:05 a.m. Eastern.
WHAT THEY’RE SAYING
Source: No Lie with Brian Tyler Cohen.
What they’re saying: “They’re real, but I haven't seen them, and they're not being kept in Area 51,” Barack Obama told podcast host Brian Tyler Cohen when asked, “Are aliens real?” “There's no underground facility. Unless there's this enormous conspiracy, and they hid it from the president of the United States.”
Why it matters: Aliens are real! Just kidding. Obama later clarified that he only meant that “statistically, the universe is so vast that the odds are good there’s life out there,” and that “[he] saw no evidence during [his] presidency that extraterrestrials have made contact with us.”
GOVERNMENT
Canada is getting ready to arm itself
Source: Shutterstock.
A new federal strategy would see Canada not only scale up its stash of military gear, but also start making more of it at home.
What happened: Ottawa is planning a shot in the arm to Canada’s domestic defence industry with a plan, expected to be released today, to spend 70% of the country’s defence budget with Canadian firms.
That would more than triple revenue for Canadian defence companies and create 125,000 jobs over a 10-year period, according to the government.
The plan also sets out a target of increasing defence exports by 50% and dramatically increasing the serviceability rates of Canada’s military equipment, more than half of which is now “not serviceable.”
Why it matters: The strategy marks a clear break from Canada’s current practice of leaning on American contractors to supply the military, and marks the start of the country’s largest military buildup since the early years of the Cold War.
By 2035, the plan calls for Canada to spend 5% of its GDP on defence, which would be a greater share than any OECD country currently allocates to security except for Israel. It’s a dramatic shift in spending that would reshape Canada’s economy.
Why it’s happening: The document makes no bones about what’s behind the policy, saying that Canada must “possess the capacity to sustain its own defence and safeguard its own sovereignty” in a world where “old alliances” are no longer reliable.
Yes, but: One big question mark is what will constitute a “Canadian company,” a concept that the feds have previously taken an expansive view of, including foreign companies so long as they operate and employ people in Canada. “The ambition is pointed in the right direction,” Vass Bednar of the Canadian Shield Institute told The Peak, “but we need a much more rigorous definition of a “Canadian” company so that these new defence dollars don’t flow to Palantir ‘Canada’ or Lockheed Martin ‘Canada’ while IP flows out of the country.”—TS
ONE BIG NUMBER
🚙 53%. Share of Canadians who say an EV being made in China would not affect their decision to purchase it, according to a new Nanos poll. That’s a change in opinion from 2024, when 61% of Canadians said they would be less likely to buy an EV that’s made in China.
PEAK PICKS
The Motley Fool Canada is offering new members up to 62% off their flagship Stock Advisor Canada service for this Family Day Sale. Hurry! This sale ends at midnight on February 17th.*
A Pokémon card just sold for a record US$16.5 million.
Oscar-winning The Godfather actor Robert Duvall passed away at the age of 95.
Watch: The farmed vs. wild salmon dilemma, explained.
Why more people are taking adult gap years.
Lessons for dating in 2026, according to a professional.
*This is sponsored content.
Shake off that long weekend rust with today’s mini-crossword, the daily sudoku, and a brand new edition of Codebreaker.