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Evening Update: Israel and UAE make historic pact; Hong Kong media tycoon Jimmy Lai speaks out – The Globe and Mail

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Good evening, let’s start with today’s top stories:

Israel and the United Arab Emirates reach historic deal to normalize relations

Israel and the United Arab Emirates have announced that they will normalize diplomatic ties and forge a new relationship, a move that reshapes the order of Middle East politics from the Palestinian issue to Iran.

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Under the accord, which U.S. President Donald Trump helped broker, Israel has agreed to suspend its planned annexation of areas of the occupied West Bank. The agreement also firms up opposition to Iran, which the UAE, Israel and the United States view as the main threat in the Middle East.

Israel had previously signed peace agreements with Egypt and Jordan. But the UAE, along with most other Arab countries, did not recognize Israel and had no formal diplomatic or economic relations with it until now.

This is the daily Evening Update newsletter. If you’re reading this on the web, or it was sent to you as a forward, you can sign up for Evening Update and more than 20 more Globe newsletters here. If you like what you see, please share it with your friends.

Hong Kong media mogul Jimmy Lai speaks out after arrest

The tightening legal regime in Hong Kong is suffocating the city, says publishing tycoon Jimmy Lai, who was arrested this week under a national security law imposed by Beijing. But in an online discussion a day after he was released on bail, he remained defiant.

“The oxygen is getting thin and we are all choking,” he said. “But when we are choking, we are still taking care of each other – and keep resisting and keep fighting for our rule of law and freedom.”

His arrest has raised concerns at Next Digital, the publishing firm he founded, that he could be sent to mainland China for prosecution – and almost certain imprisonment. On the day of his arrest, the police also raided tabloid Apple Daily, one of Next Digital’s most important holdings.

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Canada’s international pandemic alert back in operation

Canada’s international pandemic surveillance and alert system is active again, more than a year after Ottawa effectively shut it down.

Late last week, the Global Public Health Intelligence Network (GPHIN) began issuing alerts about serious disease outbreaks for the first time since May 24, 2019. The Globe obtained a copy of the alert, which warns of a potentially deadly tick-borne illness in China that is showing signs of human-to-human transmission.

It comes after a recent Globe and Mail investigation reported the GPHIN system, which had been lauded around the world for its ability to detect potentially dangerous outbreaks at their earliest stages, had been shelved amid shifting government priorities.

ALSO ON OUR RADAR

BoC mortgage rate cut: The Bank of Canada has cut its benchmark five-year mortgage rate to 4.79 per cent from 4.94 per cent, the second cut in three months. As part of the financial stress test calculation, the reduced benchmark will make it easier for borrowers to get a bigger loan, which would add more fuel to overheated housing markets.

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Less of WE: WE Charity is scaling back its operations, laying off dozens in Canada and Britain, and looking to sell some of its real estate holdings in Toronto. The charity has been embroiled in a political controversy since the Trudeau government chose it to run the since-cancelled youth volunteer program.

Apple bundles: Apple is reportedly readying a series of subscription bundles that will let customers sign in for several of its digital services at a lower monthly price, and could launch as early as October. Reports say the company is also developing a new subscription for virtual fitness classes that can be accessed through apps and will be offered in a higher-end bundle with the rest of its services.

Canadiens coach hospitalized: Montreal Canadiens head coach Claude Julien suffered chest problems after last night’s loss to the Philadelphia Flyers, was taken by ambulance to a Toronto hospital and is expected to be out the remainder of his team’s first-round playoff series. Associate coach Kirk Muller will serve as interim head coach.

Andreescu pull out of U.S. Open: Canada’s Bianca Andreescu will not be defending her U.S. Open tennis title later this summer, she announced today. She hasn’t played a match since suffering a knee injury last October, and says the COVID-19 pandemic has compromised her ability to prepare for to return.

Elephants on the rise: Kenya’s elephant numbers more than doubled from 1989 to 2018 – to more than 34,000 from just 16,000 – thanks to increased antipoaching efforts, its tourism minister said.

MARKET WATCH

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Canada’s main stock index closed lower today, weighed down by energy stocks as crude prices weakened. The Toronto Stock Exchange’s S&P/TSX composite index fell 45.22 points or 0.27 per cent to 16,530.06.

Wall Street trading was mixed amid concern over a stalled U.S. economic relief deal. The Dow Jones Industrial Average dropped 80.12 points or 0.29 per cent to 27,896.72, the S&P 500 lost 6.92 points or 0.20 per cent to end at 3,373.43 and the Nasdaq Composite 30.26 points or 0.27 per cent to 11,042.50.

Stocks seeing action today include Apple and AMC Entertainment, which closed higher after announcing the start of its first phase of opening theatres in the U.S. starting Aug. 20. On the downside were Brookfield Asset Management and Cisco Systems, which dropped after forecasting first-quarter revenue and profit below Wall Street estimates and outlining a restructuring plan.

Read more: Today’s analyst upgrades and downgrades

Got a news tip that you’d like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.

TALKING POINTS

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Leafs president Shanahan takes the blame as doomsday clock begins to tick for GM Dubas

“Forty minutes is not a long time. Forty minutes answering questions about the Toronto Maple Leafs when you are the person who runs the team is – and I’m just going off facial expressions here – an eternity in hell.” Cathal Kelly

Task force proves ex-OSC head right about diversity. Now, Doug Ford must toughen the rules

“Diversity is not a frill, it’s an essential component of corporate governance and risk management. Companies that flout the rules should be named, shamed and fined.” Rita Trichur

Has COVID-19 quietly killed Canadian Confederation?

“To be sure, advising me against Toronto-to-St. John’s travel is one thing. Legally barring my entry is another. When powerful regional feelings are ignited by laws dividing us from ‘them,’ Canada is balkanized for the worse.” Michael Bryant, executive director, Canadian Civil Liberties Association

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LIVING BETTER

Deferred payments have been a popular way to help Canadian cope with the economic fallout from the COVID-19 pandemic. But now those deferrals are starting to filter through the credit reporting system. Deferred payments don’t harm borrowers’ credit scores, but the payments must be reported in a certain way, according to Equifax. It’s important to check to make sure they are reported correctly to credit bureaus. If you notice something might be wrong on your credit score – such as a deferred payment being counted as “late” – the lender is your first stop.

Read more: What you need to know about managing your finances during the pandemic

TODAY’S LONG READ

For former set and costume designer Drew Facey, it’s exit stage left

Rafal Gerszak/The Globe and Mail

Vancouver set and costume designer Drew Facey is a fixture of the local theatre community, designing shows here and beyond for theatre and opera productions, winning 18 Jessie Richardson Theatre Awards along the way. Now Facey is leaving Vancouver – and theatre. COVID-19 has claimed another professional casualty.

“In one week in March I lost 14 months’ worth of contracts,” Facey says in his nearly empty East Vancouver condominium, the one he and his partner decided to sell after the pandemic hit (his partner works in hospitality, which has also been hard hit). “I obviously went through a difficult, dark time emotionally.”

His departure is a huge loss for the theatre scene, and a scary sign of what may be to come. Because of COVID-19, performing arts companies have cancelled their upcoming seasons – and the contracts that came with them. There is no indication of when it will be safe – or legal – to gather in theatres again. Read Marsha Lederman’s full story here.

Evening Update is presented by S.R. Slobodian. 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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13-year-old charged for online harassment, banned from social media – CBC.ca

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A 13-year-old western Quebec boy accused of harassing and threatening another child online is facing four charges and conditions restricting his internet activity.

In a news release issued Friday, police in the MRC des Collines-de-l’Outaouais said the alleged victim’s parent filed a complaint after being “subjected to the suspect’s wrath for several months.”

Police said they went to the accused’s home on Sunday to arrest him, but had to return with a warrant the following day after his parents initially refused to co-operate.

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The 13-year-old was arrested Monday evening and detained. He was formally charged on Tuesday with criminal harassment, uttering threats to cause death or bodily harm, distributing child pornography and unauthorized possession of an unspecified restricted weapon.

Among his release conditions, the boy can’t access social media and can’t use the internet without adult supervision.

Police didn’t offer details about the alleged threats or where the youth lives. The municipality includes the communities of Chelsea, Quyon, Val-des-Monts and Wakefield.

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Muting people on social media is fast and free and will change your life – The Guardian

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I don’t generally believe in life hacks. As much as I’d love to imagine that one easy tweak could resurface my life like it’s a cracked tennis court, time and experience have shown me that positive change usually comes slowly and incrementally.

But there is one hack I fully believe in. It’s fast and free, and will instantly change your life for the better: just mute people who annoy you on social media.

The process is different for each platform – typically, you go to the offending poster’s profile page or one of their posts and tap “mute”, “snooze” or “unfollow” – but then that’s it! This digital dusting leaves your social media spick-and-span, or at least less grimy than before. They’re gone from your timeline, and so are the various minor irritations they brought. And, unlike unfollowing or blocking someone, the muted party has no idea they’ve been silenced, so you don’t risk any awkwardness or drama.

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I have a handful of people muted. A couple of them are people I don’t want to unfollow. Others I have unfollowed, but I’ve also muted them because someone else might repost them and sully my pristine timeline. One is a semi-famous person who was rude to me many years ago about a work thing; another was rude to my friend. There’s also an ex and someone who constantly humble-brags in a way that makes me want to bang my head against something hard.

These individuals brought out the worst in me. When I saw their posts, I felt angry, petty and small. I wondered how much it might cost to buy billboard signs along major highways printed with bullet points detailing how, actually, they are terrible.

Fortunately, I almost never think of these individuals anymore because I’ve muted them across all platforms. Unless someone brings them up in conversation, I usually forget these people exist. They have been weeded from the lush garden of my brain.

But don’t just take my word for it.

“Muting accounts that repeatedly upset you is putting in digital boundaries to create a healthier digital environment,” says Bailey Parnell, founder and president of the Center for Digital Wellbeing. It allows you to avoid distressing content without severing connections, she says – a solution for those perplexing situations in which a relationship with someone is important to you, despite their bothersome online presence.

“This can preserve your mental wellbeing while maintaining social or professional networks,” she says.

This might seem like obvious advice. Yet it can be hard to follow. The irritation we feel when seeing someone’s bad posts can come with a satisfying rush: look at them! Being annoying!

“There can be a dopamine kick that comes on the back end of big emotions,” says Monica Amorosi, a licensed trauma therapist in New York City. We may come to crave the adrenaline spikes that accompany content that makes us feel shock, rage or disgust.

“If we have mundane lives, if we are understimulated, if we are bored or underwhelmed, then consuming this material can become a form of entertainment or distraction,” Amorosi says.

Amorosi emphasizes that it’s important not to create a “space of ignorance” on our feeds by avoiding different perspectives or troubling news about current events. But this does not mean that social media should only be a place to access upsetting information. Our feeds “can be utilized for healthy, positive education, connecting with like-minded people, seeing nuance and variety in the world, fact-checking information, learning new hobbies or ideas”, she says.

As such, muting is perhaps most effectively deployed against those who irritate you in a bland, quotidian way – a pompous co-worker, for instance. Not seeing a humble bragger pretend to be embarrassed about another professional success isn’t going to limit my worldview. Instead, I am regaining five to 10 minutes I might have wasted taking a screenshot of their post and complaining to my friends about it.

Candidly, I have done nothing with the time I’ve gained from not bad-mouthing the people I’ve muted. But how nice to have days that are at least five minutes more pleasant.

So, mute freely and often. And if you don’t agree with me? Just mute me. I’ll never know!

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Donald Trump is on the verge of another $1 billion Truth Social windfall – CNN

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New York
CNN
 — 

Former President Donald Trump is on the cusp of scoring a major financial bonanza – at least on paper.

As long as Trump Media & Technology Group’s share price doesn’t spectacularly implode before Tuesday’s closing bell, Trump is on track to receive another 36 million shares as the owner of Truth Social.

This milestone is on track to be hit after the market closes on Tuesday.

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Even though Trump Media is losing money and Truth Social is very tiny, those new shares Trump is in line to receive would be valued at about $1.3 billion at current prices.

Trump’s net worth has been on a roller coaster ride ever since his social media company finalized its deal to go public late last month. The former president is the dominant shareholder in a stock that has been called a “meme stock on steroids.”

Although Trump Media’s share price has been cut in half since peaking on March 27, it’s still trading comfortably above levels that would trigger certain performance provisions in the merger agreement.

According to SEC filings, Trump Media can issue additional shares to pre-merger shareholders such as the former president if the dollar volume-weighted average price equals or exceeds $12.50 for any 20 trading days within any 30 day trading period beginning on March 25.

The full earnout of 40 million shares would be triggered if that price metric equals or exceeds $17.50 over the same timeframe.

Tuesday marks the 20th trading day and Trump Media’s share price has not traded below the $17.50 level at any point since the clock started on March 25.

“It seems almost certain to me that the earnout conditions will be satisfied at this point, given how high the share price has been,” said Michael Ohlrogge, an associate professor at the NYU School of Law.

Trump’s dominant stake

The merger agreement calls for Trump to receive 90% of those earnout shares, translating to 36 million additional shares.

That would give Trump an even more dominant stake of 114.75 million shares, amounting to 65% of the total outstanding shares, according to filings.

Of course, Trump Media’s share price is subject to extreme volatility, meaning the value of this stake can swing wildly.

There are also practical and legal restrictions that would likely prevent Trump from cashing in this stock anytime soon.

According to filings, the earnout shares Trump appears to be in line to receive are subject to the lock-up restrictions that prevent insiders from selling or borrowing against their stock for months after the merger closed.

Even if Trump was able to get around this lock-up agreement, experts say it would be practically difficult for him to sell a sizable chunk of his stake without causing a crash in the share price. After all, Trump is the largest shareholder, chairman and most popular user on Truth Social.

‘Grossly overvalued’

Even though Trump Media’s share price has retreated since spiking to $66 last month, experts warn it remains overvalued based on fundamental metrics.

One common way to value stocks is to compare its price relative to its revenue.

The average social media stock trades at a price-to-sales ratio of roughly 10x, according to Matthew Kennedy, senior IPO strategist at Renaissance Capital. That peer group includes Facebook owner Meta, Pinterest, Snap, Reddit and Rumble.

By comparison, Trump Media is trading at north of 1,200 times sales, according to Kennedy.

“The stock appears to be grossly overvalued,” said Jay Ritter, a finance professor at the University of Florida.

Ritter, who has been studying IPOs for four decades, expects Trump Media’s share price to eventually plunge to just $1 or $2 per share.

Ohlrogge, the NYU professor, said Trump Media’s share price is “responding primarily to non-rational factors.”

For instance, Ohlrogge pointed to how the stock plunged last week after the company indicated it plans to register new shares.

“There should have been nothing surprising about that filing since it was just doing precisely what the company said it would do after it went public…There was no real rational reason to have a negative impact on the price,” he said, adding that the price reflects the “whims and sentiments of very uninformed traders, driving the price this way and that.”

In a sign that Trump Media is worried about its share price, the company took the unusual step last week of telling its shareholders how to avoid their stock from being loaned to short sellers betting against it.

Trump Media updated a FAQ section on its website to include the short-selling prevention tips.

“That is highly unusual,” said Peter Byrne, a securities lawyer at Cooley who focuses on companies going public. “We don’t typically see companies publish information like this.”

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