Evening Update: Huawei’s Meng Wanzhou loses key decision in extradition hearing; U.S. considers withdrawing Hong Kong’s preferential status

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

Huawei executive Meng Wanzhou loses key decision in extradition hearing

A B.C. Supreme Court judge has ended an early attempt by Huawei executive Meng Wanzhou to walk free, ruling that a key legal test to extradite her to the United States has been met and setting the stage for further retaliation against Canada by China.

Associate Chief Justice Heather Holmes ruled the crime Meng is accused of is fraud and that is a crime in both Canada and the United States. Meng’s lawyers had argued the essence of the case against her revolved around U.S. sanctions against Iran, which Canada does not have. You can read the full text here.

The decision means that Meng will continue living under partial house arrest in Vancouver and the extradition case against her will proceed.

China has exerted aggressive pressure on Canada since her arrest in December, 2018, detaining Canadians Michael Kovrig and Michael Spavor shortly after in apparent retaliation and launching a series of punitive trade measures. Earlier this week, Beijing issued a new warning about further “damage” to relations between the two countries if she was not released.

The court proceedings have put a spotlight on Holmes, who has a nearly 40-year legal career as a judge and prosecutor.

Background: Catch up here with our guide to the case so far.

Read more: Jailed for corruption, French executive’s story of U.S. justice fuels Chinese distrust of Western courts

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U.S. considers withdrawing Hong Kong’s preferential trade and financial status

U.S. Secretary of State of Mike Pompeo has notified Congress that the Trump administration no longer regards Hong Kong as autonomous from mainland China, setting the stage for U.S. to withdraw the former British colony’s preferential trade and financial status it has enjoyed since it reverted to Chinese rule 23 years ago.

The notice brings the future of Hong Kong squarely into the administration’s numerous battles with China that have put the world’s two largest economies at odds.

Senior administration officials have in recent days warned that China risks losing Hong Kong as an Asian financial hub if it went ahead to impose national security laws over the territory.

The latest coronavirus news: Ontario taking over management of four long-term care homes named in damning report

Ontario is taking over management of four of the five long-term care homes that in yesterday’s bombshell report by the Canadian Armed Forces.

At a press conference today, Premier Doug Ford also says the government will be conducting “extremely rigorous” inspections of those homes, as well as 13 others facing challenges managing COVID-19, and will be doing random spot checks.

The Canadian Armed Forces followed up today with the release of a report on 25 care facilities in Quebec. While it lacks the graphic detail of the Ontario report, it does portrays a dysfunctional elder-care system that couldn’t handle the COVID-19 crisis, including poor medical practices and management issues.

Separately, Ontario’s local medical officers of health are calling for more detailed benchmarks before reopening more of the province’s economy, while urging Queen’s Park to consider a regional approach to allow areas harder-hit by COVID-19 to open up at their own pace.

The province earlier announced it is extending its COVID-19 emergency orders until June 9, which includes the closing of child-care centres, theatres, and bars and restaurants except to provide take-out or delivery.

In business: Royal Bank of Canada and Bank of Montreal both reported today that second-quarter profit fell 54 per cent as they built up massive loan-loss reserve as a result of the coronavirus pandemic. Both banks held their dividend steady.

Take a deeper dive into Canada’s environment and climate change news with our newsletter, Globe Climate. Sign up here to get it delivered to your inbox every week starting June 1.

ALSO ON OUR RADAR

Police officers fired in George Floyd death: The FBI and Minnesota law enforcement authorities are investigating the arrest of George Floyd, an African-American man who died in Minneapolis after being handcuffed and pinned to the ground by an officer’s knee. The episode - in which Floyd can be heard saying “I can’t breathe”, recalling the earlier death of Eric Garner - was recorded on video by a bystander, prompting public outrage and the firing of the officers involved.

Trump reacts to Twitter fact-check prompt: U.S. President Donald Trump has threatened to regulate or shut down social media companies for stifling conservative voices, a day after Twitter attached a warning to some of his tweets prompting readers to fact check the president’s claims.

Nash among Hall of Fame inductees: Basketball player Steve Nash, hockey player Sheldon Kennedy and golfer Lorie Kane are among this year’s inductees into Canada’s Sports Hall of Fame.

Former TTC chief Byford heads to London: Former New York subway boss and TTC chief Andy Byford has been named the British capital’s new transit commissioner.

Bannon wins battle for academy: Steve Bannon, the former adviser to U.S. President Donald Trump, has won a battle with Italy’s culture ministry to set up a right-wing Catholic political academy. Read more: Eric Reguly goes inside Bannon’s fledgling school for populism.

MARKET WATCH

North American markets rose today, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery.

The Dow Jones Industrial Average gained 553.16 points or 2.21 per cent to close at 25,548.27, the S&P 500 rose 44.36 points or 1.48 per cent to 3,036.13, and the Nasdaq Composite added 72.14 points or 0.77 per cent to end at 9,412.36.

Canadian stocks climbed on the strength of financials, which gained 3.19 per cent even as Royal Bank of Canada and Bank of Montreal missed expectations for second-quarter profits. The S&P/TSX composite index closed up 123.91 points or 0.82 per cent at 15,272.03.

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TALKING POINTS

Liberals to Parliament: We’ll govern without you, thanks

“The Liberals and the NDP need to make an immediate U-turn and support the return of Parliament. The tools exist to practise both physical distancing and democracy. We don’t have to choose.” - Globe editorial

Cover your ears: Canada’s real estate market won’t shrug off this crisis like the last one

“Two of the most important fundamentals underlying real estate demand – household income growth and immigration – have been removed from the equation.” - Konrad Yakabuski

LIVING BETTER

Good news if you’re itching to get outside (and who isn’t?): More than half of Canada’s national parks are set to reopen next Monday. They include Banff in Alberta, Pacific Rim in British Columbia, Thousand Islands in Ontario and Cape Breton Highlands in Nova Scotia, and there will be access to washrooms. You can find the full list of 29 parks in today’s roundup of coronavirus news.

TODAY’S LONG READ

With zero pandemic deaths, Vietnam sets the standard for COVID-19 fight

Patient 91 is on life support in a hospital in Ho Chi Minh City, the financial centre of Vietnam, and saving him has become a national priority: If he doesn’t make it, the country can no longer claim that zero lives were lost in its campaign against COVID-19.

Vietnam’s success was no accident. Its 1,450-kilometre border with China and frequent visitors from Wuhan, the site of the original outbreak in December and January, meant that Vietnam could have been overrun with cases. But it acted fast and did not wait for official warnings from the World Health Organization before it closed its borders, locked down its economy and launched mass testing, tracing and quarantine measures.

By late January, 22 hospitals had been chosen to treat COVID-19 patients. Schools and universities were closed. In early February, all flights from China were stopped. By the end of the month, travellers entering Vietnam from any country with infections went into 14-day quarantine. In late March, the Communist government began locking down the economy, and it stayed shut until April 23. Read Eric Reguly’s full story here.

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