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In a surprising move, Quebec Premier Francois Legault is quitting. Sure, his polls were bad, but in year-end interviews, he insisted he would lead the nationalist Coalition Avenir Quebec party through the upcoming election. And he was convincing.
Then, a new survey came in from Pallas Data showing the impossible road ahead. The CAQ was at just 11% in voting intentions and in fourth place, behind the Parti Quebecois at 34%, the Quebec Liberals at 24% and the Conservatives at 16%. A result like that in an election would essentially wipe out the party that has governed the province since 2018.
"I can see that many Quebecers currently want change and a change of premier, so I am announcing that, for the good of Quebec, I will be stepping down," Legault said during a relatively short and serene speech in Quebec City.
The former businessman, who co-founded Air Transat in the 1980s, first entered politics in 1998 with the Parti Quebecois. In 2011, he and others started the CAQ to carve out a third way after decades of politics dominated by sovereignty debates between federalists and separatists.
Legault won two majority governments, made sweeping changes to language laws and immigration practices and narrowed the wealth gap with Ontario. But his economic agenda was tarnished by the collapse of Swedish battery-maker Northvolt, which had planned to build a more than $5 billion factory near Montreal.
Another blemish: the Legault government inherited a C$5.6 billion ($4 billion) accounting surplus, but will leave behind a C$9.9 billion deficit, driven by tax cuts and increased spending, including higher wages for nurses and teachers. In April, S&P Global downgraded Quebec to A+ -- the ratings firm's first such move against the province since 1993 -- because of slowing population growth, higher employee compensation and a softer outlook for tax revenues.
Legault was sanguine about his legacy: "There were a few setbacks, but above all, many successes," he said today.
Plus: everyone's still waiting for the SCOTUS tariff ruling; Sell America, Buy Canada; and the Iran protests, explained.
Top stories
- Danish and Greenlandic officials had a "frank but constructive" meeting with US diplomats in Washington. The Danish foreign minister said "fundamental disagreement" remained after the talks, but the countries agreed to form a working group on Greenland. The island's leader has affirmed its commitment to Denmark, rejecting any US takeover.
- The US Supreme Court won't rule on challenges to President Donald Trump's tariffs until at least next week. A decision against the administration could require more than $130 billion in refunds. However, the White House would still be able to use alternative methods of ordering tariffs. The US has imposed tariffs on steel, aluminum, copper, autos and lumber from Canada and other countries using Section 232 of the Trade Expansion Act. Those levies aren't part of the court challenge.
- Prime Minister Mark Carney arrived in Beijing, the first state visit by a Canadian leader in eight years, as Chinese state media called on Ottawa to lift tariffs on the nation's exports. Foreign Minister Anita Anand said the conversation with China on canola tariffs has been "productive" so far.
Markets and commodities
- Canadian stocks outperformed US equities last year and the trend has continued into 2026. Some money managers are betting this outperformance will persist as investors seek calmer markets amid US political uncertainty.
- The nickel market may face tightness this year as the world's largest producer, Indonesia, focuses on efforts to boost slumping prices of the battery metal, saying it will likely issue quotas between 250 million and 260 million tons of nickel ore. The nation is unlikely to encourage a significant increase in supply as its export-dependent economy stands to benefit from a price rally, Mark Selby, CEO of Canada Nickel, told Bloomberg's Sybilla Gross. Prices may range between $20,000 and $25,000 a ton in the short term, he added.
- The S&P/TSX Composite Index closed up 0.1%, though technology stocks took a dive. Taseko Mines was the biggest gainer. Nutrien and BRP both surged after positive notes from analysts.
Before you go...
The Iran uprising poses the biggest challenge to the Islamic Republic since it was founded in 1979. Thousands of people have been killed and arrested as security forces try to crush the demonstrations, according to the US-based Human Rights Activists News Agency. The protests began after Iran's economic crisis reached a breaking point in December as the rial hit record lows, making basic goods unaffordable.
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