Federal government expenditures have been growing much faster than the economy, Prime Minister Mark Carney told reporters at a cabinet retreat in Toronto. Ottawa needs to “rein in spending” and “find efficiencies,” he said. (The Logic)

Talking point: Finance Minister François-Philippe Champagne has instructed departments to find cuts in their operations and programs, even as the Liberal government is promising to spend big on defence, housing and other priorities. The government is also open to expanding some trade opportunities with China, such as resolving canola tariffs, and senior officials in Washington are focused on U.S. trade deals in key sectors like autos, copper and forestry. Still, Carney said not to expect “white smoke” to go up in Washington today.