Oct 31, 2017
BNN's Daily Chase: Shopify CEO gears up to fire back at short attack
By Noah Zivitz
Shopify CEO Tobi Lutke had almost a month to craft his counter-attack after Citron Research called his company’s business model into question. This morning, Lutke fired back at “preposterous claims” by the outfit he’s called a “short-selling troll.” Already this morning we’ve seen Shopify report an unexpected adjusted third-quarter profit and raise its full-year revenue forecast. Nonetheless, the stock is sagging in early trading.
CANADA'S GDP DECLINES IN AUGUST
After all the hype about Canada having the strongest economy in the G7, we’re getting a reality check today. GDP shrank 0.1 per cent in August, for the first monthly contraction since October 2016. There was widespread weakness across all goods-producing industries, notable manufacturing – where output fell one per cent. Plenty of analysis coming up today on BNN.
STRANZL: I COULD HAVE FIXED SEARS CANADA
The executive chair who presided over Sears Canada’s fall into insolvency has a message for his critics: he could have “110 per cent” fixed Sears Canada, if only he had arrived on the scene sooner. That was Brandon Stranzl’s argument in an interview with BNN shortly after he spoke out on the retailer’s demise yesterday afternoon in Toronto. He also refused to be dragged into a tit-for-tat with Eddie Lampert. More on Stranzl’s parting words can be found here.
BIG TECH ADDRESSES RUSSIAN MEDDLING
Senior officials from Facebook, Twitter and Google begin two days of scrutiny on Capitol Hill in Washington, with the Senate Judiciary Committee poised to grill them this afternoon on how Russia used their platforms to interfere in last year’s election. To underscore the stakes: Reuters is reporting Facebook will say Russian players published 80,000 disruptive posts over a two-year period that were seen by 126 million Americans.
OTHER NOTABLE STORIES:
-Qualcomm shares are under pressure in the pre-market amid reports that Apple is developing iPhones and iPads that don’t use the chipmaker’s parts.
-Canadian Western Bank announced late yesterday it’s buying ECN Capital’s Canadian commercial and vendor finance units for ~$900 million.
-Valeant Pharmaceuticals' stock is getting a lift this morning after saying it's on track to go above and beyond its previously-stated target for debt reduction this year.
NOTABLE RELEASES/EVENTS
-Notable earnings: Shopify, WestJet, Centerra Gold, Mosaic, TransAlta, Under Armour, Pfizer, Mastercard, Archer Daniels Midland
-Notable data: Canadian GDP, Canadian industrial product and raw materials price indices, S&P/Case Shiller U.S. home price index, U.S. consumer confidence
-9:00 a.m. ET: Parliamentary Budget office releases Economic and Fiscal Outlook report
-9:00 a.m. ET: U.S. Chamber of Commerce hosts panel on NAFTA with U.S. Senators Ted Cruz and Pat Roberts
-10:30 a.m. ET: Mortgage Professionals Canada President Paul Taylor holds news conference in Ottawa on impact of new mortgage rules
-12:35 p.m. ET: Ford Executive Chairman Bill Ford delivers remarks at Detroit Economic Club luncheon
-2:15 p.m. ET: Parliamentary Budget Officer Jean-Denis Frechette testifies before Senate Finance Committee on proposed tax reform for private corporations
-2:30 p.m. ET: Senate Judiciary Committee holds hearing on Russian meddling in election
-3:30 p.m. ET: Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins testify before House Standing Committee on Finance
-International Economic Forum of the Americas' three-day Toronto Global Forum continues (agenda)
-U.S. Federal Reserve starts two-day meeting
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
