Facebook shares remain under pressure in pre-market trading after yesterday’s wipeout, but the pressure on the company’s stock pales in comparison to the pressure Mark Zuckerberg could soon face. Chuck Grassley, the head of the U.S. Senate Judiciary Committee, is “gathering information” on the apparent exploitation of 50 million Facebook users’ data for political purposes and is considering hauling Zuckerberg, along with the heads of Google and Twitter, before his committee to question then on data protection. Despite the uproar, no word from Zuckerberg. Bloomberg is reporting he, along with COO Sheryl Sandberg, are choosing to stay silent until an internal review wraps up.
Couple of basic questions that can serve as the pillars of our coverage:
-Is Zuckerberg handling this properly?
-Will there be a lasting effect that damages Facebook’s user base and revenue-generating potential?
-Should anyone believe that their data is protected online?
TARIFF THREAT HANGS OVER G20 MEETING
The Washington Post is reporting U.S. President Donald Trump is preparing to unveil a US$60-billion package of tariffs on imports from China as soon as Friday as his America First view of the world raises the specter of a trade clash between the world’s two largest economies. Quite the development as G20 finance ministers and central bankers wrap up their meeting in Buenos Aires today, where it’s not unreasonable to presume U.S. Treasury Secretary Steve Mnuchin is having to answer for his boss’s actions. Chinese Premier Li Keqiang was saying all the right things overnight, insisting intellectual property rights will be protected in China, and “a large [trade] deficit is not something we want to see.”
BREAD SCANDAL FALLOUT
A new survey by Dalhousie University's Faculty of Management shows consumer trust in Loblaw is eroding amid the company's admission it drove up bread prices over a 14-year period in what it called an "industry-wide scheme". The survey shows overall trust in Loblaw dropped 10 per cent from November to March. Meanwhile, trust in Sobeys inched higher. The survey was conducted from November to March. Recall Loblaw came clean in December and Sobeys' CEO immediately fired back after his rival tried to drag the entire industry under the bus. Overall, the survey shows Costco is the most trusted major retail chain.
CANADIAN DOLLAR STABILIZES
The loonie is into a second day of gains, if only barely. Last seen trading up three one-hundredths of a cent at 76.50 U-S, the dollar closed higher yesterday for only the fifth time this month amid a brutal stretch that dragged the currency to its lowest level since June. Tomorrow will be key for the dollar’s direction as currency traders prepare to scrutinize every word that comes out of Fed Chair Jerome Powell’s mouth.
OTHER NOTABLE STORIES:
-Health Canada revealed the rules that will govern recreational cannabis when it becomes legal and at least one industry executive is up in arms. Aurora Cannabis’s Cam Battley joins us at 1115 to explain his perspective.
-The U.S. National Transportation Safety Board continues to investigate what caused an autonomous Uber vehicle in Tempe to strike a woman who later succumbed to her injuries. We need to hear more about the ripple effect for self-driving technology development.
NOTABLE RELEASES/EVENTS
-Notable earnings: Alimentation Couche-Tard, FedEx
-Notable data: Canadian wholesale trade
-9:00 a.m. ET: Parliamentary Budget Officer publishes report on financial support to provinces and territories and federal personnel spending
-9:30 a.m. ET: U.S. Commerce Secretary Wilbur Ross testifies before U.S. House Committee on Commerce, Justice, Science and Related Agencies
-12:00 p.m. ET: Alberta Finance Minister Joe Ceci delivers remarks at pre-budget event in Edmonton
-12:00 p.m. ET: U.S. President Donald Trump greets Saudi Crown Prince at White House (working lunch at 1220)
-2:00 p.m. ET: Closing news conference at G20 meeting in Buenos Aires
-3:00 p.m. ET: U.S. Treasury Secretary Steve Mnuchin holds news conference in Buenos Aires
-6:00 p.m. ET: Sidewalk Labs holds roundtable in Toronto on waterfront development strategy
-U.S. Federal Reserve two-day meeting begins
-Saudi crown prince meets with U.S. President Donald Trump in Washington
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.
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