Here are five things you need to know this morning
Budget Day
The federal government is set to unveil its budget today. It will be the Liberals’ first fiscal update in almost a year and the first summary of Prime Minister Mark Carney’s agenda since he was elected in the spring. The government says this budget is focused on boosting investment in Canada and shifting trade away from the United States. . Economists surveyed by Bloomberg expect Canada’s budget deficit to surge to $70 billion this fiscal year, and some see it rising to $100 billion. The Carney government is three votes shy of a majority, so it will need some opposition MPs to either support the budget or abstain from voting to avoid an early election.
Shopify results underwhelm
Shares of Shopify came under pressure in the pre-market after reporting its third quarter earnings. Canada’s largest company by market cap reported operating income that missed estimates. However, it also reported a beat on revenue and its ninth consecutive quarter of double-digit free cash flow margins. Looking forward, Shopify is forecasting revenue to grow at a mid-to-high twenties range over the next year. Today’s drop in the company’s share price isn’t unexpected, considering it has more than doubled since hitting a low in April.
Bitcoin slides
Bitcoin dropped to the lowest level since late June as a range of indicators underscored the bleak mood among crypto traders. The original cryptocurrency fell by more than 3% in early trading. One market veteran says that while bitcoin continues to be boosted by government support, growing institutional infrastructure, and continued retail inflows, recent selling by long-time holders resembles an “IPO-style distribution,” where early investors diversify after years of outsized gains.
Pet Valu trims forecast
Canadian retailer Pet Valu is reporting a rise in sales and franchise revenue over the latest quarter. However, its guidance for the next year missed the average analyst estimate. Pet Valu’s CEO says the company is continuing to monitor the foreign trade environment and says it has the appropriate measures in place to adjust.
Pizza Hut up for sale
Pizza Hut is up for sale. The CEO of the restaurant’s parent company says the brand needs help to realize its full value – and that may be better realized outside the company. Yum Brands also owns fast-food franchises such as KFC and Taco Bell. The company reported an increase in profit and revenue in its latest quarter, though Pizza Hut’s same-store-sales in the U.S. fell by 6 per cent.
