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Noah Zivitz

Managing Editor, BNN Bloomberg

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The federal government will reveal its agenda for the 43rd session of Parliament today, potentially with its fate hanging in the balance. We're expecting to learn more about how it intends to navigate COVID-19, its plan for supporting Canadians through the pandemic, and how it will lay the groundwork for Canada's economic future. We have special coverage of the Speech from the Throne this afternoon starting at 2 p.m. ET, including Governor General Julie Payette's reading of the speech, and analysis of the implications from policy experts and finance professionals. One thing has become painfully clear in the last couple of days: the government’s grandiose ambition that was alluded to at the time of prorogation is taking back seat to steadily climbing cases of the novel coronavirus.  

AURORA SHARES TUMBLE

Even after a kitchen sink-style warning earlier this month, the big Canadian pot producer still managed to disappoint investors with its latest results. Full-year net loss tallied US$3.3 billion, due largely to one-time items that we already knew about. But the underlying business demonstrated clear weakness, with recreational pot revenue falling nine per cent from the previous quarter -- prompting newly-appointed CEO Miguel Martin to map out general parameters for his plan to "re-position" the company's rec business in Canada. Looking ahead, Aurora is forecasting revenue that falls well short of the average estimate. Add it all up, and Aurora’s NYSE-listed shares have been down almost 20 per cent in pre-market trading.

SHOPIFY DATA SCARE

Data security is a hot topic for Shopify this morning after the company disclosed a pair of “rogue” employees had engaged in a scheme to obtain information from transactions at what’s being described as “less than 200” of its merchants. Shopify said it “immediately terminated” these individuals’ access to our Shopify network and referred the incident to law enforcement” and attempted to assuage fears by noting the incident was not due to a technical vulnerability – and that no “sensitive” information was obtained. But we’ll see if that’s enough to satisfy clients and investors. A spokesperson for the company later confirmed to us that the two individuals are no longer employed by Shopify.  

IN CONVERSATION WITH NUVEI CEO

We’ve got the chief executive of Bay Street’s newest tech star this morning. Nuvei’s Philip Fayer joins Jon at 8:40 a.m. ET to discuss the decision to go public in the middle of a pandemic, investors’ early love for the stock, and what the future holds.

OTHER NOTABLE STORIES

-There’s renewed uncertainty about whether Oracle and Walmart’s proposed deal with TikTok owner ByteDance will go ahead. The state-backed China Daily blasted the White House’s position in the situation as being akin to “a gangster forcing an unreasonable and unfair business deal on a legitimate company.”

-Fortis announced this morning its CEO, Barry Perry, is retiring at the end of this year. He’ll be replaced by COO David Hutchens. The utility company also presented a $19.6-billion five-year capital spending plan and extended its goal of delivering average annual dividend growth of six per cent until 2025. We’ll speak with Perry at 10:30 a.m. ET.

-Elon Musk failed to deliver on the hype of his inaugural Battery Day event, offering up a vision for a $25,000 vehicle within three years. Tesla shares have been down ~five per cent in pre-market trading.

-Nike shares are up more than 10 per cent in early trading after the company more than doubled first-quarter profit estimates on flat first-quarter revenue of US$10.6 billion. Online sales saved the day as Nike noted its in-store traffic is still suffering as a result of the pandemic. 

NOTABLE RELEASES/EVENTS

-Notable earnings: AGF Management

-~2:40 p.m. ET: Governor General Julie Payette delivers speech from the throne

-Supreme Court of Canada concludes hearing appeals of federal carbon tax

Editor’s note: The original version of today’s Daily Chase did not specify that Aurora’s $3.3-billion loss was for its full year. BNN Bloomberg regrets any confusion this may have caused.