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Today’s news: Trending business stories for February 13, 2024

The latest business news as it happens

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Outstanding story

BlackBerry to cut more jobs and close offices to contain costs

BlackBerry Ltd. says it is taking steps to streamline costs, including cutting jobs, as part of the ongoing process to separate two of its business divisions.

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The Waterloo, Ont.-based technology company said last quarter it eliminated about 200 jobs as part of its cost-cutting efforts.

This quarter, the company said it anticipates further job losses within its cybersecurity business, which it expects to generate annualized savings of about $27 million.

It is also taking other steps to save money, including exiting six of its 36 offices around the world.

The company said it expects to return to positive cash flow by the fourth quarter of its 2025 financial year.

BlackBerry reported a loss of $21 million in its third quarter ended Nov. 30.

—The Canadian Press


8am

Shopify Earnings, Sales Narrowly Beat Estimates, But Stock Falls

The Shopify logo outside the company's headquarters in Ottawa.  Shopify's latest results beat estimates.
The Shopify logo outside the company’s headquarters in Ottawa. Shopify’s latest results beat estimates. Photo by David Kawai/Bloomberg

Shopify Inc. reported fourth-quarter sales and earnings that narrowly beat analyst estimates, suggesting the Canadian e-commerce giant fended off competition from Asian shopping platforms such as Temu, Shein and TikTok.

Revenue for the period rose 24 percent to $2.1 billion, beating the $2.08 billion average estimate of analysts surveyed by Bloomberg. Earnings, excluding one-time items, were 34 cents per share, above the U.S. expectation of 30 cents.

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The results did not impress Wall Street, after the stock more than doubled last year. Shopify fell about four percent in premarket trading in the United States.

The Ottawa-based company raised software prices for online merchants earlier this month, a move that is expected to generate more than $100 million in additional revenue this year without scaring away many customers. Shopify is in the first year of an agreement with Amazon.com Inc. to allow merchants to use its “Buy With Prime” delivery service. Shopify sold its own logistics business to freight shipping startup Flexport last year.

Gross merchandise volume, the total value of merchant sales on Shopify’s systems, rose 23 percent to $75.1 billion, above Wall Street projections of $71.6 billion.

—Spencer Soper, Bloomberg


7:30 am

Stock markets before the opening bell

Stock markets February 13, 2024

U.S. stock futures plunged ahead of the release of much-anticipated inflation data that could set the stage for when the Federal Reserve will move to cut interest rates. Treasury bonds rose.

Contracts on the rate-sensitive Nasdaq 100 fell 0.6 percent, while those on the S&P 500 fell 0.4 percent, extending Monday’s slide in the main U.S. stock indicator from a high near of 5,050. Nvidia Corp. fell 1 percent in premarket trading.

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The inflation report, which is expected to show the first sub-three percent reading for year-on-year headline inflation since March 2021, may not be enough to justify a faster shift toward monetary easing. U.S. employment, manufacturing and economic growth have surprised positively, proving resilient to the fastest rate increases in a generation.

“Although we expect the CPI to register below three percent later, we still think the market is too exuberant when it comes to the timing of the first cut,” Grace Peters, a senior analyst, said in an interview. head of global investment strategy at JPMorgan Private Bank. with Bloomberg TV.

The S&P/TSX Composite Index closed up 0.27 percent on Monday.

—Bloomberg


What to see today

CRTC hosts five-day hearing to review high-speed wholesale access framework.

Finance Minister Chrystia Freeland will provide an update on the government’s economic plan in Ottawa. She will be joined by Housing Minister Sean Fraser, Employment Minister Randy Boissonnault and Rural Economic Development Minister Gudie Hutchings.

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The Ontario Financial Accountability Office will publish a report providing an updated outlook on the provincial economy and finances on the website fao-on.org/en. At 10 am senior FAO officials will give a brief presentation and answer technical questions.

New US inflation data drops this morning with the release of the January Consumer Price Index.

Companies reporting earnings today include Shopify Inc., Restaurant Brands International Inc., Hydro One Ltd., Coca-Cola Co., Airbnb Inc., Moody’s Corp. and Dream Industrial Real Estate Investment Trust.

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Additional reporting from The Canadian Press, Associated Press and Bloomberg


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