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The Canadian Press

As Wisconsin’s Johnson weighs future, Trump ties take a toll

MADISON, Wis. — After President Donald Trump lost his reelection bid, most Senate Republicans, his Justice Department and the courts dismissed or disputed his baseless claims about a “stolen election.” Not Wisconsin Sen. Ron Johnson. The GOP senator used his chairmanship of the Senate Homeland Security Committee to highlight Trump’s allegations, claiming millions of Americans “have real, legitimate suspicions that this election was stolen” and worrying about “so many irregularities here.” That sort of fealty to Trump has endeared Johnson to the far-right base in his state, but it could prove costly if he decides to seek a third term in 2022. As Johnson weighs whether to run again, his embrace of Trump’s anti-democratic campaign to overturn the election results already has angered some mainstream Republican allies, and is poised to motivate Democrats who have ridden opposition to Trump to new strength in the state. Observers note that Johnson, who rose out of the tea party movement more than a decade ago, has often behaved like a senator from a solidly red state. But November’s election demonstrated that Wisconsin, which Democrat Joe Biden won by fewer than 21,000 votes, is anything but. The fight for his seat will be among the most competitive races next year. “I think if the election were a week from now he would be in a world of hurt,” said Fond du Lac County Republican Party Chair Rohn Bishop. Bishop criticized fellow Republicans like Johnson who parroted claims of illegal election activity, even as he remains a Johnson backer. But he notes that Johnson is at risk of losing moderate voters critical to winning. “It may hurt him with the suburban voters. … The election wasn’t stolen, and it’s hard to convince people they should vote for you when you try to throw away their legally cast ballots.” Johnson has long been aligned with Trump’s hard-line policies and politics. He led the push to investigate Biden’s son Hunter and rarely broke with the White House. Still, some Republicans were surprised to see the senator lend credence to Trump’s post-election schemes, which included an attempt to throw out the ballots of 238,000 voters in the majority-Democratic areas of Milwaukee and Madison. Johnson’s hearing on Dec. 16 to look into unfounded election fraud complaints largely perpetuated Trump’s baseless claims. And on Jan. 6, just before the U.S. Capitol was stormed, Johnson objected to counting the Electoral College votes from Arizona. The editor of the conservative website Right Wisconsin published a scathing column hours before the riot, saying that Johnson was on a “reckless path” by questioning the integrity of the election and that he should retire and would lose if he ran again. After the riot, Johnson did not vote to object. Still, the Milwaukee Journal Sentinel, Wisconsin’s largest newspaper, called for Johnson to resign for “stoking an insurrection.” Johnson responded with a column in the newspaper calling the editorial “unhinged and uninformed.” The Journal Sentinel took the rare step of annotating his response, providing 19 footnotes with additional context, fact checking and corrections. The Wisconsin State Journal, the state’s second largest newspaper, has also called for Johnson’s resignation, and the anti-Trump Republicans behind the The Lincoln Project have targeted Johnson for defeat, citing his support for election conspiracy theories and comparing him with disgraced former Wisconsin U.S. Sen. Joe McCarthy. Johnson remains popular with the GOP grassroots, a key factor as he mulls whether to run again, said GOP strategist Brian Reisinger, who worked on Johnson’s 2016 campaign. He noted that Johnson has been able to overcome naysayers who didn’t give him much of a chance of winning, first against then-incumbent U.S. Sen. Russ Feingold in 2010 and again in a 2016 rematch. “There’s a lot of people who look at Ron Johnson, and they see the political durability that he’s had over the years despite being a dead man walking twice before,” Reisinger said. Johnson in 2016 pledged not to seek a third term, but backed off three years later, saying he wanted to see how the 2020 election turned out. He has also said he’s considering running for governor in 2022. Johnson, 65, has said in recent weeks that he has not yet made a decision. “My bias has always been (to serve) two terms and go home,” Johnson told the Milwaukee Journal Sentinel last month before Democrats won a pair of Georgia runoff elections to take majority control of the Senate. “That continues to be my preference, but at the same time, the Senate is kind of a firewall against total control by Democrats, which would be, I think, a very bad thing for this country.” Johnson and his spokesperson Ben Voelkel declined to comment on his plans. Republicans already have three Senate vacancies to defend. Richard Burr of North Carolina, Pat Toomey of Pennsylvania and Rob Portman of Ohio have said they will not run again in 2022. GOP Sen. Chuck Grassley of Iowa, who turns 89 in 2022, is also on the ballot, and two-term Missouri Republican Roy Blunt has not said whether he’ll seek a third. If Johnson retires, it likely would be a free-for-all on both sides. A number of Republicans are eyeing a run for either Senate or governor, depending on what Johnson does. Potential Republican Senate candidates include U.S. Rep. Mike Gallagher, former U.S. Rep. Sean Duffy and Kevin Nicholson, who lost a 2018 Republican Senate primary. The list of Democratic hopefuls includes Lt. Gov. Mandela Barnes, the state’s first Black lieutenant governor, state Treasurer Sarah Godlewski and state Sen. Chris Larson of Milwaukee. Alex Lasry, the senior vice-president to the Milwaukee Bucks who helped spearhead the successful effort to get the 2020 Democratic National Convention in Milwaukee before the coronavirus sent the event nearly entirely online, is also considering a run. Lasry is the son of billionaire hedge fund manager and Democratic bundler Marc Lasry and could potentially self-finance his run. Another potential candidate is Steven Olikara, founder and chief executive of the non-profit Millennial Action Project. Outagamie County Executive Tom Nelson has already declared his candidacy. Scott Bauer, The Associated Press

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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