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U.S. Futures Slide After Spat Over Fed Stimulus: Markets Wrap – Yahoo Canada Finance

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The Canadian Press

Sanders, Warren under scrutiny as Biden weighs Cabinet picks

WILMINGTON, Del. — Bernie Sanders and Elizabeth Warren, leaders of the Democratic Party’s left wing, are at risk of being excluded from the senior ranks of President-elect Joe Biden’s administration as the incoming president balances the demands of his party’s progressive base against the political realities of a narrowly divided Senate.The liberal New England senators remain interested in serving in Biden’s Cabinet, but even some of their allies recognize they face major political hurdles getting there. Sensing disappointment, progressive leaders have reluctantly begun to express support for less-controversial alternatives.Warren, whose political career has been defined by efforts to diminish the power of big banks, is the progressive movement’s top choice for Treasury secretary. Sanders, a self-described democratic socialist, reiterated his desire to serve as Biden’s Labor secretary on Thursday, describing himself as particularly well-suited “to focus on the many crises facing working families in this country.”Whether he is included in Biden’s cabinet or not, Sanders warned Biden not to freeze out progressives as he shapes his government.“It seems to me pretty clear that progressive views need to be expressed within a Biden administration,” Sanders told The Associated Press. “It would be, for example, enormously insulting if Biden put together a ‘team of rivals’ — and there’s some discussion that that’s what he intends to do — which might include Republicans and conservative Democrats — but which ignored the progressive community. I think that would be very, very unfortunate.”The scrutiny on Biden’s staffing decisions reflects the tremendous pressure the president-elect faces as he cobbles together a senior team to execute his policy priorities drawing from his party’s disparate factions. He will almost certainly face criticism no matter whom he picks for the most powerful positions, but he can perhaps least afford to lose the support of his vocal progressive base.In a nod to the left wing, Biden’s transition team has hired Analilia Mejia, a Sanders’ adviser who served as his presidential campaign’s political director, to work on progressive outreach. It’s unlikely, however, that mid-level hires during the transition will be enough to satisfy progressives.Biden told reporters Thursday that he had finalized his choice for Treasury secretary and said the pick would be “someone who will be accepted by all elements of the Democratic party, moderates and progressives.” He sidestepped a specific question about Sanders joining his Cabinet as he walked off stage.Likely facing a divided Congress that could push back against the vast majority of his agenda, Biden is eyeing a series of executive actions to be implemented by his Cabinet that would force significant changes in health care, banking, environmental regulation, immigration and foreign policy, among other major issues.Biden’s transition team declined to comment publicly about Sanders or Warren.And while progressives have not given up hope that one or both might still be nominated, they acknowledged the possibility — even the likelihood — that the high-profile liberal senators would remain in the Senate.“It’s safe to say that Elizabeth Warren has definitely earned the trust and the ear of Joe Biden, and will surely have an influential role in agenda setting going forward whether it’s being a very powerful senator or a more formal role in his administration,” said Adam Green, co-founder of the Progressive Change Campaign Committee, among Warren’s most vocal supporters in Washington. “No matter what, she’ll be powerful when it comes to agenda setting for the Democratic Party.”Waleed Shahid, a spokesman for the Sanders-aligned Justice Democrats, said his group and others recognize that “not every single member of the administration is going to be progressive — that’s not who Joe Biden is.” He said progressives simply want ”adequate representation” in the Cabinet.“We are advocating for them to be included, but we also have backup choices,” he said of Warren and Sanders.Indeed, liberal groups have tried to rally behind lesser-known progressive leaders such as Michigan Rep. Andy Levin for Labor secretary and former Federal Reserve Chair Janet Yellen to lead the Department of Treasury.Like their party’s establishment leaders, progressives understand the political challenge Democrats would face should either Sanders or Warren leave the Senate. In both cases, Republican governors would have the ability to nominate their replacements, at least in the short-term.Sanders noted that Vermont Gov. Phil Scott has promised to fill a prospective vacancy with an independent who caucuses with Democrats, just as Sanders does.“Gov. Scott is a moderate Republican. He is not a right-wing Republican,” Sanders said. “He understands that this is a progressive state and the wise and appropriate thing to do would be, as an interim appointment before the special election took place — would be to appoint somebody whose views were consistent with mine.”In a best-case scenario for Democrats, the Senate would be divided 50-50 in January when the new Congress is sworn in, with Vice-President-elect Kamala Harris in position to break the tie. But that’s only if Democrats win both of Georgia’s special elections on Jan. 5.Senate Majority Leader Mitch McConnell holds great sway over Biden’s Cabinet nominees regardless of which party ends up in control.The Senate’s top Republican has yet to tip his hand about how he’ll navigate the confirmation process, preferring to wait for Trump to accept the election results and Georgia’s Senate elections to play out. But Senate Democrats expect McConnell to impose a full-scale blockade on Cabinet picks he doesn’t like.Biden will be the first Democrat president in modern times trying to set up a first-term administration without his party controlling the Senate, a rare dynamic that will play out before a bitterly divided nation and a hyper-partisan Senate.The more controversial potential nominees, Warren and Sanders among them, would likely struggle to win confirmation. Some are already running into partisan opposition.Previewing the intense battles ahead, Texas GOP Sen. Ted Cruz has been producing a series of campaign-style videos opposing both Warren and Sanders.Yet there is also evidence of resistance from Biden’s own coalition, which includes moderate Democrats, independents and even some Republicans.“Choosing Elizabeth Warren or Bernie Sanders, who represent the far left — and in Bernie’s case an openly socialist view of the world — is not the leadership that the American people just voted for,” said Jennifer Horn, a co-founder of the anti-Trump Lincoln Project that spent millions to support Biden’s presidential bid. “I think Joe Biden understands that.”___AP writers Lisa Mascaro and Chris Rugaber in Washington contributed.Steve Peoples, 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.

___

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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