Friday, May 19, 2023

Toronto WNBA game further proof Canadian market is ready for women's pro sports

Story by Shireen Ahmed • CBC
Wednesday, May 17, 2023

This past Saturday, 19,923 fans gathered at Toronto's Scotiabank Arena to watch the first WNBA game played in Canada. The crowd was excited and engaged, the arena was packed, and orange hoodies and hats could be seen throughout the arena.

The Chicago Sky faced off against the Minnesota Lynx and while the game didn't get thrilling until the end of the third quarter, the general ambiance was unlike anything I have witnessed. There was a vibrant excitement in the air and afterward I told a colleague that it felt like a festival: Lilith Fair meets AFROFEST, but for women's basketball.

This game was a celebration of women in sport: athletes, coaches, officials, sports business people, fans and the wider community.

The days leading up to the game were filled with activities from research centres and grassroots organizations. Nike and Adidas put on panels featuring voices of women athletes and activists in the sports ecosystem.

There is a tidal wave of interest and investment in women's sport in Canada and as I heard many say over the last week, "We are ready." I believe Canada has been ready for a long time for "She The North" in the form of domestic leagues and more funding for girls sports programs.

The day before the game, I attended the first espnW Summit held in Canada. My CBC Sports colleagues and I took in a day that was impactful and shared perspectives from a host of women in sports media. I shared my own perspectives and experiences on a panel, but it was also a day to learn and take notes of what work is still to be done.



The CBC Sports crowd at Friday's espnW summit.© Shiren Manji/CBC Sports

But the overall theme of the day was to bask in the growth and feel the rising tide of interest in women's sports.

My work requires me to be critical in my analysis, but these past few days have felt extraordinarily impactful and dare I say, joyous. As a sports journalist who has been in the industry for a long time, it finally feels as if a light bulb has turned on and people are waking up to the importance and power of women in sport. That this event also tied into Mother's Day was tremendous.

Related video: WNBA Canada Game Rematch: Chicago Sky vs Minnesota Lynx 
(The Parleh)   Duration 0:58  View on Watch

I was reminded of this when during the pre-game press conference with the coaches, Cheryl Reeve of the Lynx brought her young son to the media centre. He sat quietly eating a sandwich and a banana while his mom took questions from the media. I thought about the other women working at the game as organizers, referees, vendors, in the media, and everything else. I let myself feel a surge of pride.

While there is so much invigorating to us, no space is perfect. And the women's basketball ecosystem is no exception.

Just this week, it was announced that 2022 WNBA champion coach Becky Hammon has been suspended without pay for two games due to "violating league and team Respect in the Workplace policies," and the team has lost its 2025 first-round draft pick for violating rules regarding impermissible player benefits.

Last week, I saw a story about Salimata Sylla, a French basketball player who is not permitted to play because the French Federation of Basketball (FFBB) bans women in hijab from competing, coaching or officiating. Sylla created her own league called Ball.Her, but she certainly wants to be included in mainstream professional play.

WNBA commissioner Cathy Engelbert said she would not tolerate something like Sylla's exclusion. It's important for a league that has a strong connection to social justice advocacy to be aware of the challenges facing players around the world — particularly when, by Engelbert's own admission, the league includes players from all around the world and many play in Europe and other countries during the off-season.

Despite the gains being made and the immense anticipation we feel here, there are still places where women in sport face enormous challenges to simply play. As someone who is committed to inclusion in sports, it was also a reminder that our work is never done, but we can certainly pause and take a few deep breaths to enjoy the mountains that have been moved.

This week has certainly made me feel empowered and hopeful about connecting with women in the Canadian sports media landscape, in sport business and more.

I was heartened to see so many fans of women's basketball at the game. I spoke with young Ariyah Chaudary and her mom, Hafsah Pathan. Ariyah is a five-year-old who told me the best thing about attending the game was "eating popcorn."

I also spoke with Nanky Rai, 35, who put this game experience into perspective. Rai grew up in Guelph, Ont., and loved basketball. But as a 15- to 20-year-old, there was nothing for her to see firsthand.

"All the kids that were out there today, they saw it happen … and this changes the trajectory of peoples' lives potentially," she told me outside of Scotiabank Arena after the game. "I think Toronto needs a [WNBA] team. I think people should watch more females and femmes playing sports and I hope Toronto comes through. I hope the capitalists who make these decisions come through and realize there is a lot [of money] to be made here."

Rai's comments ring true because not only are these fans budding professional players, they are potential season ticket holders, investors, future analysts or play-by-play commentators. There are already smaller leagues in Canada like HoopQueens and the Maritimes Women's Basketball Association, so there is evidence that interest and potential is sky high.

With all the work that women have been doing to lay foundations, young people deserve the chance to immerse themselves in careers in women's basketball — with a side of popcorn if they want.



Bridget Carleton 'super excited' to be 1st Canadian to play WNBA game at home

The WNBA has rarely crossed American borders — the last time a game was played outside of the U.S. was 2011 in England, and the lone instance prior was 2004 in Mexico.

Story by Myles Dichter • CBC - May 12, 2023

Canada's Bridget Carleton, left, seen above in May 2022, will likely become the first Canadian to play a WNBA game at home on Saturday
.© Steve Marcus/Las Vegas Sun via The Associated Press

When Bridget Carleton steps onto the Scotiabank Arena court on Saturday, she'll make history.

The Chatham, Ont., native is set to become the first Canadian to play a WNBA game in Canada when her Minnesota Lynx face the Chicago Sky in an exhibition in Toronto.

Carleton said she was "super excited" to be part of the momentous occasion for Canadian basketball.

"I think it's going to be huge. Not only the ticket sales people are excited about, but little boys and girls who are looking up to us, just getting excited about women's sports in general and having it in our own backyard, easy access," she said in a press conference on Friday.



"It's huge to help grow the game, so I think all of it combined, there's so many different aspects to it just one game can have."

The game, which starts at 4 p.m. ET, will be broadcast on TSN and Sportsnet with an all-Canadian, all-female group. Meghan McPeak will do play-by-play next to analyst Amy Audibert, while Nikki Reyes, co-host of CBC's Canada's Ultimate Challenge, takes on sideline reporting duties.

Tickets sold out the day they became available. Carleton's grandmother will be among those in the crowd, getting to watch her granddaughter play professionally for the first time ever.

The 25-year-old spent her WNBA off-season plying her trade overseas in Spain, and with her season having just ended on Sunday, she said she hadn't seen her family since Christmas.

"So it's good to just kind of be here. Familiar environment. Yes, it will be a lot. It probably will be nerve-wracking once the game starts, but it's just compartmentalizing at this point. One thing at a time, and having teammates is helpful," Carleton said.

Carleton is one of four Canadians currently on WNBA rosters. Natalie Achonwa, who also plays for the Lynx, recently had a son. Kia Nurse signed with the Seattle Storm in the off-season, while rookie Laeticia Amihere was drafted eighth overall to the Atlanta Dream.

Achonwa will be at the game, though she won't play. Carleton said she, Achonwa and Nurse have been talking about the game in a group chat, and all plan to experience it in different ways.




Amihere told The Canadian Press that the game should be an inspiration to kids across the country.

"I wasn't able to look up to WNBA players, because they didn't have the TV channels in Canada, and obviously, there was no team in Canada," she said. "So for the young athletes being able to watch and attend these games, I think it's going to be crucial for them to be able to look up to our athletes."

Last June, The Athletic reported that Toronto was a possibility for WNBA expansion as soon as 2024. Other regions in the mix include Nashville, Philadelphia, Portland and California's Bay Area.



Former women's national team coach Lisa Thomaidis told CBC Sports a WNBA franchise would increase visibility and opportunity for young women.

"There is a passion for basketball in this country, especially in the GTA, but I think across the country that it would just change the landscape, I believe, of basketball in this country to have WNBA franchise," she said.

Carleton agreed that Toronto would make for a "good market," adding there is more than enough talent outside of the WNBA that could easily filter up if and when expansion does occur.

"I think it just makes sense with an environment, a demographic that's excited about basketball. [Maple Leaf Sports and Entertainment] has been super supportive, obviously that's being shown through this exhibition game. To have a team in Toronto would be really, really cool," she told CBC Sports' Anastasia Bucsis in a recent interview.

The WNBA has rarely crossed American borders — the last time a game was played outside of the U.S. was 2011 in England, and the lone instance prior was 2004 in Mexico.

Carleton's Lynx teammate Kayla McBride said she could sense the excitement.

"To actually be here and feel the energy and obviously playing with Bridget and [Achonwa] and I know there's a couple other Canadians in in our league, I think it's just really special for them to come here and be able to play in front of their own country," she said.

Before any of Saturday's pomp, Carleton will throw the ceremonial first pitch at the Blue Jays game on Friday night.

Her lone gameplan for that?

"Aim high."


Women's pro sport in Canada 'ripe for investment' but investors need patience — and happy fans

"Women's hockey is not a charity. It is a professional business that is run like a business" 

Story by Jamie Strashin • CBC
Apr 29, 2023

Canada's Brianne Jenner, left, and Marie-Philip Poulin are shown celebrating a goal in this file photo. Jenner says, due to the lack of a full-time pro women's hockey league in Canada, 'it's tremendously frustrating that more fans won't see the prime years of Marie-Philip Poulin.'
© Graham Hughes/The Canadian Press

In a country madly in love with hockey, why has the women's game never been able to ride the excitement of big events like the Olympics and form a full-time league?

For Canada's best female hockey players, it remains a sorepoint, a perplexing and never quite answered question.

Brianne Jenner, who has been part of the Canadian national team's core for more than decade, has been trying to answer that question for years.

"It's tremendously frustrating that more fans won't see the prime years of [long-time Team Canada captain] Marie-Philip Poulin," Jenner told CBC Sports.

"For our generation, it's frustrating that outside of the top 50 players that are playing on their respective national teams in North America, players 50 through 200 have to get 9-to-5 jobs and never have the opportunity to realize their potential as pro players."

The Premier Hockey Federation, the one existing women's professional league, has two of its six franchises based in Canada. But since the Canadian Women's Hockey League folded in 2018, there has been no domestic league in Canada.

More than two decades after women's hockey arrived with a bang at the Nagano Olympics in 1998, Canada's best are still searching for traction and widespread relevancy.

Changing the narrative


Jenner says there is a "momentum" around women's sports that will change this narrative.

"The public is starting to realize some things that those involved have known for a while... it's entertaining sport, [and] there's money to be made there."

A new report released this week by Canadian Women & Sport entitled It's Time supports Jenner's assertion.

"From hockey and soccer to basketball and esports and beyond, professional women's sport in Canada is ripe for investment," Nan DasGupta, Managing Director and Senior Partner at Boston Consulting Group (BCG), who helped put the report together.

BCG paints a rosy picture of the possibilities, estimating the total size of the Canadian women's sports market to be between $150-$200 million. DasGupta says that nearly half of that estimate is linked to revenue generated by Olympic athletes. Most of the rest comes from one-off events held in Canada like the LPGA's Canadian Open.

"We had to make estimates, we had to for data that wasn't readily available and that was a challenge," DasGupta says. "Because we have so little professional women's sports available to us in Canada as fans, we struggled to really be able to find lots of data points around sentiment. It's difficult to have a point of view about something that you can't see or feel."

Related video: Canadian athletes get a voice in national sports organizations (cbc.ca)   Duration 1:54  View on Watch

Global boom


The report instead leans heavily on data from a global market where women's sport is booming. In the United States, the WNBA (which is heavily subsidized by the NBA) continues to attract new fans and eager investors. So does the National Women's Soccer league. The recent women's NCAA basketball tournament drew record interest.

In Britain and India, domestic soccer and cricket leagues have thrived. Nearly all of these leagues are linked to previously existing entities and have benefited from these partnerships.

In Canada, past domestic leagues have had to make it on their own with expectations of near-immediate success, a main reason why they have failed.

Some are trying to write a new story. Former national team soccer player Diana Matheson is spearheading a new eight-team domestic soccer league that plans to kickoff in 2025. And the Professional Women's Hockey Players' Association, home to nearly every member of the Canadian and U.S. national teams, is expected to launch its long promised new league in the coming months.

In predicting a bright future for these ventures, this new report acknowledges many areas experts say have greatly hindered success in the past and provides some advice going forward.

DasGupta says Canadian leagues must seek out patient investors — those who recognize the industry is still in its infancy and avoid promises of immediate financial success.

"I think the business model needs to ... recognize that we're building the game, building interest, we're building engagement," she says. "We liken it very much to venture capital type of investment. The price of entry is actually fairly low right now. It will take time to really develop the business and some of these new revenue streams. But in the end, we believe the valuations are very, very positive."

At the same time, those who have been involved with or watched past leagues fail stress that emerging leagues don't always have a long time to demonstrate viability. It takes quick work to turn "growing interest" and "momentum" into fans actually buying tickets and coming to games. Even the most noble, patient investors want to see early signs of growth.

"Women's hockey is not a charity. It is a professional business that is run like a business," Brenda Andruss, the former commissioner of the CWPL, recently told CBC Sports. "To be run like a business you need the fans to come to the game to pay the dollars, you need the sponsorships to come, you need broadcasting and streaming rights."

"You need people in the office that are not former coaches and players and have nothing to do with the on-field product," adds Cary Kaplan, whose company Cosmos Sports has provided advice to leagues and teams across North America.

"You need to focus on community relations, marketing, public relations, ticket sales, outreach, and social media. And women's hockey, for some reason, hasn't done that."

Putting fans first


The report also encourages would-be investors to focus more attention on building fan engagement, something Kaplan says women's sports in Canada has often ignored. He says leagues need to focus more on building individual player profiles and focus on stats and achievement the way most men's sports do.

"When fans come, that drives your revenue and allows you to grow. Any incarnation of leagues in Canada have not been fan-centric," Caplan says. "They've led with lots of other things like equality and parity, which are all good. But if you don't put fans first and make that priority number one, the revenues tend not to come to sustain growth."

It's a model Brianne Jenner says leagues must embrace if the potential projected in the Canadian sports market is ever to be realized.

"We are rightly changing the way that we talk about female athletes away from simply being role models," Jenner says. "Of course [that]is a super important thing, but we're also talking about female athletes now for their skill, their speed.

"Male athletes have had that sort of coverage forever, but female athletes haven't ...and that is the content that fans want to hear about."

Jenner says all the indicators show women's sports can thrive in Canada, that it is the "ripe investment" reports like this say it is.

"We're not viewing ourselves as a charity nor do we fit that category any longer
."



Pro women's soccer initiative is a huge step forward for women's sports in Canada

Story by Shireen Ahmed • CBC

Diana Matheson, centre, is CEO of Project 8; Helena Ruken, left, is CEO of AFC Toronto City, and Shilpa Arora is general manager of DoorDash Canada, one of the team's sponsors.© APEX PR

On Wednesday morning, Canada woke up to the news that Toronto would be home to the newest professional soccer club in North America, when AFC Toronto City announced it would be joining the Vancouver Whitecaps FC and Calgary Foothills in the women's league expected to begin play in 2025.

Diana Matheson, a former member of Canada's women's team and an Olympic bronze medallist, is the co-founder and CEO of Project 8, the company that has been building the league from the ground up. Hailing from Oakville, where she grew up playing in her local organizations, Matheson said the "the sky's the limit" for AFC in Canada's largest city.

A professional women's team in Toronto is a long time coming, and a domestic professional league should have been established eons ago. Matheson said they are "on track" for the league to begin play in two years, and expect to get membership with Canada Soccer at its general meeting next week in New Brunswick.

Matheson said the intention is to have all eight teams for the league by the end of 2023. While pursuit of ownership in regions across the country is definitely a priority, simple awareness and keeping momentum is important for Project 8 and its success. AFC Toronto City's sponsor is DoorDash, to go along with CIBC, Air Canada and Canadian Tire as sponsors for the league. The attention is not only focused on cementing the foundation for women's sport, but also the value that goes with it.

"We've been stuck in the past crying out for more investment into women's sport, but for whatever reasons in Canada we've only had national team pathways in all the sports … and that's really limiting in how fans can support the teams," Matheson said. "National teams only show up every three or four years, [merchandise] is limited, opportunities are also limited. All we're trying to do is add that professional sport infrastructure that we've been lacking."

Canada is home to world-class athletes and those with so much potential, but prior to the announcement of this domestic women's league, the opportunity to play at home has been almost non-existent. The only pathway now for Canadian athletes is to play for a U.S. college, with the national development teams or in overseas professional leagues.

There are stellar players who just won't get the chance to continue to play here. Should they have to hang up their cleats and move on from the game? There are women's junior leagues in Canada that will be able to feed into the professional league as well.

Project 8's latest announcement comes on the heels of a research paper released by Canadian Women and Sport about investing in professional women's sport in Canada. The findings are what we know: the market has been undervalued. The paper is called It's Time and is available on the Canadian Women and Sport website.

Related video: Canadian professional women's soccer league announces Toronto as 3rd franchise (cbc.ca)  Duration 0:58  View on Watch

The reality is that when corporate partners come on board it creates more opportunity, and sponsorship is key to success. Canadian Women and Sport CEO Allison Sandmeyer-Graves underlined that on Monday at the public release of the report.

"We know that women's professional sport is not charity," she said about the report. "It requires a business case, it requires investors, and that is something that has not been fully explored in this country."

The trajectory of women's sports is going straight up. Support from the global women's sports community is truly something special. The solidarity on issues that women athletes face, including pay equity and abuse, is not unnoticed.

I keep thinking about something that Matheson said to me: "I know that I can call anyone in the world in women's sports and say: 'I'm building a women's pro soccer league in Canada, I would love to talk to you about this.' And they will say 'absolutely' and 'here's some time.'"

That's different from the way that women's sports have usually operated: on shoestring budgets, often as a second thought, but with grit and with intentionality and support from other women in similar spaces. Women are bringing the issue of sponsorship to the forefront, as the corporate sector hasn't often given priority to women's sports.

But we know that women's sports benefit all of society and the positive impact of girls sports is incalculable for confidence and for leadership and teamwork and other life skills.

Women's sports are invigorating and have so much potential. Even at a time when Canada's sports organizations are suffering from abuse scandals and systems of oppression that desperately need an overhaul, or an inquiry at the very least.

It is refreshing to see a movement that wants to grow the women's game at home and is led by people who understand, believe in, and value women in sport and women's sports. Canadian fans and lovers of soccer deserve a home team and players deserve the opportunity to thrive without having to grab their passports and fly out of the country.

Matheson said that one of the most profound responses to the announcement has been from older women and fans of the game.

"Women in their 70's have told me, 'it's about damn time,'" she said. "We're allowing that choice for Canadians to come out to a game, buy a ticket, watch it on TV, share on socials, buy a jersey, play in the league, come work for one of our teams."

Matheson is humble when she says Project 8 might have "planted a few seeds and a dream," but essentially they are approaching the league with not only opportunities for players but for an entire ecosystem to thrive. Her advice to Canadians? "Support in any way they can."

I hope Canadians are ready to get those supporter's scarves, toques and merch. I hope Canadian companies think about investing in women's leagues that will likely quickly multiply in value and bring pride to communities across this country. I hope seats sell out and that the press box is full.

I hope that generations to come will find their home on a pitch — at home.

Feds finalize Visa, Mastercard agreements lowering fees for small businesses

Story by The Canadian Press • Thursday, May 18, 2023



OTTAWA — The federal government has finalized agreements with Visa and Mastercard that will see small businesses pay lower credit card transaction fees, it announced Thursday.

The government said Visa and Mastercard have agreed to reduce domestic consumer credit interchange fees for in-store transactions to an annual weighted average interchange rate of 0.95 per cent.

Domestic consumer credit interchange fees for online transactions will be dropped by 10 basis points, resulting in reductions of up to seven per cent.

The reduced fees will apply to small businesses with an annual Visa sales volume below $300,000 or an annual Mastercard sales volume below $175,000.

The federal government estimated the changes will help 90 per cent of credit card-accepting businesses in Canada by reducing interchange fees by up to 27 per cent.

The reductions, which will come into effect in fall 2024, are expected to save eligible Canadian small businesses about $1 billion over five years.

The agreements also include commitments from Canada's large banks to protect reward points.

“The new agreements secured with Visa and Mastercard will make credit card transactions fairer for small businesses, which have less bargaining power than larger merchants to negotiate lower rates," Finance Minister Chrystia Freeland said in a press release announcing the changes.

"With lower interchange fees, small businesses will save money that they can use to grow their businesses and create more good jobs.”

The Canadian Federation of Independent Business (CFIB) reacted positively to the announcement, calling it a "big win for small businesses."

Nearly three quarters of the association's members will benefit from the rate reductions, CFIB president Dan Kelly said in a statement.

However, the organization is calling for the reductions to be implemented sooner than the fall of 2024, and for the government to ensure other card brands such as American Express take similar measures.

But an association representing small and medium grocers saw the fee-reduction announcement as a "broken promise."

Because of the thresholds set out by the government, not a single small or medium grocer in the country will see their interchange fees reduced, the Canadian Federation of Independent Grocers said in a statement.

The organization said meaningful reductions in interchange fees for grocers could help manage rising food prices, especially in the rural or remote communities, where these grocers are often the only supermarket.

Senior vice-president Gary Sands said his association's members have been waiting more than two years for Thursday's announcement, but called the resulting announcement "baffling" and "a joke."

This report by The Canadian Press was first published May 18, 2023.

The Canadian Press
THE PERVERSITY OF CAPITALI$M
Shopify stock soars as it cuts staff again. Here’s what to know

Story by Craig Lord • 



Shares of Shopify Inc. surged Thursday after the company posted a surprise first-quarter profit and said it would reduce its headcount by 23 per cent.

The Ottawa-based e-commerce company's shares closed the day up 23 per cent on the Toronto Stock Exchange, the same day it reported earnings for the first quarter of the year topped analyst expectations.

Separately, Shopify said in corporate filings Thursday that that its workforce would shrink by roughly a quarter through layoffs and the sale of its logistics business.

The company had a headcount of 11,600 at the end of 2022; a 23 per cent reduction would result in a shedding of almost 2,700 jobs.

"All geographies and all levels within the organization" were impacted by the cuts, Shopify's chief financial officer Jeff Hoffmeister said in a call with analysts Thursday, but he declined to say how any of the affected jobs were part of the logistics business

Global News asked Shopify how many of the layoffs would affect workers in Canada, but a spokesperson did not provide a figure in their response Thursday.

Shopify laid off about 1,000 staff last summer, saying at that time that the company had misjudged growth in the e-commerce market during the pandemic.

Video: Hootsuite and Shopify lay off thousands of employees

Shopify President Harley Finkelstein told The Canadian Press in February that there were "no job cuts coming" for the company.

"We're in a really good place," he said at the time.

Daniel Tsai, a business, law and tech lecturer at the University of Toronto, says that with another round of layoffs, morale is likely to take a hit for remaining Shopify employees.

The company going back on its word that it was done with layoffs is a sign of "erratic management and "old fashioned big tech arrogance," Tsai says.

“They overspent and overinvested, thinking that they were making brilliant business decisions. In fact, the reality is they were just lucky," he tells Global News.

Tsai says that Shopify "miscalculated" the trajectory of growth for e-commerce during its hot streak in the pandemic, which saw business boom while consumers were stuck at home and businesses were forced to open online shops to survive.

CEO Tobi Lutke conceded in a letter announcing the first round of layoffs in July that Shopify's bet on sustained e-commerce growth during the pandemic "didn't pay off." He took the blame for the need to cut jobs at the time.

More recently, the company has underestimated the downside for its business amid an economic slowdown, Tsai argues.

Specifically, he says consumers are likely to rein in spending and avoid making more online purchases as a possible recession looms on the horizon — and that's bad news for Shopify.

“The circumstances have changed. They are proving that they misjudged the situation and they have to prove that they're adaptable and have to quickly, rapidly evolve if they want to stay in business," he says.

In an open letter Thursday announcing the cuts, Lutke said the company "is changing the shape of Shopify significantly today to pay unshared attention to our mission."

"I recognize the crushing impact this decision has on some of you, and did not make this decision lightly," Lutke wrote.

The chief executive said Shopify had a number of "side quests" that had begun to "split focus," and so the company has been "subtracting everything" over the past year to make sure it was as focused as possible on its primary mission.

In that vein, Lutke said the company has also decided to sell Shopify Logistics to Flexport, a supply chain management company, to help the business become more ambitious and global in nature.

Flexport will also become the official logistics partner for Shopify.

The transaction is expected to close in the second quarter of 2023, but is subject to certain conditions and regulatory approval.

The sale, a reversal of its strategy of aggressively investing in fulfillment networks, was well-received by analysts.

"Over the course of one earnings release, Shopify completely shifted its investor positioning to be a balanced-growth and profitable company," William Blair analyst Matthew Pfau said.

"They can have the best of both worlds – a logistics business that makes them competitive with Amazon without having to manage a business that is not core to Shopify and had been losing money," said Gil Luria, analyst at D.A. Davidson & Co.

"Combined with the reduction in force, management is showing its commitment to profitability which investors had been concerned about."

While the headcount reductions and divestiture of the logistics business might boost Shopify's share price and investor confidence in the company's profitability, Tsai says the latest quick pivot in the business means the ups and downs might not be over yet for Shopify.

“I think we just have to keep an eye on this roller coaster. If things could get worse before they get better for this company," he says.

Lutke also hinted that the company will lean further into artificial intelligence in the future, calling AI a possible "copilot for entrepreneurship."

"We are at the dawn of the AI era and the new capabilities that are unlocked by that are unprecedented. Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers," he wrote.

Finkelstein talked on the earnings call Thursday about some of the customer-facing uses the company has already rolled out with artificial intelligence, including an AI shopping assistant launched in March to help consumers search the internet for the products they're interested in and buy them right in the app.

He also said AI tools to help merchants write product descriptions will allow business owners to spend less time on the minutiae of the business and more time refining their products.

"We believe that we are in the early innings of unlocking the true power of AI," Finkelstein said.

But Tsai says leaning into AI — a tempting step for tech companies looking to save money on human labour — can be a difficult balance to strike when it comes to customer service. Other tech giants have already replaced human reps with artificial intelligence, which he says has resulted in a more frustrating interface for many customers.

Shopify having real people to answer questions was a "differentiator" for them, Tsai says, and they may now lose that edge to competitors who keep a human touch for their services.

Though he said Thursday marked a "hard day" for Shopify, Finkelstein nonetheless expressed confidence in the leaner company moving forward.

The changes will leave Shopify with "incredible talent density" and the ability to executive on its goals at a "much, much better speed, better pace and with better results," he told analysts Thursday.

"I'm more optimistic now than I think ever before about the future of this company," he said.

May 4, 2023

— With files from The Canadian Press, Reuters

Trudeau government says privacy rules shouldn’t apply to federal parties

It would mean that, unlike private companies or government agencies, political parties will continue to hoover up private details about Canadians with zero oversight and almost no rules.

Story by Alex Boutilier 

Prime Minister Justin Trudeau arrives to a cabinet meeting on Parliament Hill in Ottawa on Tuesday, May 2, 2023. THE CANADIAN PRESS/Sean Kilpatrick© skp

The Liberal government is working to enshrine in law federal political parties’ ability to gather, store and exploit sensitive information about Canadian voters without oversight or rules.

The Liberals’ budget bill, introduced in April, allows parties to “collect, use, disclose, retain and dispose” of Canadians’ personal information as long as they follow their own self-policed privacy policies.

The move comes as the major federal parties are fighting B.C.’s privacy watchdog in court over that office’s ruling that federal parties must adhere to provincial privacy laws. The proposed federal law would supersede provincial privacy rules.

While the proposed changes require parties and their representatives to adhere to their privacy policies, those policies are not subject to any oversight – meaning Canadians essentially have to take parties at their word.

It would mean that, unlike private companies or government agencies, political parties will continue to hoover up private details about Canadians with zero oversight and almost no rules.

Prime Minister Justin Trudeau said last month that federal parties need a “homogenous and cohesive” regime across Canada to handle Canadians’ sensitive information. His government’s budget bill does that, in the sense that it means federal parties will continue to operate with almost no privacy rules whatsoever.

At a meeting of the Senate’s legal and constitutional affairs committee Wednesday evening, Privacy Commissioner Philippe Dufresne said the proposed changes do not establish “minimum privacy requirements” for political parties.

Dufresne noted that all parties are required to do is adhere to their own privacy policies, which they can revise whenever they wish.

“Given the importance of privacy and the sensitive nature of the information being collected, Canadians need and deserve a privacy regime for political parties that goes further than self-regulation and that provides meaningful standards and independent oversight to protect and promote electors’ fundamental right to privacy,” Dufresne told the committee.

“It is wholly inadequate and cynical,” wrote Colin Bennett, a professor at the University of Victoria who has advocated for privacy reform, in a recent column in The Hill Times.

“If this passes, federal political parties will continue to be the only category of organization in Canada that do not have to abide by the basic privacy standards that apply to government agencies, private businesses, and non-profit organizations. Politicians have consistently resisted applying these same rules to their own operations.”

Global News reported last month that the Liberals were planning to introduce federal privacy rules that would supersede any provincial protections – after the B.C. privacy commissioner ruled that federal parties operating in the province should be subjected to provincial privacy laws.

A federal official, speaking on a not-for-attribution basis at the budget briefing for journalists, suggested the move to legislate was directly influenced by the B.C. case – something Trudeau himself strongly suggested in a press conference last month.

The Liberals, Conservatives and New Democrats are arguing against the B.C. commissioner’s ruling in court, with the case set to be heard on May 8.

B.C.’s privacy watchdog, Michael McEvoy, told Global News last month that he believed any federal law should be at least as stringent as provincial privacy rules. The Liberals’ proposed rules do not meet that standard.

Data is crucial to modern campaigning. Parties use information from disparate sources – from door-to-door canvassing, online petitions and in-person events – to help shape their policies and political outreach efforts.

The Liberals are assumed to have an edge on their competition in the data game. Katie Telford, Trudeau’s longtime chief of staff, told the Liberal faithful in 2016 that the party’s data operations were a crucial part of their historic 2015 election victory.

But all federal parties have an interest in shielding their data operations from public scrutiny. Without independent oversight, parties are free to collect information from whatever source they wish, and to use it however they want.

And unlike private companies or government departments, if parties are hacked or suffer some kind of breach, they have no legal obligation to inform Canadians whose data has been pilfered.

Because there is no independent oversight, Canadians have no idea if that has already happened.

In the wake of the 2016 presidential election in the United States, the Liberal government put an increased emphasis on protecting the “integrity” of Canadian elections and the democratic process.

But despite giving increased authority to national security and law enforcement agencies, and putting in place a panel to warn Canadians about potential foreign interference campaigns, the government has done little to address vulnerabilities within parties themselves.

If a hacker wanted to steal information about Canadian voters, they could target Elections Canada –which has bolstered its cyber defenses in conjunction with the Communications Security Establishment (CSE), the country’s cybersecurity and espionage agency – or they could target political parties.

Unlike departments and agencies shielded by CSE, federal political parties have no baseline requirements for cybersecurity and no obligation to inform Canadians once they’ve been compromised. If the Liberal Party was hacked and had its data on individual voters stolen, it would be up to them to notify Canadians.

Global News asked the Prime Minister’s Office why the government is exempting political parties from privacy rules. In a brief statement, a spokesperson for Trudeau said his comments from last month stand, and declined further comment.
SLUM HOUSING
Old Montreal building flagged for violations prior to fire that killed 7 people

Story by Benjamin Shingler •

The fire in the three-storey building in Old Montreal broke out on March 16.© Simon-Marc Charron/Radio-Canada

The Old Montreal building that erupted in flames last March, leaving seven people dead, was flagged repeatedly for fire safety violations in the years leading up to the incident.

Documents obtained by CBC News under access-to-information legislation show the owner, Emile Benamor, had a history of violations starting in 2009, shortly after he bought the historic greystone.

That year, fire inspectors with the Service de sécurité incendie de Montréal found problems with the building, including a lack of smoke detectors but had difficulty getting Benamor to comply.

(There were still no smoke detectors three years later, according to a 2012 report. Benamor was fined $650 in 2013.)

In 2010, inspectors warned about problems with the building's fire escape. A year later, they sent a complaint about the issue to the Régie du bâtiment, the province's building authority.

Owner difficult to reach

Problems persisted at the building, located at the intersection of Place d'Youville and du Port Street, in the years that followed.

In May 2018, a fire inspector found 10 violations during a visit to the building, including the lack of a working fire alarm, no clear signage for the emergency exits and a missing smoke detector in the stairway.

The problems had not been addressed when the inspector returned in September of that year.

Another fire inspector who visited in February 2019, found that the fire alarm was not up to code and not loud enough to ensure tenants could hear it inside their units.

Those problems had also not been addressed when the inspector returned to do a followup in October 2020.

Inspectors, as well, had trouble meeting Benamor on several occasions.

During that visit in 2019, for example, Tremblay tried to meet with Benamor but instead was only able to speak with his secretary. He also wasn't present for the followup visit.

It's unclear, based on the inspection reports, if all the problems listed were eventually addressed.

Benamor has not returned a request for comment through his lawyer, Alexandre Bergevin.

The last recorded inspection of the building appears to have been in 2019, though officials appear to have followed up on the case file in 2021 and 2022.

Building viewed as 'fire trap'


Former tenants and guests at the building have told CBC they had safety concerns. One said it felt like "a fire trap."

The building housed long-term and short-term rentals, including Airbnbs, which are prohibited in this area of Old Montreal under a bylaw adopted in 2018. One of the units had no windows.

(None of the inspections obtained by CBC mentioned a windowless apartment.)

Airbnb has since said it would remove all Quebec listings that have not been authorized by the provincial government.

The Quebec government has ordered a public inquiry into the fire.

Randy Sears, the father of one of the victims, has applied to launch a class-action lawsuit against the building's owner, the operators of the short-term rental units and Airbnb.

Sears claims there was a lack of safety equipment in the building and the units did not meet municipal safety standards. His claims have not been tested in court.

When contacted by CBC News, a spokesperson for the city declined to comment on this story given that a coroner's inquiry has been ordered.

Illinois Tech researchers unveil key predictors of bitcoin returns

Paper’s authors find that blockchain technology, investor sentiment, and economic stress are useful for forecasting, while bitcoin’s detachment from economic fundamentals make it a poor safe-haven asset

Peer-Reviewed Publication

ILLINOIS INSTITUTE OF TECHNOLOGY

Sang Baum “Solomon” Kang 

IMAGE: ASSOCIATE PROFESSOR OF FINANCE SANG BAUM “SOLOMON” KANG view more 

CREDIT: ILLINOIS INSTITUTE OF TECHNOLOGY

CHICAGO—May 19, 2023—Blockchain technology, investor sentiment, and economic stress levels are significant predictors of bitcoin returns, according to a groundbreaking paper from Illinois Institute of Technology researchers that provides empirical evidence to help guide investors, economists, and academics.

Sang Baum “Solomon” Kang, associate professor of finance at Illinois Tech’s Stuart School of Business and co-author of the paper, also found that the cryptocurrency is detached from economic fundamentals and therefore may not effectively serve as a diversifier or safe-haven asset. Additionally, Kang reported that returns on commodities, securities, and other assets do not predict bitcoin returns well.

The paper, titled “What Information Variables Predict Bitcoin Returns? A Dimension-Reduction Approach,” was published in The Journal of Alternative Investments. Kang co-wrote the paper with two of his former doctoral students: Yao Xie (M.S. Finance ’15, Ph.D. MSC ’21), an associate quantitative analyst at Morningstar Inc., and Jialin Zhao (Stuart Ph.D. MSC ’17), associate professor of quantitative management at St. Mary’s University in San Antonio.

The team used predictive analytics techniques and dimension-reduction models on data from January 2011 to January 2020, analyzing 25 information variables under the categories macroeconomics, blockchain technology, other assets, stress level, and investor sentiment.

“We find that blockchain technology, investor sentiment, and stress level have predictive power for bitcoin returns,” says Kang. “Similar to traditional assets, bitcoin shows higher return predictability with longer return horizons. These findings support the dual nature of bitcoin as a technical artifact and speculative asset.”

Key findings include:

  • Increased difficulty in mining Bitcoin positively predicts returns. This supports the theory that as blockchain technology requirements increase, bitcoin’s supply is reduced, thus increasing its return.
  • Bitcoin returns are positively driven by investor sentiment, indicating the speculative nature of the cryptocurrency as an asset.
  • Higher stress levels or financial turmoil in the economy cause a decrease in future bitcoin returns, underscoring the risks associated with holding bitcoin as an asset.

According to the researchers, bitcoin has functioned in three different economic roles over time: as a form of currency, as a speculative security, and as a safe-haven commodity due to its scarcity and mining costs.

“In academia, there is a research methodology called the asset return predictability study,” says Kang. “An underlying principle is that variables predicting the future movement of an asset price may be important in the economic system. So understanding what those variables are is important not only to traders who want to take a position in bitcoin, but also to economists who want to understand the nature of bitcoin.”

ECONOMIC ASTROLOGY

Why do so many businesses fail? A new study suggests it has to do with when they're born

Peer-Reviewed Publication

STRATEGIC MANAGEMENT SOCIETY

Only 25% of new businesses make it to 15 years or more, according to data from the U.S. Bureau of Labor and Statistics. Despite vacillating economic conditions between and across markets, that statistic has remained consistent for 30 yearsA new study from the Strategic Entrepreneurship Journal suggests an elegant explanation: a business’s long-term success  depends significantly on its founding conditions not just changes in its markets.

“A venture’s performance following environmental change depends on its internal processes,” says D. Carrington Motley, an instructor in entrepreneurship at Carnegie Mellon University and co-author of the study. “Environmental conditions at a business’s founding shape those processes, and they quickly become cemented and embedded in beliefs about how to operate.”

Motley and his co-authors, Charles E. Eesley of Stanford and Wesley Koo of INSEAD Asia, examined performance for more than 1,000 ventures founded from 1960 to 2011. The businesses operated in 19 industries ranging from agriculture to energy and utilities. The authors used data from the Bureau of Economic Analysis to quantify dynamism within each industry over time and within each venture’s founding year. They used alumni survey data to establish the composition of each business’s founding team as well as its longevity and ultimate outcome.

“Businesses founded in dynamic environments by a functionally diverse team show meaningfully more ability to survive during market change,” Eesley said. “However, they don’t necessarily have an increased likelihood of a positive exit.”    

Businesses founded in dynamic environments typically favor slower, decentralized decision-making and increased creativity and flexibility. A founding team with many distinct functional roles compounds these behaviors — they have broader strategic focus and seek large amounts of information. These risk-averse structures and strategies help businesses persevere during environmental change, but the study also found that these businesses where less likely to gain IPOs or acquisitions if their market stabilized.

“In stable, more predictable environments, being more aggressive can produce better outcomes,” Woo said. “The risk of untested assumptions is less, so continued use of risk-averse processes produces fewer benefits and may detract from a venture’s ability to respond to opportunities.”

The authors argue that the key differentiator for businesses founded in dynamic environments by functionally diverse teams was slower decision-making. They tested the theory by first examining their performance in industries where fast product development was critical to competitive advantage and second by determining how quickly they took to receive angel or venture capital funding. Businesses founded in dynamic environments by functionally diverse teams fared worse in both instances.

Whether an industry is in flux or stabilizing, the study indicates that typically businesses benefit from market change only if that change better aligns with their founding environment. Despite its premise that founding processes become entrenched, it offers an insight to entrepreneurs hoping to both survive chaos and thrive in calm. Businesses need to examine their founding structure and internal processes and consistently re-evaluate whether they are best suited to their market environment.

Find a full explanation of the study and how founding conditions affect performance in dynamic environments in the full text, available in the Strategic Entrepreneurship Journal.

Puppeteer fungus’ targeted takeover of zombie flies

Peer-Reviewed Publication

HARVARD UNIVERSITY, DEPARTMENT OF ORGANISMIC AND EVOLUTIONARY BIOLOGY

Fruit fly with its wings up and evidence of a fungal outgrowth. Credit-Carolyn Elya 

IMAGE: FRUIT FLY WITH ITS WINGS UP AND EVIDENCE OF A FUNGAL OUTGROWTH. view more 

CREDIT: CREDIT-CAROLYN ELYA

In a new study published in eLife, lead author Carolyn Elya, postdoctoral researcher in the Department of Organismic and Evolutionary Biology at Harvard, reveals the molecular and cellular underpinnings behind the parasitic fungus, Entomophthora muscae’s (E. muscae), ability to manipulate the behavior of fruit flies.

Elya first described the manipulated behavior, called summiting, in a study published in eLife in 2018. Elya, who was studying microbes carried by fruit flies while a graduate student at University of California (UC) Berkeley, set out rotting fruit to capture wild fruit flies. When she later checked to see is she had captured any, she found instead zombie flies, with a banding pattern on their abdomen, that had died striking an interesting pose. Through extraction and sequencing of DNA Elya confirmed the suspected cause, E. muscae.

Summiting occurs at sunset when the infected flies climb to an elevated location and extend their proboscises to the surface. A sticky droplet that emerges from the proboscis adheres the fly to the surface right before the wings raise up and away from the body and the flies die.

“The climbing is very important as it positions the fly in an advantageous location for the fungus to spread to the most possible hosts,” says Elya. “The fungus jumps to the new host by forming very specialized and temporary structures that burst through the fly’s skin and shoots spores into the environment that are only good for a handful of hours. It’s a fleeting process, so an advantageous position is everything to survival.”

While at UC Berkeley, Elya developed a laboratory model she refers to as the Entomophthora muscae-Drosophila melanogaster 'zombie fly' system using the wild fungal isolate she found in her backyard. With this system, Elya could continuously infect fruit flies – a laboratory staple, as well as culture the fungus independently of the fly host in media thought to mimic the internal environment of the fly.

Summiting has appeared several times in scientific literature, but studies had only been observations of dead house flies. No one had ever observed how flies behave in their last hours of life. Elya set out to fill this knowledge gap of what happens when flies summit by developing a high-throughput behavioral assay to automatically track hundreds of infected flies. While using this platform to monitor the behavior of flies becoming zombies, she encountered a surprise. “We found that summiting is not about climbing,” said Elya, “it’s actually this burst of locomotor activity that starts about two and a half hours before the flies die.”

With this discovery, Elya and co-authors paired her system to create on-demand zombie flies with the lab’s powerful fruit fly genetic toolkit. With these and the author’s new behavior assay they could identify genes and neurons required for flies to summit.

“Overall, we found the flies hormonal axes was mediating summiting behavior. When we silenced these neurons the flies were really bad at summiting,” Elya says. These neurons send projections to a neurohemal organ that produces juvenile hormone, a hormone conserved in insects. “We think the fungus is actually driving the activity of these neurons in order to drive the release of this hormone, which is causing the flies to have this burst of locomotor activity.”

Elya and co-authors were then able to collect a behavioral dataset consisting of hundreds of infected flies, which they then used to train a computer to identify flies as they are summiting. This classifier tool enabled the team to discover that fungal cells invade the fly’s brains in an organized way, occupying specific regions of the brain during summiting.

Interestingly, the team also discovered that the flies blood brain barrier is compromised when exposed to the fungus. Normally the neurons are protected from the blood that’s circulating through the fly’s body. The breakdown of the blood brain barrier has important consequences for what the neurons are being exposed to, potentially allowing  things that are circulating in the blood to interact with neurons in the brain, thus providing a route for modulating neural activity.

“We think this could be important for the way that the fungus is driving behavioral changes,” Elya said, “and we actually found that you can pull blood from flies that are doing the summiting behavior, put it into naive flies and drive some of this increased locomotion. So we've shown that there's at least the partial ability to recapitulate this summiting behavior just by transferring fly blood.” Elya says that these experiments show some blood-borne factors can drive summiting behavior, though it’s not yet clear what the identity of these factors are or who produces them (the fungus or the fly).

Elya hopes to next develop transgenics to help modulate things from the fungus side in addition to perturbations that can already be made in the flies. “There are still a lot of open questions here,” she says, “what the fungus is doing is still a mystery.”

####

Zombie flies strike their final pose adhered to a wooden dowel.