Canada's rail shutdown could hit GDP hard, kill jobs if protracted

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Canada's rail shutdown could hit GDP hard, kill jobs if protracted
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Canada's economy could shrink by billions of dollars this year if a rail stoppage that began on Thursday continues for weeks, and the knock-on effects would ...

OTTAWA - Canada 's economy could shrink by billions of dollars this year if a rail stoppage that began on Thursday continues for weeks, and the knock-on effects would swell jobless numbers and consumer prices, economists and analysts warned. Canada 's two biggest freight rail operators Canadian National Railway and Canadian Pacific Kansas City locked out workers affiliated with the Teamsters union on Thursday, after both companies and the union failed to conclude labor deals.

The unprecedented simultaneous stoppage of the majority of Canada's rail freight is "growth-negative and inflation-positive," said Robert Kavcic, senior economist with BMO Capital Markets. After cutting interest rates in July for a second straight month, Governor Tiff Macklem hinted at shifting the bank's focus to boosting the economy rather than suppressing inflation.

The total rail freight cargo hauled annually in Canada tops C$380 billion, with the vast majority moving on CN and CPKC's tracks. Nvidia stock is getting more Wall Street backing ahead of the company's crucial earnings report set for next week.Haiti arrests a suspect in the May killings of a US missionary couple and a nonprofit chief

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