Global Markets: Canadian economy contracted in February

By MarketsFarm

WINNIPEG, April 30 (MarketsFarm News) – The following is a glance at the news moving markets in Canada and globally.

– Statistics Canada reported the economy contracted in February after showing growth in January. Gross domestic product pulled back 0.1 per cent in February, according to a report. Poorer-than-expected performances in the mining, quarrying, and oil and gas extraction industries contributed to the slowdown.

– Canadian National Railway Co. blamed their high operating expenses and lower-than-expected quarterly profit on the “prolonged extreme cold” winter weather that struck Canadians from coast to coast. The severe winter caused rail traffic in Canada to slow down, forcing rail operators to cease work, according to Reuters. Tim Hortons’ parent company, Restaurant Brands International Inc., also cited the arduously cold winter as a reason for slowed sales in Canada. “The weather woes started in the back half of January and lasted until the end of February, and impacted performance across Canada,” said Alex Macedo, Tim Hortons president, to CTV.

– Canadians in Ontario, Quebec, and New Brunswick continue to face flooding conditions and evacuation. Canadian Forces soldiers have arrived in Bracebridge, Ontario to assist with sandbagging and other relief efforts, according to the Globe and Mail. Residents of Kashechewan First Nation in northern Ontario have faced flooding and evacuation every spring for the past 17 years, and are rallying the provincial government for support in moving the community off of the known floodplain. “First Nations and Kashechewan are Ontarians and Canadians, just as much as they are in Ottawa,” said Derrick Fox, deputy grand chief of Nishnawbe Aski Nation.

– Confidential documents obtained by CBC/Radio-Canada from Elections Canada revealed that, between 2004 and 2008, 18 former SNC-Lavalin employees made donations to the federal Liberal party that were reimbursed by SNC-Lavalin. This practice is forbidden under the Canada Elections Act. Since 2004, corporations have not been allowed to make donations to federal political parties, in order to avoid corporate influence over politicians. According to CBC, SNC-Lavalin avoided charged by signing a “compliance agreement” in 2016 with the Commissioner of Canadian Elections, promising not to break the law in the future.

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