WINNIPEG – The following is a glance at the news moving markets in Canada and globally.
– Inflation in Canada has accelerated, reaching its highest point in 18 years. Statistics Canada reported Wednesday morning that the consumer price index (CPI) jumped 4.1 per cent in August from a year earlier, slightly higher than economists’ predictions of 3.9 per cent. It is also the fifth straight month inflation was higher than the Bank of Canada’s three per cent cap. The increase was mainly due to a sharp increase in travel expenses, including plane tickets. Analysts believe the inflation spike will be transitory, but it may also bring a blow to the re-election campaign of Prime Minister Justin Trudeau.
– Canadian Pacific Railway (CP Rail) has scored a major victory against its rival Canadian National Railway (CN) Wednesday morning after the latter announced its deal to acquire United States railway Kansas City Southern (KCS) has been terminated. KCS confirmed it has entered into an agreement to be acquired by CP Rail, subject to shareholder votes and regulatory approvals. KCS will also pay CN US$1.4 billion, half a break fee and the other half to cover another break fee previously paid to CP Rail. The break fee KCS will pay CN will be reimbursed by CP Rail.
– South Korea conducted its first underwater-lauched ballistic missile test on Wednesday, hours after two short-range ballistic missile launches by North Korea. Experts believe North Korea’s tests are an indicator the nation will press on with its arms buildup and urge the United States to resume nuclear talks. South Korea publicly acknowledging its own missile tests is believed to be a response to domestic criticism that President Moon Jae-In’s government has been too soft on North Korea.
– California residents voted overwhelmingly on Tuesday to retain Democrat Governor Gavin Newsom instead of triggering a special gubernatorial election. Republicans in the state, many of whom are supporters of former U.S. President Donald Trump, had brought on the recall vote over criticism of Newsom’s liberal policies on climate change, LGBTQ+ rights and preventing COVID-19.