Every week at the Current we bring you the biggest business stories from around the world. This week: global markets, the loonie and oil rebound, Canada Pacific cuts jobs and inflation rises in Canada.
ECB Stimulus, markets increase
Global stock markets rallied after oil prices rose and central banks hinted at further stimulus. Markets across Europe rose by over 2% and the Dow Jones by over 1.3%. The President of the European Central Bank (ECB) hinted that, in addition to the existing stimulus plan and rock bottom interest rates, the bank could increase its bond buying program.
CPR cuts jobs
Canadian Pacific Railway will cut 1000 jobs this year due to decreased demand for shipping commodities across the continent by rail. Despite the announcement of layoffs, CP posted record profits this year.
Low interest rates continue
The Bank of Canada announced that it would keep interest rates at near zero. Canada’s economy has been hit hard by low oil prices. Previously officials have hinted that the bank could institute negative interest rates if Canada’s economy continues to struggle. Low interest rates contribute to the loonies low exchange rate.
Oil and loonie surge
Oil prices hit $26 a barrel on Wednesday before rebounding back above $30. The loonie followed oils dramatic week, gaining a full cent on thursday after dipping below 70 cents US earlier in the week.
The poor exchange rate of the Canadian dollar has been responsible for growing inflation as food prices have increased. Wireless providers are also looking to charge more in order to deal with higher costs resulting from the loonie’s low value.
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