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-0.00093896713615027 0.00062597809076681 0.00062597809076681 -0.00532081377151805 0.00328638497652572 -0.00516431924882638 -0.0042253521126761 0.0131455399061033
Stock impact report

Market Outlook: Canada-U.S. economic divergence widens [BNN Bloomberg (Canada)]

Telesat Corporation (TSAT) 
Company Research Source: BNN Bloomberg
While job creation remains resilient in Canada, broader growth trends suggest the U.S. will continue to outperform, shaping central bank decisions on both sides of the border. BNN Bloomberg spoke with Earl Davis, head of fixed income and money markets at BMO Global Asset Management, about how employment trends, inflation risks and credit conditions are influencing rate expectations and portfolio positioning heading into 2026. Key Takeaways Canada is expected to post modest growth in 2026, while the U.S. economy continues to outperform, supported by resilient consumer spending and easier financial conditions. Strong Canadian employment data support a near-term hold from the Bank of Canada, with any shift toward easing dependent on labour or growth deterioration. The U.S. Federal Reserve is also expected to remain on hold in the short term, with one possible insurance cut later in 2026. Credit is favoured over long-duration bonds, reflecting caution around 20- and 30-year ma Show less Read more
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