Wednesday , 6 November 2024
Home Forex Canadian National Railway highlights soft macro backdrop
Forex

Canadian National Railway highlights soft macro backdrop

I’ve been listening to corporate conference calls closely for hints about macroeconomic weakness. Railways have great insight into the goods macroeconomy, which has been struggling since the covid boom. Some comments in the conference call yesterday highlight caution on the Canadian economy but there are also comments on the US, where it generates about one third of its revenue.

Tracy Robinson (President and CEO):

  • “The macro is lighter than what we expected coming into 2024 and maybe even a bit softer than what we thought on our last call back in July. We’re seeing this play out in our merchandise business, especially in construction and related commodities as well as in automotive.”
  • “As we look forward, we see that continuing through next year, so kind of lower and longer.”

Ghislain Houle (Chief Financial Officer):

  • “From a macroeconomic perspective, lumber remains at the trough and consumer consumption continues to be tepid.”
  • “As we enter the final few months of the year, overall industrial production now looks to be largely flat for 2024.”

Remi Lalonde (Chief Commercial Officer):

  • “Business has been a bit more challenging than expected due to the labor uncertainty and lower-than-expected industrial production and manufacturing activity and mixed signals around consumer confidence.”
  • “Despite soft consumer confidence in the U.S. and Canada, we’re looking for sequential and year-over-year growth in intermodal”

This article was written by Adam Button at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

The US treasury auctions off $25B of 30 year bonds at a high yield of 4.608%

High Yield 4.608%WI level at the time of the auction: 4.63%Tail: -2.2...

US treasury to auction $25B of 30 year bonds testing the buyers appetite

The US treasury will auction off $25B of the "grand-daddy of them...

EURUSD moves down toward triple bottom in June and bounces. Sellers still in control.

The EURUSD moved higher before the results of the election started to...

Nomura now sees just one Fed rate cut in 2025 after Trump win

Nomura anticipates that the Fed will respond cautiously to a Trump administration...