Canada GDP Contraction Raises Recession Risk -TD

9:35 (Dow Jones) Risk of another recession in Canada has risen following weak 2Q GDP report, but this will largely depend on how US economy unfolds, says Mazen Issa, Canada macro strategist at TD Securities. He predicts that if there's a slump, it will be mild and short-lived and unlikely to prompt the  Bank of Canada  to cut rates, noting that the benchmark overnight rate level of 1% is still very stimulative. "Even if you're in a recession, that should provide enough stimulus to offset the drag on growth," he says in an interview. Issa believes that the central bank will only cut rates if there's "some sort of seizure in the credit markets." (nirmala.menon@dowjones.com)