News from Reuters

Reuters Canada Business Summary

14/08/07

Credit woes spread to Canada with CP funding fears

TORONTO (Reuters) - Fallout from the U.S. subprime mortgage meltdown spread to Canada on Tuesday with a rating agency warning of possible defaults in the C$116 billion ($109 billion) market for asset-backed commercial paper, and one issuer saying it couldn't repay paper that is falling due. Dominion Bond Rating Services, Canada's main rating agency, said 17 issuers of asset-backed commercial paper were seeking cash. The 17 had C$26.6 billion of asset-backed commercial paper (ABCP) outstanding, or almost a quarter of Canada's C$116.2 billion market, it said.

Subprime fallout throws doubt on rate hike

TORONTO (Reuters) - Fallout from the U.S. subprime mortgage crisis has clouded what had until recently been considered a slam dunk rate hike by the Bank of Canada next month, economists said on Tuesday. Concerns about liquidity in the wake of defaults and losses in the U.S. subprime market prompted several central banks, including the Bank of Canada, to provide liquidity in bids to stabilize the financial system.

Lending market woes sink Toronto stocks

TORONTO (Reuters) - Toronto stocks dropped more than 100 points by late morning on Tuesday after a strong start, as lending market worries crept back into the market. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was down 160.79 points, or 1.2 percent, at 13,266.66 after earlier touching a high of 13,525.75.

Lundin Mining profit quadruples on acquisition

TORONTO (Reuters) - Lundin Mining Corp. said on Tuesday its second-quarter profit more than quadrupled, due to last year's acquisition of EuroZinc and a gain from the sale of securities during the quarter. Lundin, which acquired Tenke Mining last month and is in the process of closing its takeover of Rio Narcea Gold Mines , earned $159.9 million, or 56 cents a share, in the quarter ended June 30, up from $37.2 million, or 30 cents a share, a year earlier.

Menu Foods loses biggest customer

TORONTO (Reuters) - The fallout from a tainted pet food scandal hit Menu Foods Income Fund again on Tuesday, when its biggest customer said it would stop buying some of its products in the fourth quarter. The unnamed customer, whose total purchases made up nearly 10.8 percent of Menu Food's sales volume in 2006, said it would stop buying 'loaf' products from the company beginning October 1, Menu Foods said in a statement.

Mattel recalls millions more Chinese-made toys

NEW YORK (Reuters) - Mattel Inc. , the largest U.S. toy company, recalled millions more Chinese-made toys on Tuesday due to hazards from small, powerful magnets and lead paint, sending its shares down as much as 6 percent. The company's second recall this month came as it launched a national advertising campaign to assure consumers it is on top of product safety.

BCE plans $23 billion loan to fund LBO

NEW YORK (Reuters) - Canadian telecom firm BCE Inc. . filed plans on Tuesday to raise a $23.05 billion bank loan and $11.3 billion in bonds to back its $48.5 billion leverage buyout by a group led Ontario Teachers' Pension Plan, according to Reuters Loan Pricing Corp. The financing is being provided by Citigroup, Deutsche Bank, Royal Bank of Scotland and TD Securities.

Alliance Atlantis profit up 65 percent

TORONTO (Reuters) - Alliance Atlantis Communications reported a 65 percent jump in second-quarter profit on Tuesday, thanks to higher broadcast advertising and subscriber revenues and strong international sales of its CSI franchise. Alliance, which co-produces and distributes the hit "CSI: Crime Scene Investigation" TV show franchise, earned C$43 million ($40.7 million), or C$1.02 a share, in the three months ended June 30, up from C$26 million, or 60 Canadian cents a share, a year earlier.

Canadian dollar, bonds fall on credit fears, data

TORONTO (Reuters) - The Canadian dollar fell against the greenback on Tuesday as credit worries lingered and trade data came in weaker than expected. Canadian bond prices sagged, following the lead of the larger U.S. Treasuries market, which fell on stronger-than-expected U.S. data.

Stocks slide on Wal-Mart and credit worries

NEW YORK (Reuters) - Stocks slid on Tuesday after disappointing earnings and an outlook from Wal-Mart Stores Inc. fueled concerns about consumer spending, while financial services shares took another hit on fresh signs of trouble in credit markets. The Wal-Mart news and a subsequent report that a large U.S. money market fund was halting redemptions acted as a one-two punch against investors' already shaky confidence.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.