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Reuters Canada Business Summary

22/11/07

Canada banks to face grilling on subprime charges

VANCOUVER, British Columbia (Reuters) - Despite taking some of the sting out of their fourth-quarter results by announcing C$1.9 billion in charges already, Canada's big banks face a grilling in coming weeks on what further losses might stem from the default-hit U.S. subprime mortgage market. Bank of Montreal is the first of Canada's big six banks to release quarter and full-year results next Tuesday.

Bombardier: No more carriers to stop using Q400

TOKYO (Reuters) - Bombardier Inc , the world's third-largest maker of civil aircraft, said no additional air carriers have said they would stop using its Dash 8 Q400 aircraft after SAS AB's decision to do so. More than half of the 160 Q400 aircraft in service around the world were grounded in September after landing gear on Q400s flown by Scandinavian Airlines Systems collapsed on touchdown in a couple of separate incidents.

Toronto stocks end higher, aided by bargain-hunting

TORONTO (Reuters) - The Toronto stock market's main index finished higher on Thursday in light activity as investors took advantage of bargain-hunting opportunities after the month's steep declines. The S&P/TSX composite index <.GSPTSE> unofficially closed up 90.53 points, or 0.68 percent, at 13,371.11.

Mega Brands needs fresh plan to help stock: analyst

OTTAWA (Reuters) - Mega Brands , stung by a global recall of its Magnetix building sets, needs new "management muscle" and refinancing to stop its shares from falling further, said an analyst who chopped her target for the stock on Thursday. Mega Brands reported an unexpected third-quarter loss two weeks ago, hurt by shaky consumer confidence, recall costs, supply glitches in China and inventory writedowns.

Ford Canada CEO warns of "unfair" deal with SKorea

TORONTO (Reuters) - A free trade agreement between Canada and South Korea that does not include more open access to the Korean auto market would make it difficult for Ford Motor Co to justify making more investments in Canada, the president of Ford Canada said on Thursday. The Canadian government is in the final phase of free-trade negotiations with South Korea and needs to secure a deal if it wants to be able to compete with the United States in Asia, Trade Minister David Emerson said late in October.

UBS, Deutsche join advisory army on Rio, BHP deal

LONDON (Reuters) - Two more investment banks have joined the army of advisers lined up by the world's biggest mining group, BHP Billiton , and its takeover target Rio Tinto this week, according to regulatory filings. Deutsche Bank started to reveal daily dealings in BHP and Rio shares on Tuesday because it is advising Rio, and UBS began to publish trading in the companies on the same day as an adviser to BHP.

Canadian dollar edges higher in light trading

TORONTO (Reuters) - The Canadian dollar rose against the U.S. dollar on Thursday, but was unable to hang onto the bulk of its gains from the overnight session as lingering subprime worries spoiled the market's appetite for risk. Bond prices were slightly lower in light trading.

DundeeWealth stock jumps on ongoing takeover talk

VANCOUVER, British Columbia (Reuters) - Shares in DundeeWealth Inc surged 9 percent to a all-time high on Thursday on continued speculation there are a number of suitors lining up to buy the Canadian wealth management company and that it could be sold. "There are a lot of rumors out there that they could be entertaining offers, and that perhaps a deal is in the works," said CIBC analyst Stephen Boland.

Head of Canada ABCP panel assails trading platform

VANCOUVER, British Columbia (Reuters) - The head of the committee trying to repair Canada's nonbank asset-backed commercial paper market criticized the creators of a platform to trade the troubled investments on Thursday, saying it is an attempt to exploit vulnerable investors. Purdy Crawford, chairman of the Pan Canadian Committee of Third Party ABCP Investors, wrote in a comment piece in the National Post newspaper that noteholders' lack of interest in trading their paper on that market "would seem to confirm their understanding of the motivation behind its purveyors."

Oil eases below $97 a barrel, weak dollar supports

LONDON (Reuters) - Oil slipped below $97 a barrel on Thursday, after falling just shy of the $100 milestone the previous session, on hopes of greater OPEC supplies as the market continued to watch the tumbling U.S. dollar. U.S. light crude for January delivery fell 48 cents to $96.81 a barrel by 1:26 p.m. EST, off lows of $96.37. Oil had briefly surged to a lifetime peak of $99.29 a barrel on Wednesday, before settling 74 cents lower.

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