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Reuters Canada Business Summary

09/01/08

Bank of Canada aims to give markets more data

OTTAWA (Reuters) - The Bank of Canada is looking for ways to give markets and the general public more insight into how it decides interest rates, starting with the publication of new bits of data in two of its regular reports this month. Deputy Governor Sheryl Kennedy said on Tuesday the central bank will study whether to make public more details of the analysis it undertakes when making quarterly projections and setting rates.

Subprime jitters drag Toronto stocks lower

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended lower on Tuesday after it reversed direction in the afternoon as fears of more fallout from the battered U.S. subprime mortgage market undercut gains by gold-mining issues. After jumping more than 100 points earlier in the day, the index slumped for the third session in a row amid persistent worries over the health of the U.S. economy.

Canfor warns of fourth-quarter asset charge

VANCOUVER, British Columbia (Reuters) - Canfor Corp warned on Tuesday it expects to take a pre-tax charge of about C$256 million ($256 million) in the fourth quarter because of continued weak lumber and panel markets. The forestry firm said the writedown is largely related to a review of the carrying value of assets that are not expected to be recoverable from future cash flows.

Canadian dollar rises with commodities, bonds up

TORONTO (Reuters) - Lofty oil and gold prices helped the commodity-linked Canadian dollar rise against the U.S. dollar on Tuesday, but a lack of Canadian economic data limited gains. Canadian bond prices rallied on a safe haven bid as North American equity markets turned negative.

Strong December helps BMW to record 2007 sales

FRANKFURT (Reuters) - BMW kept its title as the world's largest premium carmaker in 2007 as sporty models like the 3 Series cabrio and X5 offroader and the stylish new Mini Clubman lifted group sales by 9.2 percent last year. The 1.5 million vehicles delivered to customers surpassed archrival Mercedes-Benz Cars for the fourth straight year, which reported on Tuesday sales of its models rose 2 percent to 1.286 million units.

Star banker replaces Cayne as Bear Stearns CEO

NEW YORK (Reuters) - Bear Stearns Cos Inc on Tuesday turned to its star investment banker, Alan Schwartz, to replace James Cayne as chief executive and revive the company's badly damaged mortgage franchise. While Cayne, 73, could be profane and sometimes hot-headed during his near-15 year run as CEO of the investment bank, Schwartz acted as peacemaker and in the 1990s advised on some of the biggest corporate takeovers of that time.

Canadian house prices stay strong in 4th quarter

TORONTO (Reuters) - Canada's housing market continued to post strong price gains in the fourth quarter of 2007, according to figures released on Tuesday by home-seller Royal LePage Real Estate Services. Nationally, the average cost of a standard two-storey house in the quarter went up 11.3 percent year-on-year to C$399,738 in the quarter. But in the booming Prairie province of Saskatchewan, which is riding a wave of demand for natural resources such as oil, gas, potash and uranium, the rise was a scorching 56.7 percent to C$321,250.

Goldcorp sees output up, at higher costs, in 2008

TORONTO (Reuters) - Goldcorp Inc said on Tuesday it expects gold production to grow by 13.5 percent this year to 2.6 million ounces, although the cost-per-ounce will also rise. Canada's No. 2 gold producer forecast its total cash costs at about $250 per ounce in 2008, up from its guidance of $150 per ounce in 2007.

Telus says gets competition OK in Emergis deal

TORONTO (Reuters) - Telus Corp , Canada's No. 2 phone company, has gained approval from competition authorities for its C$763 million ($763 million) takeover of electronic commerce firm Emergis Inc . Telus said on Tuesday that a statutory waiting period under Canada's Competition Act expired in mid-December and that the competition commissioner has advised the company that she does not intend to challenge the deal under the merger provisions of the act.

Briton finds ethical jewellery good as gold

CHICHESTER (Reuters) - "Customers don't realize that one wedding ring weighs 10 grammes and causes three tonnes of toxic waste," says Greg Valerio, whose company aims to follow fair trade coffee with ethical gold jewellery. A silver-haired anti-poverty and human rights campaigner, he is at the forefront of a fast-growing global market for gold and platinum jewellery which seeks to soothe consumers' consciences and protect miners from danger and exploitation.

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