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Reuters Canada Business Summary

26/02/08

HSBC Bank Canada's fourth-quarter earnings fall

VANCOUVER, British Columbia (Reuters) - HSBC Bank Canada, a subsidiary of HSBC Holdings Plc , posted a 13 percent fall in fourth-quarter net income on Tuesday and said it swallowed a C$47 million ($46.5 million) charge last year for its holdings of troubled asset-backed commercial paper. The bank, whose results were released a few days before Canada's big banks start reporting and are a useful barometer of what is to come, said its outlook for 2008 is "mixed."

Cott slumps on Wal-Mart plan to cut shelf space

TORONTO (Reuters) - Shares of Cott Corp skidded on Tuesday after its key customer Wal-Mart gave notice it would reduce U.S. shelf space for some soft drinks, a move Cott said would be 'significant' to its business plans. Cott said on Tuesday that Wal-Mart gave notice it would trim U.S. shelf space for Wal-Mart's private-label carbonated soft drinks, including Sam's Choice, which is made by Cott.

Toronto stocks rally with oils, financials

TORONTO (Reuters) - The Toronto Stock Exchange's main index picked up steam in the early afternoon on Tuesday, jumping more than 100 points as energy and materials shares gained as commodity prices strengthened. Oil and gas shares led the way up, adding 1.8 percent as the price of oil vaulted over $100 a barrel, buoyed by cold weather in Europe and the United States, and the OPEC president's view that the group will not raise output at its meeting next week.

Budget to aid auto industry, paper says

TORONTO (Reuters) - Canada's budget will aid the stalling auto industry and provide assistance for infrastructure construction, a national newspaper said on Tuesday. The country's budget, to be released later in the day, will direct about C$1 billion for infrastructure and another C$200 million for the auto industry, the Globe and Mail cited sources as saying.

Wescast Industries deepens loss in fourth quarter

TORONTO (Reuters) - Wescast Industries Inc's said on Tuesday its fourth-quarter profit loss widened, hurt by a one-time contingent loss for potential income taxes and interest, and that it would suspend its dividend payments.

BCE regulatory hearing postponed until March

TORONTO (Reuters) - A regulatory hearing into the C$34.8-billion ($35.5-billion) buyout of BCE Inc by private-equity investors has been postponed until next month while broadcast watchdogs review the deal. Among the concerns of the Canadian Radio-Television and Telecommunications Commission is the makeup of the board of directors at BCE, Canada's biggest telecom company.

Oil pushes through $101 on weak dollar

NEW YORK (Reuters) - Oil surged over $101 a barrel on Tuesday to within pennies of a record as investors reacted to weakness in the U.S. dollar following a batch of gloomy economic data. Strong heating fuel demand in Europe and the United States in the midst of a cold spell and signals from OPEC that the group will not raise production at its meeting next week added support to crude's rally, dealers said.

UAW goes on strike against American Axle

DETROIT (Reuters) - The United Auto Workers began a strike against auto parts maker American Axle & Manufacturing Holdings Inc shortly after midnight on Tuesday after failing to reach agreement on a new contract. Workers in Detroit walked off the job shortly after midnight and quickly formed a picket at a gate carrying signs that read "Unfair Labor Practices" and "On Strike."

Canada pension funds invest $400 mln in China fund

VANCOUVER, British Columbia (Reuters) - The Canada Pension Plan Investment Board and a unit of the Ontario Teachers' Pension Plan have teamed up to each invest $200 million in a new private equity fund to invest in private businesses in China, they said on Tuesday. The FountainVest fund will focus on investment opportunities in the private sector that can benefit from both earnings growth and expansion.

Canada dollar up on firm commodities, bonds mixed

TORONTO (Reuters) - The Canadian dollar soared against a weaker U.S. dollar on Tuesday, supported by a solid domestic economy and commodity prices near recent peaks. Domestic bond prices were mixed ahead of the federal budget, which is due after the market's close.

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