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Reuters Canada Business Summary

26/02/08

HSBC Bank Canada earnings fall on ABCP charge

VANCOUVER, British Columbia (Reuters) - HSBC Bank Canada, a subsidiary of HSBC Holdings Plc , took a C$47 million ($46.5 million) charge on its holdings of troubled asset-backed commercial paper, it said on Tuesday, which eroded its fourth-quarter earnings by 13 percent. The charge represents a 15 percent writedown on the value of the investments held by the bank, a "best estimate at this time," bank President and Chief Executive Lindsay Gordon said.

Cott slumps on Wal-Mart plan to cut shelf space

TORONTO (Reuters) - Shares of Cott Corp shed nearly 40 percent of their value on Tuesday after key customer Wal-Mart Stores Inc served notice it would narrow U.S. shelf space for the company's soft drinks -- a move Cott said would be "significant" to its business plans. Confirming a recent industry report, Cott said on Tuesday the retail giant would reduce the exposure of Wal-Mart's private-label carbonated soft drinks, including Sam's Choice, which is made by Cott.

Toronto stocks yanked higher by oils, financials

TORONTO (Reuters) - The Toronto Stock Exchange's main index pushed higher for the third day in a row on Tuesday, propelled by rising energy shares as oil hit a record high settlement, as well as strong financials. The S&P/TSX composite index <.GSPTSE> unofficially closed up 87.17 points, or 0.64 percent, at 13,784.62.

Bank of Canada says focus remains on inflation

OTTAWA (Reuters) - The Bank of Canada said on Tuesday its focus, heading into next week's monetary policy announcement, remains on keeping inflation under control, despite concern the robust Canadian dollar is hurting sectors of the economy. There are both downside and upside risks to the Canadian economy and targeting inflation is the best way to achieve economic stability, the bank's Senior Deputy Governor Paul Jenkins told a House of Commons industry committee.

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 surges on weak dollar

NEW YORK (Reuters) - Oil surged on Tuesday to a record settlement 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.

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.

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.

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