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Reuters Canada Business Summary

04/03/08

Bank of Montreal profit falls 27 pct on charges

QUEBEC CITY (Reuters) - Bank of Montreal's first-quarter earnings fell 27 percent, results showed on Tuesday, as it took writedowns of C$362 million after tax for trading and valuation-related items in capital markets, and made a higher allowance for credit losses. BMO, Canada's fifth-biggest bank by market value, reported earnings of C$255 million ($258 million), or 47 Canadian cents a share, for the three months ended January 31. That compares with net income of C$348 million, or 67 Canadian cents a share, in the same period a year earlier.

Scotiabank profit drops 18 pct in fourth quarter

TORONTO (Reuters) - Bank of Nova Scotia said on Tuesday its first-quarter earnings dropped 18 percent amid substantial volatility in global financial markets. Scotiabank, Canada's third-biggest bank by market value, reported earnings of C$835 million ($843 million), or 82 Canadian cents a share, in the three months ended January 31. That compares with net income of C$1.02 billion, or C$1.01 a share, in the same period a year earlier.

Aeroplan's fourth-quarter profit jumps 34 percent

TORONTO (Reuters) - Aeroplan Income Fund , which holds a minority stake in Air Canada's frequent flyer points program, said on Tuesday its fourth-quarter profit jumped 34 percent as gross billing rose. The fund earned C$51.7 million, or 26 Canadian cents per unit, in the period ended December 31, up from C$38.5 million, or 13 Canadian cents a unit, for the same quarter of 2006.

Former press baron Black begins U.S. prison term

COLEMAN, Florida (Reuters) - Former press baron Conrad Black surrendered at a Florida prison on Monday to begin serving his 6-and-1/2 year sentence for fraud and obstructing justice. Britain's Lord Black of Crossharbour and his wife arrived at the Coleman Federal Correctional Complex in central Florida around noon in a large blue sport utility vehicle with dark tinted windows, a Reuters photographer said.

Branson's online charter plane service launches

NEW YORK (Reuters) - Richard Branson's first charter plane experience gave him the idea to start commercial airline company Virgin Atlantic Airways . Some 25 years after the British entrepreneur chartered a private jet to fly 50 passengers and himself from the Beef Island, Tortola airport to Puerto Rico after their original flight was canceled, Branson will launch on Tuesday Virgin Charter, an online service to charter private aircraft.

Toronto stocks fall as bank anxiety resurfaces

TORONTO (Reuters) - The Toronto Stock Exchange's main index finished lower on Monday as strength in resources was undercut by losses in the banking sector amid nagging worries over the continuing impact of the credit crunch. The financial group shed 2.5 percent. The sector faces a number of ongoing headwinds, including fears of more writedowns related to the troubled U.S. housing market, jitters over the health of U.S. bond insurers, as well as pessimism over financial results.

Slumping exports slow Canada's 4th quarter growth

OTTAWA (Reuters) - Canada's economy went into a tailspin at the end of 2007 as exports to the United States waned, strengthening the chance of an aggressive interest rate cut by the Bank of Canada on Tuesday. Deteriorating exports caused gross domestic product to shrink 0.7 percent in December, against market forecasts of a 0.2 percent decline, a Statistics Canada report showed on Monday.

February auto sales tumble, Detroit hit hardest

DETROIT (Reuters) - U.S. auto sales tumbled in February in the face of a slumping economy and high gas prices with double-digit declines by all three struggling Detroit-based automakers. Sales at General Motors Corp, Ford Motor Co and Chrysler LLC fell 16 percent, 10 percent and 17 percent, respectively. GM and Ford responded with cuts to second-quarter production plans, while Chrysler rolled out a new program of sales incentives.

GM to idle 6 plants, Axle strike impact widens

DETROIT (Reuters) - General Motors Corp said on Monday two more assembly plants were running out of parts and would have to be idled as the impact from a week-long strike against supplier American Axle & Manufacturing widened for the No. 1 U.S. automaker. Six GM assembly plants in Michigan, Indiana, Ohio and Ontario, Canada, have either been idled or could be idled as early as Tuesday because of parts shortages, the automaker said in a statement.

Supply fears fuel platinum surge, gold eyes $1,000

LONDON (Reuters) - Platinum hit record highs on Tuesday as speculators bought on worries over supplies, while gold consolidated recent gains before making a stab at the key $1,000 an ounce level. Spot platinum hit a session high of $2,275 an ounce and was at $2,270/2,275 by 6:15 a.m. EST, compared with $2,230/2,237 late in New York on Monday.

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