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Reuters Canada Business Summary

17/03/08

Toronto stocks dive 400 points amid credit woes

TORONTO (Reuters) - The Toronto Stock Exchange's main index plunged 400 points on Monday, amid sharp declines in global markets, as the impact of the credit crisis deepened. The S&P/TSX composite index <.GSPTSE> was down 400.44 points, or 3.02 percent, at 12,852.40 in early afternoon.

Canadian dollar weakens as risk aversion sets in

TORONTO (Reuters) - The Canadian dollar dropped against the U.S. dollar on Monday as nagging concerns about the health of the U.S. economy convinced investors to unload risky assets despite lofty commodity prices. Domestic bond prices rose across the curve as the worsening crisis in U.S. financial markets raised investors' appetite for secure assets like government debt, while Canadian data took a backseat.

CIBC stock falls after profit loss at bond insurer

TORONTO (Reuters) - Shares of Canadian Imperial Bank of Commerce slumped as much as 6 percent on Monday morning after one of the monoline bond insurers it has exposure to reported a hefty quarter loss. CIBC was also caught up in a wider market downturn as the banking sector pulled the Toronto Stock Exchange down due to more signs of trouble in U.S. financial markets. CIBC was down C$2.09, or 3.5 percent, at C$57.81 in the morning, easing from earlier lows.

BP to join Canada's Irving in big refinery project

CALGARY, Alberta (Reuters) - BP Plc will join Canada's Irving Oil in designing Irving's planned $7 billion Eider Rock refinery in Saint John, New Brunswick, the closely held Irving said on Monday, as the British oil major looks to further expand in Canada. BP, one of the world's biggest refiners, will contribute $40 million toward the engineering, design and feasibility study for the 300,000 barrel per day project, which would be the first new refinery in North America in a generation.

Draxis confirms it is in sale talks

TORONTO (Reuters) - Draxis Health Inc said on Monday that it was in "exclusive discussions" with an unnamed party that could lead to the sale of the company. But the Canadian specialty health-care company said there was no guarantee that the discussions would continue or that they would result in an agreement.

QLT to divest acne treatment following FDA ruling

TORONTO (Reuters) - QLT Inc said on Monday that it would proceed with plans to divest its topical acne treatment Aczone after the U.S. Food and Drug Administration removed key blood monitoring requirements for the treatment. Selling the acne treatment, estimated to be a $100-million product, is the first in a multi-step process of returning the company to its core business of treating eye diseases.

Bank of Canada withdraws cash from money market

OTTAWA (Reuters) - The Bank of Canada sold C$650 million ($650 million) worth of government securities in markets on Monday to push the overnight interest rate up toward its target of 3.5 percent. The bank intervenes through Sale and Repurchase Agreements, or SRAs, to sell securities and repurchase them the next business day.

Factory sales rebound on cars

OTTAWA (Reuters) - A rebound in car sales lifted manufacturers' sales in January, but economists warned that the sector remains under considerable stress as U.S. demand for exports implodes. Statistics Canada said on Monday that factory shipments rose by 1.3 percent to C$49.3 billion ($49.8 billion) after sliding 3.7 percent in December to a three-year low.

Bear fire sale sparks rout

NEW YORK (Reuters)- A fire sale of Bear Stearns Cos Inc stunned Wall Street and pummeled global financial stocks on Monday on fears that few banks are safe from deepening market turmoil. Trying to assuage worries that the credit crisis is spinning out of control, President George W. Bush said the United States was "on top of the situation."

Oil slides nearly 6 pct as funds cut positions

NEW YORK (Reuters) - Oil fell nearly 6 percent on Monday as speculators sold oil futures to raise cash and cut their exposure to commodities amid a broader decline in world financial markets. U.S. crude was trading at $104.11 a barrel by 1:45 p.m. EDT, down $6.10, after falling as low as $103.23. Earlier on Monday, it hit a new record of $111.80. U.S. gasoline futures tumbled 20.59 cents or 7.67 percent to $2.4835 per U.S. gallon.

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