Toronto stocks plunge 400 pts as resources dive
TORONTO (Reuters) - The Toronto Stock Exchange's main index
dived 400 points just before the closing bell on Wednesday, as
resource issues extended deep declines. The S&P/TSX composite
index <.GSPTSE> was down 401.03 points, or 3.05 percent, at
12,735.67.
CN, U.S. train conductors reach hourly-rate deal
TORONTO (Reuters) - Canadian National Railway and
the United Transportation Union have agreed to a four-year
labor pact covering about 600 employees in the Midwest and
Southern United States, CN said on Wednesday. CN Rail, whose
operations span Canada and down into the United States, said
the new contract covering U.S. conductors and brakemen is based
on an hourly rate of compensation and diverges from the
traditional mileage- and rules-based pay systems.
The Economist aims to end deal with Quebecor World
TORONTO (Reuters) - Commercial printer Quebecor World Inc
faces a new problem as it restructures under
protection from creditors, with high-profile customer The
Economist wanting to end its contract. The Economist, the
well-known business magazine, says in a court filing that it
"desires to terminate the printing agreement effective at the
end of the initial term by providing Quebecor World (USA) with
a written notice ... on or before March 31, 2008."
Oil falls 4.5 pct as dealers eye weak U.S. demand
NEW YORK (Reuters) - Crude prices fell 4.5 percent on
Wednesday on concerns that a big U.S.-led economic slowdown
could further undermine global energy demand. The steep losses
came during a volatile week in commodity and equity markets as
dealers weighed signs of recession against aggressive interest
rate cuts by the U.S. Federal Reserve to counter the slowdown.
Montreal Exchange says watchdog ends trading probe
TORONTO (Reuters) - Montreal Exchange Inc said on
Wednesday that the Quebec securities watchdog has closed an
insider trading investigation and concluded that no breach of
rules occurred. The exchange said it received a letter from the
Quebec regulator, Autorite des marches financiers, after an
investigation into trading in Montreal Exchange shares by the
bourse's officers, employees and representatives, and found no
evidence that any rules had been broken.
Hefty charge drags Lundin to loss
TORONTO (Reuters) - Lundin Mining said on
Wednesday a $491.9 million impairment charge related to recent
acquisitions pushed it deep into the red in the fourth quarter,
with results also hurt by lower zinc prices and a weak U.S.
dollar. The company, which operates mostly in Europe but is
headquartered in Vancouver, British Columbia, said it lost
$436.6 million, or $1.11 a share, compared with a profit of
$62.2 million, or 27 cents a share, in the year-before quarter.
Starbucks CEO sees economic tailspin
SEATTLE (Reuters) - Starbucks Corp outlined
long-awaited plans to turn around its business on Wednesday,
but a new coffee roast and loyalty program for frequent
customers failed to excite investors, who sent shares down
nearly 3 percent. Starbucks said it will woo cash-strapped
consumers by roasting coffee a new way, investing in new
espresso equipment, and delving into new categories, such as
the health and wellness business by the end of the year.
January wholesale trade spikes
OTTAWA (Reuters) - A price-driven surge in fertilizer sales
helped boost wholesale trade in January by 2.6 percent, over
twice as much as expected and offsetting a decline in December,
Statistics Canada said on Wednesday. The data outperformed the
market's expectation of a 1 percent gain and neutralized the
2.6 percent downturn in the previous month, revised from a 2.9
percent decline.
Mega Brands sees $30 million recall charge, stock down
OTTAWA (Reuters) - Shares in Mega Brands fell as
much as 6 percent on Wednesday to an all-time low after the
Canadian toy maker said it will take a $30 million
fourth-quarter charge, largely for recent recalls. Mega Brands
issued a global recall of several toys this week after learning
of 44 reports in the United States of magnets coming loose. In
one case, a 3-year-old boy is receiving medical treatment to
remove a magnet from his nose.
Morgan Stanley earnings fall, but beat Street view
NEW YORK (Reuters) - Morgan Stanley reported sharply
lower quarterly earnings on Wednesday after absorbing $2.3
billion of write-downs, but resilient trading results helped
the No. 2 U.S. investment bank beat Wall Street's reduced
expectations by a wide margin. By several measures, Morgan had
the best quarter among the big Wall Street banks, generating
more profit than arch-rival Goldman Sachs , suffering the
smallest year-over-year profit drop and posting a 20 percent
return on equity.
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