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Reuters Canada Business Summary

25/03/08

TSX ends higher as resources surge

TORONTO (Reuters) - The Toronto Stock Exchange's main index closed higher for a third session in a row on Tuesday, powered by strong gains in resources amid a rebound in commodity prices. The S&P/TSX composite index <.GSPTSE> unofficially closed up 301.90 points, or 2.32 percent, at 13,321.62.

CN Rail sued over overtime rules

VANCOUVER, British Columbia (Reuters) - Canadian National Railway was sued on Tuesday for allegedly failing to pay overtime to Canadian employees by classifying them as management. The lawsuit alleges the railway broke Canadian labor law by requiring the "first line supervisors" to work hundreds of hours each year for which they were not properly paid.

Hollinger Inc to pay $21.3 mln in SEC case

WASHINGTON (Reuters) - Hollinger Inc will pay $21.3 million to settle charges it engaged in a fraudulent scheme to divert money from the Sun-Times Media Group , the U.S. Securities and Exchange Commission said on Tuesday. The SEC said Hollinger Inc and former executives including Conrad Black diverted about $85 million from Hollinger International, now known as Sun-Times, to Hollinger Inc and corporate insiders through purported "non-competition" payments.

Retail sales jump on autos, weather

OTTAWA (Reuters) - Consumer spending in Canada showed no sign of slowing in January as retail sales posted a third straight month of big gains thanks to a cut in the sales tax and an appetite for new passenger cars. Statistics Canada reported a 1.5 percent jump in January retail sales on Tuesday, beating analysts' expectations of a 1.2 percent increase and following a revised 0.8 percent gain in December.

Ford sells Jaguar/Land Rover to Tata: source

LONDON (Reuters) - U.S. automaker Ford has agreed to sell its luxury brands Jaguar and Land Rover to India's Tata Motors for more than $2 billion, according to a source familiar with the matter. Ford, which signed the deal on Tuesday, plans to publicly announce the transaction in New York at 8:00 a.m. EDT on Wednesday, said another source.

Gold bounces on dollar drop

NEW YORK/LONDON (Reuters) - Gold finished nearly 2 percent higher on Tuesday, rebounding from its recent sharp decline as funds poured into the market after the dollar slumped broadly on weak economic data. Investors were cautious after their confidence was shaken by a recent sell-off in commodities, with gold falling more than 10 percent last week since spiking to a record high of $1,030.80 an ounce on March 17.

Nortel wins five-year contract from U.S. Cellular

TORONTO (Reuters) - Wireless carrier U.S. Cellular has awarded Nortel Networks Corp a five-year contract to beef up the telecom company's network using Nortel's CDMA technology. The deal will allow U.S. Cellular, the sixth-largest wireless company in the United States, to keep adding subscribers and provide services such as web browsing, e-mail, instant messaging and gaming. U.S. Cellular has 6 million subscribers in 26 states.

Oil gains on weak dollar

NEW YORK (Reuters) - Oil prices rose slightly on Tuesday, ending a sell-off from last week's record high as weakness in the dollar and fresh output disruptions in Africa spurred some buying. U.S. crude rose 36 cents to $101.22 a barrel, the first gain in four trading days. London Brent crude rose 74 cents to $100.60 a barrel.

Farmers complain railway profits excessive

WINNIPEG, Manitoba (Reuters) - Canada's government should investigate what it costs rail carriers to ship grain, farm groups said on Tuesday, releasing a study which implied railways are reaping unreasonable profits. Canadian National Railway and Canadian Pacific Railway get a 50 percent return on their variable costs, according to estimates by rail analyst John Edsforth.

Dollar retreats after early rally

TORONTO (Reuters) - The Canadian dollar fell versus the U.S. dollar on Tuesday, after an early boost from a strong domestic retail sales report was wiped out by nagging concerns about exports to the United States. Domestic bond prices rebounded from Monday's selloff as dealers shrugged off the stronger-than-expected retail sales report and moved into secure assets like government debt.

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