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Reuters Canada Business Summary

18/04/08

Banks give Toronto stocks a hefty boost

TORONTO (Reuters) - The Toronto Stock Exchange's main index finished the week strongly higher on Friday, spurred by financial issues, which rallied on hope that the worst of the credit crisis is over. All of the market's major banks pushed higher in the wake of quarterly results from U.S. financial institutions that gave investors confidence they were getting closer to wiping the slate clean by taking writeoffs and cutting costs.

Dollar rises with oil, market optimism

TORONTO (Reuters) - The Canadian dollar rose against the U.S. dollar on Friday, fueled by record high oil prices and improved market sentiment. Domestic bond prices ended mostly lower, as a rally in the stock markets lessened the safe-haven appeal of government debt.

No big earnings slowdown -- yet

TORONTO (Reuters) - With first-quarter earnings season set to kick off in earnest, market watchers are expecting a relatively sturdy performance from Canadian companies and say it will be another three to six months before the weak U.S. economy truly hits results. High oil and commodity prices should benefit energy and resource companies, though financial firms, which have seen their share prices battered amid the credit crunch, could deliver some bad news.

Ford weighs third China plant to meet demand

BEIJING (Reuters) - Ford Motor Co may build a third assembly plant in China to meet fast-growing demand for its cars just five years into its push into the booming Chinese market, a senior executive said. "We're exploring opportunities to add to our capacity," John Parker, executive vice president in charge of Ford's operations in Asia, said late on Friday ahead of the Beijing auto show.

GM Canada seeks big cuts to labor costs: source

TORONTO (Reuters) - General Motors of Canada will be seeking big changes to labor practices when it starts contract talks with its main union later this year, according to an industry source with access to a company document. The source, who asked not to be identified, said the automaker is seeking to eliminate what it says is a $30-an-hour labor cost disadvantage versus non-unionized U.S. plants operated by Japanese-based competitors,

GM, UAW extend talks at plant, new warning in Kansas

DETROIT (Reuters) - Negotiators for the United Auto Workers union and General Motors Corp have extended talks indefinitely beyond a Friday strike deadline at a plant near Detroit that builds transmissions for the automaker's strong-selling cars and crossovers. A strike at the plant would have been a second staggering blow to GM in as many days after workers at a GM assembly plant near Lansing, Michigan, walked out on Thursday. That plant produces popular crossover vehicles -- middle-sized SUVs built on car platforms for easier handling and better gas mileage.

Canadian miners hit as Ecuador halts exploration

TORONTO (Reuters) - Aurelian Resources and other Canadian miners with projects in Ecuador saw their shares tumble for a second day on Friday as the South American country voted to suspend their exploration projects for up to six months, until a new mining law with tougher environmental controls is approved. A special assembly in Ecuador -- which is moving to tighten its grip on natural resources -- adopted a decree on Friday that would freeze mining activity in medium- and large-scale exploration projects, revoke concessions, and leave the companies operating there little recourse.

Canadian pension funds lose nearly 2 percent in Q1

TORONTO (Reuters) - Investment returns at Canadian pension funds fell by an average 1.9 percent in the first quarter ended March 31 as global stock markets fell, according to a survey released on Friday. RBC Dexia Investor Services, which keeps track of $340 billion worth of Canadian pension plans and money managers, said that Canadian pension plans lost ground for the third consecutive quarter, and have now lost 2.7 percent in the latest 12-month rolling period.

TSX Group deal for Montreal bourse effective May 1

TORONTO (Reuters) - TSX Group Inc said on Friday that its C$1 billion ($1 billion) acquisition of Montreal Exchange Inc will take effect May 1. Montreal Exchange shareholders must elect by April 29 whether they wish to receive 0.7784 of a TSX Group common share, or C$39.00 in cash, for each MXX share, the companies said in a statement. They have received all required regulatory approvals.

Oil hits new record $117 a barrel

NEW YORK (Reuters) - Oil prices hit a record high $117 a barrel Friday as jitters over Nigerian oil supplies outweighed a rally in the dollar and fears of an economic slowdown in giant energy consumer China. U.S. light crude settled up $1.83 at $116.96 a barrel, before hitting a record $117. London Brent crude gained $1.49 to $113.92.

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