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Reuters Canada Business Summary

21/04/08

TI forecast disappoints

NEW YORK (Reuters) - Chip maker Texas Instruments Inc said on Monday its quarterly profit rose, but forecast results below Wall Street expectations due to cautious customer buying trends across its markets and weaker demand for high-end cell phones. TI shares fell 2.5 percent in extended trading after the company, whose chips are used in everything from cell phones to industrial products, said it was taking a conservative view for the second quarter amid economic concerns.

Boston Scientific net rises on cost cuts

CHICAGO (Reuters) - Medical device maker Boston Scientific Corp said on Monday quarterly net earnings more than doubled, boosted by cost-reduction measures and a tax benefit. First-quarter net income was $322 million, or 21 cents a share, compared with $120 million, or 8 cents a share, a year ago.

First Quantum sues HSBC Bank Canada over ABCP

TORONTO (Reuters) - Mining company First Quantum Minerals Ltd is suing HSBC Bank Canada for negligence and breach of contract, claiming that the bank recommended investing in asset-backed commercial paper shortly before this market seized up last summer. In a statement of claim filed in Vancouver, British Columbia, last week, First Quantum said it "relied extensively" on HSBC Bank Canada for advice on how to invest its excess cash.

CN Rail's profit drops

VANCOUVER, British Columbia (Reuters) - Canadian National Railway posted a 4 percent drop in first-quarter net profit on Monday, citing tough winter weather that slowed train operations. CN also said the first-quarter profit drop and weakening market conditions have caused it to revise its earnings per share growth outlook to the "mid single digit range" for the full year, down from the "mid-to-high single digit" range it had projected.

Canadian dollar falls on rate-cut expectations

TORONTO (Reuters) - The Canadian dollar closed lower versus the U.S. dollar on Monday as the likelihood of a Bank of Canada rate cut and a dovish bank statement more than offset the benefit of record high oil prices. Bond prices finished higher across the curve as disappointing results from Bank of America Corp triggered a rally, and the rate-cut expectations convinced dealers to hang on to more secure assets such as government debt.

Toronto stocks drive higher on soaring oil prices

TORONTO (Reuters) - The Toronto Stock Exchange's main index pushed higher for the sixth session in a row on Monday, propelled by robust energy shares as the price of oil hit yet another record high. The oil and gas group climbed 1.7 percent as oil prices surged to over $117 a barrel. Suncor Energy rose C$2.87, or 2.5 percent, to C$119.51, while Canadian Natural Resources jumped C$2.98, or 3.5 percent, to C$88.15.

Dow, S&P dip on bank worries, Texas Instruments off

NEW YORK (Reuters) - U.S. stocks ebbed on Monday as weak quarterly results from Bank of America Corp rekindled concerns about the toll the credit crisis has taken on banks and overshadowed rising energy shares as oil closed at a record high. After the Dow closed out its strongest week in two months on Friday, blue chips retreated on news of a 77 percent tumble in first-quarter profit from Bank of America.

Bank of Montreal to buy U.S. bond dealer GKST

TORONTO (Reuters) - Bank of Montreal said on Monday that its investment and corporate banking unit will buy Chicago-based bond dealer Griffin, Kubik, Stephens & Thompson Inc for an undisclosed amount. GKST employs about 100 people in sales, trading, research, public finance and underwriting, and specializes in municipal bonds, U.S. Treasury and agency debt, and mortgage-backed securities, said Bank of Montreal, which also owns Chicago-based Harris Bank.

Clarke withdraws offer to take Shermag private

TORONTO (Reuters) - Investment firm Clarke Inc has abandoned its buyout offer for home furniture company Shermag Inc after the target's independent directors decided against the deal. Shermag said on Monday its directors did not recommend the offer to the Quebec-based company's shareholders after reviewing the opinion of an independent valuator.

Embattled Loblaw shakes up executive suite

TORONTO (Reuters) - Loblaw Co, Canada's biggest grocer, has shaken up its executive suite in the face of sharp competition in the supermarket business, announcing on Monday that Deputy Chairman Allan Leighton will take on the role of president of the company, replacing Mark Foote. The company also said Chief Financial Officer William Wells will leave to become chief executive of drugmaker Biovail Corp, where he was already an outside director.

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