News from Reuters

Reuters Canada Business Summary

21/04/08

Samsung chief to step down; sorry for tax scandal

SEOUL (Reuters) - South Korea's most powerful businessman on Tuesday announced he would step down as head of the giant Samsung Group following his indictment last week for tax evasion and breach of trust. In a shock announcement, Lee Kun-hee, 66, also apologized for the scandal which led to the indictments of nine other senior executives. But analysts pointed out his family will still control the country's largest conglomerate.

TI view disappoints, cites caution across markets

NEW YORK (Reuters) - Microchip maker Texas Instruments Inc said quarterly profit rose but forecast results below Wall Street estimates, citing caution among a broad customer base as well as weak demand for high-end cell phones. TI shares fell 2.5 percent in extended trade after the company also said on Monday its second quarter would be weaker than expected due to an uncertain economic situation.

Boston Scientific net rises on cost cuts

CHICAGO (Reuters) - Medical device maker Boston Scientific Corp said on Monday quarterly net earnings more than doubled as cost savings from a restructuring program offset weaker sales in its core drug-eluting stent market. Stent revenue fell as Boston Scientific faced new competition from Medtronic Inc, which in February launched the first new drug-coated stent in the United States in four years.

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.

Husky boosts profit, dividend as oil soars

CALGARY, Alberta (Reuters) - First-quarter profit at Husky Energy Inc jumped 36 percent despite a big drop in production as crude oil prices surged to record levels, Canada's No. 3 oil explorer and refiner said on Monday. Husky also boosted its quarterly dividend 21 percent to 40 Canadian cents a share, giving investors including major shareholder Li Ka-shing, the Hong Kong billionaire, rewards from the high commodity prices and mounting cash.

Netflix Q1 net up, gross profit margin down

LOS ANGELES (Reuters) - U.S. online DVD rental company Netflix Inc on Monday posted lower quarterly profit margins as it increased spending for online content. Its shares fell 13 percent in after-hours trading.

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.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.