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Reuters Canada Business Summary

09/05/08

Stocks slip as resources retreat

TORONTO (Reuters) - The Toronto Stock Exchange's main index fell on Friday, as resource shares were hit by profit-taking after a strong run amid soaring oil prices. The materials group led the way down, giving up 2.3 percent, while its subindex of gold producers slid 2.8 percent as U.S. gold futures eased.

Data shows some cracks in solid Canadian economy

OTTAWA (Reuters) - Reports on Canada's employment and trade performance on Friday appeared to showcase the economy's resilience to the U.S. slowdown, but some less encouraging trends emerged in the details. Statistics Canada said the economy created 19,200 jobs in April, more than the 10,000 forecast, while the unemployment rate ticked up to 6.1 percent from 6.0 percent in March as more people entered the work force.

ACE launches C$500 mln buyback as net income falls

CALGARY, Alberta (Reuters) - ACE Aviation Holdings Inc , parent of Air Canada , took another step toward winding up operations on Friday, announcing it will buy back about 42 percent of its stock as it posted a first-quarter net loss due to one-time charges. ACE also said that surging jet fuel prices and weak North American airline industry conditions are complicating matters as it weighs its options for its 75 percent stake in Air Canada, the country's dominant carrier.

Canada blocks Alliant Tech's satellite purchase

OTTAWA (Reuters) - Canada confirmed on Friday it would block the proposed $1.33 billion sale of sensitive Canadian satellite technology to U.S. rocket-maker Alliant Techsystems Inc . Canada initially halted the deal a month ago -- in part because it feared it might lose control over top-secret images -- but gave Alliant Tech a month to appeal.

Fuel prices hamper Air Canada sale: ACE CEO

CALGARY, Alberta (Reuters) - Surging jet fuel prices have cut odds that Air Canada will be sold in the near future, although its parent, ACE Aviation Holdings Inc , plans to wind itself up within six months, ACE Chief Executive Robert Milton said. "Given, in particular, fuel prices, the likelihood of something happening imminently with Air Canada vis a vis a sale is low," Milton told analysts on a conference call. "But we're going to continue to monitor the situation and keep all our options open."

March trade surplus widens on energy prices

OTTAWA (Reuters) - Rising prices for oil and natural gas exports boosted Canada's trade surplus to C$5.53 billion ($5.48 billion) in March, above expectations for a third straight month and the highest level since May of last year, Statistics Canada said on Friday. Analysts in a Reuters poll had forecast, on average, a trade surplus of C$4.5 billion. Statscan revised the February surplus to C$4.79 billion from C$4.94 billion previously.

Cott delays US regulatory filing , cites tax issue

OTTAWA (Reuters) - Struggling soft drink maker Cott Corp said on Friday it will delay filing its quarterly financial report with U.S. regulators so that it can revisit a foreign tax issue. Cott, the world's biggest producer of private-label soda pop, said it was unable to meet a May 8 filing deadline because it needs more time to investigate the amount and probability of a liability.

Power Corp of Canada net income rises on gain

TORONTO (Reuters) - Net income at Power Corporation of Canada rose 3.6 percent in the first quarter, helped by a one-time gain recorded by an indirect insurance subsidiary, it said on Friday. The company, controlled by Montreal's wealthy Desmarais family, said it earned C$376 million ($372 million), or 80 Canadian cents a diluted share, for the three months ended March 31. That was up from C$363 million, or 77 Canadian cents a share, in the same 2007 period.

Manitoba Telecom profit gets wireless lift

TORONTO (Reuters) - Manitoba Telecom Services Inc , reported a slightly higher first-quarter profit on Friday, while growth in its wireless and communications services boosted revenue. MTS said it earned C$54.2 million ($53.8 million), or 83 Canadian cents per share, in the three months ended March 31, up from a profit of C$52.9 million, or 80 Canadian cents per share, in the same period a year earlier.

Aeroplan to convert to corporation, profit rises

TORONTO (Reuters) - Loyalty program operator Aeroplan Income Fund said on Friday it will reorganize from its three-year-old trust structure to be a dividend-paying public corporation. Best known as Air Canada's frequent flier reward operator, Aeroplan said the change in structure would help it pursue attractive growth and acquisition opportunities, as well as open it up to foreign investors.

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