Toronto stocks retreat as profit-taking hits oils
TORONTO (Reuters) - The Toronto Stock Exchange's main index
fell back from a record high on Tuesday, weakened by retreating
oil and gas shares as investors took the opportunity to lock in
profits. The heavyweight energy sector eased 0.5 percent
despite yet another record high for crude near $127 a barrel
after Iran said it was studying a plan to cut oil output.
HP to buy EDS for $12.6 bln in challenge to IBM
NEW YORK (Reuters) - Hewlett-Packard Co plans to
buy technology outsourcing company Electronic Data Systems Corp
to better compete against IBM , but Wall Street
questioned whether the $12.6 billion deal for a slow-growing
company was overpriced. HP shares fell 5.28 percent after the
deal was announced on Tuesday, on top of a 5 percent drop on
Monday in anticipation of the news. The declines have wiped
about $12 billion off HP's market value, taking it to $109
billion.
American Axle says UAW contract talks stall
DETROIT (Reuters) - Auto parts supplier American Axle &
Manufacturing Holdings Inc said on Tuesday contract
talks with the United Auto Workers union aimed at settling a
three-month-old strike had stalled since Sunday. The
Detroit-based supplier, which relies on General Motors Corp
for about 80 percent of its sales, said negotiations
were snagged on two issues: health-care benefits and
supplemental unemployment benefits.
Electronic Arts top expectations, eyes share gains
SAN FRANCISCO (Reuters) - Top video game publisher
Electronic Arts Inc on Tuesday posted a quarterly
profit that beat Wall Street expectations and said it expects
to gain market share on the strength of upcoming titles like
"Spore" and "The Sims 3.""We have a very strong title slate,"
Chief Financial Officer Eric Brown told Reuters. "We're
forecasting growth for the overall segment of 15 to 20 percent
while we expect to grow 25 to 30 percent, so we are looking to
take share in (fiscal)
Scotiabank buys Intesa Sanpaolo stake in Peru bank
TORONTO (Reuters) - Bank of Nova Scotia is buying
Intesa Sanpaolo SpA's shares in Scotiabank Peru, which
will increase the Canadian bank's stake to nearly 100 percent,
it said on Tuesday. Scotiabank said its stake in Scotiabank
Peru will rise to 98 percent from 78 percent as a result of the
purchase from Intesa Sanpaolo, Italy's biggest retail bank. No
financial terms were disclosed.
Enbridge gets Ottawa's go-ahead on pipelines
CALGARY, Alberta (Reuters) - Enbridge Inc said on
Tuesday the Canadian government has approved its planned
Alberta Clipper and Southern Lights pipeline projects.
Enbridge, Canada's No. 2 pipeline firm, said Ottawa's approval
of the two lines will help with obtaining final clearance for
construction from Canada's National Energy Board, though some
approvals from U.S. regulators are still pending.
TD Bank reaffirms U.S. banking profit forecast
TORONTO (Reuters) - Toronto-Dominion Bank
reiterated its full-year U.S. earnings forecast on Tuesday
despite economic uncertainty, as the Canadian bank pushes south
of the border with its recent purchase of Commerce Bancorp.
Speaking at a financial services conference in New York, Chief
Executive Ed Clark reaffirmed the bank's target net income from
its U.S. personal and commercial banking segment of $750
million in 2008. TD had lifted this estimate from $700 million
in April.
Rona squeezed by economic slowdown, winter weather
TORONTO (Reuters) - Rona Inc reported an almost 90
percent drop in first-quarter profit on Tuesday, as a softer
economy and lingering winter weather in Eastern Canada hammered
the home renovation retailer's results. The company, which
counts on Quebec and Ontario for almost 70 percent of sales,
also warned it would have a hard time meeting its goal of low
single-digit growth in earnings per share over the next few
years, given the weak first-quarter and "the greater than
anticipated slowdown in the Canadian economy."
Oil hits record near $127 as Iran mulls output cut
NEW YORK (Reuters) - Oil surged to a record peak near $127
on Tuesday after OPEC producer Iran said it was studying a plan
to cut output despite signs record-high prices are hurting
consumer nations. U.S. crude settled up $1.57 to $125.80 a
barrel, after striking a record $126.98 earlier. London Brent
crude rose $1.19 to $124.10 a barrel.
ABCP plan opponents assail lack of authority
TORONTO (Reuters) - The judge overseeing a massive
restructuring plan for Canada's nonbank asset-backed commercial
paper market doesn't have the jurisdiction to give banks
immunity from lawsuits, a lawyer told a court hearing on
Tuesday. A sticking point in the $32 billion court-approved
restructuring plan is that it prevents corporate noteholders
from suing the banks and brokerages that sold them the stricken
asset-backed commercial paper, which has been frozen since last
August.
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