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Reuters Canada Business Summary

15/05/08

RIM will launch touch-screen BlackBerry in Q3: report

TORONTO (Reuters) - BlackBerry maker Research In Motion Ltd plans to launch a touch-screen version of the wireless e-mail device in the third quarter as an answer to Apple Inc's iPhone, the Wall Street Journal reported on Thursday. The device, known as the Thunder, is to be sold exclusively through Verizon Wireless in the U.S. and Vodafone PLC abroad, the Journal reported on its Web site, citing people familiar with the matter.

Toronto stocks yanked higher by robust resources

TORONTO (Reuters) - The Toronto Stock Exchange's main index popped up more than 1 percent on Thursday, propelled further into record high territory by strong resource and financial shares. Inmet Mining was the biggest net gainer on the day, rising C$6.25, or 9.3 percent, to C$73.75. Fertilizer company Potash Corp of Saskatchewan was also among the leaders, finishing up C$5.28, or 2.7 percent, at C$204.50.

CAW reaches deals with GM, Chrysler

TORONTO/DETROIT (Reuters) - The Canadian Auto Workers union reached tentative contracts with General Motors and Chrysler LLC on Thursday, wrapping up a lightning round of talks with Detroit automakers intended to protect workers from an even deeper downturn in the industry. With five months remaining on the current contracts, the deals marked the earliest agreements ever negotiated by the Canadian union, which rushed to clinch deals with two of the "Big Three" automakers on the same day, a first since its 1985 split from the U.S.-based United Auto Workers.

Air Canada cuts back on its fuel surcharges

CALGARY, Alberta (Reuters) - Air Canada has eased off a bit on fuel surcharges for flights in Canada and the United States after its main competitor announced smaller extra fees to cope with soaring jet fuel prices. Air Canada, the country's biggest airline, will tack C$40 ($40) onto one-way ticket prices for flights between Canada and the United States, spokeswoman Angela Mah said.

Housing starts seen easing in 2008

TORONTO (Reuters) - Construction of new homes in Canada should slow in 2008 as higher mortgage costs press the residential market, Canada Mortgage and Housing Corp. (CMHC) said on Thursday, but high employment levels and rising incomes will keep house starts from a big fall. "Higher mortgage carrying costs will be a catalyst for the decrease in residential construction to 214,650 units in 2008, from 228,343 in 2007," CMHC said in its second-quarter Housing Market Outlook.

Auto slump hits Canada factory sales in March

OTTAWA (Reuters) - The ailing U.S. economy and an ongoing slump in the auto industry caused an unexpectedly sharp 1.6 percent drop in Canadian manufacturing sales in March after two months of gains, Statistics Canada said on Thursday. The weakness in March was spread across 18 of 21 industries and in constant dollars sales fell 3 percent.

Canada concerned about lumber plan in U.S. farm bill

WASHINGTON (Reuters) - Canada is concerned a plan to tighten rules for U.S.-Canadian lumber trade, included in a giant U.S. bill which looks likely to become law, will pose new problems for its timber industry, the Canadian embassy in Washington said on Thursday. "The Embassy of Canada is aware of this initiative and is concerned that the proposed U.S. Importer Declaration Program will adversely affect the Canadian softwood lumber industry," said Tristan Landry, a spokesman for the embassy.

Canada dollar follows oil higher after early hiccup

TORONTO (Reuters) - The Canadian dollar rose above parity versus the U.S. dollar on Thursday as lofty oil prices helped it recover losses suffered after weak manufacturing sales data supported calls for more Bank of Canada rate cuts. Domestic bond prices were sitting higher across the curve as the latest domestic economic data showed the weakening U.S. economy is having an impact on Canada.

Coalcorp delays offer pricing to review other plan

TORONTO (Reuters) - Coalcorp Mining said on Thursday it will delay pricing its $120 million share offering after a major shareholder proposed an alternative financing scheme to shore up the company's bottom line. The Canadian coal mine developer unveiled the financing plan on Wednesday, as it also reported net loss of $53 million, or 59 cents per share, in the recent quarter. The financing was to be led by GMP Securities.

Menu Foods post smaller loss, but sales fall

TORONTO (Reuters) - Menu Foods Income Fund , the pet food maker that saw its fortunes crumble amid a massive recall of its products, reported a smaller first-quarter loss on Thursday, even as its sales declined. Menu said it lost C$2.2 million, or 10.8 Canadian cents per unit, for the three months ended March 31. That was better than the net loss of C$17.5 million, or 91.8 Canadian cents per unit, in the same period a year earlier.

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