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Reuters Canada Business Summary

20/05/08

BCE rebounds from NY drop, but questions linger

TORONTO (Reuters) - Shares of BCE Inc bounced back on Tuesday, as investors found value in the stock after a retreat in New York, spurred by reports that the banks funding the company's buyout were pressing to restructure the C$34.8 billion ($35.1 billion) deal. The stock of Canada's top telecommunications firm was up 81 cents, or 2.2 percent, at $37.43 on the New York Stock Exchange.

Robust energy firms help Toronto stocks rally

TORONTO (Reuters) - The Toronto Stock Exchange's main index climbed further into record territory on Tuesday, thanks to soaring oil prices which boosted energy shares. Suncor Energy jumped C$4.88, or 7.2 percent, to C$72.41, while Imperial Oil rose C$4.33, or 7.6 percent, to C$61.01.

Wholesale trade rebounds in March

OTTAWA (Reuters) - Wholesale trade grew 0.6 percent in March, slightly better than expected, following a sharp slide in February, amid strong sales of building supplies and machinery and electronic equipment, Statistics Canada said on Tuesday. Analysts surveyed by Reuters had forecast, on average, a gain of 0.4 percent in March. Statscan revised the February figure to a decline of 2.1 percent, from the 1.8 percent drop previously reported.

Bombardier wins $1.2 bln order from Swiss Vistajet

TORONTO (Reuters) - Bombardier Inc , the world's third-largest civil aircraft maker, said on Tuesday it has won an order for business aircraft worth up to $1.2 billion from Switzerland's VistaJet. The order, which was announced at an air show in Geneva, is for 35 firm orders with options for an additional 25 aircraft, the Canadian aerospace company said.

Canada dollar up on strong data and lofty oil prices

TORONTO (Reuters) - The Canadian dollar was higher against a generally weaker U.S. dollar on Tuesday while lofty oil prices and a stronger-than-expected piece of domestic data also helped beef up the currency's gain. Domestic bond prices were all higher after data released overnight heightened economic growth concerns.

Pearl, Petrobank shares surge on ONGC bid report

CALGARY, Alberta (Reuters) - Shares in Pearl Exploration and Production Ltd and Petrobank Energy and Resources Ltd surged on Tuesday after a business publication reported that India's Oil and Natural Gas Corp was preparing a bid for a Canadian oil producer. A Petrobank executive dismissed speculation that his firm was the target.

Oil leaps to new record near $130 a barrel

NEW YORK (Reuters) - Crude oil prices scaled a new peak near $130 a barrel on Tuesday amid deepening worries over tight global stockpiles and signals from OPEC that no additional supplies are forthcoming to ease the crunch. Billionaire investor T. Boone Pickens said Tuesday he expects oil to hit $150 a barrel this year. The prediction came on the same day two investment banks raised their 2008 crude price forecasts and two weeks after Goldman Sachs said a barrel could fetch $200 by 2010.

Foreigners buy more Canadian securities in March

OTTAWA (Reuters) - Foreign investors bought C$5.30 billion ($5.35 billion) worth of Canadian securities in March as they added a net C$5.9 billion of equities to their portfolios, the largest amount since May 2006, Statistics Canada said on Tuesday. Canadians divested C$3.3 billion worth of foreign securities in the same month.

UBS sees 1 percent drop in banks' Q2 earnings

(Reuters) - UBS said it expects Canadian banks' earnings to decline by 1 percent in the second quarter and 4 percent in the third quarter, citing lower capital market revenue, higher provisions and slower growth in wealth. UBS, which remained "overweight" on the Canadian banking sector, said capital markets was the key issue in the short term. In the long term, the brokerage said it was concerned about the impact of the U.S. recession on growth and provisions, de-leveraging and returns.

Canadian Superior plans LNG facility off New Jersey

CALGARY, Alberta (Reuters) - Canadian Superior Energy Inc said on Tuesday it plans a $550 million liquefied natural gas facility off the New Jersey coast to supply gas to the U.S. Northeast by 2011. Canadian Superior, a small natural gas explorer which recently hit a large gas pool off the coast of Trinidad, and Global LNG Inc, a private firm controlled by the explorer's management, are backing the Liberty Natural Gas Project, the company said.

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