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Reuters Canada Business Summary

05/06/08

Toronto stock index up 100 points as oil rebounds

TORONTO (Reuters) - The Toronto Stock Exchange's main index rose sharply on Thursday morning, aided by energy stocks as the price of crude oil rebounded. The S&P/TSX composite index <.GSPTSE> was up 101.68 points, or 0.7 percent, at 14,792.14. The volatile shares of Research In Motion led the rise, up 2 percent, but the energy sector added broad support, up 1 percent as a group.

Ford to cut white-collar expenses by 15 pct

DETROIT (Reuters) - Ford Motor Co has told its U.S. salaried workers it will cut expenses for its white-collar work force by 15 percent over the next two months through job cuts, attrition and other actions. "We told employees today we are going to cut salaried work force-related expenses by 15 percent and complete the actions by August 1," said Ford spokeswoman Marcey Evans.

MDS reports lower profit, cuts outlook

TORONTO (Reuters) - MDS Inc reported a lower second-quarter profit on Thursday and reduced its fiscal outlook as it faces softening demand for high-end medical instruments. The health sciences company said it earned $11 million, or 9 cents a share, during the quarter, down from $737 million, or $5.35 cents, for the same time last year when it included a $792 million gain related to the sale of its diagnostic division.

Verizon Wireless to buy Alltel in $28.1 billion deal

NEW YORK (Reuters) - Verizon Wireless said on Thursday that it would buy Alltel Corp for $28.1 billion, including $22.2 billion in debt, vaulting the combined company to first place in the U.S. mobile services market ahead of AT&T Inc . Verizon said the equity value of the deal would be about $5.9 billion.

April building permits soar past forecasts

OTTAWA (Reuters) - A surge in construction plans for multifamily housing and commercial buildings pushed up the value of Canadian building permits in April by 14.5 percent to their highest since October, Statistics Canada said on Thursday. Analysts surveyed by Reuters had expected, on average, a gain of just 0.7 percent. Building permits, an early indicator of construction activity, had been on a downward trend since mid-2007 and fell 4.6 percent in March, according to Statscan's revised figures.

Bombardier profit jumps, stock hits 6-year high

TORONTO (Reuters) - Bombardier Inc said on Wednesday its quarterly profit nearly tripled on strong demand for its aircraft and rail equipment, sending its stock to a six-year high. Bombardier, the world's No. 1 passenger train maker and No. 3 in civil aircraft, said deliveries for its aircraft rose while the firm order backlog increased in the first quarter.

Air Canada loads rise in May, WestJet down

CALGARY, Alberta (Reuters) - Air Canada flew higher passenger loads in May as strong demand continued, while its main rival, WestJet Airlines , saw loads fall as it added new planes, figures released on Wednesday show. Air Canada said the load factor on its mainline system, a measure of how much available space is sold to passengers, rose to a record 84.3 percent last month, up from 83.8 percent in May 2007.

Gulfstream says demand for business jets strong

TEL AVIV (Reuters) - Joe Lombardo, president of Gulfstream Aerospace, said on Wednesday the demand for business jets remains strong, despite a downturn in the world economy. "The U.S. economy has been struggling but the demand for business aircraft continues," Lombardo said during a ceremony marking the delivery of the 200th Gulfstream G200 business jet at the Israel Aerospace Industries (IAI) plant near Tel Aviv.

OECD sees no Canadian recession, but deficit risk

OTTAWA (Reuters) - Canada's economy will avoid a recession, despite a contraction in the first quarter, but small budget deficits are likely in 2008 and 2009, a report by the OECD said on Wednesday. "The general government is projected to show small deficits for both years (2008 and 2009), and governments will have to stick to their spending plans closely to avoid dipping into the red on a more sustained basis than projected," the Organization for Economic Co-operation and Development said in its semi-annual outlook on Canada's economy.

Corp. Express to open books for Staples bid: paper

AMSTERDAM/PARIS (Reuters) - Corporate Express will open its books to unsolicited bidder Staples , a Dutch newspaper reported on Wednesday, but the U.S. office supplies company said it had yet to see any figures. Staples on Tuesday raised its offer to 9.15 euros a share, or 1.7 billion euros ($2.65 billion) in total, on the condition that Corporate Express shareholders reject the company's plan to buy privately owned French rival Lyreco.

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