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Reuters Canada Business Summary

06/06/08

Job growth slows, rate cut expected

OTTAWA (Reuters) - Canadian job growth slowed in May to its weakest since December on a sharp drop in full-time employment, a sign of a cooling economy that may spur the Bank of Canada to cut interest rates again this month. Statistics Canada reported on Friday the economy added 8,400 jobs in the month as employers hired 40,600 part-time workers and dropped 32,200 full-time staff -- the biggest loss of full-time jobs since June 2006.

Toronto stocks seen testing high on rising oil

TORONTO (Reuters) - The Toronto Stock Exchange's main index was set to rise again on Friday, brushing off data showing a fifth straight month of U.S. job losses and hitching its fortunes on bullish oil and other hot commodities. Following its biggest one-day gain since March, the resource-heavy Canadian benchmark could ride Thursday afternoon's momentum to a record intraday high.

Oil leaps over $134 on weak dollar, Morgan report

LONDON (Reuters) - Oil soared by more than $6 a barrel to over $134 on Friday, bringing gains in the last two days to $12 as the dollar weakened further on a jump in the jobless rate in the United States. Remarks by Israel's transport minister that an attack on Iranian nuclear sites looked "unavoidable" and a Morgan Stanley report predicting oil could reach a record high of $150 by July 4, also sent crude prices roaring upwards.

Patheon loss narrows by 62 percent

TORONTO (Reuters) - Patheon Inc , a contract drugmaker that's divesting some operations, on Friday reported a narrower second-quarter loss on higher revenue in Europe and North America, and said it expected some improvement in coming months. The Canadian firm lost $8.5 million, or 9.3 cents a share, in the period ended April 30. That compares to a loss of $22.0 million, or 23.6 cents, in the same period a year earlier.

GM Canada blockade continues ahead of meeting

TORONTO (Reuters) - Canadian autoworkers blocked the road leading to General Motors of Canada's headquarters in Oshawa, Ontario, for a second day on Thursday, protesting against plans to shut a truck plant as company officials and labor leaders prepared to meet on Friday. Hundreds of workers and their supporters have been on site both days, with some spending the night in tents. The protest has been peaceful so far.

MDS cuts outlook on weak medical instrument sales

TORONTO (Reuters) - MDS Inc reported a lower second-quarter profit on Thursday and reduced its 2008 outlook as the health sciences company faces softening demand for high-end medical instruments. MDS, which specializes in analytical instruments, molecular imaging and contract research, lowered its outlook to reflect an expected drop in U.S. sales of specialized instruments and slower growth in its research division.

BCE delays dividend decision amid takeover fight

VANCOUVER, British Columbia (Reuters) - BCE Inc delayed it decision on Thursday for setting a second-quarter dividend as Canada's highest court prepares to hear its appeal of a ruling that could delay the telecom company's C$34.8 billion ($34.2 billion) buyout. BCE, which owns Bell Canada, the country's biggest phone company, said its board expects to be able to decide on declaring the dividend by late June, which would allow payment by mid-July.

Canadian dollar stages rebound to close higher

TORONTO (Reuters) - The Canadian dollar finished a touch higher against the U.S. dollar on Thursday after rallying sharply from a 1-month low as a weaker greenback sent the price of oil higher and gave a lift to the commodity-linked currency. Domestic bond prices were knocked lower across the curve as investors unloaded the secure assets in favor of equities after some upbeat economic data.

Imperial Oil says oil sands permit may come soon

CALGARY/OTTAWA (Reuters) - A key water-use permit allowing construction of Imperial Oil Ltd's C$8 billion ($7.8 billion) Kearl oil sands project in northern Alberta could be reissued as soon as Friday, a spokesman for the company said. Canada's federal cabinet quietly blessed the project last month, announcing the decision only on an obscure website, a move that surprised environmentalists concerned about Kearl's massive greenhouse gas emissions.

Apartment vacancy rate edges lower: survey

TORONTO (Reuters) - Apartment vacancies in Canada's 35 largest cities edged lower in April, according to a survey released on Thursday by Canada Mortgage and Housing Corp. The national average fell slightly to 2.6 percent from 2.8 percent in 2007. But the regional breakdown tells a different story. It is much harder to find an apartment in Western Canadian provinces than elsewhere in the country.

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