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Reuters Canada Business Summary

27/06/08

Canada union acknowledges Oshawa plant to shut

TORONTO (Reuters) - Canadian autoworkers acknowledged that General Motors Corp's decision to close a Oshawa, Ontario, truck plant next year was irrevocable, a union leader said on Thursday after a meeting with company officials. "Are we accepting it? Eventually, if someone keeps hitting you over the head with a sledgehammer, you're going to wake up," said Buzz Hargrove, president of the Canadian Auto Workers, said at the union's headquarters.

Biovail shares drop on uncertainty over strategy

TORONTO (Reuters) - Shares of Biovail Corp dropped almost 5 percent on Thursday amid uncertainty about the growth prospects of the biotech company and concern over more legal wrangling over a leadership challenge. A shareholder vote on Wednesday overwhelmingly rejected a dissident slate of directors proposed by Biovail founder Eugene Melnyk, in favor of the current board. But Melnyk plans to challenge the result in court on July 8.

China Mobile says iPhone talks scale biggest hurdle

HONG KONG (Reuters) - Talks to bring Apple Inc's iPhone to mainland China have cleared their biggest hurdle and are now focusing on practical issues, the country's top mobile operator China Mobile Ltd <0941.HK> said on Friday. But there is no timetable for when China Mobile would bring the iPhone to mainland China, a spokeswoman said. "Apple is no longer insisting on a revenue-sharing policy, so the biggest hurdle for China Mobile to bring in the iPhone has been cleared, but there are practical issues still to be resolved," said China Mobile spokeswoman Rainie Lei.

Royal Bank tops lists of Canada's top companies

TORONTO (Reuters) - In a year of surging energy prices, the Canadian company that turned the most profit was a bank. Royal Bank of Canada , the country's largest, bumped the country's biggest energy producer from the top spot in an annual ranking of the top 1,000 Canadian companies by profit.

Toronto stocks fall on banks and RIM, golds rise

TORONTO (Reuters) - The Toronto Stock Exchange's main index dropped more than 1 percent on Thursday, led down by a retreat in the heavily-weighted financial sector and a 13 percent slide by tech giant Research In Motion . The S&P/TSX composite index <.GSPTSE> fell 148.99 points, or 1.03 percent, to close at 14,292.14.

Canada left with two beef packers as Tyson flees

WINNIPEG, Manitoba (Reuters) - Canada's once-mighty beef industry will be left with only two companies controlling most of its slaughter capacity when Tyson Foods Inc sells its only plant in the country. Tyson said on Wednesday it plans to sell its plant at Brooks, Alberta, to privately held XL Foods Inc for C$107 million ($105 million), pending regulatory approval.

Oil jumps to new record near $142 as equities wilt

LONDON (Reuters) - Oil leapt to a new record high near $142 a barrel on Friday, extending gains after surging nearly 4 percent in the previous session, as tumbling global stock markets triggered a wider commodities rally. U.S. light crude for August delivery was $1.71 up at $141.35 a barrel by 5:25 a.m. EDT, off highs of $141.71. London Brent crude was $1.56 up at $141.39, off highs of $141.98.

Canadian dollar closes lower despite rally in oil

TORONTO (Reuters) - The Canadian dollar closed lower alongside a weaker U.S. dollar on Thursday as a sell North America sentiment that spread into equities dominated the market even though oil prices surged to a record high. Canadian bond prices finished mostly higher as concerns about financial-services companies and pared down expectations for U.S. interest rate hikes sparked a bid for government debt.

New Canada oil pipes will address tight space: NEB

CALGARY, Alberta (Reuters) - Capacity is tight on Canada's crude oil pipelines, but as much as C$23 billion ($22.8 billion) in new lines could be on the way to help supply current and as-yet-untapped markets, the country's energy regulator said on Thursday. The National Energy Board said new pipeline space is needed to handle rising production from the oil sands and to give producers flexibility in where they can ship their crude.

Canada urged to ease foreign investment rules

OTTAWA (Reuters) - Canada should lower barriers to foreign investment in telecommunications, uranium mining and air transport, and lift a ban on domestic bank mergers, an expert panel commissioned by the government said on Thursday. In a report that was prompted by widespread concerns that home-grown businesses were being gobbled up by foreign interests at an unprecedented rate, the Competition Policy Review Panel warned against greater protectionism.

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