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Reuters Canada Business Summary

30/06/08

Past woes prepare Air Canada for fuel crisis: ACE

MONTREAL (Reuters) - Air Canada is in a better position to survive the fuel crisis than many rivals because it emerged from the aftermath of the Sept 11 attacks and the SARS scare a stronger carrier, Robert Milton, the chief executive of its parent company, said on Monday. However, the industry-wide struggle with oil above $140 a barrel has muddied a decision by parent ACE Aviation Holdings Inc , which has a 75 percent interest in Canada's biggest airline, on what its next move with Air Canada should be, Milton said.

Chrysler to take "manufacturing action" amid slump

DETROIT (Reuters) - Chrysler LLC said it scheduled a briefing on Monday afternoon to discuss an unspecified "manufacturing action" it plans to take in response to a slumping U.S. auto market. Chrysler's larger rivals General Motors Corp and Ford Motor Co have both taken steps to cut truck production in response to weaker sales in recent weeks.

BCE deal seen delayed until year's end: report

TORONTO (Reuters) - BCE Inc's C$34.8 billion ($34.5 billion) leveraged buyout could be delayed until the end of the year as the company's private equity buyers and a syndicate of lenders square off over the value of the deal, a Canadian national newspaper said on Monday. The Globe and Mail, citing sources, said the banks financing the deal for the Canadian telecommunications company are pushing for a price lower than the proposed C$42.75 a share, and instead, argue that it should be in the range between C$35 and C$38.

Toronto stocks pulled higher by record oil

TORONTO (Reuters) - The Toronto Stock Exchange's main index climbed on Monday morning as a record high oil price pulled up energy shares, and other resource shares also strengthened. The energy sector led the way up, gaining 1.6 percent as crude oil rose to a new high above $143 a barrel amid fears of conflict between Iran and Israel over Iran's nuclear program.

Oil hits record over $143 on Iran-Israel tensions

NEW YORK (Reuters) - Oil prices hit a record high above $143 a barrel on Monday as mounting tensions between Iran and Israel stirred supply concerns. U.S. crude was up 65 cents at $140.86 a barrel by 1:30 p.m. EDT, as weak U.S. oil demand pulled prices off a record high $143.67 hit earlier. London Brent crude gained 57 cents to trade at $140.88 a barrel.

Canadian dollar declines, but moves off 2-week low

TORONTO (Reuters) - The Canadian dollar fell to a two-week low before recovering slightly on Monday, bogged down by profit-taking at the start of a holiday-shortened work week in Canada and the United States. Domestic bond prices finished lower across the curve with nagging inflation concerns and a stronger-than-expected piece of Canadian data spoiling investor appetite for secure assets like government debt.

Central banks need more flexibility: Carney

OTTAWA (Reuters) - Bank of Canada Governor Mark Carney sees merit in changing central bank inflation-targeting regimes to make them more flexible in the face of shocks such as the current sharp rise in commodity prices. In remarks published on Monday, Carney said his views on the need for more flexible monetary policy had no bearing on the Bank of Canada, which is committed to its current 2 percent inflation target until the end of 2011.

Commodity boom blinds Canada to problems: report

OTTAWA (Reuters) - Canadians shouldn't be fooled by high commodity prices into thinking their economy is on the right track because, in fact, it is slipping badly in comparison with other rich countries, a report said on Monday. The Conference Board of Canada's 12th annual report comparing Canada's performance with 16 peer countries painted an unsettling picture of a nation that has become a laggard when it comes to innovation and productivity.

Economy rebounds in April on autos

OTTAWA (Reuters) - A rebound by the manufacturing sector helped Canada's economy grow by a stronger-than-expected 0.4 percent in April after two months of contraction, but economists see growth remaining weak for the rest of the year. Statistics Canada's report on April gross domestic product showed growth beat market expectations of a 0.3 percent climb following declines in March and February of 0.2 percent and 0.3 percent, respectively.

Dectron shareholders to take company private

TORONTO (Reuters) - Major shareholders of Dectron Internationale Inc have agreed to take the company private, the maker of heating and air-conditioning products said on Monday, sending its shares more than 80 percent higher. Two corporations wholly owned by Chief Executive Ness Lakdawala and members of his family, as well as shareholder Leonard Schlemm, have agreed to buy all outstanding shares of Dectron, which makes heating, ventilation and air conditioning products for industrial and commercial use.

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