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Reuters Canada Business Summary

03/07/08

Oil hits record over $145

NEW YORK (Reuters) - Oil rushed to record over $145 a barrel on Thursday ahead of the Independence Day holiday, extending a rally that has added 50 percent to prices this year. Escalating tensions between Israel and OPEC nation Iran have pushed prices to fresh peaks over the past two weeks, with further support coming from speculators hedging against inflation and a weakening dollar.

Jazz Air follows Air Canada with job cuts

CALGARY, Alberta (Reuters) - Jazz Air LP plans to chop 5 percent of its staff in response to cuts announced last month by its main customer, Air Canada , to cope with surging fuel prices, Jazz said on Thursday. Jazz Air, the regional feeder carrier for Air Canada, said its moves -- which will mean 270 job losses and a 5 percent cut in capacity -- are necessary to match resources with its reduced expectations for revenues.

Auto parts supplier slashes 2,000 jobs

TORONTO (Reuters) - Canada's automotive industry sustained another blow on Thursday when Progressive Moulded Products Ltd. said it was slashing 2,000 jobs across the company, mostly at 11 Canadian facilities in the province of Ontario. Progressive Moulded, which makes plastic automotive gear, filed for court protection two weeks ago.

Growth rate seen halved but no recession

OTTAWA (Reuters) - High commodity prices will help Canada avoid a recession this year but a U.S. slump will pull down economic growth to 1.4 percent, about half last year's rate and below official forecasts, Royal Bank of Canada said on Thursday. After an unexpected contraction in the first quarter of an annualized 0.3 percent, the economy will fare better in the remainder of the year due to support from consumer spending, business investment, an easing of financial market pressures and high prices for energy and other natural resources, the bank predicted in its revised forecasts.

Rogers CEO to get award but customers not cheering

TORONTO (Reuters) - Ted Rogers, chief executive of Canadian cable and telecom giant Rogers Communications , was named to a prestigious lifetime achievement award on Thursday, but some of his customers weren't cheering. Rogers was named recipient of the Ernst & Young Entrepreneur Of The Year 2008 Ontario Lifetime Achievement Award and will be presented with it at a banquet in October.

Agrium says in talks with Egypt on nitrogen plant

TORONTO (Reuters) - Agrium Inc is in discussions with Egypt to take control of a state-owned nitrogen plant, but nothing has been finalized, a spokesman for the world's No. 3 nitrogen producer said on Thursday. Agrium had been planning a $1.4 billion nitrogen plant on Egypt's north coast but has been evaluating options after Egypt's parliament voted two weeks ago to recommend relocating the project. The vote came in response to calls from local activists to protect an important tourist destination nearby.

Toronto stocks rally late on banks, consumer issues

TORONTO (Reuters) - The Toronto Stock Exchange's main index rallied from early weakness to close more than 100 points higher on Thursday as investors scooped up hard-hit financial and consumer shares after data showing the U.S. labor market was holding up better than some had expected. Following a steep, 400-point drop in the previous session, investors sought bargains among stocks that been hit hardest by worries about credit conditions and broader economic weakness.

Canada dollar slides, ECB comments boost greenback

TORONTO (Reuters) - The Canadian dollar fell versus a stronger U.S. dollar on Thursday as the European Central Bank struck a less aggressive tone than expected on prospects for interest rate hikes this year, which triggered a rally in the greenback. Canadian bond prices, with no domestic data to influence trade, clawed back from early losses to finish higher across the curve for the second straight session as U.S. jobs data came in below expectations.

Loblaw cuts price spread between stores: analyst

OTTAWA (Reuters) - Loblaw is reducing the price spread between its discount superstores and conventional grocery stores in Ontario, a move that will pressure rivals of Canada's biggest grocer to follow suit, an analyst said on Thursday. Loblaw narrowed the spread largely by lowering prices at conventional format stores and offering fewer big discounts on dry goods at its superstores. That reduced the gap in a 25-item basket to 12.9 percent from 16.7 percent last November, Keith Howlett, an analyst at Desjardins Securities, said in a research note on Thursday.

Canada IPOs plunge in quarter; no summer lift seen

TORONTO (Reuters) - The value of initial public offerings on Canadian stock exchanges fell 16 percent in the second quarter to a record low, and the IPO market appears headed for its worst year this decade, according to a regular survey released on Thursday by PricewaterhouseCoopers. Eighteen new Canadian issues in the April-June period raised just C$466 million ($457 million), down from 20 IPOs a year earlier that raised C$555 million.

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