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Reuters Canada Business Summary

04/07/08

TSX set to open weak

TORONTO (Reuters) - The Toronto Stock Exchange's main index looked set for a soft open on Friday, with resources pressured by weak commodities. The U.S. holiday will keep trade light. The oil price, key for the resource-heavy index, eased below $145 a barrel as investors awaited a response from Iran on proposals to resolve the dispute over its nuclear program.

European banks need to raise up to $141 billion: Goldman

(Reuters) - Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros ($94 to $141 billion), or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently. The bearish comment by the Goldman analysts weighed on European stocks, with the benchmark FTSEurofirst 300 index down 0.43 percent at 1,172.99 points by 5:40 a.m. EDT.

Oil falls below $145, awaits Iran response

LONDON (Reuters) - Oil dropped below $145 a barrel on Friday, but was still within sight of record highs reached in the previous session when traders bought into the market ahead of a holiday weekend in the United States. U.S. crude oil was down $1.40 at $143.89 a barrel by 6:47 a.m. EDT, below an all-time high of $145.85 hit on Thursday. The contract has risen more than 50 percent this year.

Tax credit to save UBS from hefty loss

ZURICH (Reuters) - Battered Swiss bank UBS said on Friday it should be saved from another hefty loss in the second quarter by a large tax credit, giving a much-needed though short-lived boost to its share price. UBS, which has written $37 billion off its assets as a result of the credit crisis, said it expected to break even or make a small loss in the second quarter, helped by the 3 billion Swiss franc ($2.96 billion) tax credit.

Euro zone rate rise signals ECB serious

FRANKFURT/SAN SEBASTIAN, Spain (Reuters) - The European Central Bank's interest rate rise sends a signal that it is serious about combating inflation, policymakers said as they staged a public relations offensive to justify Thursday's increase. A day after raising rates to a seven-year high of 4.25 percent, policymakers around the 15-nation region denied that the hike would choke economic growth and said soaring inflation was a bigger danger to consumers.

BSkyB mulls $4 billion bid for Digital Plus: report

LONDON/MADRID (Reuters) - British pay-TV firm BSkyB is considering a bid of more than 2.5 billion euros ($4 billion) for Spanish pay-TV platform Digital+, the Financial Times said on Friday. The newspaper quoted people familiar with the situation as saying there had been no decision to proceed, but that BSkyB's strong cash flow could allow it to finance an acquisitions.

Body of Taiwan securities firm chief found in sea

TAIPEI (Reuters) - The embattled chairman of a major Taiwan securities firm was found dead in waters close to the island on Friday morning, the firm said, startling the financial community and sending the company's shares tumbling. A fisherman in the outlying Penghu islands discovered Polaris Securities Co <2854.TW> Chairman Wayne Pai, 55, who was reported missing in the area from Wednesday, a company statement said.

Union plots response to Viterra's contract move

VANCOUVER, British Columbia (Reuters) - Union officials on Thursday sparred with Viterra Inc. over a plan by Canada's largest grain handler to implement a contract offer that was already rejected by the workers. Leaders of the Grain Services Union were deciding how to respond to the company's announcement late on Wednesday that it will institute the new wage system that ties wage increase to worker and company performance beginning July 7.

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.

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.

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