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08/07/08

Jean Coutu reports first-quarter 2009 loss

TORONTO (Reuters) - Jean Coutu Group Inc reported a deeper first-quarter loss on Tuesday, accounting for its stake in U.S. pharmacy Rite Aid Corp and current market conditions. The Canadian drug store chain reported a net loss of C$20.2 million, or 8 Canadian cents per share, in the quarter ended May 31, 2008. That follows a loss of C$6.4 million, or 2 Canadian cents a share, in the quarter through June 4, 2007.

G8 sees downside economy risks, prods China on yuan

TOYAKO, Japan (Reuters) - The Group of Eight industrial nations expressed strong concern on Tuesday about sky-high food and oil prices, which they said posed risks for a global economy under serious financial strain. In a statement released on the second day of the group's three-day annual summit, the G8 made a veiled call for China to let the yuan's tightly controlled exchange rate appreciate to help reduce global financial imbalances.

Siemens to cut 16,750 jobs amid economic downturn

FRANKFURT (Reuters) - German industrial conglomerate Siemens AG plans to cut around 4 percent of its workforce as part of an overhaul and as a result of the global economic downturn, Siemens said on Tuesday. Siemens wants to cut 16,750 jobs globally, of which 12,600 are mainly in administration, to help Europe's biggest engineering group reach a savings target of 1.2 billion euros ($1.9 billion) by 2010 and boost profit margin levels, Siemens said.

Bernanke: Fed may extend emergency lending for Wall Street

ARLINGTON, Va (Reuters) - Federal Reserve Chairman Ben Bernanke said on Tuesday the U.S. central bank may keep an emergency lending facility for big Wall Street firms open past year-end while it seeks to restore financial market stability. In prepared remarks for delivery to a mortgage lending forum sponsored by the Federal Deposit Insurance Corp., Bernanke said credit costs have been driven higher and the pace of U.S. economic growth also has been hurt by market turmoil.

Toronto stocks knocked down by oil

TORONTO (Reuters) - The Toronto Stock Exchange's main index fell more than 2 percent on Monday, putting it on the cusp of a correction, as it was dragged down by weak resources and gloom over the outlook for economic growth. Oil and gas companies led the descent, stung by a drop of nearly $4 in crude amid signs of easing tensions with Iran over its nuclear program.

Canada workers get new protection in bankruptcies

OTTAWA (Reuters) - Employees of Canadian companies that have declared bankruptcy will get compensation for unpaid wages under a new government program that went into effect on Monday, Labor Minister Jean-Pierre Blackburn said. The Wage Earner Protection Program will cost the federal government an estimated C$35 million ($34.3 million) a year. The cost could rise if the economy turns sour, and the payouts are indexed to inflation.

CIBC cuts Toronto stock market targets on U.S. woes

TORONTO (Reuters) - CIBC World Markets cut its growth targets for Toronto's benchmark stock index for this year and for 2009 on Monday, citing an "increasingly stagflationary" environment, particularly in the U.S. Jeff Rubin, chief economist and chief strategist at CIBC World Markets, lowered his year-end forecast for Toronto's S&P/TSX composite index <.GSPTSE> by about six percent to 14,300 from 15,200. He cut his 2009 target, also by nearly six percent, to 15,250 from 16,200.

Pepsi Bottling 2nd-qtr profit rises, tops view

NEW YORK (Reuters) - Pepsi Bottling Group Inc posted better-than-expected quarterly profit on Tuesday as price increases in the United States and Canada more than offset a decline in volume. The largest bottler of PepsiCo Inc drinks said net income rose 7.4 percent to $174 million, or 78 cents per share, in its fiscal second quarter ended June 14, from $162 million, or 70 cents per share, a year earlier.

High prices nudge Europe nearer to GM food

ZURICH (Reuters) - Like many in Europe, Switzerland's Coop supermarkets do not specify whether goods are genetically modified -- none are. But a wave of food inflation may help wash away resistance to "Frankenstein foods.""I think there's a lot of resistance in Switzerland," said shopper Beatrice Hochuli, picking out a salad for dinner at a bustling supermarket outside Zurich's main station.

Canada consumer confidence near 13-yr low: survey

TORONTO (Reuters) - Canadian consumer confidence slumped to its lowest level in nearly 13 years in June due to the surge in gasoline prices and concern about future economic conditions, the Conference Board of Canada said on Monday. The board's index of consumer confidence dropped 6.2 points in June to 79.6, its lowest level since the fourth quarter of 1995. The results are based on 2,000 telephone interviews conducted in early June.

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