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Reuters Canada Business Summary

16/07/08

May factory sales roar higher again

OTTAWA (Reuters) - Soaring prices for petroleum and coal products helped drive Canadian manufacturing sales up by a steeper-than-expected 2.7 percent in May, the biggest rise since March 2007, Statistics Canada said on Wednesday. Markets had expected a mere 0.5 percent gain in factory sales in April after a 2.1 percent increase in April, according to Statscan's revised figures.

Dollar flat as market awaits BoC outlook

TORONTO (Reuters) - The dollar was little changed versus the U.S. dollar on Wednesday as traders took a breather ahead of the Bank of Canada Monetary Policy Report Update, which may expand on the bank's economic outlook. Domestic bond prices were slightly higher across the curve as mounting concerns about the U.S. financial sector's health kept secure assets like government debt in demand.

Canadian bank stocks touch 52-week lows on U.S. worry

TORONTO (Reuters) - Fears about the state of the U.S. financial system and the outlook for the U.S. economy battered Canadian bank stocks for a second day on Tuesday, with most share prices at or near 52-week lows. In the case of Canadian Imperial Bank of Commerce , its stock plumbed five-year lows.

Ex-Samsung chief given 3-year suspended jail term

SEOUL (Reuters) - Former Samsung Group chief Lee Kun-hee, one of South Korea's most powerful businessmen, was handed a 3-year suspended jail sentence on Wednesday for tax evasion, but was cleared of other charges. The court also fined Lee 110 billion won ($109 million), more than double the amount of taxes he evaded, but cleared him of charges of breach of trust and illegal issuance of bonds aimed at transferring wealth to his children.

Oil falls further, focus on U.S. demand

LONDON (Reuters) - Oil dropped further on Wednesday after a sharp fall the previous session on expectations that a faltering economy in top energy consumer the United States would hit demand growth. Prices had plunged more than $6 on Tuesday, the steepest drop in dollar terms in 17 years.

AOL talks with Microsoft, Yahoo heat up: source

NEW YORK (Reuters) - Time Warner Inc's discussions to merge or sell its AOL Internet division with Microsoft Corp or Yahoo Inc have taken on new urgency ahead of Yahoo's Aug 1 shareholders meeting, a source familiar with the discussions told Reuters on Tuesday. The structure of any deal is not immediately clear, though a combination of any of the parties is expected to redraw the landscape for advertising on the Internet.

RIM plans growth abroad

TORONTO (Reuters) - BlackBerry maker Research In Motion Ltd is charging ahead with international expansion plans and investments in new handsets and software to stay competitive, its co-chief executive said. RIM wants to expand BlackBerry service, now available in over 140 countries, in Russia, Latin America, China and Southeast Asia.

Toronto stocks slammed by oil slide, economic woes

TORONTO (Reuters) - The Toronto Stock Exchange's main index plunged more than 380 points on Tuesday as resource issues were hit by weak oil prices, while worries over the global economy battered the wider market. After logging a hefty intraday drop of more than 3 percent, the benchmark briefly halved its losses in the late afternoon, before retreating again to close at its lowest level in nearly two weeks.

Intel profit rises, driven by notebook PC sales

SAN FRANCISCO (Reuters) - Intel Corp reported a 25 percent rise in quarterly profit, helped by strong sales of microprocessors used in notebook computers, and gave a revenue forecast that topped expectations. But its second-quarter gross margin disappointed some analysts as the world's biggest chipmaker said higher demand for cheaper laptops led to a lower-than-expected average microprocessor selling price.

GM confident it can compete even after cuts

DETROIT (Reuters) - General Motors Corp will be able to invest more to develop cars and crossover vehicles even after $10 billion in cost cuts under a rushed restructuring that the U.S. automaker sees as the last of its kind, the company's president said on Tuesday. "In an uncertain market we need to be in as much in control of our own fate as possible," GM President and Chief Operating Officer Fritz Henderson told Reuters.

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