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Reuters Canada Business Summary

17/07/08

NRDC Equity snaps up Hudson's Bay Co

TORONTO (Reuters) - Hudson's Bay Co, the Canadian retailer whose name is synonymous with the country's frontier past, was bought on Wednesday by the U.S.-based private equity fund that owns the Lord & Taylor department store chain, one of the oldest names in American retailing. NRDC Equity Partners did not place a value on the deal, but said it would invest $500 million in new equity into the combined company, which also owns specialty U.S. retailer Fortunoff and Creative Design Studios.

Economy to grow in 2008, 2009: Flaherty

CALGARY, Alberta (Reuters) - Canada's economy remains robust despite economic turmoil in the United States, Finance Minister Jim Flaherty said on Wednesday, with government finances in the black and growth expected this year and next. In a speech to a Calgary, Alberta, business audience, Flaherty said Canadian economic fundamentals remain solid, even though the U.S. housing and credit markets are in turmoil.

Toronto stocks rise as financials surge

TORONTO (Reuters) - The Toronto Stock Exchange's main index finished nearly 150 points higher on Wednesday as surprisingly strong quarterly results from a U.S. bank invigorated the financial sector and helped the benchmark shake off a weak showing by energy and materials issues. Seven of the 10 main groups of the S&P/TSX composite index <.GSPTSE> moved higher, including financials, which surged 5.9 percent after Wells Fargo & Co , the fifth-biggest U.S. bank, posted results that eased investor fears about mortgage losses.

Dollar flat in lackluster trade, bonds fall

TORONTO (Reuters) - The Canadian dollar was flat against the U.S. dollar in lackluster trading on Wednesday as investors looked forward to the Bank of Canada's Monetary Policy Report Update on Thursday for more insight into its economic outlook. Canadian bond prices fell as a rally in the equity markets lessened the safe-haven bid for government debt.

Flaherty: no housing bubble

CALGARY, Alberta (Reuters) - The Canadian government changed the rules for government-backed mortgages last week to avoid a U.S.-style housing market decline, even though the domestic market remains solid, Finance Minister Jim Flaherty said on Wednesday. Officials were concerned about a recent trend towards long mortgage amortization periods and low down payments, which prompted the rule changes, Flaherty said in a Calgary speech.

Oil steady after sharp losses on slowing US demand

SINGAPORE (Reuters) - Oil held steady on Thursday, after a second consecutive session of steep losses the day before, as a surprise build in U.S. crude oil inventories, amid flailing demand, weighed down the market. U.S. crude futures eased 7 cents to $134.53 a barrel at 0627 GMT, after sliding $4.14 on Wednesday.

TransCanada, Conoco to extend pipeline to U.S. Gulf

CALGARY, Alberta (Reuters) - TransCanada Corp and partner ConocoPhillips said on Wednesday they will spend $7 billion to expand the Keystone pipeline system to take an additional 500,000 barrels of Canadian oil sands crude per day to the refineries on the U.S. Gulf Coast. TransCanada, the country's biggest pipeline firm, said it decided to go ahead with the project after customers committed to ship 300,000 barrels per day (bpd) on the line for an 18-year term.

Biovail case ruling extends battle for control

TORONTO (Reuters) - A fight for control of Biovail Corp went into a second round on Wednesday when a judge ruled a shareholder vote last month that went against the Canadian drugmaker's founder was held improperly by the company's board and management. An Ontario court judge ordered Biovail to reconvene the shareholder meeting held on June 25 within 90 days. When it does, shareholders will vote on a new slate of directors being proposed by founder Eugene Melnyk to replace the incumbent board.

Shoppers Drug profit up on strong sales, cost cuts

TORONTO (Reuters) - Profit at Shoppers Drug Mart rose about 14 percent in the second quarter, Canada's biggest pharmacy chain said on Wednesday, aided by stronger sales, cost reductions and a decrease in its income tax rate. Shoppers, which also operates stores under the Pharmaprix banner, said it earned C$128 million ($128 million), or 59 Canadian cents a share, in the period ended June 14. That compares with a profit of C$112 million, or 52 Canadian cents, in the same period last year.

Sagging auto exports to hit Canadian growth: report

TORONTO (Reuters) - The Conference Board of Canada lowered its forecasts for Canadian economic growth in 2008 and 2009 on Wednesday, citing declining exports to the struggling U.S. market, especially in the auto sector. In its summer outlook, the Conference Board forecast gross domestic product would advance 1.7 percent this year, down from 2.2 percent in its spring forecast. Canada's GDP growth in 2007 was 2.7 percent.

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