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Reuters Canada Business Summary

17/07/08

Foreigners invest heavily Canadian bonds in May

OTTAWA (Reuters) - Foreign purchases of Canadian securities rose in May to C$10.72 billion ($10.72 billion), the highest level since the C$11.75 billion recorded in November 2006, as nonresidents invested heavily in bonds, Statistics Canada said on Thursday. Canadian investors bought C$6.09 billion worth of securities abroad, focusing on non-U.S. stocks.

Oil falls as demand ebbs, Iran tension eases

LONDON (Reuters) - Oil prices fell around a dollar on Thursday, extending this week's steep losses, after evidence mounted of fading demand in the United States and as a fresh diplomatic initiative from Washington diluted tension over Iran. U.S. crude futures were $1.04 a barrel lower at $133.56 a barrel at 7:04 a.m. EDT, after sliding $4.14 on Wednesday.

FDA to rule on Labopharm's Tramadol by January

TORONTO (Reuters) - The U.S. Food and Drug Administration has accepted the analysis Canadian drug company Labopharm Inc has provided on its once-daily version of the pain treatment Tramadol in response to FDA requests, the company said on Thursday. Labopharm said the acceptance of the data should lead to an FDA decision on approval of its Tramadol product for use in the United States by January 2, 2009.

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.

Turboprops on the comeback trail

FARNBOROUGH (Reuters) - Turboprops, propeller-driven planes shunned for being slow and noisy, are enjoying a renaissance as airlines seek more efficient short-haul aircraft to counter soaring fuel prices. Generally used on flights lasting up to four hours and carrying an average of 70 passengers, turboprops were consigned to history by most airlines years ago.

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.

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.

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