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Reuters Canada Business Summary

17/07/08

Bank of Canada sees inflation spike to 4.3 pct

OTTAWA (Reuters) - Soaring oil prices will push Canada's inflation higher until it peaks at 4.3 percent in early 2009, the Bank of Canada said on Thursday, while this year's second-quarter economic growth is expected to come in at 0.8 percent, stronger than previously thought. The central bank, in an update to its April Monetary Policy Report, also said it is not poised to raise interest rates, saying the current 3.0 percent overnight rate remains appropriate.

Barrick to buy Cadence Energy for C$410 million

TORONTO (Reuters) - Barrick Gold Corp offered C$410 million on Thursday for Cadence Energy Inc , winning quick approval from Cadence, which turned away from a rival offer from Daylight Resources Trust . Barrick's C$6.75 per share cash bid trumps Daylight's offer of 0.47 of a Daylight share -- which valued Cadence at C$5.99 per share. It is also higher than the C$6 a share that Barrick said on Monday that it would offer.

Lundin shares jump on Portugal copper-zinc find

TORONTO (Reuters) - Lundin Mining Corp said on Thursday that a high-grade copper-zinc discovery at its Neves-Corvo mine in southern Portugal puts the mine in the same league as some of the world's top copper-zinc mines. Lundin shares rose almost 8 percent on the Toronto Stock Exchange after the company's announcement.

Canada exporters' confidence tumbles on U.S. woes

OTTAWA (Reuters) - Fears of a worsening U.S. economy have dragged down confidence among Canadian exporters to the lowest level on record, Canada's federal export agency said on Thursday. The trade confidence index, which monitors exporters' mood on a variety of trade and economic indicators, sank to 66.1 from 67.4 in January, the lowest level in the eight-year history of the semi-annual survey by Export Development Canada.

Toronto stocks dip as energy shares weigh

TORONTO (Reuters) - The Toronto Stock Exchange's main index retreated into negative territory after posting strong gains on Thursday morning as the energy group slipped further amid soft oil prices. The S&P/TSX composite index <.GSPTSE> was down 9.32 points at 13,494.48 at midday.

Air show marks end of order boom

FARNBOROUGH (Reuters) - A $40 billion spree by Gulf oil states prevented aircraft orders from going into freefall at this week's Farnborough Airshow but left little for Airbus and Boeing to scrap over for the rest of the year. Airbus, the planemaking unit of Europe aerospace group EADS squeezed out a handful of final orders on day four of a show that exposed a yawning divide between the industry's rich and poor as oil prices approach $150 a barrel.

Hudson's Bay names Ralph Lauren executive as CEO

TORONTO (Reuters) - Hudson's Bay Co named Jeffrey Sherman as its new chief executive on Thursday, a day after the iconic Canadian retailer was snapped up by a U.S.-based private equity firm. Sherman will take over at HBC immediately and will be responsible for The Bay, Zellers, Home Outfitters and Fields banners.

TD Ameritrade beats expectations, boosts outlook

NEW YORK (Reuters) - Online brokerage TD Ameritrade Holding Corp beat expectations on Thursday with a 29 percent rise in third-quarter profit, helped by brisk trading, and increased its outlook for the year. The company's stock rose 7 percent after it boosted the midpoint of its 2008 profit forecast by two cents a share, crediting its strong financial performance despite the "challenging economic environment."

Oil rises above $136 after slump

LONDON (Reuters) - Oil rose above $136 a barrel on Thursday, as investors resumed buying after its recent sharp drop and boosted by fresh cuts to Nigerian oil output. U.S. crude rose $1.70 to $136.30 a barrel at 10:50 a.m. EDT, recovering from lows of $133.02. It slid $4.14 on Wednesday, taking the drop from last Friday's all-time peak of $147.27 to more than $10.

Dollar up slightly ahead of BoC report

TORONTO (Reuters) - The Canadian dollar rose slightly against the U.S. dollar on Thursday ahead of the Bank of Canada's Monetary Policy Report Update, due at 10:30 a.m.. Domestic bond prices fell along with the U.S. market on some stronger than expected U.S. housing data.

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