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Reuters Canada Business Summary

18/07/08

Toronto stock index gets lift from oil price

TORONTO (Reuters) - The Toronto Stock Exchange's main index was up more than 100 points on Friday morning, as a rise in oil prices boosted energy issues and healthy U.S. bank results added momentum to financials' run-up. The price of crude rebounded $1.61 to $130.90 a barrel after shedding around $15 in the past three sessions amid concerns over demand.

Bombardier says stands behind Toronto streetcar bid

TORONTO (Reuters) - Bombardier Inc said on Friday it stands behind its bid to win a big contract to replace Toronto's aging streetcar fleet, saying it does not understand complaints from the city's transit authority that its proposed new vehicles couldn't take tight turns. "We believe the bid is compliant," said David Slack, a spokesman for Bombardier's transportation division, noting that the company had not been provided with enough additional information from the Toronto Transit Commission to understand what the problem is.

Citigroup $2.5 billion loss soothes investors

NEW YORK (Reuters) - Citigroup Inc posted a smaller-than-expected quarterly loss, despite $11.7 billion of write-downs and credit losses tied to deteriorating capital markets and a slumping economy. Though the second-quarter loss totaled $2.5 billion, the results soothed investors, who pushed shares of the largest U.S. bank by assets up $1.53, or 8.5 percent, to $19.50 in afternoon trading on the New York Stock Exchange.

Bidding tapers off in Canada's spectrum auction

TORONTO (Reuters) - A morning round of bidding in Canada's wireless spectrum auction on Friday produced no new offers, suggesting the months-long process that could result in a new national wireless phone provider may soon end. After the bidless round passed, a single new offer trickled in around noon and a handful of others arrived a little later.

MDS takes charges to bolster competitive edge

TORONTO (Reuters) - MDS Inc said on Friday it expects to record charges totaling $28 million, mostly in the third quarter, as it cuts 210 jobs and records an asset impairment charge related to its MDS Pharma Services laboratory in Montreal. The Canadian medical-services company said the charges would reduce its net income for fiscal 2008 by about $20 million, or 16 cents a basic share, after tax.

Fertilizer exports boost Canada wholesale trade

OTTAWA (Reuters) - Canadian wholesale trade rose a stronger-than-expected 1.6 percent in May from April, the biggest monthly increase since January, thanks to higher global demand for fertilizer, Statistics Canada said on Friday. The median forecast by analysts surveyed by Reuters was for a 0.5 percent monthly gain, Statscan said. The government statistics agency revised the April result to a 1.5 percent gain from 1.4 percent.

Canadian pension funds post slim 1 percent gain in Q2

TORONTO (Reuters) - Skyrocketing energy prices and the accompanying jump in Canada's energy stocks gave a helping hand to Canadian pension funds in the second quarter, after several periods of losses, survey results showed on Friday. RBC Dexia Investor Services said that among pension funds it tracks, the average gain was 1.0 percent in the three months ended June 30. Over six months, the funds have lost about 1.0 percent.

Loonie rises on firm data, bonds sag

TORONTO (Reuters) - The Canadian dollar was higher against the U.S. dollar on Friday morning after Canadian wholesale trade data for May came in stronger than expected, helping boost confidence in the economy. Bond prices fell in response to firmer equities markets and the solid data.

Oil rises as weather concerns stem slide

NEW YORK (Reuters) - Oil rose on Friday, stemming a 12 percent fall from last week's record high, on threats a developing Caribbean weather system could hit the energy-rich Gulf of Mexico. A low-pressure system northwest of Aruba was showing high potential for strengthening into a tropical depression and could reach the northern Gulf of Mexico, which contains a high concentration of oil and natural gas facilities, in about five days, according to weather models.

Canada composite leading index flat in June

OTTAWA (Reuters) - Canada's composite leading index was unchanged in June, following two months of gains, as weakness in housing and new orders for factory goods offset strong consumer spending, Statistics Canada said on Friday. "Household spending remained the driving force behind growth, a reflection of strong labor market conditions," Statscan said in its release.

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