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Reuters Canada Business Summary

20/07/08

Banks could rain on earnings parade

TORONTO (Reuters) - Strong results from some of Canada's key companies could take a back seat to ongoing turmoil in financial markets as the second-quarter reporting season gets under way. Commodity-based companies -- oil and gas, agriculture and mining -- are expected to fare reasonably well this reporting season, but those connected with the Toronto Stock Exchange's heavily weighted financial sector are likely to experience a rougher ride.

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.

No rate relief from Bank of Canada, provinces told

OTTAWA (Reuters) - The Canadian provinces that are hurting the most from the U.S. slowdown -- Ontario and Quebec -- were told on Friday not to expect any rate relief from the Bank of Canada. Carney met with provincial leaders on Friday in Quebec City. Ontario Premier Dalton McGuinty said he pressed the case for interest rate cuts in order to help struggling manufacturers in his province. But Carney said he was more concerned about rising inflation, McGuinty told reporters after the meeting.

Asia takes aim at Europe in luxury yacht building

KAOHSIUNG, Taiwan (Reuters) - Fast-moving Asia is vying for a bigger share of the multi-billion-dollar luxury ship market serving the rich and famous. Led by Taiwan and increasingly China, Asia has narrowed the gap with the West in recent years, though it still lags Europe in the race for a market where individual yachts can sell for tens of millions of dollars.

Barrick CEO Wilkins resigns, becomes vice-chairman

TORONTO (Reuters) - Barrick Gold Corp said on Friday that Chief Executive Greg Wilkins, who has been on leave dealing with an unspecified but serious medical condition, has stepped down as president and CEO but will become the gold producer's executive vice-chairman. Company founder and Chairman Peter Munk, the acting CEO since March 27 when Wilkins went on medical leave, will stay in the role until a successor to Wilkins is appointed.

Wal-Mart's fashion show previews back-to-school

SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc presented a colorful, casual line of youthful looks for kids and teens on Saturday at a fashion show that previewed the mass-market chain's new low-cost offerings for back to school. The world's largest retailer has been careful not to accentuate the fashion quotient in its clothing offerings this year ever since a disastrous push into more stylish gear in late 2005 alienated its core customers looking for basics.

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.

Bids slow to trickle 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 throughout the afternoon before bidding concluded for the weekend.

Canada financial index shows bear prints: Merrill

TORONTO (Reuters) - The huge recovery posted by Canadian financial stocks this week is actually a bad sign for the sector, as bear markets bring big bounces, Merrill Lynch economists said on Friday. The S&P/TSX Financials index <.SPTTFS>, composed of 28 bank, insurance company and asset management stocks, fell sharply on Monday and again Tuesday, with the country's largest banks hitting 52-week lows on Tuesday.

Oil falls, down 13 percent from peak on Iran

NEW YORK (Reuters) - Oil fell to below $129 a barrel on Friday, extending a slide that has knocked nearly 13 percent off last week's record peak on easing tension between Iran and the West and growing demand concerns. Oil's losses this week are the steepest in dollar terms since futures began trading in New York in 1983 and the steepest in percentage terms since December 2004.

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