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Reuters Canada Business Summary

22/07/08

Yahoo profit down, outlook intact; CEO set to stay

SAN FRANCISCO (Reuters) - Yahoo Inc's net profit fell 19 percent but investors took heart that it did not change its outlook despite a weakening U.S. economy and the distraction of Microsoft Corp's failed takeover bid. Shares of the Internet company, which just settled a proxy battle with activist investor Carl Icahn, rose 2.7 percent to $21.99 in extended trade following the quarterly report.

Canadian oil producers shrug off SemGroup exposure

CALGARY, Alberta (Reuters) - Three Canadian oil companies listed as among the biggest creditors of bankrupt energy trader SemGroup LP said on Tuesday the U.S. company's filing will have little impact on their operations. SemGroup declared bankruptcy on Tuesday after $3.2 billion in oil trading losses torpedoed the formerly 12th-largest private U.S. company.

Methanex reports higher second quarter net

NEW YORK (Reuters) - Methanex Corp , the world's largest producer of methanol, on Tuesday reported higher net income on strong prices and healthy demand. Second-quarter net income rose to $38.9 million, or 41 cents per share, from $35.7 million, or 35 cents per share, a year earlier.

Seneca Capital urges TransAlta to hold auction

CALGARY, Alberta (Reuters) - Another large TransAlta Corp investor has mounted efforts to boost the Canadian power producer's value, urging the company to auction itself off days after private U.S. firms proposed a C$7.8 billion ($7.7 billion) takeover. Seneca Capital, a New York-based investment fund with about 3 percent of TransAlta's shares, said the company should weigh a sale process along with taking on a strategic partner or restructuring its long-term electricity contracts.

Toronto stocks pulled lower by weak resources

TORONTO (Reuters) - The Toronto Stock Exchange's main index finished lower on Tuesday, but trimmed earlier steep losses as a rise by financials offset a drop by resource issues that were hit by tumbling commodity prices. The resource sectors led the downside and helped take the index down more than 1 percent in the morning, with energy shares hit by a six-week low for oil prices as fears over a tropical storm in the Gulf of Mexico eased.

Oil near six-week low on demand woes

SINGAPORE (Reuters) - Oil prices held near a six-week low on Wednesday, as worries increased over dwindling U.S. demand at the same time as fears eased Hurricane Dolly would deal a major blow to oil and gas supply. A rebound in the dollar on the back of comments from a Federal Reserve official suggesting U.S. interest rates may have to rise also reduced the appeal of commodities, prompting investors to exit oil.

Lundin says Aljustrel "challenging," sees more M&A

TORONTO (Reuters) - Lundin Mining Chief Executive Phil Wright said on Tuesday the economics of its Aljustrel zinc mine in Portugal are "challenging," and that it would make a decision on the mine's future by the end of the year. In an interview, Wright also said he expects the company will continue to be active in the M&A market, and he sees opportunities in the zinc-lead space over the next couple of years.

Dollar drops on retail sales; bonds ease

TORONTO (Reuters) - The Canadian dollar fell 0.7 percent against the U.S. dollar on Tuesday on weaker-than-expected retail sales data for May and a widespread rally in the greenback against major currencies. Canadian bond prices rose initially, but later followed the U.S. fixed income market lower after hawkish inflation comments from a U.S. Federal Reserve member and a rebound in U.S equities.

CAW sets date to elect president

TORONTO (Reuters) - The Canadian Auto Workers union said on Tuesday it will hold a convention on Sept 6 to elect a new national president to replace current union head Buzz Hargrove. The convention will take place in Toronto and the new president will take over immediately after the election, the CAW said.

Alberta regulator lifts Suncor production limits

CALGARY, Alberta (Reuters) - Alberta's energy regulator said on Tuesday it had lifted limits on output from one of Suncor Energy Inc's oil sands operations after the company dealt with high emissions of deadly hydrogen sulfide. The Energy Resources Conservation Board slapped the restriction on Suncor's Firebag project last September after it determined that venting, flaring and H2S emissions did not comply with regulations.

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