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Reuters Canada Business Summary

23/07/08

TSX battered by falling commodities

TORONTO (Reuters) - The Toronto Stock Exchange's main index tumbled for a second session in a row on Wednesday, knocked 130 points lower as resource issues fell along with commodity prices. The materials sector led the way down as shares of gold producers were battered by a 3 percent drop in bullion prices while the U.S. dollar rose. Barrick Gold was down 7.9 percent.

Visa Canada probes reports of fraud at airport

TORONTO (Reuters) - Visa Canada on Wednesday said it was investigating possible fraud tied to air travel, with news reports specifying that there may be problems at self-service check-in kiosks at Toronto's Pearson International airport. "Visa Canada is currently investigating isolated reports of fraud that have a correlation with air travel, in particular at a Canadian airport," the company said in a statement.

CIBC faces lawsuit over subprime exposure

TORONTO (Reuters) - Canadian Imperial Bank of Commerce is the first Canadian bank to face legal action over investments tied to plunging U.S. subprime mortgages, after a Toronto law firm revealed a proposed class action on Wednesday, claiming the bank and some executives failed to fully disclosure its exposure. The lawsuit, filed in an Ontario court, alleges that the bank, President and Chief Executive Gerald McCaughey and other officers and directors, did not disclose the extent of CIBC's total exposure, through various structured-credit securities, to the sliding U.S. subprime mortgage market.

Inflation climbs to highest since Sept 2005

OTTAWA (Reuters) - Annual inflation sped past expectations to 3.1 percent in June from 2.2 percent in May after the biggest yearly surge in gasoline prices since Hurricane Katrina, Statistics Canada said on Wednesday. June marked the first time since September 2005 that inflation rose past the central bank's target range of 1-3 percent. The Canadian dollar rose slightly after the report.

Ford puts a hold on third shift at Ontario plant

TORONTO (Reuters) - Ford Motor Co. has told 350 new hires at its Oakville, Ontario, plant that their jobs have been put on hold indefinitely because the U.S. market for new cars and trucks had soured, a company official said on Wednesday. Ford said market conditions were too uncertain for it know when it might start the third shift, leaving in limbo the 350 recruits, who had been due to report to work on Monday.

Sierra Wireless shares sag in wake of weak outlook

TORONTO (Reuters) - Wireless modem maker Sierra Wireless Inc warned of "macroeconomic uncertainty" in key markets and an erosion in some of its sales on Wednesday, sending its shares plunging more than 20 percent in after-hours trading. Sierra, which makes the AirCard and Compass lines of wireless modems, said it earned $11 million, or 35 cents a share in the three months ended June 30. That was up from a profit of $6.7 million, or 25 cents a share, a year earlier. The results were in line with analysts' estimates.

Canadian dollar falls on oil, rate uncertainty

TORONTO (Reuters) - The Canadian dollar fell to its lowest close in two weeks against a rallying U.S. dollar on Wednesday, despite a report that showed inflation in Canada was higher than the market had forecast, hurt by falling oil prices and an uncertain outlook for Canadian interest rates. Bond prices ended mostly lower, taking direction from the larger U.S. market.

Agnico-Eagle profit misses estimates, cuts outlook

TORONTO (Reuters) - Profit at Agnico-Eagle Mines dropped by a steeper than expected 78 percent in the second quarter, the company said on Wednesday, as it also cut its 2008 gold output forecast and warned of a 40 percent jump in capital costs. The Canadian gold producer earned $8.3 million, or 6 cents a share, in the quarter ended June 30. That was down from $37.8 million, or 28 cents a share, in the year-before period, as the company's bottom line was stung by a 56 percent year-on-year drop in zinc prices.

Soaring energy prices boost Husky profit 89 percent

CALGARY, Alberta (Reuters) - Husky Energy Inc's second-quarter profit surged a better-than-expected 89 percent as Canada's No. 3 oil producer and refiner reaped rewards from sky-high oil and gas prices, it said Wednesday. However, Husky said it now expects its oil and gas production to be up to 7 percent below its previous forecast for the year due to operational problems offshore Newfoundland and in the Alberta oil sands.

Teck Cominco gets boost from copper, coal prices

TORONTO (Reuters) - Teck Cominco said on Wednesday its second-quarter profit rose 2.5 percent, as higher resource prices boosted its copper and coal divisions, making up for a 60 percent drop in zinc profits. The diversified Canadian miner earned a net C$497 million ($492 million) in the quarter, up from C$485 million. On a continuing operations basis, earnings per share rose to C$1.14 from C$1.13.

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