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Reuters Canada Business Summary

25/07/08

TSX tumbles as banks get hit hard

TORONTO (Reuters) - The Toronto Stock Exchange's main index sank more than 2 percent on Thursday in a broad decline sparked by losses in financial-services shares as sour data highlighted concerns over the U.S. economic outlook. Agnico-Eagle Mines was among the biggest decliners by weight, losing 7.8 percent, after it reported a weaker than expected quarterly profit, a lower production outlook for the year, and warned of a jump in project costs over the next two years.

Air Canada and Continental ink code-sharing pact

TORONTO (Reuters) - Air Canada aims to expand its reach to new destinations through a partnership with Continental Airlines that will put the carriers' passengers on each other's planes while maintaining their frequent flier benefits, it said on Thursday. The proposed code-sharing deal would offer Air Canada passengers more options for connecting flights while keeping its own operating and marketing costs down against a backdrop of soaring fuel prices, the country's biggest airline said.

Oil prices seen masking Canada "export recession"

OTTAWA (Reuters) - Oil prices will continue falling and dip below $100 a barrel by the end of this year, unmasking an "export recession" in Canada that will result in anemic growth, a government export agency said on Thursday. Export Development Canada forecast export growth this year of 4.2 percent in terms of value. But that is an artificially pretty picture based entirely on the dramatic surge in oil prices, EDC said in its quarterly Global Export Forecast.

Rio Tinto says eyeing 10% of world potash market

SYDNEY (Reuters) - Rio Tinto Ltd/Plc wants to grab 10 percent of the world potash market as demand for the fertilizer grows in step with biofuel production, Preston Chiaro, chief executive of Rio's energy and minerals unit said on Friday. The push into a new commodity comes as Rio's board fights a $140 billion all-share takeover by rival BHP Billiton Ltd/Plc , which it sees as too cheap and failing to appreciate Rio's growth plans.

Canadian bank profits vulnerable, analyst says

VANCOUVER, British Columbia (Reuters) - While it may be tempting to argue that the worst is over for Canadian bank stocks, several factors could still put pressure on earnings growth at the banks, an analyst said on Thursday. "We maintain our cautious view on Canadian bank stocks," RBC Capital Markets analyst Andre-Philippe Hardy said in a research note.

Ford posts $8.7 billion second-quarter loss on truck slump

DETROIT (Reuters) - Ford Motor Co posted a record $8.7 billion quarterly loss on Thursday as it wrote down the value of slumping truck and SUV operations and revamped plans in a bid to break its reliance on the gas-guzzlers that have been its franchise vehicles for a decade. The second-quarter loss was deeper than analysts had forecast and Ford shares fell by 15 percent. Its bonds also traded lower.

Harbinger seeks to combine Inmarsat with SkyTerra

LONDON (Reuters) - U.S. hedge fund Harbinger plans to bid for British satellite communication firm Inmarsat , pending regulatory approval, and combine the group with its SkyTerra business, it said on Friday. Harbinger, which already owns 28 percent of Inmarsat and, together with an affiliate, 48 percent of satellite communications group SkyTerra, said it was likely to take 12-18 months to obtain regulatory approvals.

Celestica swings to profit on cost cutting

TORONTO (Reuters) - Contract electronics maker Celestica Inc on Thursday said it swung to a second-quarter profit as further cost cuts offset slumping demand for its products. Celestica, whose customers have included computer giants IBM and Hewlett-Packard , said it earned $39.8 million, or 17 cents a share, in the three months ended June 30. That was up from a loss of $19.2 million, or 8 cents a share, in the same period a year earlier.

Loonie slides against stronger greenback

TORONTO (Reuters) - The Canadian dollar fell 0.3 percent against a stronger U.S. dollar on Thursday, as weak data out of Europe had investors buying greenbacks, with a sharp drop in equities adding to the negative atmosphere. Domestic bond prices rallied on a flight to safety, partly due to the steep losses on stock markets as well as on weak U.S. economic data.

Teck turns to windmills, C$ hedges to fight costs

TORONTO (Reuters) - Teck Cominco has entered currency hedges and is considering wind power in order to gain short-term control of costs that have shot higher for mining companies, the diversified miner said on Thursday. In the longer term, the company believes its holdings in Canada's oil sands will help offset future energy price gains.

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