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Reuters Canada Business Summary

08/08/08

Canada hit by biggest monthly job loss in 17 years

OTTAWA (Reuters) - A surprisingly large 55,000 jobs were lost in Canada in July, the biggest monthly job loss since the 1991 recession. The Canadian dollar dropped immediately and bonds rose in reaction to release of the Statistics Canada employment report on Friday morning. Economists called the figures "extremely ugly" and "stunningly bad."

Commodity retreat drags Toronto stocks lower

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended lower on Friday, held down as resource issues fell alongside commodity prices, while worries over the economy were stoked by an unexpectedly large job loss last month. Despite sending the heavyweight resource sectors tumbling, the nearly $5 drop in oil provided relief to the index's other sectors, including consumer and industrial shares. Among consumer stocks, Gildan Activewear rose 6.9 percent.

Job losses show global pressures: Flaherty

OTTAWA (Reuters) - Job losses in Canada show the country is feeling the effects of global economic factors beyond any one government's control, Finance Minister Jim Flaherty said on Friday. "However, Canada's economic fundamentals remain solid. Canada's labor market has outperformed that of the U.S. since the start of the year, while over 70,000 jobs have been created in Canada, the U.S. has lost over 463,000," he said in a statement after data showed 55,000 job losses in July.

Potash strike set to pinch tight world supplies

WINNIPEG, Manitoba (Reuters) - A lengthy strike at three potash mines owned by the world's largest fertilizer producer, Potash Corp of Saskatchewan , could mean shortages and spiking prices in a market that is already too tight for comfort, analysts said on Friday. About 500 workers at the Canadian mines walked off the job on Thursday night after mediated contract talks between Potash Corp and the United Steelworkers failed. Wages have been the major issue.

MI Developments CEO to leave, profit rises

TORONTO (Reuters) - MI Developments Inc said on Friday its chief executive, John Simonetti, long frustrated by infighting among shareholders over the restructuring of the company, will leave MID after an unspecified transition period. "I do believe that there's something out there that will be able to achieve a consensus (on restructuring)," Simonetti told a conference call after the land development company released its second-quarter earnings.

Canada says will not interfere with telecom firms

OTTAWA (Reuters) - Canada will not interfere with the day-to-day business decisions of major telecommunications firms, despite public unhappiness over impending moves by two major companies to charge for incoming text messages, Industry Minister Jim Prentice said on Friday. Prentice made the comment in a statement issued after talks with BCE Inc and Telus Corp on their new pricing policy for some customers.

Air Canada looks to raise cash as profit falls

TORONTO (Reuters) - Air Canada may raise up to C$800 million ($750 million) selling and leasing back aircraft and other inventory, it said on Friday after reporting its second-quarter profit fell 21 percent due to surging fuel costs. Air Canada, the country's largest airline, has tallied the worth of numerous assets and will focus efforts in the coming months on determining how much cash to extract amid tough times in the industry, Chief Financial Officer Michael Rousseau said.

Consumer confidence up, but not on jobs

TORONTO (Reuters) - Canadian consumers were feeling slightly more confident in July, but concern about the job market deepened, the Conference Board of Canada said on Friday. The board's index of consumer confidence rose 1.4 points in July to 81, according to board's monthly survey, which is based on 2,000 telephone interviews.

Wireless, subscriber growth boost Telus profit

TORONTO (Reuters) - Telus Corp , Canada's No. 2 phone company, reported a 5.5 percent increase in quarterly profit on Friday as wireless revenue rose and new mobile phone and Internet subscribers flocked to the company. Telus said it was raising its revenue outlook slightly for 2008 to reflect its performance. However, it lowered its forecast range for basic earnings for the year -- a move seen as reflecting, in part, the costs of taking on large numbers of new customers.

Biovail investors elect incumbent director slate

TORONTO (Reuters) - Biovail Corp shareholders approved the company's incumbent slate of directors on Friday, ending an ugly proxy fight that included two shareholder meetings and a brief courtroom battle. Shareholders, who were forced to recast their votes after an Ontario court deemed Biovail's June 25 meeting was improperly held, approved the slate with what the company said was a "clear and unequivocal majority."

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