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Reuters Canada Business Summary

17/08/08

Flaherty says expects solid growth

OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty said on Friday he expects solid growth in the Canadian economy despite a contraction in May. "(We're) staying on our economic plan, looking for solid economic fundamentals, solid growth for the Canadian economy, none of the bubbles that we've seen in the U.S., particularly in the housing sector," Flaherty told reporters in televised comments.

Scotiabank could be investor safe haven: report

NEW YORK (Reuters) - Bank of Nova Scotia could offer a safe haven for investors because it is not afflicted with hard-to-value credit assets and huge subprime write-downs, Barron's reported in its August 18 edition. "It's a well-run bank with almost zero exposure in the U.S., a 4.2 percent dividend yield -- recently raised -- and is not widely followed by the Street," Barron's cited Matthew McCormick, a portfolio manager at Bahl & Gaynor Investment Counsel, as saying.

Wal-Mart Canada workers obtain rare union contract

OTTAWA (Reuters) - Employees at a Wal-Mart Stores Inc. outlet in Canada won an arbitrator-imposed contract on Friday, becoming the giant retailer's only location in North America with a collective agreement in place. The contract, imposed after binding arbitration ended in June, affects only eight employees at Wal-Mart's tire and lube garage in Gatineau, Quebec, across the river from Ottawa.

Oil's fall, dollar's rise key to gains

NEW YORK (Reuters) - Bolstered by falling oil prices and a rising dollar, stocks could extend their modest gains this week, even in the face of still troubling consumer- and housing-related data. Oil's downward trend helped boost consumer spending slightly in the past month, with crude hitting a three-month low below $114 a barrel on Friday. But its path remains volatile, prompting some investors to remain cautious about the market.

Canadian dollar rises on manufacturing, bonds up

TORONTO (Reuters) - Stronger-than-expected manufacturing figures helped lift the Canadian dollar against the U.S. dollar on Friday, while bond prices took their cue from a rising U.S. Treasury market. The Canadian dollar closed at C$1.0590 to the U.S. dollar, or 94.43 U.S. cents, up from C$1.0633 to the U.S. dollar, or 94.05 U.S. cents, at Thursday's close.

Pain levels rise as economic ills spread

TORONTO (Reuters) - Canada's weakened economy, hit by the slowdown in the United States and dampened world demand for commodities, could push the country's biggest stock market to retest this year's lows, given its heavy reliance on oil and gold. Investors have long feared the slowing U.S. economy would rub off on Canada and show up in a depressed S&P/TSX composite index <.GSPTSE> on the Toronto Stock Exchange. Now the economic signals are not good and the market lethargy has arrived.

Weak metals, oil drag Toronto index to steep loss

TORONTO (Reuters) - The Toronto Stock Exchange's main index plunged on Friday to its lowest level since March, capping off a losing week as resource stocks fell on retreating oil and metal prices. The S&P/TSX composite index ended the session down 262.21 points, or 2 percent, at 13,096.70. For the week, the index dropped 1.8 percent.

June factory sales stronger than expected

OTTAWA (Reuters) - Higher prices for petroleum products and other goods boosted Canadian manufacturing sales by a stronger-than-expected 2.1 percent in June from May, Statistics Canada said on Friday. In volume terms, factory sales climbed just 0.6 percent in the month. Prices rose sharply in the month for petroleum and coal, chemical products, wood products and motor vehicles, Statscan said.

Cameco stock drops as mine delay, prices stir worry

TORONTO (Reuters) - Shares of Cameco Corp fell more than 7 percent on Friday, as analysts slashed price targets for the company's shares on worries of weaker realized uranium prices and news of additional flooding at Cameco's Cigar Lake uranium project in Saskatchewan. UBS analyst Brian MacArthur cut his 12-month price target for the company's shares to C$41 from C$48, citing the higher risks of bringing Cigar Lake to production.

Oil falls below $114 on global demand worries

NEW YORK (Reuters) - Oil prices fell below $114 a barrel on Friday on growing concerns about demand in industrial nations and the stronger dollar. U.S. crude settled down $1.24 at $113.77 a barrel, after dipping to $111.34, the lowest level since May 2. London Brent lost $1.13 to settle at $112.55 a barrel.

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