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Reuters Canada Business Summary

19/08/08

Strong auto sales boosts June wholesale trade

OTTAWA (Reuters) - A surge in auto sales helped Canadian wholesale trade rise by 2.0 percent in June -- the largest margin since February -- and beat market expectations, according to Statistics Canada data on Tuesday. Automotive sector sales rose 10.6 percent from May and helped give a 4.2 percent boost to the struggling manufacturing province of Ontario.

Ford Canada CEO leaving after just six months

TORONTO (Reuters) - Ford Motor Co of Canada said on Tuesday it will appoint a new chief executive to replace Barry Engle, who is leaving the company effective Sept 8, after just six months in the job. Engle, who has served in a variety of positions at Ford in the United States, Mexico, Japan, Brazil and Canada, is leaving to become president and CEO of New Holland Agricultural Equipment SpA, a unit of CNH Global NV , and will be based in his native Pennsylvania.

Toronto stocks falter as banks eclipse resources

TORONTO (Reuters) - The Toronto Stock Exchange's main index sagged on Tuesday, pressured by festering worries over the credit crisis and the U.S. economic outlook, which offset a rally in commodities. The financial sector led the way down, dragged under along with U.S. bank stocks after a forecast that U.S. investment bank Lehman Brothers will take a further $4 billion in writedowns in the third quarter.

Russian-Canadian energy deals possibly at risk

OTTAWA (Reuters) - Canadian Prime Minister Stephen Harper allowed on Tuesday for the possibility of commercial natural gas deals with Russia being put at risk by Russia's military actions in neighboring Georgia. Asked at a news conference if such deals could be at risk, Harper said: "We're examining obviously all aspects of our relationship. We're obviously focusing on aspects that have to with the strategic and military situation, but we will of course review everything."

Ex-hedge fund manager ordered to pay $300 million

BOSTON (Reuters) - A former hedge fund manager was ordered to pay nearly $300 million for having cheated clients by sending out fake account statements, the Commodity Futures Trading Commission said on Tuesday. Paul Eustace, the founder of Philadelphia Alternative Asset Management Company, must return more than $279 million to clients and pay about $12 million in civil penalties, the regulator said.

Canadian dollar rises as greenback slumps

TORONTO (Reuters) - The Canadian dollar rose against the U.S. dollar on Tuesday as the greenback weakened due to market doubts that the U.S. Federal Reserve would be able to raise interest rates to control inflation because higher rates might amplify the country's economic woes. Canadian bond prices fell on firm Canadian wholesale trade data and a higher than expected U.S. inflation report.

Shell gets Canadian approval for Duvernay purchase

CALGARY, Alberta (Reuters) - Royal Dutch Shell plc said on Tuesday the Canadian government had approved its planned C$5.9 billion ($5.6 billion) acquisition of unconventional gas producer Duvernay Oil Corp . Shell said the minister of industry and the Competition Bureau had approved the transaction, clearing the way for the purchase.

Newfoundland, Chevron to ink Hebron deal Wednesday

CALGARY, Alberta (Reuters) - Chevron Corp will sign a deal with Newfoundland on Wednesday to develop the long-delayed Hebron oil field in the North Atlantic, the Canadian province's fourth offshore producing project. The local oil service industry, which has been anxiously awaiting Hebron's start since the project was rekindled more than a year ago, is watching closely for any changes to development plans that might result from the inflation that has plagued the industry.

Potash strike could nip some sales, boost prices

WINNIPEG, Manitoba (Reuters) - A strike at three Canadian potash mines owned by Potash Corp of Saskatchewan could affect shipments to industrial customers, which account for about 5 percent of the company's sales, a Potash Corp spokesman said on Tuesday. But it is too early to tell how the strike by about 500 mine workers, members of the United Steelworkers union, will affect the mainstay fertilizer business of Potash Corp, the world's largest fertilizer company, spokesman Bill Johnson said in an interview.

Canada ABCP holder to seek Supreme Court appeal

TORONTO (Reuters) - A mining company that owns asset-backed commercial paper plans to ask the Supreme Court of Canada to hear its objections to a plan to restructure Canada's asset-backed commercial paper market, which was worth C$32 billion ($30.2 billion) before trading stalled last summer. Howard Shapray, a lawyer who represents Ivanhoe Mines , told Reuters on Tuesday that his client has given the go-ahead for him to pursue an appeal of an Ontario court decision, released on Monday, that supported the restructuring plan.

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