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Reuters Canada Business Summary

20/08/08

Retail sales signal slowdown, not recession

OTTAWA (Reuters) - The value of Canadian retail sales climbed 0.5 percent in June due to soaring gasoline prices, but in volume terms sales fell, indicating consumer spending is slowing but not enough to drag the economy into recession. Statistics Canada said on Wednesday that retail sales fell 0.4 percent on the month when the effect of rising prices were stripped out. Excluding auto and gasoline sales, they jumped by a bigger-than-expected 1.4 percent.

Chevron's Hebron field to start up in 8-10 years

CALGARY, Alberta (Reuters) - The Hebron oil field, Newfoundland's fourth offshore project, will start producing in the next eight to 10 years after the operator, Chevron Corp , and the Canadian province agreed to formal terms. Under the deal, the C$4 billion to C$6 billion ($3.8 billion to $5.7 billion) project will produce 150,000 barrels a day at its peak, the partners said on Wednesday at a signing ceremony in St. John's, Newfoundland.

Toronto stock index up 1.6 pct on oil's rise

TORONTO (Reuters) - The Toronto Stock Exchange's main index rose more than 200 points on Wednesday morning, paced by energy shares, which rose on stronger oil prices. The S&P/TSX composite index <.GSPTSE> was up 213.05 points, or 1.6 percent, at 13,276.90.

BAA must sell 3 airports, 2 in London

LONDON (Reuters) - Spain's Ferrovial must sell three of the seven British airports it bought for 10 billion pounds ($18 billion) two years ago under a tougher-than-expected ruling on Wednesday. Two must be in London -- meaning Heathrow, Gatwick or Stansted -- and one in Scotland, said the UK Competition Commission, which will decide which ones go early next year.

June leading indicator flat, housing falls

OTTAWA (Reuters) - Canada's composite leading indicator was unchanged in July as the sharpest drop in the housing index since June 2002 offset gains in most other components, Statistics Canada said on Wednesday. Analysts in a Reuters poll had forecast a 0.1 percent rise in the index after a flat reading in June.

Oil pares gain on big rise in U.S. inventories

LONDON (Reuters) - Oil traded near $115 a barrel on Wednesday, paring an earlier gain, after a U.S. government report showed crude oil inventories rose much more than expected in the world's largest consumer. Crude oil stocks rose 9.4 million barrels, far more than the 800,000 barrel increase analysts expected. Gasoline stocks fell by 6.2 million barrels, more than the forecast for a 2.7 million-barrel decline.

Canadian dollar gets boost from higher oil prices

TORONTO (Reuters) - The Canadian dollar rose against the U.S. dollar on Wednesday, strengthening overnight on higher oil prices, then falling off from its high for the day as June retail sales data showed a drop in sales volumes. Canadian bond prices were mixed, but mostly lower, as the data pointed to some domestic strength in the economy.

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.

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.

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