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Reuters Canada Business Summary

22/08/08

Toronto stocks rise as commodities strengthen

TORONTO (Reuters) - The main index of the Toronto Stock Exchange finished about 1.4 percent higher on Thursday as energy and materials producers rallied on the back of stronger commodities. The price of U.S. crude hit $121.18 a barrel, up $5.62, driven by rising tensions between the United States and energy-rich Russia. In the oil patch, Petro-Canada climbed more than 3 percent to C$47.93.

Inflation at 5-year high, rates seen on hold

OTTAWA (Reuters) - Soaring gasoline prices drove Canada's inflation rate in July to its highest in more than five years, but the upswing was widely expected and did little to change the view that the central bank will keep interest rates on hold in September. The annual inflation rate quickened to 3.4 percent in July from 3.1 percent in June, the highest rate since March 2003, Statistics Canada said on Thursday.

Canadian dollar posts big gain as oil prices rally

TORONTO (Reuters) - The Canadian dollar rose well over 1 cent versus the U.S. dollar on Thursday as the price of oil surged and inflation data did not suggest a Bank of Canada interest rate cut on the horizon. Canadian bond prices closed lower across the curve as the slide in the bigger U.S. Treasury market influenced direction north of the border, while the inflation data was pushed aside.

Biovail names new CFO as it moves to turn page

TORONTO (Reuters) - Biovail Corp , Canada's biggest publicly traded drugmaker, named Peggy Mulligan its new chief financial officer on Thursday, the fifth person to hold that position in the past four years. Mulligan, who has extensive experience with several big Canadian companies and financial institutions, including Bank of Nova Scotia , will begin the job on September 3, the company said.

Oil firm at $121 on Russia tension, dollar dive

SINGAPORE (Reuters) - Oil prices held near $121 a barrel on Friday, a day after their biggest gain in 3 months, after a renewed slump in the U.S. dollar and mounting tension between the United States and Russia rekindled investor appetite. U.S. light crude for October delivery dipped 10 cents to $121.08 a barrel by 0222 GMT, after jumping nearly 5 percent on Thursday amid a broad-based rebound in commodities.

TMX Group CEO seeks to beef up equity derivatives

TORONTO (Reuters) - The new boss of Canada's main stock and derivatives markets wants to attract more traders to equity derivatives contracts and to develop an array of new products, including resource-based offerings. Thomas Kloet, who took the reins as chief executive of Canadian market operator TMX Group in July, told reporters on Thursday that he was not "terribly surprised" at a drop in trading volume at TMX's derivatives-focused Montreal Exchange.

Watchdog eases rules on telephone rates

OTTAWA (Reuters) - Canadian telephone companies will soon be allowed to change their phone rates without the need for prior regulatory approval, the country's telecom watchdog said on Thursday. Providers such as BCE Inc , Telus and Rogers Communications Inc will be able make immediate changes to their tariffs as of October 6, as long as the changes stay within previously imposed limits, the Canadian Radio-television and Telecommunications Commission said in a statement.

Nortel buys online voice technology firm DiamondWare

TORONTO (Reuters) - Nortel Networks Corp is buying a company that provides voice communications for online game platforms and virtual worlds, with view to applying the technology to corporate communication products. North America's biggest maker of telephone equipment said on Thursday it would pay about $7 million in cash for Arizona-based DiamondWare, whose technology has already been used in U.S. military communications.

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 sales, they jumped by a bigger-than-expected 1.4 percent.

Newfoundland sees new oil era as Hebron proceeds

CALGARY, Alberta (Reuters) - The Hebron oil field, Newfoundland's fourth offshore project, will start producing in the next eight to 10 years after Chevron Corp and its partners agreed to formal terms giving Newfoundland a share of the bounty. The deal to go ahead with the C$5 billion to C$7 billion ($4.7 billion to $6.6 billion) project caps years of talks -- and negotiation breakdowns -- over Newfoundland's desire to wrest bigger rewards from North Atlantic oil development.

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