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Reuters Canada Business Summary

22/08/08

Fed cuts growth forecast due to global woes

OTTAWA/TORONTO (Reuters) - Canada's government has slashed its forecast for economic growth in 2008 to 1.1 percent from 1.7 percent, citing global economic woes it said were beyond its control. "We are feeling the impacts of global economic factors beyond the control of any one individual or government," Finance Minister Jim Flaherty said in his department's fiscal update on Friday, which also noted that Ottawa returned to a budget surplus in June.

Buffett says has no "buy order" on oil sands firms

CALGARY, Alberta (Reuters) - Warren Buffett toured Canada's oil sands with his friend Bill Gates this week to understand how the resources are developed, but the billionaire investor said on Friday he had no plan to buy into the sector. In an interview on CNBC television, Buffett said he and the Microsoft co-founder discussed their interest in the oil sands a few months ago, and agreed they would get a better education with a first-hand look than just reading about it.

Derivatives flagged as Canadian regulatory issue

TORONTO (Reuters) - A large institutional investor and Canada's central bank suggest that Canadian securities rules may need to be broadened to deal with derivative instruments. In submissions to an advisory panel on securities regulation, the Ontario Teachers' Pension Plan, which manages more than C$100 billion in assets, and the Bank of Canada each lauded the new Derivatives Act in the province of Quebec, which was passed in June.

Oil falls 5.4 percent in biggest drop since 2004

NEW YORK (Reuters) - Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand. A rebound in the U.S. dollar encouraged the sell-off, applying downward pressure across the commodities markets by weakening the purchasing power of buyers using other currencies, dealers said.

RBC seeking ARS deal with U.S. regulators: report

TORONTO (Reuters) - Royal Bank of Canada is in settlement talks with U.S. regulators over its role in the troubled U.S. auction-rate securities market, the Globe and Mail newspaper said on Friday. The move may result in the bank buying back some of the investments from retail clients, the paper said.

Toronto stocks sag on commodities, financials rise

TORONTO (Reuters) - Toronto stocks finished a strong week on a losing note on Friday, retreating on the back of sagging oil and metals prices, with losses partly offset by stronger financial issues. The S&P/TSX composite index <.GSPTSE> fell 75.44 points, or 0.56 percent, to unofficially close at 13,463.78.

CI Financial says has talked to many parties

TORONTO (Reuters) - CI Financial Income Fund said on Friday that it has talked with "a number of parties" about possible strategic combinations involving CI and its subsidiaries, but said there is no certainty a deal will occur. The Toronto-based firm, one of Canada's largest independent fund managers, issued the statement after a newspaper report said Bank of Nova Scotia might sell its mutual fund division to CI in exchange for a large stake in the fund manager.

Harvest looks huge, but quality unclear

WINNIPEG, Manitoba (Reuters) - Canadian farmers are poised to harvest about 27 percent more wheat this year and a record crop of canola, Statistics Canada said Friday in its first estimate of 2008 grain production. But farmers and traders are anxiously watching to see how weather affects the quality of harvest, which has just begun in the Prairie grain belt, one of the world's largest grain-exporting regions.

Automakers seek Fed loans to ride downturn: report

DETROIT (Reuters) - The Big 3 Detroit-based automakers are seeking about $25 billion in federal loans as they struggle to ride out a steep downturn in U.S. auto sales, The Wall Street Journal reported on Friday. Lobbyists for the U.S. automakers -- General Motors Corp , Ford Motor Co and Chrysler LLC -- briefed White House officials, as well as U.S. Rep. John Dingell and other Michigan Democrats, on a possible bailout and plan to unveil the proposal after Labor Day, according to the report.

Canada dollar falls as oil prices ease, bonds drop

TORONTO (Reuters) - The Canadian dollar ended lower against the U.S. dollar on Friday, given a weaker commodity price backdrop, but the big gains it made on Thursday were enough to allow it to close higher for the week. Domestic bond prices, with no economic data to trigger a move, finished lower across the curve alongside the bigger U.S. Treasury market as U.S. stocks rose sharply.

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