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Reuters Canada Business Summary

03/09/08

Canada to invest up to C$80 mln in Ford facilities

TORONTO (Reuters) - Canada will offer in Ford Canada up to C$80 million ($75 million) over five years to help build facilities that could "create or sustain" some 750 jobs in Windsor, Ontario, Industry Minister Jim Prentice said on Wednesday. The funding will help Ford carry through plans to reconfigure its Essex engine plant in Windsor into a new flexible engine assembly plant.

Toronto stocks take another big hit from resources

TORONTO (Reuters) - The Toronto Stock Exchange's main index slumped for a second day in a row on Wednesday, as concerns about falling demand for commodities dragged down resource issues. Gains in the financial sector -- the only group to end higher -- pulled the index back from session lows as investors moved money out of commodity-related companies and into banks. Among the gainers, Bank of Montreal rose 2.7 percent to C$47.35.

Auto sales fall 7.2 percent in August

TORONTO (Reuters) - Canadians bought fewer vehicles in August amid higher gasoline prices and a slowing economy, though import namebrands, which have traditionally focused on smaller, more fuel efficient vehicles, fared much better than the Detroit-based "Big Three." Automakers sold 146,978 vehicles overall in Canada in August, down 7.2 percent year-over-year, industry figures showed on Wednesday.

Kinross seen winning Aurelian with C$890 mln bid

TORONTO (Reuters) - Kinross Gold looks set to triumph in its C$890 million ($840 million) bid for Aurelian Resources , although the takeover is by no means a done deal because of concerns a new Ecuadorean mining law could hurt the value of Aurelian's Fruta del Norte gold deposit. Kinross announced the friendly offer in July, drawing speculation about rival bids, concerns that Kinross had overpaid and complaints posted on retail investor blogs that Aurelian was selling out at a fraction of its true worth.

Employment seen rebounding in August

OTTAWA (Reuters) - Canada's labor market will recover modestly in August after posting the biggest job loss since the 1991 recession in July, even as factories continue to lay off workers, analysts said on Wednesday. "We're looking for job growth to return more or less to a pace consistent with historical trends," said Charmaine Buskas, senior economics strategist at TD Securities.

First Calgary says in sale talks after stock halted

CALGARY, Alberta (Reuters) - First Calgary Petroleums Ltd , a Canadian company developing natural gas properties in Algeria, said on Wednesday it is in talks with unnamed parties interested in buying all of the company or significant chunks of its assets. First Calgary, which earlier this year faced a shareholder revolt that was only quelled after its chief executive quit, said there's no assurance that the discussions will lead to a deal and said it won't make any further announcement on their progress.

Bank of Canada holds rates, sees risks to growth

OTTAWA (Reuters) - The Bank of Canada held its key interest rate steady on Wednesday and signaled it was in no hurry to cut rates any time soon, even as it warned that the U.S. economic outlook could worsen. "The bank judges that the current level of the target for the overnight rate remains appropriately accommodative," it said in a statement outlining its decision to keep the overnight rate at 3 percent.

Dollar rallies as BoC holds rates steady

TORONTO (Reuters) - The Canadian dollar reversed early losses to finish higher against the U.S. dollar on Wednesday, after the Bank of Canada held its key interest rate steady and gave no sign it would ease any time this year. Shorter-dated bonds fell after the bank's announcement, as the market began pricing out an expected rate cut.

Canada well-placed for eventual U.S. recovery: PM

OTTAWA (Reuters) - The decision by Canada's government to keep a balanced budget and cut taxes means the economy will be in a good position once the U.S. economy starts to recover, Prime Minister Stephen Harper said on Wednesday. "With that philosophy ... we will be able to overcome the current difficulties and we will be in a good position when the U.S. economy starts to grow once again," he told a televised news conference in Windsor.

Brick Brewing caps 'stubby' bottle battle

OTTAWA (Reuters) - A long-brewing bottle battle has been settled between Brick Brewing Co and Ontario's dominant beer retailer, allowing Brick to keep selling its Red Cap brand in "stubby" short-neck bottles. Brick said on Wednesday it reached a settlement just ahead of a September court date to hear its lawsuit over Brewers Retail Inc's objections to the use of the old-style bottles.

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