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Reuters Canada Business Summary

05/09/08

Job market rebounds ahead of election call

OTTAWA (Reuters) - Canada's job market rebounded slightly in August from heavy job losses in July, easing fears of a sharper than expected economic downturn on the eve of a federal election campaign to be announced this weekend. Employers resumed hiring last month, adding 15,200 to the payrolls on a full-time basis, mainly in the private sector, Statistics Canada said on Friday.

Toronto stocks make tiny gain as resources rise

TORONTO (Reuters) - The Toronto Stock Exchange's main index just managed to end on the plus side on Friday, following a sharp three-day losing streak, as gains by resource and consumer issues offset worries over the outlook for the global economy. Early on, the index had continued its week-long dive, giving up more than 2 percent after a U.S. labor market report fueled worries over the health of the economy of Canada's largest trading partner, with data showing the U.S. unemployment rate soared last month.

Banks see small improvements amid volatile markets

CALGARY, Alberta (Reuters) - Financial markets are still volatile and fragile, with investors fretting over rumors of major bank losses or large portfolios getting dumped onto the market, Josef Ackermann, chief executive of Deutsche Bank , said on Friday. But he and other bankers attending a business forum in Western Canada pointed to glimmers of improvement in some parts of the global business, which has been slammed by about $450 billion in credit-related writedowns.

HSBC's Green says Asian demand to spur inflation

CALGARY, Alberta (Reuters) - Rising demand for commodities and energy from rapidly growing Asian economies could mean inflation will become a long-term problem for central banks, Stephen Green, group chairman of HSBC Holdings Plc said on Friday. Green, who runs the world's second largest bank by market capitalization, said the rising clout of Asian economies will shift financial power from Wall Street and London, and support high prices for the commodities and energy needed for growing Asian economies.

Purchasing activity up, but at slower pace

TORONTO (Reuters) - Canadian purchasing activity rose at a slower pace in August, the Ivey Purchasing Managers Index showed on Friday, suggesting the country is feeling pressure from the U.S. economic slowdown. The index, a joint project of the Purchasing Management Association of Canada and the Richard Ivey School of Business, fell to 51.5 in August from 65.5 in July. That missed market expectations for a reading of 63.0.

Canada bank CEOs see more credit crisis uncertainty

CALGARY, Alberta (Reuters) - Fallout from the U.S. subprime mortgage crisis and subsequent credit crunch has left nagging regulatory uncertainties and will prompt big changes in global banking, Canadian bank executives said on Friday. The dramatic impact on the global banking system will include smaller balance sheets for investment banks, Royal Bank of Canada Chief Executive Gord Nixon said at a round-table discussion about the industry.

Tembec asks U.S. to recognize recapitalization

NEW YORK (Reuters) - A unit of Canadian forestry firm Tembec Inc filed for Chapter 15 bankruptcy protection in New York on Thursday as a procedural step to implement a debt restructuring already approved in Canada. Chapter 15 covers cross-border insolvencies and allows U.S. courts to recognize a foreign proceeding.

Oil falls $2 to 5-month low on economic gloom

LONDON (Reuters) - Oil prices fell to a fresh five-month low on Friday on flagging demand in the United States and other consumer nations, extending crude's losses to 8 percent this week. The market shrugged off continued production problems in the United States in the wake of Hurricane Gustav, which left some 23 percent of the nation's crude production and 6 percent of its refining idled and in slow recovery.

Air Canada, WestJet August load factors at record

CALGARY, Alberta (Reuters) - Canada's two biggest airlines said on Thursday they flew fuller planes last month, despite higher costs for passengers because of fuel surcharges. Air Canada and WestJet Airlines Ltd said their August load factors, a measure of how much available space is sold to passengers, rose to records for the month.

Zinc producer settles suit over Alaskan mine waste

ANCHORAGE, Alaska (Reuters) - Zinc producer Teck Cominco Ltd has agreed to pay up to $120 million for a wastewater pipeline to settle a lawsuit by Inupiat Eskimo villagers who claimed mine pollution was fouling their drinking water and the fish that are a staple of their diet. The settlement, terms of which were filed in U.S. District Court in Anchorage on Wednesday, ensures that waste from the Red Dog mine in Alaska will bypass the river that is the water and food source for residents of the village of Kivalina, said Luke Cole, the attorney representing the villagers.

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