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Reuters Canada Business Summary

08/09/08

Fannie, Freddie bailout greeted with joy, trepidation

NEW YORK (Reuters) - Wall Street greeted the U.S. government's seizure of mortgage giants Fannie Mae and Freddie Mac with a sigh of relief on Monday, hoping it would provide some relief to ongoing crises in housing and credit markets. However, many analysts said the bailout of the United States' two biggest mortgage finance companies, which could be the government's costliest ever, was a symptom of the dismal state the credit markets still were in after a year of crisis.

Toronto stocks retreat as resources drag

TORONTO (Reuters) - The Toronto Stock Exchange's main index was lower at midday on Monday, retreating from a big early gain as faltering resource and tech shares overshadowed earlier enthusiasm over the mortgage bailout plan in the United States. The heavyweight materials and energy sectors led the way down as worries over demand for commodities in the face of slowing global growth hampered resource shares.

RIM the big winner in smartphone market: Gartner

HELSINKI (Reuters) - Blackberry maker RIM was the biggest winner in a slowing smartphone market in the second quarter, roughly doubling its market share from a year ago to 17.4 percent, research firm Gartner said on Monday. The market was still dominated by Finland's Nokia Oyj , which sold 15.3 million phones with capabilities like e-mail and navigation, giving it a 47.5 percent share. But this was down from 50.8 percent a year ago as competition intensified in the consumer smartphone market.

Canadian dollar rises on renewed appetite for risk

TORONTO (Reuters) - The Canadian dollar rose versus the U.S. dollar on Monday given higher oil prices, unexpectedly strong domestic data and more appetite for risk after news that the U.S. government took control Fannie Mae and Freddie Mac. Domestic bond prices were lower right across the curve as news over the weekend of the bailout plan for the battered U.S. mortgage giants sapped investor demand for more secure assets like government debt.

Sentry Select buys hedge fund Waterfall Investments

TORONTO (Reuters) - Canada's Sentry Select Capital Corp said on Monday it has acquired hedge fund manager Waterfall Investments Inc through a subsidiary it created with C.A. Bancorp . Sentry did not disclose the financial terms of the deal.

Verenex Energy to review strategic alternatives

CALGARY, Alberta (Reuters) - Verenex Energy Inc , a Canadian oil and gas explorer operating in Libya, could soon be sold as the company on Monday launched a strategic review to boost its share price. The company, which in July announced a big oil find on its properties on Area 47 in Libya's Ghadames Basin, has not yet settled on a sale of the company. But finding a buyer may be the result of the strategic review.

Eni to buy First Calgary in C$923 million deal

MILAN (Reuters) - Italy's Eni SpA has agreed to buy Canada's First Calgary Petroleums Ltd in a cash deal worth C$923 million ($865 million), the latest in a series of acquisitions aimed at boosting its oil and gas reserves. "The transaction is in line with our strategy of increasing our presence in our core countries, acquiring high potential assets," Eni Chief Executive Paolo Scaroni said in a statement on Monday.

Sherritt says Cuban ops little affected by Ike

TORONTO (Reuters) - Sherritt International said on Monday that it was business as usual at all of its Cuban operations after Hurricane Ike ripped through the island. The Canadian company, which has extensive metals, coal and oil operations in Cuba, said it was still assessing what effect the hurricane, classified as Category 2 strength with winds near 100 miles an hour, has had on its operations.

Oil falls to five-month low as dollar strengthens

LONDON (Reuters) - Oil fell on Monday as part of a broad selloff in the commodities markets after the U.S. government's takeover of mortgage financiers Fannie Mae and Freddie Mac fueled a run up in the U.S. dollar. Dealers said the greenback's gains overshadowed a new hurricane threat heading for the U.S. Gulf of Mexico, home to a quarter of U.S. crude oil production and 15 percent of its natural gas output.

Shermag's creditor protection extended

TORONTO (Reuters) - Canadian furniture maker Shermag Inc said on Monday that a Quebec court has extended its creditor protection status to allow it to develop a plan of arrangement to propose to its creditors. The Sherbrooke, Quebec-based company has been under court protection since May. The new order extends the stay of proceedings against Shermag and its subsidiaries until December 10.

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