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Reuters Canada Business Summary

08/09/08

Fannie, Freddie bailout greeted with joy and anxiety

NEW YORK (Reuters) - Wall Street greeted the U.S. government's seizure of mortgage giants Fannie Mae and Freddie Mac on Monday, hoping it would provide at least temporary respite from the troubles plaguing housing and credit markets. However, many analysts said the bailout of the United States' two biggest mortgage finance companies, which could be the costliest ever, was a symptom of the dismal state of capital markets more than a year into the crisis.

RIM shares fall as smartphone market seen slowing

TORONTO (Reuters) - Shares of Research In Motion tumbled to a nearly two-month low on Monday, following a report that said the global smartphone market is being hurt by the slowing economy. Research firm Gartner said on Monday that global smartphone sales growth fell by almost half in the second quarter compared with the first, as the slowing economy hurt the market.

Manulife investment officer to take on role of CEO

TORONTO (Reuters) - Manulife Financial said on Monday Donald Guloien, its chief investment officer, will become president and chief executive of the insurance company when Dominic D'Alessandro retires in May 2009. Guloien, currently a senior executive vice president, has worked at Manulife for 28 years and will assume the top job on May 7.

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.

Devon to start phase 2 of Alberta oil sands project

CALGARY, Alberta (Reuters) - Devon Energy Corp is embarking on the second phase of its steam-driven Alberta oil sands project, an expansion aimed at doubling the output in four years, the U.S. oil independent said on Monday. Devon said it won regulatory approval for phase two of the Jackfish project, which will add 35,000 barrels a day of production of tar-like bitumen by 2012. It will start construction immediately.

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.

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