News from Reuters

Reuters Canada Business Summary

09/09/08

Housing starts bounce back in August

TORONTO (Reuters) - Housing starts in Canada rose more than expected in August after cooling earlier in the summer, according to figures released by Canada Mortgage and Housing Corp. on Tuesday. Housing starts rose 13 percent in August to a seasonally adjusted annualized rate of 211,000 units from 186,500 units in July, the government-owned corporation reported. That beat the consensus expectation of analysts calling for 195,000 starts.

Manulife to enter Japan mutual fund market

TOKYO (Reuters) - Manulife Financial Corp North America's No. 2 life insurer, said it would enter the Japanese mutual fund business next month to tap the country's $14 trillion in household assets. Manulife executives told an investor conference in Tokyo that it had obtained a license for investment trusts, which are similar to mutual funds, and planned to launch global asset allocation products in October.

Toronto stocks tumble on resource demand fears

TORONTO (Reuters) - The Toronto Stock Exchange's main index closed at its lowest level in more than seven months on Monday after early enthusiasm over the U.S. mortgage bailout plan fizzled as worries over slowing growth weighed on resource and tech shares. After jumping more than 2 percent early in the session, the heavyweight energy and materials sectors led the downside as worries resurfaced over how demand for commodities will fare in the face of sluggish global growth.

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.

Fannie, Freddie bailout greeted with cautious optimism

NEW YORK (Reuters) - U.S. mortgage rates fell on Monday after the government seized control of Fannie Mae and Freddie Mac, raising hopes the plan would provide at least temporary respite from troubles in housing and credit markets. Stock prices rallied around the world as investors felt that federal backing could stem some of the pain that has crippled the financial system for over a year.

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.

Barrick Gold sells $1.25 billion debt in three parts: IFR

NEW YORK (Reuters) - Toronto-based miner Barrick Gold Corp on Monday sold $1.25 billion in a three-part debt deal, said International Financing Review. The deal consisted of $500 million five-year notes, sold through its Barrick Gold Financeco unit, which was priced at 99.979 to yield 3.15 percentage points more than comparable U.S. Treasuries.

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 slides against rallying greenback

TORONTO (Reuters) - The Canadian dollar dipped against the U.S. dollar on Monday as renewed confidence in the U.S. financial sector following the U.S. government's takeover of the two biggest U.S. mortgage finance companies convinced investors to buy the greenback. Canadian bond prices were mixed as investors considered the implications of the bailout of Freddie Mac and Fannie Mae .

Devon starts phase 2 of Alberta oil sands project

CALGARY, Alberta (Reuters) - Devon Energy Corp is embarking on the second phase of its Alberta oil sands project, a $1-billion-plus expansion aimed at doubling output in four years, the U.S. oil independent said on Monday. Devon said it won regulatory approval for phase two of the steam-driven Jackfish project, which will add 35,000 barrels a day of production of tar-like bitumen by 2012. It will start construction immediately.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.