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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.

CI mulls Blackmont swap for Canaccord stake: report

TORONTO (Reuters) - Mutual fund manager CI Financial Income Fund is in preliminary talks to sell investment banking unit Blackmont Capital Inc to Canaccord Capital Inc in exchange for a minority stake in Canaccord, the Globe and Mail newspaper said on Tuesday. Sources close to all three firms said CI Financial is considering trading its full ownership of Blackmont's 180-stockbroker sales force for up to a 20 percent stake in the Vancouver-based investment dealer, which would end up with more than 600 investment advisers, the newspaper said.

Harper promises to halve diesel excise tax

WINNIPEG, Manitoba (Reuters) - Prime Minister Stephen Harper promised on Tuesday to cut the federal excise tax on diesel fuel in half to 2 Canadian cents per liter (7 U.S. cents per U.S. gallon). In a campaign stop in Winnipeg, Harper said his plan would cost the government about C$600 million a year.

Canadian bank CEOs laud U.S. Fannie, Freddie steps

TORONTO (Reuters) - U.S. government action to take control of mortgage giants Fannie Mae and Freddie Mac represents an important step in the "stability process" in U.S. real estate and financial markets, Royal Bank of Canada Chief Executive Officer Gord Nixon said. Nixon said there are still issues to be resolved but commended the actions that were taken in the past couple of days.

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 open lower as resources weigh

TORONTO (Reuters) - The Toronto Stock Exchange's main index opened lower on Tuesday, as worries over slowing growth hit resource stocks, offsetting a rise in financial issues which climbed on the lingering euphoria from the U.S. bailout plan. Shortly after the open, the S&P/TSX composite index <.GSPTSE> was down 50.63 points, or 0.4 percent, at 12,584.01, with eight of its 10 main groups lower.

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.

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