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Reuters Canada Business Summary

10/09/08

Lehman plans sales, posts $3.9 billion quarterly loss

NEW YORK (Reuters) - Lehman Brothers Holdings Inc said it plans to sell a majority stake in its investment management unit and spin off commercial real estate assets, but failed to announce specific transactions and posted a third-quarter loss of $3.93 billion. Shares of Wall Street's fourth-largest investment bank gave up some of their overnight gains as investors expressed disappointment that Lehman, whose business model and outlook face wide scrutiny, did not announce more concrete actions.

Toronto stocks jump on resource rebound

TORONTO (Reuters) - The Toronto Stock Exchange's main index rose on Wednesday, snapping a nearly 4 percent percent rout in the previous session, led by strength in the energy sector as oil stabilized following a surprise decision by OPEC to cut production. Shortly after the open, the S&P/TSX composite index <.GSPTSE> was up 272.03 points, or 2.2 percent, at 12,418.79, with all 10 of its main groups higher.

Transat reports quarterly loss as high fuel hits

TORONTO (Reuters) - Transat AT Inc said on Wednesday it fell to a third-quarter loss as the holiday travel firm was hurt by rising fuel costs. The parent company of Air Transat lost C$2.4 million, or 7 Canadian cents a share, in the period ended July 31, down from a profit of C$16.1 million, or 47 Canadian cents a share in the same period last year.

Canada productivity extends slide in 2nd-quarter

OTTAWA (Reuters) - Canadian labor productivity declined 0.2 percent in the second quarter, marking the longest series of consecutive quarterly declines in productivity since 1990, Statistics Canada said on Wednesday. Productivity, measured as output per hour worked, had fallen by 0.6 percent in each of the previous two quarters, according to Statscan's revised data. That compares unfavorably with the U.S. record of increased productivity in the first two quarters of this year.

Disappointing Lehman results hit world stocks

LONDON (Reuters) - World stocks fell on Wednesday while safe-haven government bonds and the yen rose after U.S. investment bank Lehman Brothers disappointed investors with a bigger-than-expected quarterly loss. Lehman, a casualty of the credit crunch, posted a preliminary quarterly loss of $5.92 a share, compared with Reuters Estimates of a loss of $3.43.

CIBC World Markets cuts S&P/TSX year-end target

(Reuters) - CIBC World Markets lowered year-end target for the S&P/TSX composite index <.GSPTSE>, the Toronto Stock Exchange's main index, on soft global growth prospects and selling pressure on the markets. "With Europe in recession, and Japan and the U.S. economy in borderline status, world growth outlook is the weakest in years," CIBC World Markets chief economist Jeff Rubin said.

OPEC says to trim excess output and talk to Russia

VIENNA (Reuters) - OPEC on Wednesday deepened its links with major non-OPEC producer Russia and said it was cutting back output by around half a million barrels per day. Analysts said the group was seeking to support prices at around $100 after prices have plunged from a record of more than $147 in July to a five-month low below $102 on Tuesday.

Blackmont, Canaccord combination called off: report

TORONTO (Reuters) - Talks aimed at rolling CI Financial Income Fund's Blackmont Capital Inc into Canaccord Capital Inc were scuttled after the two sides could not agree on a price, the Globe and Mail newspaper said on Wednesday. The mutual fund manager was in preliminary talks over a deal that would have seen CI swap full control of Blackmont and its 180 brokers for a minority stake in Canaccord.

RIM launches first flip-phone BlackBerry

TORONTO (Reuters) - Research In Motion Ltd is launching a flip version of its popular BlackBerry Pearl smartphone, a move that reasserts its push into the retail consumer market. Like RIM's original Pearl model, the first-ever flip BlackBerry comes loaded with multimedia features such as a video and music player and a 2-megapixel camera with flash, as well as a Web browser and an abridged keyboard.

Canadian dollar gets boost from higher oil prices

TORONTO (Reuters) - The Canadian dollar rose slightly versus the U.S. dollar on Wednesday given a slight rebound in commodity prices and overseas stock market losses that were much lighter than in North America. Domestic bond prices, with no key domestic economic data to influence a move, were flat and clinging to slim gains on the short end of the curve following a quarterly loss reported by U.S. investment bank Lehman Brothers.

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