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Reuters Canada Business Summary

10/09/08

Lehman plans sales, posts $4 billion quarterly loss

NEW YORK (Reuters) - Lehman Brothers Holdings Inc plans to sell a majority stake in its asset management unit and spin off commercial real estate holdings, hoping to restore investor confidence and ensure its survival after reporting a record quarterly loss of about $4 billion. Shares failed to rebound on Wednesday morning after plunging 45 percent a day earlier, reflecting Wall Street disappointment that Lehman did not announce more concrete actions.

Ford cuts 500 more Ontario jobs U.S. sales slide

TORONTO (Reuters) - Ford Canada said on Wednesday it will cut another 500 jobs at its Oakville, Ontario, assembly plant as U.S. sales continue to deteriorate. Ford will scrap the third shift in the paint and body areas of the plant, where it makes the Ford Edge, the Lincoln MKX and the Ford Flex.

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.

Canadian bank shares look more appealing: Dundee

TORONTO (Reuters) - Shares of Canadian banks are oversold and now would be a good time load up on the stocks even though bank earnings may remain under pressure through 2009, Dundee Capital Markets said on Wednesday. Following a fall in bank share prices over the past year, Dundee analyst John Aiken views most of them as oversold on a relative basis and expects them to continue to outperform the market as they have in recent weeks.

Viterra profit, sales surge with commodity tide

WINNIPEG, Manitoba (Reuters) - Viterra Inc profit rose 69 percent in the quarter ended July 31 on strong fertilizer and chemical sales amid the commodity boom, Canada's largest grain handler said on Wednesday. Viterra, formerly known as Saskatchewan Wheat Pool, earned C$166.7 million ($155.8 million), or 71 Canadian cents a share, up from C$98.5 million, or 58 Canadian cents a share, in the equivalent quarter of 2007, when it acquired rival Agricore United for C$1.8 billion.

Productivity sags amid slowdown

OTTAWA (Reuters) - Canada's labor productivity has fallen for a third straight quarter, the longest decline since 1990, and a track record that analysts said shows businesses are on unsteady footing as the economy flirts with recession. Productivity, measured as the amount produced by a worker per hour, fell 0.2 percent in the second quarter after declining 0.6 percent in each of the previous two quarters, Statistics Canada said on Wednesday.

World stocks hit lowest since July 2006

LONDON (Reuters) - World stocks fell to their lowest level in more than two years on Wednesday as concerns about the financial sector and the global economy sapped investor appetite for risky assets. MSCI main world equity index fell 0.6 percent to 313.76 <.MIWD00000PUS>, its lowest since July 2006.

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.

RIM launches first BlackBerry flip phone

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.

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