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Reuters Canada Business Summary

10/09/08

Lehman plans asset sales after record $4 billion loss

NEW YORK (Reuters) - Lehman Brothers sought to restore investor confidence with plans to sell a majority stake in its asset management unit and spin off commercial real estate, but investors questioned its future after a record $3.93 billion quarterly loss. Shares of Wall Street's fourth-largest investment bank failed to rebound on Wednesday, a day after tumbling 45 percent, reflecting disappointment that Lehman Brothers Holdings Inc did not announce concrete asset sales. Lehman will slash its annual dividend, and said it would consider offers to buy the entire company.

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.

Stocks rise on bargain-hunting, OPEC

TORONTO (Reuters) - The Toronto Stock Exchange's main index rose on Wednesday, led by strength in oil shares after a surprise decision by OPEC to cut production and by bargain-hunting after a near 4-percent selloff on Tuesday. The heavyweight energy sector was up 2.2 percent following the decision by the Organization of the Petroleum Exporting Countries to cut production by half a million barrels a day. Oil prices slipped, however, on slowing demand and as fears over Hurricane Ike receded.

Manulife's Canadian bank 'contributing strongly'

TORONTO (Reuters) - Manulife Bank of Canada, a growing unit of international life insurer Manulife Financial , has started "contributing strongly" to the Canadian division's bottom line, the head of the division said on Wednesday. The branchless chartered bank, established in 1993, is becoming more significant as loan volumes grow, Paul Rooney, president and chief executive of Manulife Canada, told a financial services conference.

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.

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.

Gold could hit $1,500 in 2 years-Goldcorp CEO

TORONTO (Reuters) - Goldcorp's chief executive said on Wednesday gold prices should rebound soon, and could nearly double to $1,500 an ounce over the next two years. "We're going to see gold over $1000, I like to say $1500 gold over the next 18-24 month period," Kevin McArthur, CEO of the Canadian gold senior, said at the Denver Gold Forum. Spot gold was at $763 on Wednesday.

Ur-Energy delays Lost Creek launch, shares fall

TORONTO (Reuters) -Shares of Ur-Energy fell as much as 25 percent on Wednesday after the uranium miner said it was pushing back the production date for its Lost Creek project in Wyoming due to a delay in receiving a license from U.S. regulators. After meeting with officials from the U.S Nuclear Regulatory Commission (NRC), Ur-Energy said it now expects to receive the license in the fourth quarter of 2009. Previously, it had expected the license in the second quarter of 2009.

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.

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