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Reuters Canada Business Summary

10/09/08

TSX pushes higher as resources gain

TORONTO (Reuters) - The Toronto Stock Exchange's main index roared 300.80 points higher on Wednesday, climbing back from its recent dive in a broad advance led by strength in the energy and materials sectors. The S&P/TSX composite index <.GSPTSE> was up 2.48 percent, at 12,447.56.

Harper wants inflation target extended

TORONTO (Reuters) - Prime Minister Stephen Harper believes the Bank of Canada should stick with its 2 percent inflation target when the current agreement expires in 2011. "I see no reason why we shouldn't continue with the general inflation targets that we've had for the last several years," Harper told reporters during a campaign stop in Toronto on Wednesday.

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.

Harper wants inflation target extended

TORONTO (Reuters) - Prime Minister Stephen Harper believes the Bank of Canada should stick with its 2 percent inflation target when the current agreement expires in 2011. "I see no reason why we shouldn't continue with the general inflation targets that we've had for the last several years," Harper told reporters during a campaign stop in Toronto on Wednesday.

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.

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.

CN will go to court over stalled railway deal

VANCOUVER, British Columbia (Reuters) - Canadian National Railway will ask a U.S. court to force regulators to rule quickly on its planned purchase of the Elgin, Joliet & Eastern Railroad, an executive said on Wednesday. The Surface Transportation Board designated the deal to be a "minor transaction" in November 2007 and CN wants a judge to order the regulators to follow the timetable they agreed to in making that ruling, Vice President Jim Foote 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.

Barrick to tackle costs with oil assets, new mines

TORONTO (Reuters) - Barrick Gold Corp hopes to hedge nearly one-third of its energy costs through acquisitions of oil and gas assets, and also expects to control costs through opening new low-cost mines, a company official said on Wednesday. Barrick, the world's largest gold producer, recently acquired Cadence Energy, and will soon close an offer for certain assets of Daylight Resources , which should provide the company with about 4,500 barrels of oil equivalent a day.

TD Ameritrade seeks new business from old clients

TORONTO (Reuters) - Getting more business from existing TD Ameritrade Holding Corp customers is a big part of the discount brokerage's growth strategy, but the company is also well positioned to make acquisitions, Ameritrade's incoming chief executive said on Wednesday. "We intend to continue to focus on growth through both means through this cycle," said Fred Tomczyk, president and chief operating officer.

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