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CA-BUSINESS Summary

06/01/09

TSX powers higher for 6th straight session

TORONTO (Reuters) - Toronto's main stock index finished higher on Tuesday for a sixth straight session on strength across its three biggest sectors -- energy, materials and financials. The S&P/TSX composite index <.GSPTSE> unofficially closed up 1.78 percent, or 165.18 points, at 9,450.69. Eight of the index's main 10 groups were higher, reflecting a broadening of investor interest in noncommodity sectors as economic stimulus plans supported sentiment.

Alcoa to slash 13,500 jobs and cut production

NEW YORK (Reuters) - Aluminum producer Alcoa Inc said on Tuesday it will curtail production and cut some 13,500 jobs, or 13 percent of its global work force, to save cash and reduce costs in the current economic downturn. The company said it was reducing its smelting output by 750,000 tonnes per year, which is approximately 18 percent of total primary aluminum output, and selling four non-core businesses.

Canadian base metal miners enjoy New Year rally

TORONTO (Reuters) - Several Canadian base metal miners hit multi-month highs on the Toronto Stock Exchange on Tuesday, as stronger prices and improving expectations for steel demand helped revive some hope for a sustained rebound in the hard-hit sector. With copper, zinc, and nickel prices surging ahead of an annual rebalancing by major commodity indexes, companies such as Teck Cominco , Quadra Mining and First Quantum Minerals are boasting gains of as much as 50 percent in the first trading days of the new year.

Rogers posts wireless growth, but iPhone, cable weak

TORONTO (Reuters) - Shares of telecom and media group Rogers Communications Inc fell almost 6 percent on Tuesday after the company posted slumping iPhone sales and flat postpaid wireless subscriber growth in the fourth quarter and said its cable results are being hurt by a tough economy. Rogers, which owns Canada's biggest wireless carrier, said it added 199,000 net wireless subscribers in the traditionally strong quarter ended December 31, up from 183,000 a year earlier.

Canada 2009 house sales seen falling, rebounding

TORONTO (Reuters) - Canadian home prices will slip and sales will slow in the first half of this year but may rebound in the second half, Royal LePage Real Estate Services said in its 2009 forecast on Tuesday. Royal LePage, Canada's biggest residential real estate agent, forecasts average house prices will ease 3 percent from last year to C$295,000 ($250,000). It sees the number of homes sold falling 3.5 percent to 416,000.

Budget to address credit access: minister

MONTREAL (Reuters) - Canada's upcoming budget will address the issue of access to credit and contain a clear plan for the country to eventually emerge from deficit financing, Finance Minister Jim Flaherty said on Tuesday. Flaherty, who warned that both domestic and international economic conditions continue to deteriorate, said Canada's Conservative government is also weighing further tax cuts as a way of stimulating the economy.

Oil dips below $49 on weak U.S. economic data

NEW YORK (Reuters) - Oil prices slipped below $49 a barrel on Tuesday as weak U.S. economic data triggered a bout of profit-taking, outweighing rising geopolitical tensions and OPEC production cuts that threaten to tighten supplies. U.S. crude for February delivery fell 23 cents to settle at $48.58 a barrel after reaching a high of $50.47 earlier in the day. London Brent settled at $50.53 a barrel, up 91 cents.

Canadian IPO market worst in at least 10 years: PwC

TORONTO (Reuters) - Last year was the weakest in a decade for Canadian initial public offerings, according to PricewaterhouseCoopers , with not even a single IPO on the Toronto Stock Exchange <.TSE> in the past six months. Canadian equity markets saw only 57 new issues in 2008, with just 10 registered on the TSX, PwC said in a report released on Tuesday. By comparison, there were 100 IPOs in 2007, with 36 on the TSX.

Canada firm abandons Mozambique gold mine project

MAPUTO (Reuters) - Canada's African Queen Mines Ltd has abandoned its plans to develop a mine at the historic Braganza gold deposit in Mozambique due to disappointing exploration results and the financial crisis. African Queen Mines said in a statement received on Tuesday that it plans to relinquish its rights to earn up to 75 percent interest in the Braganza gold mine project in Mozambique's Manica province to its joint venture partner, Bobcat Mining Ltd.

More talks scheduled in ports job dispute

VANCOUVER, British Columbia (Reuters) - Employers expect to respond on Friday to the union's latest contract offer in talks aimed at avoiding a strike or lockout of dock foremen at Canada's Pacific Coast ports. The threat of a work stoppage has hung over the ports since the beginning of the year, but the employers bargaining group remains cautiously optimistic a deal can be reached before any job action begins, a spokesman said on Tuesday.

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