News from Reuters

CA-BUSINESS Summary

03/07/09

Teck to sell 17 percent stake to China for C$1.7 billion

TORONTO (Reuters) - Canada's Teck Resources said on Friday it will sell a 17.2 percent equity stake to state-owned China Investment Corp in a deal that will help Teck pay down debt while expanding China's portfolio of commodity investments. China, the No.1 importer of iron ore, copper and other commodities, has been steadily buying stakes in overseas commodity producers in a broad strategy aimed at securing supply for its burgeoning economy.

Lower taxes to lure firms to Canada: Flaherty

OTTAWA (Reuters) - Other companies are likely to follow Tim Hortons Inc in moving their corporate structures to Canada to take advantage of a falling corporate tax rate, Finance Minister Jim Flaherty said on Friday. The coffee shop chain said last month it applied with U.S. regulators to return to its Canadian corporate roots through a reorganization to benefit from lower taxes.

Canada, U.S. unemployment expected to rise

OTTAWA (Reuters) - The jobless rate in Canada and the United States will continue to rise, Finance Minister Jim Flaherty said on Friday. "The unemployment rate in the United States is well over 9 percent now and it's likely to go higher into 2010. We expect some continuing growth in unemployment in Canada as well. Recovery from the recession will happen before the reduction in unemployment," Flaherty told reporters on a conference call from Santiago, Chile.

China moves on Opel with BAIC bid

FRANKFURT/MUNICH (Reuters) - A Chinese automaker has offered to buy a stake in General Motors unit Opel, challenging a deal from Canadian auto parts supplier Magna, sources said on Friday. State-owned Beijing Automotive (BAIC) has submitted an indicative, non-binding offer for Germany's Opel, sources familiar with the situation told Reuters, and would make a binding offer by mid-July.

Medici lawyer says Kohn didn't get Madoff payments

NEW YORK/VIENNA (Reuters) - Austrian fund manager Sonja Kohn did not receive any kickbacks from Bernard Madoff to steer Bank Medici customer funds to the swindler's investment business, a Medici lawyer said on Friday. "There were no Madoff payments to Kohn. There were no kickbacks," lawyer Andreas Theiss told Reuters.

Teck helps lead TSX higher in quiet session

TORONTO (Reuters) - Toronto's main stock index rose on Friday morning, boosted in part by Teck Resources Ltd's equity sale to China Investment Corp. Teck said on Friday it will sell a 17.2 percent stake to state-owned CIC through a private placement that will raise C$1.74 billion ($1.5 billion).

Canada defends U.S.$ as global reserve currency

OTTAWA (Reuters) - The U.S. dollar as the global reserve currency of choice has been a stabilizing force during the current financial crisis, Canada said on Friday, downplaying calls to debate the greenback's dominant status. Canadian Finance Minister Jim Flaherty added his weight, at least for now, to Japan's opposition to a Chinese push for a new super-sovereign reserve currency that would displace the U.S. dollar.

Job security key issue in Air Canada labor talks

OTTAWA (Reuters) - Air Canada's biggest union may push for additional job security in labor talks with the debt-heavy airline and a federally appointed mediator on Friday, but it doesn't expect a quick resolution. Senior negotiators from the International Association of Machinists and Aerospace Workers, whose members narrowly rejected a 21-month deal with the carrier this week, are meeting with Canada's biggest airline and mediator James Farley, a union spokesman said.

Oil falls below $66 after bleak U.S. jobs data

LONDON (Reuters) - Oil dropped a dollar to below $66 a barrel on Friday after unemployment data hardened views economic weakness would sap energy demand and that last month's rally was overdone. In the latest sign the economy of the world's top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high. Euro zone unemployment climbed to a 10-year high.

World crisis puts Canadian bank mergers out of mind

TORONTO (Reuters) - The global financial crisis may have taken mergers among Canadian banks off the table once and for all as the breakdown of major financial institutions around the world has shown that bigger is not necessarily better. Canadian banks tried to merge in the late 1990s, arguing they needed to become global players, or risk becoming irrelevant.

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