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CA-BUSINESS Summary

07/07/09

TSX extends decline as energy, financials weigh

TORONTO (Reuters) - Toronto's main stock index dropped 1 percent on Tuesday morning, as declines in weighty energy and financial issues were underscored by nagging concerns about the global economic recovery and the falling price of oil. The S&P/TSX composite index <.GSPTSE> fell 100.67 points, or 1 percent, to 9,926.76. Nine of the index's 10 main groups were lower. Earlier, the index had risen as high as 10,078.56.

Fluor wins Kearl Oil Sands contract in Canada

TORONTO (Reuters) - Fluor Corp , the largest publicly traded U.S. engineering and construction company, said on Tuesday it won a contract to build infrastructure and facilities for the first phase of Imperial Oil's Kearl oil sands project in Alberta. Fluor said it will book about $1.5 billion in revenue this year, in connection with this project. The majority of this will be recognized in the second quarter of 2009.

BAIC bid for Opel puts China in focus

BERLIN (Reuters) - Chinese carmaker Beijing Automotive (BAIC) aims to outmaneuver Canada's Magna in the race for General Motors unit Opel with an offer that foresees less state aid and fewer job cuts. BAIC's non-binding offer document for Opel, which was obtained by Reuters on Tuesday, shows that the state-owned group would use the Germany-based carmaker to tap the huge and growing Chinese market.

Jean Coutu narrowly tops estimates

TORONTO (Reuters) - Canadian pharmacy chain Jean Coutu reported a first-quarter profit on Tuesday that narrowly topped estimates despite the poor performance of 30-percent-owned Rite Aid Corp in the United States. The Montreal-based chain said it earned C$10.3 million, or 4 Canadian cents a share, for the quarter that ended May 30, compared with a loss of C$20.2 million, or 8 Canadian cents a share for the same time last year.

Canada building permits surge in May

OTTAWA (Reuters) - The value of permits obtained by Canadian builders leapt 14.8 percent in May from April, far surpassing expectations on a comeback in both the housing and nonresidential sectors, Statistics Canada said on Tuesday. The permits, an early indicator of construction activity, surged to over C$5 billion ($4.3 billion) for the first time since last October, surprising market players who had forecast a 0.7 percent gain. Permits fell 4.5 percent in April.

Weyerhaeuser slashes quarterly dividend

TORONTO (Reuters) - U.S. timber and forest products company Weyerhaeuser Co cut its quarterly dividend by 80 percent on Tuesday as the outlook for its businesses continued to remain uncertain. Weyerhaeuser and its peers, which have been hit hard by the recession and the slump in the U.S. housing market, have permanently shuttered numerous mills, reduced operations at almost all sites, and cut job aggressively.

Oil falls below $63 on economy, weak gasoline

LONDON (Reuters) - Oil dipped below $63 a barrel on Tuesday, pressured by investors' caution over prospects for economic recovery and by an expected increase in U.S. gasoline stocks for the week when Americans traditionally drive the most. U.S. crude futures fell $1.17 to $62.88 a barrel by 1405 GMT, reversing an earlier gain to as high as $64.91. London Brent crude was 92 cents lower at $63.13.

Dollar rises as risk appetite improves

TORONTO (Reuters) - The Canadian dollar was a touch higher versus the U.S. currency on Tuesday morning, helped by a better appetite for risk as global equities rebounded after a meaty selloff in the prior session. At 7:40 a.m. EDT, the Canadian unit was at C$1.1562 to the U.S. dollar, or 86.49 U.S. cents, up from Monday's close of C$1.1591 to the U.S. dollar, or 86.27 U.S. cents.

Toyota says H1 China vehicle sales break even

SHANGHAI (Reuters) - Toyota Motor Corp <7203.T> said on Tuesday its vehicle sales in China in the first half of 2009 were roughly unchanged compared with a year earlier. Sales reached 284,000 units in the first six months of the year, the top Japanese automaker said in a statement on its Chinese website (www.toyota.com.cn), while sales in June were 57,000 units, up 33 percent year-on-year.

Osisko gets C$75 million financing for Malartic project

(Reuters) - Osisko Mining Corp on Tuesday said it closed an agreement in principle with the Societe generale de financement du Quebec (SGF) for a financing of C$75 million ($64.65 million) for development of its Malartic project in Quebec. The Canadian gold miner said financing will be structured as a senior non-guaranteed debenture, convertible at the discretion of the SGF into Osisko shares at a price of C$9.18 per share.

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