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CA-BUSINESS Summary

08/07/09

TSX drops 1.9 percent, down for third day

TORONTO (Reuters) - Toronto's main stock index fell on Wednesday for a third straight session as lower commodity prices shook the resource-heavy market, while financials again dropped on doubts about global economic recovery. The S&P/TSX composite index <.GSPTSE> booked its third triple-digit decline in a row as hopes for a quick way out of recession faded fast. At one point, the index had shed more than 3 percent, hitting its lowest level in nine weeks.

Canada home resales revive as affordability up: RBC

TORONTO (Reuters) - The resale housing market in major Canadian cities is in the midst of revival following a winter freeze-up, with buyers attracted by increased affordability, a report by RBC Economics said on Wednesday. In its quarterly trends and affordability report, the economics unit of Royal Bank of Canada said aggressive economic measures taken by the federal government and softening home prices have helped increase affordability and that there are signs that the housing market has stabilized coast to coast.

TD Bank in talks to become primary dealer: source

NEW YORK (Reuters) - Canada's Toronto Dominion Bank is in talks with the U.S. Federal Reserve about becoming a primary dealer, a source at the bank said on Wednesday. If approved, TD Bank would be the second Canadian bank, following Royal Bank of Canada on Tuesday, to be added to the network of top institutions that deal directly with the Fed, the U.S. central bank.

Air Canada says still confident in lender talks

RICHMOND, British Columbia (Reuters) - Air Canada is finding some support from lenders as it struggles to solve its financial Rubik's Cube, the cash-strapped airline's chief executive said on Wednesday. Tight credit markets have complicated discussions with the lenders that Canada's largest airline has approached for short-term financing, Calin Rovinescu told reporters.

Magna co-CEO says on course to reach Opel deal: paper

FRANKFURT (Reuters) - Magna remains on track to reach a deal to buy GM's Opel but it cautioned that the timetable for a signing could be too ambitious, the head of Magna's European business said in a newspaper interview. "Every day without a decision is one when cash is burned. We are heading toward July 15 as a target corridor to present documents upon which a decision can be made," Co-Chief Executive Siegfried Wolf told the Rheinische Post in an interview to be published on Thursday.

Buffett lunch auction won by Canadian firm Salida

NEW YORK (Reuters) - A Canadian wealth management firm has won last month's charity auction of a steak lunch with Warren Buffett, in which it agreed to pay $1,680,300 (C$1.97 million) to dine with the world's second-richest person. Salida Capital Corp, a Toronto-based firm, was the top bidder in the five-day auction, which ended on June 26. The identity of the winner had previously been kept secret.

Loonie weakens as oil, Toronto equities slide

TORONTO (Reuters) - The Canadian dollar weakened and touched a seven-week low against the U.S. currency on Wednesday, pressured by sliding oil and equity prices as investors questioned the pace of economic growth. The currency peaked at C$1.1587 to the U.S. dollar and then fell to C$1.1720, its lowest level since May 18, as a selloff in the resource-heavy Toronto Stock Exchange composite index <.GSPTSE> intensified amid tumbling commodity prices. The stock index fell for a third straight session.

Viterra says ABB acquisition on track

(Reuters) - Canadian grain-handling company Viterra Inc said its acquisition of ABB Grains Ltd remains on track, a day after the Australian company cut its profit view hurt by lower demand. "Our offer was not based on one year of earnings, but rather the long-term cycle of earnings beginning in 2010 and beyond. The strategic rationale remains compelling," Viterra Chief Executive Mayo Schmidt said in a statement.

Manulife plans to keep building capital: CEO

TORONTO (Reuters) - Canada's top life insurer, Manulife Financial Corp , plans to keep building capital to shield it from volatile markets, and could use those reserves for expansion or acquisitions down the road. "I would anticipate that if we do end up in a position, which I would fully expect, down the road where we have excess capital, that we would be able to make use of that," Manulife President and Chief Executive Donald Guloien told analysts at a luncheon on Wednesday, hosted by Bank of Montreal .

Oil rebounds towards $61 after fall on bearish inventories

SINGAPORE (Reuters) - Oil rebounded toward $61 a barrel on Thursday, correcting from a seven-week low hit on bearish oil data that outlined continued weak demand amid growing concerns about the pace of economic recovery. A larger-than-expected rise of 3.7 million barrels in U.S. distillates stocks last week left them at close to a 25-year high, data from the Energy Information Administration (EIA) showed, underlining weak demand for industrial transportation fuels.

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