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CA-BUSINESS Summary

10/07/09

Canada job losses mild in June, factories hurting

OTTAWA (Reuters) - Fewer Canadians lost their jobs in June than expected even as the unemployment rate hit an 11-year high, adding credence to the view that the economy is no longer in freefall and that the worst of the recession may be over. Statistics Canada on Friday said net job losses in June totaled 7,400 and the unemployment rate rose to 8.6 percent from 8.4 percent in May -- the highest since February 1998.

Rising commodities help TSX snap three-day skid

TORONTO (Reuters)- Toronto's main stock index snapped a three-session skid on Thursday, finishing more than 1 percent higher as a rise in commodity prices gave a boost to the resource-heavy market. Forecast-beating results from U.S. bellwether Alcoa helped lift market sentiment early in the day, with the upbeat mood spreading to key commodity prices such as gold and oil.

Canada housing starts up for 2nd straight month

TORONTO (Reuters) - Canadian housing starts rose in June for a second consecutive month, adding further proof that the sector was on the mend after building activity fell to a nine-year low earlier this year. New home construction rose 8 percent last month to a seasonally adjusted rate of 140,700 units, beating average expectations of 130,000 starts, and encompassing both single and multiple segments, Canada Mortgage and Housing Corp said on Thursday.

Canada equities to rally over next 18 months: CIBC

TORONTO (Reuters) - Canadian households and businesses are still flush with cash and that extra capital will likely find its way into equity markets and help pull the country out of recession over the next 18 months, according to a report by CIBC World Markets on Thursday. The rapid growth in recent quarters of the M2 money supply -- a measure of cash outside banks as well as personal and other deposits -- suggests that stocks are probably set to rally higher, CIBC Chief Economist Avery Shenfeld said in a release.

"New GM" ready to exit bankruptcy

DETROIT (Reuters) - General Motors on Friday prepared to exit bankruptcy with the message that a leaner and meaner automaker ready to win back American consumers and pay back taxpayers has emerged from its failure. A whirlwind 40-day bankruptcy for GM was expected to conclude with the closing of a deal to sell key operations and core brands, including Chevrolet and Cadillac, to a new company that will be majority owned by the U.S. Treasury.

Canada vows to set new debt targets this year

OTTAWA (Reuters) - Canada still aims to reduce its debt-to-GDP ratio to 25 percent, Finance Minister Jim Flaherty said on Thursday, but he could not say how long it might take to reach that goal, which was abandoned during the recession. Before the global financial crisis, the Conservative government had pledged to reach the 25 percent target by 2011-12. But the budget in January of this year said the debt-to-GDP ratio would rise to about 32 percent in March 2011 from 29 percent and there was no reference at all to the 25 percent target.

Chevron says Q2 hit by U.S. refining, weak dollar

SAN FRANCISCO (Reuters) - Chevron Corp warned that second-quarter earnings would be hit by a sharp decline in U.S. refining margins and that any benefits from higher oil prices were largely offset by a weaker dollar, sending its shares down 1.8 percent. The outlook from the second-largest U.S. oil company only contributed to the gloom surrounding the country's refiners in the face of toughening regulation and a depressed fuel market.

Shell says may sell or shut Canadian refinery

CALGARY/LONDON (Reuters) - Royal Dutch Shell Plc said on Thursday it is conducting a strategic review of its Montreal East refinery, which may lead to a closure or sale as the industry struggles with weak profit margins. The Anglo-Dutch oil major will decide in the coming months the future of the 130,000 barrel per day crude processing facility, which could also result in its continued operation by Shell or conversion into a terminal, a spokesman said.

Loonie rises on firmer oil, risk aversion fades

TORONTO (Reuters) - The Canadian dollar climbed against the U.S. dollar on Thursday as higher commodity prices and a rebound in global equities helped ease investor aversion to risk, boosting currencies perceived to be riskier than the greenback. The rise in the Canadian dollar, which rallied as high as C$1.1547 to the U.S. dollar, or 86.60 U.S. cents, lifted it comfortably off the seven-week low it touched this week.

Oil below $60, set for biggest weekly fall since Jan

LONDON (Reuters) - Oil prices sank below $60 a barrel on Friday, poised for their biggest weekly fall since January, as traders focused on economic uncertainty. The latest report from the International Energy Agency predicted an increase in oil consumption in 2010, but expected it to stay negative in 2009 and saw limited demand for OPEC crude.

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