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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.

With good assets sold, "New GM" exits bankruptcy

DETROIT (Reuters) - A new General Motors emerged from bankruptcy protection on Friday, far more quickly than most industry watchers had expected, as a leaner automaker aiming to win back American consumers and pay back taxpayers. A whirlwind 40-day bankruptcy for GM concluded with the closing of a deal that sold key operations and core brands, including Chevrolet and Cadillac, to a new company that will be majority owned by the U.S. Treasury.

TSX may open lower on weak commodities

TORONTO (Reuters) - Toronto's main stock market index could open lower on Friday, as weaker commodity prices, including oil, weigh on the resource-heavy market. Uncertainty on company earnings and economic recovery prospects hobbled global markets.

Canada posts record trade deficit in May

OTTAWA (Reuters) - Plummeting energy and autos exports pushed Canada into its largest trade deficit ever in May at C$1.42 billion ($1.22 billion), up from a deficit of C$389 million in April, Statistics Canada said on Friday. The trade gap was far wider than analysts' expectations of a C$500 million deficit and the biggest, in current dollars, since Statscan began collecting the data in 1971.

Loonie lower despite brief boost from jobs data

TORONTO (Reuters) - The Canadian dollar was lower versus the U.S. currency on Friday as early gains made after a domestic jobs report beat expectations were handed back as a closer look at details of the report revealed weakness. Canada's currency rallied as high as C$1.1615 to the U.S. dollar, or 86.09 U.S. cents, after data showed fewer Canadians lost their jobs in June than expected.

Corel swings to Q2 net loss

(Reuters) - Corel Corp , which makes graphics, digital media and office software, swung to a second-quarter net loss as product revenue sank 27 percent. The Ottawa-based company said it lost $4.1 million, or 16 cents a share, in the period ended May 31. That compares with a net income of $930,000, or 4 cents per share, a year ago. Revenue fell 25 percent to $50.4 million, dragged by product revenue that dropped to $44.3 million.

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.

Oil rebounds, snaps six-day losing streak

LONDON (Reuters) - Oil rose by more than $1 on Thursday to trade above $61 a barrel, halting a six-session losing streak which has seen prices decline by 15 percent on concerns about the timing of any economic recovery. Prices hit a seven-week low just above $60 a barrel the previous day on bearish U.S. oil data, which highlighted how weak demand is in the world's largest energy consumer.

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.

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.

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