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CA-BUSINESS Summary

10/07/09

TSX falls as Potash Corp shares hit hard

TORONTO (Reuters) - Toronto's main stock index finished lower on Friday, but off session lows, as falling prices for oil and metals kept pressure on the resource-heavy index and shares of Potash Corp were hit hard by pricing reports. Potash Corp stock was the biggest drag on the index, down 8.9 percent at C$99.12, after fertilizer trade publications reported that India had settled some of its 2009 potash contract order with Russian producer Silvinit at a price sharply below market expectations.

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 pledging 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 to a new company majority-owned by the U.S. Treasury.

Chrysler to keep 3rd shift at Ontario plant

TORONTO (Reuters) - Chrysler has reversed a decision to cancel the third shift at its minivan plant in Windsor, Ontario, thanks to rising demand for the vehicles in the second half of the year, the company said on Friday. The Canadian Auto Workers union said the decision to retain the shift will save 1,200 direct jobs in the southwestern Ontario city, which has been hard hit by the recession and has the highest unemployment rate of any major Canadian center at around 14 percent.

No light at end of tunnel in Canada jobs, trade data

OTTAWA (Reuters) - Trade and employment data showed Canada still mired in recession at the middle of this year, and virtually guaranteed that the Bank of Canada would keep interest rates at rock bottom until mid-2010. Figures from Statistics Canada showed that fewer people lost their jobs in June than analysts had expected.

Harper says too early to unwind stimulus

L'AQUILA, Italy (Reuters) - Canada said on Friday it would not have to cut spending or raise taxes to end its budget deficit, but said countries with structural deficits will need to begin thinking about exit strategies. Speaking after a summit of the Group of Eight leading industrialized nations, Prime Minister Stephen Harper said it was too early to start cutting stimulus but this topic could figure prominently in next year's G8 summit in Canada.

Canwest loss grows, focus stays on debt

OTTAWA (Reuters) - Canwest Global Communications reported a bigger quarterly loss on Friday as the Canadian media company, struggling to stave off bankruptcy, was hit by a big writedown and declining revenue. Trying to stay afloat as it wrestles with a debt load of close to C$4 billion ($3.4 billion), the company said it is in default under terms of its credit facilities and continues work on a recapitalization plan.

CN says ready to meet with Teamsters, conciliators

OTTAWA (Reuters) - Canadian National Railway Co said on Friday that it is ready to meet with two conciliators, recently appointed by Ottawa, and the Teamsters union to discuss a labor deal. The federal minister of labor said it appointed Rejean Bercier and Jacques Lessard as conciliation officers on June 29 to resolve issues between the company and union, which represents 1,700 locomotive engineers.

India-Silvinit deal hits potash producers' shares

TORONTO (Reuters) - Shares of Potash Corp and its peers fell sharply on Friday after fertilizer trade publications reported that India has settled some of its 2009 potash contract order with Russian producer Silvinit at a price sharply below market expectations. India has agreed to buy 850,000 tonnes of potash from Silvinit at a delivered price of $460 a tonne, analysts said, citing reports in Fertecon and FMB. This is well below the $625 to $635 per tonne range that all other major producers had proposed.

Western Canadian Coal gets UK court OK to buy Cambrian

(Reuters) - Metallurgical coal producer Western Canadian Coal Corp said a UK court approved its acquisition of diversified mining company Cambrian Mining Plc . On May 20, Western Canadian said it agreed to acquire London-based Cambrian Mining in an all-stock deal valued at C$120 million ($103.2 million) to boost its coal assets.

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.

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