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CA-BUSINESS Summary

29/07/09

TSX slides for second day as oil price tumbles

TORONTO (Reuters) - Toronto's main stock index fell for a second day in a row on Wednesday as oil and gold prices tumbled and U.S. data added to fears of a weak economic recovery. The energy sector, which accounts for about 22 percent of the TSX index, was the biggest drag, falling 2.77 percent after U.S. data showed an unexpected rise in crude inventories, which triggered the biggest slide in the price of oil since April.

Canada considers review of Ericsson-Nortel deal

OTTAWA (Reuters) - Canada will not make a decision on whether to review Nortel Networks' $1.13 billion sale of wireless assets to Sweden's Ericsson until after a 21-day appeal period is complete, Canadian Industry Minister Tony Clement said on Wednesday. "We have to first consider whether the Investment Canada Act applies, that's what we're reviewing right now," Clement told reporters in Ottawa.

Air Canada raises C$1 billion in fresh liquidity

TORONTO (Reuters) - Air Canada said on Wednesday it has raised C$1.02 billion ($936 million) in a series of transactions with its lenders and other stakeholders in a move that will likely help the carrier avoid its second bankruptcy filing in six years. The deals include a C$700 million credit facility that Air Canada negotiated with GE Canada Finance Holding Co , Export Development Canada, Aeroplan Canada Inc and ACE Aviation Holdings , the airline said in a statement. ACE is Air Canada's holding company, and Aeroplan manages its loyalty program.

TMX quarterly profit falls as fee changes weigh

TORONTO (Reuters) - Quarterly profit sagged at Toronto Stock Exchange operator TMX Group Inc as expenses rose and cash equity trading revenue was weaker than the market expected, sending its shares down 4.7 percent. The company, which also operates the small-cap TSX Venture Exchange and the Montreal Exchange derivatives market, said on Wednesday that net income fell to C$46.9 million ($43 million), or 63 Canadian cents a share, in the second quarter.

Canada resale home prices rise in May: survey

TORONTO (Reuters) - Repeat sale prices for Canadian homes climbed for the first time in nine months in May on gains in four of six metropolitan areas, a report on Wednesday showed. The Teranet-National Bank National Composite House Price Index, which measures the rate of change of prices for single-family homes in six metropolitan areas, rose 0.7 percent in May, the first month-on-month rise since October.

Goldcorp takes forex loss, maintains guidance

TORONTO (Reuters) - Goldcorp fell to a steep accounting loss in the second quarter on a non-cash foreign exchange charge, the company said on Wednesday, but its core earnings met expectations and the company maintained its 2009 production forecast. Canada's No. 2 gold producer lost a net $231.6 million, or 32 cents a share, in the quarter ended June 30. That compared with a year-earlier loss of $9.2 million, or 1 cent a share, when the company took a smaller foreign exchange loss.

C$ gets slapped by sharp slide in oil prices

TORONTO (Reuters) - Canada's currency fell to its lowest close versus the U.S. dollar in a week on Wednesday as prices for oil, a key export, dropped sharply and sapped investors' appetite for risk. The slide in the Canadian dollar pulled it further from the near 10-month high it hit on Tuesday, yet the selloff lacked conviction and did not cause concern among market experts.

Oil posts biggest loss since April as supplies jump

NEW YORK (Reuters) - Oil dropped nearly 6 percent on Wednesday to near $63 a barrel in the biggest one-day slide since April after data showed a surge in U.S. crude inventories on higher imports and lower refinery activity. Crude stocks in the world's top consumer jumped 5.1 million barrels in the week to July 24, according to data from the U.S. Energy Information Administration, countering analyst expectations for an inventory draw.

MDA profit up on accounting, but revenue plunges

TORONTO (Reuters) - Real estate data and space technology company MacDonald, Dettwiler and Associates posted a higher quarterly profit on Wednesday thanks largely to an accounting measure, but said revenue plunged 23.5 percent. MDA said it earned C$25.3 million ($23.2 million), or 62 Canadian cents a share, in the second quarter. That was up from a profit of C$13.4 million, or 33 Canadian cents a share, a year earlier.

Phone call to NYSE set off Braikan fraud probe

NEW YORK (Reuters) - A phone call to the New York Stock Exchange from an investor worried that he'd just been duped helped spark a chain of events early last week that led U.S. authorities to file fraud charges against a Kuwaiti financier, who was later found dead in his home. Early on July 20, an individual investor called to tell regulators at the exchange he had purchased shares of Harman International Industries Inc on news reports it was the target of a takeover -- reports on some smaller websites that the caller was starting to question.

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