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CA-BUSINESS Summary

21/08/09

TSX opens with broad gains, led by commodities

TORONTO (Reuters) - Toronto's main stock index drove higher at the open on Friday as a firm tone to key commodity prices boosted the resource-heavy index. The S&P/TSX composite index <.GSPTSE> jumped 108.45 points, or 1.01 percent, to 10,808.96. Nine of the index's 10 main groups were higher, led by a 1.1 percent gain in energy and 1.6 percent advance in materials.

Judge dismisses Biovail suit against SAC Capital

NEW YORK (Reuters) - A New Jersey state judge has dismissed Biovail Corp's lawsuit accusing hedge fund SAC Capital Advisors of conspiring with other firms to drive down the stock price of Canada's largest publicly traded pharmaceutical company. Judge Donald Goldman of the Superior Court of New Jersey dismissed the 2006 suit on Thursday after finding the court lacked jurisdiction and that Biovail failed to prove that it was entitled to damages. Goldman noted he did not evaluate the merits of Biovail's claims against SAC or research firm Gradient Analytics Inc.

GM moves closer to picking Magna for Opel: sources

FRANKFURT (Reuters) - General Motors is moving closer to picking Germany's favored buyer, Magna International and its Russian partners, for its Opel business when GM's board meets on Friday, sources close to the matter said. "It's going in the direction of Magna," one of the sources told Reuters, adding GM's board would probably favor the automotive group's offer over that of Brussels-based financial investor RHJ International.

Oil hits 2009 high above $74, eyes Fed speech

LONDON (Reuters) - Oil touched a high for this year above $74 a barrel on Friday ahead of further pointers on the economic health of the United States and as the dollar flagged against a stronger euro. By 1305 GMT (9:05 a.m. EDT), the new front month U.S. crude futures contract for October delivery was up $1.15 at $74.06 a barrel, after briefly touching $74.48, its highest of the year. London Brent crude for October was up $1.10 at $74.43.

Bombardier terminates big Learjet order

TORONTO (Reuters) - Bombardier Inc said on Thursday that it scrapped a large Learjet contract with Jet Republic after the upstart private aviation company declared insolvency, underlining the ongoing turbulence in the business jet market. Shares of Bombardier were down 19 Canadian cents, or 4.6 percent, at C$3.95 on the Toronto Stock Exchange shortly after the market opened.

Teachers buys out CTV's stake in Maple Leaf Sports

TORONTO (Reuters) - The Ontario Teachers' Pension Plan said on Thursday it is buying a 7.7 percent stake in Maple Leaf Sports and Entertainment from privately held media company CTVglobemedia. Buying out the last of CTVglobemedia's investment means Teachers will have a 66 percent stake in MLSE, Canada's largest sports company. Financial terms weren't disclosed.

Strong euro zone PMI boosts global stocks, euro

LONDON (Reuters) - World stocks rose and the euro hit its highest in nearly one month against sterling on Friday after the euro zone manufacturing and services survey showed significantly bigger improvement than expected. The survey by Markit showed the decline in the euro zone's dominant services sector almost came to a halt in August and businesses' expectations for the future soared to their highest level in more than two years.

Loonie hits fresh one-week high, bonds up

TORONTO (Reuters) - The Canadian dollar hit a fresh one-week high on Friday as overseas equities reversed course and rebounded, boosting risk appetite, while firm underlying commodity prices also helped. The Canadian unit weakened overnight to as low as C$1.0944 to the U.S. dollar, or 91.37 U.S. cents, before retracing ground when risk appetite was switched on by a late rally in Chinese stocks. European stocks were also higher on strong readings of euro zone purchasing managers' surveys.

Back-to-school looks weak for apparel retailers

SAN FRANCISCO (Reuters) - If earnings reports released on Thursday are a sign of business to come, U.S. apparel retailers will have to continue cutting costs and discounting as slumping sales persist. Gap Inc , operator of the Gap, Old Navy and Banana Republic chains, streamlined operations and reduced inefficiencies to generate a quarterly profit that beat analysts' expectations. But its revenue fell 7 percent in the quarter and same-store sales dropped as much as 15 percent in its stores.

U.S. approves Alberta Clipper pipeline project

CALGARY, Alberta (Reuters) - The United States approved Enbridge Inc's $3.3 billion Alberta Clipper pipeline project on Thursday, granting the project, which will deliver Canadian oil to U.S. refineries, a presidential permit, and raising the ire of some environmental groups. The U.S. State Department said that allowing construction of the 450,000 barrel per day line serves U.S. interests by adding secure oil supplies from outside the OPEC nations at a time when political tensions in some producing regions threaten to interfere with oil shipments.

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