News from Reuters

CA-BUSINESS Summary

21/08/09

TSX gains on Fed and housing, led by resources

TORONTO (Reuters) - Toronto's main stock index drove higher on Friday as risk appetite gained momentum with an upbeat read of U.S. home sales data and stronger prices for key commodities such as gold and oil. Better than expected sales of previously owned U.S. homes in July, which also recorded their fastest pace in nearly two years, were the strongest sign yet that the U.S. housing market was pulling out of a three-year slump.

Bernanke says prospects for return to global growth good

JACKSON HOLE, Wyoming (Reuters) - Federal Reserve chief Ben Bernanke on Friday said prospects for a return to global economic growth looked good "in the near term," the clearest signal yet the world's most powerful central banker thinks a recovery is at hand. "After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return to growth in the near term appear good," Bernanke told an annual Fed conference here in the shadows of the Grand Teton mountains.

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 shoots to two-week high after Fed comments

TORONTO (Reuters) - The Canadian dollar rallied to its highest level in two weeks against the greenback on Friday after U.S. data and comments from Federal Reserve Chairman Ben Bernanke suggested the economy is on the mend. Canada's currency rallied as high as C$1.0764 to the U.S. dollar, or 92.90 U.S. cents, which marked its highest level since August 7. That was up comfortably from C$1.0873 to the U.S. dollar, or 91.97 U.S. cents, at Thursday's close.

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.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.