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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 leans toward Magna for Opel deal: sources

FRANKFURT (Reuters) - General Motors is leaning toward picking Canada's Magna International and its Russian partners -- Germany's favored suitors -- as preferred buyers for the Opel business in Europe, sources close to the matter said on Friday. But the automotive group faced a stiff challenge from Brussels-based financial investor RHJ International as GM's board weighed rival offers for Opel, which started making cars in 1899 and which GM bought in 1929.

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.

Canada's Verenex runs short of time for China deal

LONDON (Reuters) - Canada's Verenex Energy Inc. is running short of time to get Libyan approval for its $460 million sale to China, making some investors pessimistic that the deal will go ahead. Verenex, a small Canadian oil company working in Libya, needs Libyan consent by August 24 for the China National Petroleum Corp (CNPC) deal to go ahead. While Libya has said it will pre-empt the bid, it has not made a formal offer and has not given consent to the Chinese deal.

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.

Loonie hits 2-week high on economic optimism

TORONTO (Reuters) - The Canadian dollar rallied to its highest level in two weeks against the greenback on Friday as a rise in oil prices to a 2009 high and healthier U.S. housing data helped boost risk appetite. The U.S. data showed sales of previously owned homes in July notched their fastest pace in nearly two years, which the market interpreted as the strongest sign yet that housing was pulling out of a slump.

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.

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