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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) - U.S. Federal Reserve chief Ben Bernanke on Friday offered his clearest signal yet that he thinks a global recovery is at hand, but warned growth would be sluggish and unemployment stubbornly high. "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.

Chrysler deputy CEO Press to leave: source

DETROIT (Reuters) - Chrysler Group LLC Deputy Chief Executive Jim Press has conveyed his plans to leave the automaker by November, according to a person briefed on the still-confidential discussion. Press, 62, was the only member of Chrysler's senior leadership team to remain with the company after a fast-track bankruptcy under the supervision of the U.S. Treasury.

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.

Lonza trumps JLL with $460 million Patheon bid

ZURICH (Reuters) - Swiss drugs industry supplier Lonza has outbid U.S. private equity group JLL for Canadian drugmaker Patheon in a deal worth $460 million, seeking to boost its manufacturing capacity. Lonza's bid of $3.55 per share for Patheon offers a potential windfall to majority shareholder JLL Partners, which launched an offer at $2 a share last December and has been building its stake since.

Oil hits 2009 high above $74 on economic optimism

NEW YORK (Reuters) - Oil rose nearly $1 toward $74 a barrel on Friday, after earlier hitting 2009 highs, as data in the United States promised economic recovery and a potential revival in energy demand. Home sales data for July showed recovery in the U.S. housing market, while Federal Reserve Chairman Ben Bernanke said that the global economy appears to be on the mend.

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.

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.

World stocks, dollar gain after U.S. housing data

NEW YORK (Reuters) - World stocks and the dollar rose on Friday after a sharp jump in U.S. home sales and an optimistic outlook from Federal Reserve Chairman Ben Bernanke stoked optimism of a global economic recovery. European shares rose to their highest close since early November and the euro rose to its highest level against sterling in nearly one month after a euro zone manufacturing and services survey showed more improvement than expected.

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