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CA-BUSINESS Summary

24/08/09

Germany urges calm over Opel row as unions threaten

BERLIN/FRANKFURT (Reuters) - The German government sought to calm a growing transatlantic row over the fate of carmaker Opel on Monday as unions threatened "spectacular measures" to force a decision by U.S. parent General Motors. Negotiations over Opel, which GM is selling as part of a government-orchestrated restructuring, have dragged on for months, fuelling anger among its 50,000 European workers, half of which are in Germany.

TSX lifted by economic hopes, resources

TORONTO (Reuters) - Toronto's main stock index gained on Monday, buoyed by economic hopes and firmer prices on oil and other commodities. The price of crude edged above $74 a barrel, extending its rally to trade near a 10-month high, on optimism that an economic recovery will spur a rebound in energy demand.

Surging retail sales lift hopes for Canada economy

OTTAWA (Reuters) - Canadian retail sales grew much faster than expected in June, the latest in a series of upbeat economic numbers to raise hopes the economy is pulling out of recession. Sales jumped 1 percent from May, far surpassing forecasts for a 0.2 percent increase, Statistics Canada said on Monday.

Oil sets 10-month high on recovery hopes

PORTLAND, Maine (Reuters) - Oil prices rallied to a 10-month high near $75 a barrel on Monday, part of a broad global rally in commodities and equities markets propelled by expectations for an economic recovery. U.S. crude rose 59 cents to $74.48 a barrel by 12:00 EDT after peaking at $74.81, the highest intraday price since October 21. Brent crude gained 16 cents to $74.35.

Biovail, Santhera strike Parkinson's drug deal

ZURICH/TORONTO (Reuters) -- Biovail Corp struck a deal with Swiss biotech Santhera on Monday, over a drug to treat dyskinesia in Parkinson's disease, marking the Canadian drugmaker's third significant purchase in the field of central nervous system treatments. Biovail will make an upfront payment of $8 million to Santhera and could pay up to $184 million more depending on the progress of the drug JP-1730/fipamezole to market. It will also pay royalties of 8 percent to 15 percent on sales for the U.S. and Canadian rights to develop and commercialize the drug.

WestJet slows expansion plans as economy stays cool

CALGARY, Alberta (Reuters) - WestJet Airlines Ltd said on Monday it has rejigged plans to boost its fleet, slowing a planned expansion as the economy remains cool, but ordering 14 additional Boeing 737 aircraft for delivery in the middle of the next decade. WestJet, Canada's No. 2 airline, has scaled back plans to boost its fleet of 737s to 121 in four years from 86 at the end of this year. Instead, it plans to have between 108 and 111 planes in 2013 and expects to operate between between 112 and 135 planes by 2016 depending on lease renewals.

Madoff tells inmates he's dying of cancer: report

NEW YORK (Reuters) - Wall Street swindler Bernard Madoff has told fellow prison inmates that he is dying of cancer, the New York Post reported Monday, citing unnamed prison sources. Madoff, 71, who since June has been serving a 150-year sentence at a North Carolina federal prison, has been telling inmates that he does not have long to live, the newspaper said, citing the unofficial and unusual sources.

Canpages to buy social media site GigPark

(Reuters) - Canpages Inc, a Canadian local search and directories publisher, said it agreed to acquire GigPark.com, an online social media platform, to beef up its local search website. GigPark, which allows users to find local businesses and service providers through recommendations from friends, will help Canpages incorporate user recommendations into its search platform canpages.ca, Canpages said in a statement.

Loonie gets boost from upbeat retail sales data

TORONTO (Reuters) - Canada's dollar rose to its highest level in over two weeks versus the U.S. currency on Monday after domestic retail sales data topped expectations. The latest domestic data showed retail sales in Canada rose 1 percent from May, far surpassing the consensus forecast for a 0.2 percent increase.

Warner Chilcott buying P&G drug unit for $3.1 billion

NEW YORK (Reuters) - Warner Chilcott , an Irish drugmaker that specializes in contraceptives and female hormone treatments, will buy Procter & Gamble Co's pharmaceuticals business for $3.1 billion, the companies said on Monday. P&G's branded drugs, including osteoporosis treatment Actonel and Enablex for overactive bladder, have annual sales of $2.3 billion. Warner-Chilcott's annual revenue totals about $1 billion.

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