News from Reuters

Reuters Canada Business Summary

17/05/08

Canadian union accepts GM Canada labor deal

MONTREAL (Reuters) - Canadian Auto Workers union members at three General Motors of Canada locations have voted in favor of a new three-year labor agreement with the company, the union said late on Friday. The deal, based on an agreement ratified with Ford Canada earlier this month, will see wages frozen, but includes some cost of living increases in the second and third years, as well as a comprehensive buyout package for workers set to be laid off.

Toronto stocks' glitter not all gold

TORONTO (Reuters) - There was a golden moment for Canadian stocks this past week when the Toronto market's main index powered to a record high, reversing losses triggered by last year's credit crunch and concern about the U.S. economy. But there's lead beneath the golden glimmer: the recovery is deeply lopsided, and cash is still king for many investors.

RIM will launch touch-screen BlackBerry in Q3: report

TORONTO (Reuters) - BlackBerry maker Research In Motion Ltd plans to launch a touch-screen version of the wireless e-mail device in the third quarter as an answer to Apple Inc's iPhone, the Wall Street Journal reported on Thursday. The device, known as the Thunder, is to be sold exclusively through Verizon Wireless in the U.S. and Vodafone PLC abroad, the Journal reported on its Web site, citing people familiar with the matter.

Commodities power Toronto stocks to record close

TORONTO (Reuters) - The Toronto Stock Exchange's main index hit another record high on Friday as energy and materials shares rose on strong commodity prices and powered the composite to a level just shy of the 15,000 mark. The S&P/TSX composite index rose 156.14 points, or 1.05 percent, to close at 14,984.20, giving it a gain of 3.2 percent for the week. Last Friday, it closed at 14,521.19.

Court puts key ABCP decision on hold

TORONTO (Reuters) - An Ontario court delayed a crucial decision on a C$32 billion ($32 billion) restructuring plan for Canada's nonbank asset-backed commercial paper market on Friday until the judge hears further submissions. In a written decision, Judge Colin Campbell said that after two days of submissions, "I have concluded that the approval motion should be adjourned for the purpose of further submissions on behalf of interested parties."

Canadian dollar nearly flat ahead of long weekend

TORONTO (Reuters) - The Canadian dollar was flat against the U.S. dollar on Friday in quiet trade ahead of Canada's Victoria Day long weekend, but it did record its second straight weekly gain as the commodity-linked currency drew support from robust oil prices. Canadian bond prices, with no key economic data to consider, drifted lower along with the U.S. market.

American Axle and UAW reach tentative agreement

DETROIT (Reuters) - The United Auto Workers and American Axle & Manufacturing Holdings Inc reached a tentative contract agreement late Friday aimed at ending an 11-week-long strike that had triggered thousands of layoffs and cost General Motors Corp at least $1 billion. Both sides confirmed that a tentative deal had been reached to end the strike by some 3,650 U.S. hourly workers at the auto parts supplier but neither side offered details of the proposed contract.

Rothmans profit gets lift from higher prices

OTTAWA (Reuters) - Fourth-quarter profit at Rothmans Inc grew 17 percent, Canada's No 2 cigarette maker said on Friday, as price increases more than offset pressure from a growing trade in contraband tobacco. Increased competition to sell low-priced cigarettes and declining volumes posed further difficulties, but Rothmans said it is well positioned financially to withstand market pressures thanks to C$234.9 million in cash reserves.

Canadian Arctic gas pipeline faces new delay

CALGARY, Alberta (Reuters) - A key regulatory report for the C$16.2 billion ($16.2 billion) Canadian Arctic gas pipeline is being delayed by several months, likely pushing the start-up date for the stalled development back again. The Joint Review Panel report into the environmental and social impacts into the Mackenzie Valley pipeline will not be published until next year, an official with the panel's administrative arm said on Friday.

Oil hits record as Saudi hike fails to stem rally

NEW YORK (Reuters) - Oil shot to a record high near $128 a barrel on Friday as a bullish price forecast from investment bank Goldman Sachs drowned out an offer of more supply from OPEC kingpin Saudi Arabia. U.S. crude settled up $2.17 at $126.29 a barrel after touching a peak of $127.82 earlier in the day. London Brent rose $2.36 to $124.99.

© 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.