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Reuters Canada Business Summary

27/08/08

CIBC stock jumps after bank ekes out slim profit

TORONTO (Reuters) - Canadian Imperial Bank of Commerce reported lower than expected charges on structured-credit investments as it booked its first profit in three quarters on Wednesday, giving its shares a hefty lift. Canada's fifth-biggest bank reported a 91 percent drop in third-quarter profit, as it was stung by further losses on structured credit investments and hedges related to the U.S. residential mortgage market.

Toronto stocks get big lift from resources, banks

TORONTO (Reuters) - The Toronto Stock Exchange's main index jumped more than 200 points on Wednesday, as the key resource and financial sectors were lifted by commodity prices and a rally by Canadian Imperial Bank of Commerce after it reported lower than expected charges for the quarter. Oil jumped to above $118 a barrel as Tropical Storm Gustav was expected to intensify into a hurricane that could threaten U.S. oil and natural gas production in the Gulf of Mexico.

Swift Canada high court decision sought on ABCP

OTTAWA (Reuters) - Both sides involved in a dispute over a restructuring plan for asset-based commercial paper (ABCP) asked the Supreme Court of Canada on Wednesday to expedite any hearings it might hold on the matter. "We're seeking a hearing by the end of September," said Howard Shapray, a lawyer for Ivanhoe Mines , which is opposing the plan to restructure the market, which was worth C$32 billion ($30 billion) before trading stalled last summer.

Canadian dollar firms as oil prices rise

TORONTO (Reuters) - The Canadian dollar edged higher against the U.S. dollar on Wednesday, helped by firming oil prices as Tropical Storm Gustav looked as though it might strengthen as it heads toward key oil installations in the Gulf of Mexico. Domestic bond prices rose on the short end, as traders bet the sell off in recent weeks had gone far enough, bringing yields back into line with interest rate expectations.

Canada economy seen skidding in 2nd-quarter

OTTAWA (Reuters) - Canadian economic growth probably slowed to a crawl in the second quarter despite a flood of cash from oil and other exports, but analysts said the country will narrowly avoid slipping into recession. After a surprise contraction in the first quarter, GDP is expected to expand by 0.7 percent in the April-June period, according to the median forecast in a Reuters poll.

Alaska governor signs natgas pipeline license bill

ANCHORAGE, Alaska (Reuters) - Gov. Sarah Palin on Wednesday signed a bill giving the state authority to award TransCanada Corp a license to build and operate a multibillion-dollar pipeline to ship natural gas from the North Slope. The line, which the company estimates will cost $26 billion to build, would ship about 4 billion cubic feet of natural gas a day starting in 2018, according to TransCanada's plan.

Maple Leaf takes blame for food poison outbreak

TORONTO/WINNIPEG, Manitoba (Reuters) - The head of Canada's biggest meat processor said on Wednesday his company was fully accountable for a nationwide outbreak of listeriosis food poisoning, which has been linked to deaths of 15 people. "The buck stops right here," Maple Leaf Foods Inc

Cott says feeling pressure from national brands

OTTAWA (Reuters) - Struggling soft drink maker Cott Corp said on Wednesday that customers in its key retail market are turning to big national-brand rivals to help attract traffic and drive sales at their stores. The world's biggest maker of store-brand soft drinks said that "very, very aggressive" promotions from carbonated soft drink (CSD) competitors such as Coca-Cola Co were partly behind the sharp cut to Cott's 2008 profit forecast on Tuesday.

Oil rises as Gustav threatens U.S. Gulf

NEW YORK (Reuters) - Oil rose on Wednesday on forecasts that Tropical Storm Gustav will intensify into a hurricane as it ploughs toward the U.S. oil and natural gas platforms in the Gulf of Mexico. Further support came from weekly U.S. government inventory data that showed an unexpected drop in crude oil stockpiles in the world's top consumer.

Canada bank profits soften more than expected

TORONTO (Reuters) - Canada's third and fourth biggest banks reported lower than expected profits on Tuesday, with the U.S. housing market proving to be a key factor separating a double-digit drop from a modest one. Bank of Nova Scotia posted a 2 percent decline in net income but the No. 3 bank still managed to rack up more than C$1 billion ($952 million) in earnings.

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